Student debt "Crisis"

[brsnow]

The crisis isn’t for the people that owe, it is the impact on the economy and banking system if not addressed.

 

[Okhotnik]

But it’s my daughter Tiffani’s and or my son lance’s dream to be an art history major

 

[dwils233]

Our in-state universities (MT) have increase at 2% and 4% per year for resident and non-res tuition respectively....Private colleges are likely much more

Most states have a cap on how much they can increase tuition each year in public universities. I think Washington was 7% until the recession and then they raised the cap to 14%. surprise surprise, I don't think they ever lowered the cap back down but instead just don't do the full 14% each year. When the next recession hits or the state needs to balance a budget it'll jump back to 14% or they'll increase the cap again

 

[Akwoodchuck]

I swing a hammer, each and every day....set my own schedule, pretty much do what I want, when I want, make awesome money.....
.....college? Suckers....

 

[squirly1]

Ruff getting started when they offer loans with daily acquiring interest.lol read the fine print.lol

 

[elkstabber]

There are a wide variety of opinions on this and I think it is very important for posters to give their age. Because our perspective on the student loan crisis depends so much on our age and when/if we went to college. I went right after HS and am now 50. Here is how it used to be.

I grew up lucky. My parents were divorced and I lived with my mom. Of course, this was how it was done in the late '80s when I graduated HS. I knew I was headed for engineering because I've always had the ability to see and learn how things work. I easily understood the workings of the early compound bows and could take apart fishing reels and put them back together right.

When graduating HS I had been accepted to a couple of colleges for an engineering degree. There were two good choices. One was the nearby state university, which cost less and most engineering graduates got their degree in 5 years (University of Maryland). The other was a far off private university, which cost more and the engineering graduates got out in 4 years (Clarkson University).

Here is where I got lucky: due to my mom's income and assets I automatically qualified for the maximum guaranteed student loan. The balance of the costs would have to be made up by college grants of some sort. And my mom had to pay a nominal amount also. This effectively meant that my two school options would cost me the same per year. So the decision was simple: either pay for 4 years or 5. Duh, the only smart decision was to go to the distant private college and that is what I did.

I was very lucky because when I was in school my loan only racked up $4,000 per year until my brother started college and then my obligation dropped to $2,750 per year. So in four years I graduated with a loan for $13,500. My first job in the early '90s immediately after graduation paid $27,000. I was a tight bastard and paid off the loan in 1-1/2 years. I still remember celebrating with a 6 pack of Miller Lite in cans.

Clearly I got through at a lucky time and chose a good degree that I immediately put to work. Of course I'm partly kidding when I say that I grew up lucky because growing up with divorced parents and with my mom having two jobs times were tough for sure. I was unlucky in a lot of ways growing up, but lucky that my loans were affordable after graduation.

What do you do to help your kids go to college? My wife and I make good money and therefore, our kids won't qualify for loans based on need.

Our kids are both doing very well in school and have common sense. It is very likely that they will go to a community college for 2-3 years while living at home and working part time jobs. Then they'll only go away to a university for long enough to get their degree. My wife and I will not let them start a degree that won't pay back.

Is this a good strategy? Are online courses a viable way to get a useful degree?

 

[Wapiti1]

My story is similar to Elkstabber's. I'm 42 and went to MT Tech for engineering due to overall cost of the degree. I was accepted at several schools in MT and outside, but they made no financial sense. After 5 years, I got out with a degree and a minor and $24,000 in debt. All self funded through jobs, grants, scholarships and loans. My folks didn't have the means to help and I am glad they didn't mortgage their future for mine. My first job landed me in Illinois making $42,000 working in a steel mill. The loans were paid in 4 years.

I well understand the issues with student loan overhang in this country and it's eventual impact on financial institutions. Ultimately, taxpayers will fund this in some way since most of these loans are government guaranteed.

That said, I agree that there is a huge amount of stupidity on the behalf of parents and students in their decision making. A degree in ancient languages is worthless, as are most liberal arts degrees. These people had no plan or notion of what future they wanted to create for themselves.

You'll find most people that had good college/work experiences, regardless of loan debt, knew where they were going and got a degree that enabled that. It is also likely that the degree cost to earnings potential was better than a future barista's was.

Jeremy

 

[flatlanderhuffandpuff]

The crisis isn’t for the people that owe, it is the impact on the economy and banking system if not addressed.

What happens when a huge amount of people start getting toward retirement age with student loans and SS has been insolvent for a decade? I honestly don't know but it's going to get bad.

looking around today I wouldn't necessarily know there was a crisis. I still see people driving new cars and living in houses that are too big while going out to dinner several times a week. It makes me scratch my head.

I know a guy who bemoans the good old USA because we don't have "free" healthcare and "free" college and how he cant afford those things. He drives not one but two late model sports cars and rides a bicycle worth more than my only car to and from multiple weeks long vacations. On top of that he's a vegan, which is an expensive endeavor if you look into it.

Its hard to see this as a crisis when the complainers only give lip service.

 

[brsnow]

What happens when a huge amount of people start getting toward retirement age with student loans and SS has been insolvent for a decade? I honestly don't know but it's going to get bad.

looking around today I wouldn't necessarily know there was a crisis. I still see people driving new cars and living in houses that are too big while going out to dinner several times a week. It makes me scratch my head.

I know a guy who bemoans the good old USA because we don't have "free" healthcare and "free" college and how he cant afford those things. He drives not one but two late model sports cars and rides a bicycle worth more than my only car to and from multiple weeks long vacations. On top of that he's a vegan, which is an expensive endeavor if you look into it.

Its hard to see this as a crisis when the complainers only give lip service.

Not enough people have defaulted yet, the trend is there. People were living large in 2006-2007 as well.

 

[Boarmaster]

I would like to see more trades being taught at the high school level as well as post high school. Many need to go to work right out of high school to earn a living. You need different basic education in high school if your going into the medical or technical or trade fields. We should be teaching good fundamentals k-8th and then get more specialized 9-12. If Highs school kids had some trade skills they could work in those fields during the summers and on weekends if they wish to see if they really like and excel at those trades.

 

[Boarmaster]

-Just to add fuel to the fire-

disclaimer- I know not all women desire to be married and have a family.

My wife got a degree to be a social worker, luckily she had her education paid for as she was only making about 40K in a very high stress job. We met and were married with kids shortly after. She couldn't imagine having to leave the kids at home and go back to work. If she had loans It would be difficult to cover with one income in addition to the cost of a family.

We have talked about her degree and if it was worth it. She will likely not work for another 5-6 years outside the home and will be probably making about the same amount if she works in the social worker field. She wouldn't trade the experiences she has gained but thinks it didn't make financial sense. I wonder how many women have to go back to work because of student loans and wish they never went to school.

Obviously the value of family has degraded over the years and many women want the security of providing for themselves.

My niece went to school for social work. We tried like heck to talk her out of it as its one of the higher stress higher work load lowest pay occupations. Despite the facts she proceeded to follow that course. She doesnt have much debt but still too much and know bitches about her occupation and pay. Prime example of many these days. Fortunately she just landed a job with a health care company and her pay , benefits and working conditions are going to be better. Still a hard lesson learned.

 

[zacattack]

Our kids are both doing very well in school and have common sense. It is very likely that they will go to a community college for 2-3 years while living at home and working part time jobs.

Is this a good strategy? Are online courses a viable way to get a useful degree?

Just be careful. Many 4 year universities won’t accept some credits from community colleges or online. If they are smart enough and it’s available they should take any courses they can in high school that will count as college credit. We have many students that come from high school already with around 15 credit hours, hell I’ve seen a few that have enough credit to be classified as a sophomore. That would be a better option than community college.

 

[chasewild]

I'm 37. A lawyer. I'm about $160k deep in loans. I graduated law school in 2010.
My sister is 31, presidential scholar in med school, will finish residency in 6 years with about $300k in loans.
Our parents are blue collar. Told us to work hard and get "good jobs." The only thing I have to say to this thread is the below. If you haven't read it by now, get.out.of.your.cave.

https://www.buzzfeednews.com/article/annehelenpetersen/millennials-burnout-generation-debt-work

 

[Savage99]

Just be careful. Many 4 year universities won’t accept some credits from community colleges or online. If they are smart enough and it’s available they should take any courses they can in high school that will count as college credit. We have many students that come from high school already with around 15 credit hours, hell I’ve seen a few that have enough credit to be classified as a sophomore. That would be a better option than community college.

Back in FL, if you had an AA from a community college, a state university had to accept you as a student. Now, that doesn’t mean you get accepted into a particular college (ex. College of Engineering).


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[Oldffemt]

I swing a hammer, each and every day....set my own schedule, pretty much do what I want, when I want, make awesome money.....
.....college? Suckers....

Haha, I did the same for 25 years, made 50-60k a year after I had learned the trade while my buddies were coming out of college with huge loan payments and taking $15/hr jobs to “get started” Through hard work and good work ethic I got into project management with no degree. Construction trades are booming and there is a shortage of skilled labor. Last I checked the average construction worker was a 52yr old white guy and that average age keeps climbing. I’m considering going back to self employment because of the shortage of labor, I should be able to name my price and only take on the projects that make sense to me. It’s definitely not the slumming dummy lifestyle that my HS guidance counselor told me it would be.

 

[davsco]

When I was a kid the teachers I had laid it out like this, basically college is an investment in yourself. If you go to college you’re investing in your future and banking on the fact that what you earn your degree in will pay off in the long run.

YES! an investment, not an entitlement!

and to the guy that paid off everyone's student debt at that one school, instead he should have given $X to each graduate and let them do what they wanted with it. he rewarded those that didn't plan for school and didn't work during school so they wouldn't have a mountain of debt. i went to an affordable (but good) school and worked my azz off throughout high school and college and graduated without a penny in debt. i highly resent bailing out those that racked up debt willy nilly.

 

[C Bow]

Why is it a crisis they signed for it pay it back and shut the hell up. If they were so stupid to get a degree that ain't going to get them a job move there sorry as to Sanfransico

 

[zacattack]

Back in FL, if you had an AA from a community college, a state university had to accept you as a student. Now, that doesn’t mean you get accepted into a particular college (ex. College of Engineering).


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They may have to take you but that doesn’t mean they will accept all credits. If your kids really want to do the CC route, they should just take the credits that they need for a bachelors and that will transfer. I wouldn’t even worry with the AA degree

 

[Poser]

I swing a hammer, each and every day....set my own schedule, pretty much do what I want, when I want, make awesome money.....
.....college? Suckers....

I open a laptop for a couple of hours a day. Set my own schedule, pretty much do what I want, when I want. Have 2 meetings a week.

 

[Savage99]

They may have to take you but that doesn’t mean they will accept all credits. If your kids really want to do the CC route, they should just take the credits that they need for a bachelors and that will transfer. I wouldn’t even worry with the AA degree

I agree with you ... and me, maybe.


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