Student loan debt

[dennis in se pa]

I am sorry. I know a lot of under graduates get taken advantage of. And I think it is simple predatory lending that should be a crime. But this guy went to grad school and is complaining that he did not understand what he was signing when he applied for loans for that. Shouldn't one be expected to be a little more "aware" by the time he applies for grad school? We know that being a college graduate does not mean you know how to spell properly or have proper grammar, but one should be expected to read and understand a document.

"I didn't realize what I was agreeing to when I was signing my student loan documents for graduate school because it had never been explained to me. "

The full article......

Living in a Converted Garage With a Master's Degree*|*DJ Cook

[Bugsinrugs]

Yes, one should do their due diligence before signing anything. That being said, my son is finishing his third year of medical school and is looking at a debt from loans around 300,000. He knew what he was getting into but the fact that the interest is at 7% is a rip off in my mind.

[widgeon13]

I don't see the "I didn't realize blah, blah.......", as a legit excuse. Especially after getting a degree in economics. I have no sympathy for the person.

I went from college to the military, spent two years in Germany. Got married and had a child in that timeframe. I never signed anything w/o knowing the implications of my decisions, even back then.

[RANDY P]

a degree in Economics and he decides to become a public school teacher? Why not a paper route?

No pity, just because you have passion to teach doesn't mean you are exempt from the basic laws of money.

PS- the article doesn't mention that since he's a public servant he gets loan forgiveness after 10 years. Consolidate the loans, take min payment, wait it out.

IDIOT.

[RANDY P]

What's even funnier are the idiot liberals who support this guy and his excuses for ineptness. Few seem to understand that if you don't get paid enough, you have find other work. Some people have to leave their homeland to meet this demand, but we have people here in the USA who are absolutely-frekin-clueless and assume if you have a degree you just automatically make enough to pay the bills on it.

One guy claims he instructs at Harvard and STILL can't understand a Credit Card contract- just like Elizabeth Warren said in 2009- Are you serious?

Idiots. All of 'em.

[Noah930]

It's true that little, if any, of this gets explained to prospective students as they're signing loan docs. But what part of "I'm borrowing money and it's expected that I have to pay it back over time" do people not understand? Don't sign up for 6-figure loans for lower wage/salaried jobs.

[CurtEgerer]

I remember sitting in a parent's orientation class about 6 years ago at my daughter's university. They told us point blank that they had a 95% placement rate in her field. I'd estimate the actual placement rate is under 20%. Does she have any recourse for false advertising?

Universities are really no more than all-inclusive 4 year luxury resorts for kids these days (have you seen a typical university cafeteria or dorm room or fitness center these days ) They should offer a money-back guarantee that work's like this: I will give you back my 4-year degree that hasn't gotten me the career you promised, and you can erase all record of it and just return my 4 year's worth of tuition in full and we'll all walk away happy

[Noah930]

Originally Posted by CurtEgerer

They told us point blank that they had a 95% placement rate in her field.

Maybe they included "moving back home with the parents" under successful post-grad placement?

[john70t]

(this belongs in PARF)
Many 1st World countries have a simpler system.
A system which is dedicated to helping young people adjust to a potential future world.
Let's say that again: "which helps young people adjust".

Some brilliant college students don't originate from standard backgrounds.
They overcome family and economic problems.
Then they face an illogical and insurmountable wall of bureaucracy.
This kills the man.

In many other 'bizzaro countries' higher education is a good thing.
A positive thing....
Learning, understanding, and nurturing the human brain is considered as a positive.
Not a negative.

[john70t]

IMO, at this point the banking system appears to seek to destroy the educational system.

[Cajundaddy]

Soooo, this guy is making $4800/mo and he is sweating $400/mo student loan pmts? Clearly he didn't learn much in all those Econ classes. Grow some nads junior.

[RANDY P]

A college degree is just a tool. What you do with that tool is what determines your success in life.

Face it, there are many, many clueless graduates that aren't much smarter than when they started- and unfortunately, these people know how to lie, use the internet and make convincing slogans and signs.

it's never THEIR fault.

rjp

[RANDY P]

Originally Posted by CurtEgerer

I remember sitting in a parent's orientation class about 6 years ago at my daughter's university. They told us point blank that they had a 95% placement rate in her field. I'd estimate the actual placement rate is under 20%. Does she have any recourse for false advertising?

Universities are really no more than all-inclusive 4 year luxury resorts for kids these days (have you seen a typical university cafeteria or dorm room or fitness center these days ) They should offer a money-back guarantee that work's like this: I will give you back my 4-year degree that hasn't gotten me the career you promised, and you can erase all record of it and just return my 4 year's worth of tuition in full and we'll all walk away happy

that 95% placement a lot of times is the kids working for the schools- for minimum wage.... That's how that # is rigged.

[masraum]

I just read the article; what a whiny beyotch! Does it suck? I'm sure. But it was his choice.

[john70t]

The 'pile-on the victim' tendency is very high in this thread.

Please stop. Then consider national educational policy vs. a single media (hyperbole) example.
Please consider how vulnerable you are to any external psychological trigger.

Then consider why this is...

[onewhippedpuppy]

Signing up for thousands in loans without understanding the terms makes you an idiot, not a victim. If you don't understand the importance of not signing a legally binding contract until you understand it, you deserve what is coming to you. 5 minutes on Google can be very educational, it's not like these things are a secret.

As for the rest, we are supposed to feel bad for this whiner because he has a $400/mo payment making $56k and he can't buy his dream house? YGBSM! He's been laid off six times but takes zero responsibility for the fact that he didn't make the cut, he has lived in two very expensive states (CO & CA), and he's not living his dream at 36. This sort of entitled not my fault attitude is what's wrong with our country. I paid off $44k in loan debt in two years making about $52k by working overtime and buying, fixing up, and reselling cars, as well as my family living like poor people. I also moved somewhere with low cost of living and available jobs. I just can't believe this POS has the nerve to complain about how bad he has it.

[RANDY P]

Originally Posted by john70t

The 'pile-on the victim' tendency is very high in this thread.

Please stop. Then consider national educational policy vs. a single media (hyperbole) example.
Please consider how vulnerable you are to any external psychological trigger.

Then consider why this is...

Boy, so much for free will and personal choices....

Psychological trigger? You mean It's not my fault / The Devil made me do it / I'm disadvantaged?

Read what you're signing. You have no one to blame but yourself.

rjp

PS I don't know about you, but I'm secure enough in my judgement that my mind is set- I think for myself. I don't follow advice by just anyone or listen to just anybody.... Sheep do that.**

[Noah930]

Originally Posted by Cajundaddy

Soooo, this guy is making $4800/mo and he is sweating $400/mo student loan pmts? Clearly he didn't learn much in all those Econ classes. Grow some nads junior.

Originally Posted by john70t

The 'pile-on the victim' tendency is very high in this thread.

Please stop. Then consider national educational policy vs. a single media (hyperbole) example.
Please consider how vulnerable you are to any external psychological trigger.

Then consider why this is...

Like the author of the original Huff Post article in question, 6 months after I graduated from grad school I started repaying my students loans. My salary was just under $36K (vs. $52K for the author). My loan payments were something like $672 per month (vs. $400). I borrowed about $50K total (vs. $36K). And you know, I paid that $672/mo while living in a high-cost city (Boston).

Now, I was fortunate in that I was able to consolidate my loans several years later to drop my monthly note to about $360. And I had a steady job without layoffs. But I was able to make those payments because I sacrificed. While still being able to save a little under Roth and 403b plans. After 14 years I finally paid off the last of my loans. There are discouraging things in life. This guy needs to learn to persevere.

[Noah930]

Oh, and he (the author) whines that after 2 years of paying $400/mo he's only whittled away the principle by $2K? What kind of econ major is he that he doesn't understand that curve of time vs. principle? Of course the principle is barely scratched and close to where he started. That's the way the math is supposed to work.

edit: Don't get me wrong. The cost of education is ridiculous today. There is little useful counseling of students regarding how loans work. And there are frequent times where I feel that the American Dream is increasingly out of reach. These are potentially very PARFy topics. But no, I don't feel that sorry for this guy regarding his student loans. Buck up.

[Rick Lee]

Originally Posted by Bugsinrugs

but the fact that the interest is at 7% is a rip off in my mind.

How so? Where else can you get a six figure signature loan with payments deferred for several years without having to demonstrate any ability or even willingness to repay it? I think student loans should be more expensive than credit cards. At least with credit cards, before getting a huge credit line, you usually need some credit worthiness and underwriting. With student loans, you can study basket weaving and stagecoach design for as many years as you want and you'll never get turned down for more loans.