The Student Loan Problem

We have been talking about debt, but mostly credit card debt, not mortgages or student loans.  I do not know much about student loans, but have had quite a few readers comment about their issues and this prompted me to do a little reading.  Now, I do not know the ends and outs, nor do I fully understand the details or complexities so take this article as an entry level get the conversation rolling type.  Anywho, here it is:

http://www.thefiscaltimes.com/Articles/2012/03/01/How-College-Debt-Is-Crushing-the-American-Dream

iStockphoto/TheFiscalTimes
iStockphoto/TheFiscalTimes

Big Dreamer

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21 thoughts on “The Student Loan Problem

  1. When money is borrowed it should be paid back according to the terms that the borrower agreed to. My kids worked their way through college and that combined with scholarships meant no time for play time for four years and also meant no debt after they got that diploma. No one should loan money to people who don’t even have jobs, I have trouble working up sympathy to lenders when former students default. Seriously, what did they expect? On the other hand I have trouble working up sympathy for the adults who choose to borrow money and then don’t want to pay it back. I have trouble working up sympathy for adults who sign an agreement to terms for payback and then feel as if they shouldn’t have to honor that promise. I don’t think the problem is the loans I think the problem is irresponsible people. The best way to learn not to borrow is to be forced to pay out an enormous “stupidity debt” that lesson has a way of sticking with them for life.

      1. The idea is that if I don’t like my marriage, I’ll just get a divorce. If I can’t pay my bills I’ll just not pay or file for bankruptcy. Individuals must understand the words commitment and responsibility.

      2. When my wife and I were dating and beginning the marriage talk we discussed in depth our views on what commitment means, integrity and having character. One of the traits that Evelina has that attracted me, besides her beauty, was her incredibly high character and integrity. She shined like a beacon in the night.

  2. Great article and very true…we put aside money to pay for tuition and sent three of our four boys to state schools while they lived at home and worked part-time (the fourth is still in high school – but will also go to a state school). Two graduated and are working and live out on their own (one is a teacher and the other graduated in May with his masters from Virginia Tech and is a civil engineer). No debt…just hard work, dedication and savings.

  3. Money should always be repaid. Definitely! The problem I have is when I learn that illegals have been fully funded through their college years. (My niece was a Financial Aid/Pell Grant advisor.). If the truth were only known…if only…

    My husband and I are older parents. We were financially set, and then the market fell, and with it, the savings for college funding was utilized for living expenses AND my husbands advanced degree.

    Fast forward, we pay $960 a month for our two daughters college loans. We’ve never defaulted, missed a payment, but we are miffed whenever we hear of the illegal never paying a dime and receiving a free education. It ain’t free folks! It is paid for by our tax dollar!

    I think my blood pressure is rising. I better go before I blow! Let me give you one last little thing to chew on; it’s something you won’t hear about on the street, or even read about in any financial journal:

    My niece was also the RA (Residence Aid) at one particular school in Texas. I was visiting, the knock on the door came when two students requested toilet tissue. ‘The Pantry’ was out and they needed a few rolls. So…it’s not just tax dollars for education, it’s a razor, shave cream, shampoo, bars of soap…

    Do I sound a bit peeved? Damn, I feel better just getting that off of my chest. Now, who is willing to stand beside me and argue my points? I dare ya!

    There is sooooooo much Obama failed to tell you.

  4. I had my student loan reversed due to being on permanent disability. If I go back to work or school they will resume it.You can’t get rid of it in a bankruptcy either. I tried that. It took me several months, but they finally reversed my loan.

      1. They are and mine was relatively small compared to some who go to 4 years of Ivy League Colleges or just 4 years of college and then the masters, etc,

  5. So many millions could not find work or had to work for minimum wage and they’ll never be able to pay back even under the best of intent. I know a few with college loan debt-they can’t even afford a car.

    1. Those are a few of the reasons that I started reading up on the problem. I never used student loans but I know a few kids that have and they are in the same ship. Terrible job market, no entry level jobs and very low pay. Several of them have gotten out of school and spent the last few years waiting tables and bartending to make ends meet. The student loan debt is 400 per month! There’s the car payment!

  6. It’s been sixteen years since my undergrad degree and four and a half since my masters and I still can’t pay off my loans, much less find work with steady, livable pay–in any field. I got fired from Panera, though! LOL

    1. Some have said that unless you can pay over $1,000 per month the loans will take 10+ years to pay off. I see this is the case you’ve experienced.

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