Subprime loans, part 2: The college edition

re: Subprime loans, part 2: The college edition

arm — Thu, 05 Mar 2009 21:31:44 GMT

what do you do when you owe over $100,000.00 and make $8.00 an hour??

re: Subprime loans, part 2: The college edition

Dylan Thomas — Wed, 21 Jan 2009 21:39:49 GMT

I don't agree. I had a horrible financial education from my parents true. And no, help financially from my parents for my education. I went to a state college for my undergrad degree, and luckily left with only $700 in loans. But I worked the entire time I was in school. I was not working in my field of study after graduation though. I went on to a private Art school for my Masters and now have a heap of debt (nearly $100 grand), and the government does not help with your second degree. I again worked through the entire time, multiple jobs at times, but tuition was expensive. However now I am working as a fashion designer in my industry and make a sizable paycheck. I don't regret a thing.

re: Subprime loans, part 2: The college edition

Wed, 03 Dec 2008 18:35:30 GMT

INVESTIGATE SALLIEMAE'S CORRUPT LOAN SHARKING POLICIES AND JAIL THEM

re: Subprime loans, part 2: The college edition

Joseph Palmieri — Mon, 13 Oct 2008 01:31:03 GMT

It truly amazes me that our congress has hearings it seems almost every week regarding greedy pharmas., oil, tobacco, ........but not once have they ever called in the president of Harvard to explain why their tuition is what it is when the interest on their 3 billion endowment fund would pay for every student's tuition/books/room and board.

re: Subprime loans, part 2: The college edition

cpstl — Sat, 11 Oct 2008 10:36:59 GMT

I went to state schools (University of California system) for my bachelors and masters - private schools were not an option, we couldn't afford them. During my undergrad years I worked summer jobs, my parents had some savings, and I had student loans. Five year plan was not an option, mom and dad laid down the law on that. Finish in four years, they said - if you don't the fifth year is on you; if fifth year is a graduate year we'll do what we can but don't count on much. I worked my way through 2 1/2 years of graduate school with jobs (sometimes 2 or 3 jobs at a time) and loans, then decided enough was enough. I'm SO GLAD I stopped when I did, because had I gone on for the Ph.D., there's no tellling how much my debt would have been, I'd probably be jobless (no academic jobs out there for history majors), and I'd probably still be paying on the loans. The other thing mom and dad laid down the law on was - you WILL pay back your loans even if it means living at home and flipping burgers at McDonalds to earn the money. Our parents repeated that message early and often to both my brother and me: NO DEFAULTING on student loans.

I spent many years working at a private university where students pay upward of $25,000 a year just for tuition. I can't imagine what their lives will be like after graduation with that kind of debt. My total student loan debt for 6 1/2 years and 2 degrees was around $15,000 (I got my B.A. in 1984, my M.A. in 1987, back when UC was still affordable). Seemed like a lot of money at the time, but it's nothing compared to what students are facing now. I had a good job in a field related to my degree (history) before I finished my masters degree, and I was able to pay off all my student loans. I've been very lucky.

My brother did junior year abroad, for which my parents took out additional loans. Then he went to law school - more loans. He had to move back home and find a day job while he worked to pass the bar, but always made his student loan payments. As soon as he passed the bar and got a good job, the first thing he did was pay off his loans.

College costs these days are scary. No degree is worth mortgaging your life for and EM is right - in most jobs where you went to school and what your GPA was simply don't matter. Dave Ramsey is spot-on when he says: If you have the savings or the free ride scholarship, go to that top name school. Otherwise re-consider and look for lower-cost options.

re: Subprime loans, part 2: The college edition

stln — Sat, 11 Oct 2008 07:17:32 GMT

What potential students need to realize is that even though a specific field they are interested in has a listed salary by many different sources, they may not see that salary until completing many to several years of service in the field; unless they pay for and pass different certifications. I learned that lesson the hard way, I started to get my degree in a field, using student loans but my school expenses were more than my financial aid package, I went to school full-time and worked a part-time job. As the semesters went by I was working more and taking fewer classes, until I decided to quit school and get a full time job. While working full-time and not using financial aid I was able to get my A.A., I then went to get my BS, I had to use financial aid to afford tuition and books, I did recieve my degree, and now cannot find a job in the field I studied, which I can afford. The average salary of a person in this field is $70,000, I currently make $18.00 an hour, The entry-level pay is $12.00/hr or you can contract at $15.00/ hr. After several years of moving up you can earn $70,000 a year, or you can get certifications, which may allow you to start out at a higher pay level. I now have an extra bill ( Student Loan Payment) which I can't afford and am stuck doing the same job which I hate. If I only knew then what I know now.

Students need to realize that when they pick a degree, they need to look at more than the potential dollar signs: they need to consider if they like the profession that they want to get into, can they complete the coursework necessary to get the degree (it is pointless for a student to try pre-med if they can't pass simple science).

consider the future (Sometimes a simple major, with a couple more complex minors can set you up for an emerging job market not yet existing, i.e. technology always changes, and a major is not always available, until after you graduate).

remember times are changing and your degree may not be offered after you started it (A friend recieved a letter a year before she was supposed to graduate, telling her that the school was no longer going to offer the courses she needed inorder to graduate, and she needed to attend a different school to get her degree).

Keep track of course offerings and continued contact with your advisor, some courses required to graduate are only offered at certain times(you don't want to get stuck taking fluff courses, in order to maintain your student status; while waiting to take that one course needed to graduate).

Also don't take out more financial aid than required to cover room and board, tuition and books.

Watch the withdrawl and drop dates, If you don't think you are going to like or pass a course make sure you drop it in time to get a 100% refund and can sign up for another course.

Attend a two year school and get your associates degree, it might not be as cool, but it is affordable.

Do not apply for credit cards while in school, you might be short a few bucks and miss a party or two, but it is better than working full time to pay the bill, and trying to attend school full time.

Get a cafeteria meal plan, yeah the food sucks, but at least you can get three meals a day, and don't have to eat ramen noodles and pbj's all year.

Most Dorms close over the Holiday's so don't burn to many bridges, you might need a place to stay.

Remember if you have a problem with an instructor or policy, most schools have an Student Advocate, to try to solve problems. ( I took a summer course once and I along with several other students turned in our final paper's and the instructor said why are you here you already failed the course because of attendance, their was no attendance policy listed in the syllabus, and we cursed out the instructor. We brought our case to the Student Adovocate, and would of passed the course, but due to our behavior in the classroom , we failed.)

Make sure the school is accredited, and you actually learn something from each course ( I attended an accelerated school once and after several courses, I realized that I was not actually learning anything, I left their with a 4.0 and the school was accredited, but the few classes I took would not transfer to any other school. If it sounds to good to be true it probably is.)

Not enough people have the opportunity to go actually attend a quality school, I don't know if it is the pupil, the social class, or the system that prevents its.

re: Subprime loans, part 2: The college edition

UMASS — Fri, 10 Oct 2008 07:52:00 GMT

Retired,

I think you misunderstood my point, which might be typical, but it is a point and not an argument. Yes I went to college and took a bunch of loans which at the time were the best loans I was allowed to take. The problem at hand is that I cannot even consolidate my private loans because the ECONOMY is so terrible. I am not "OMG" in shock that I have to pay them back. That would suggest that I do not have the intelligence to have been accepted into a college, never mind be a graduate of one. Also, with my degree, you're right, I didn't get a CEO position and I definitely didn't expect anything of the sort. I did however get a very reasonable salary with all kinds of these benefit things and bonuses, whatever those are. (Yes I'm being a wise @ss.) Now, I don’t expect you to sympathize with me about any of this. All that I really want from this, is that maybe just one future student out there reads this and thinks really hard about what kind of loans they will have to take out in order to afford college and honestly maybe they will consider the military. It seems to be the best way for the average person to pay for school. A lot of my friends have benefited from it.

re: Subprime loans, part 2: The college edition

justanotherguy — Thu, 09 Oct 2008 10:19:51 GMT

Education is still vital. Good education is eevn more vital. the problem here is that we do not want to pay higher taxes, in Denmark taxpayers pay 53% while in Y=Th US we pay only 23% and *** and whine if taxes are increased. What is the difference, in Denmark, free health care system, freen education from 1st grade to graduate school. Denmark has a strong economy with a well educated work force. Knowledge coming from the best teachers in the US cost us big $$$$, in Denmark $0. it does not take a genius to see the corelation. we need to change the way our tax system works. enough of bnig fat pigs driving ferraris and having multiple states all over. the super rich is making us super poor. change the tax laws and you will have a more balanced society. there are 7 deadly sins and greed is one of them. Beware of what you desire

Pride, envy, lust, glutony, greed, sloth, wrath.

I am giong to go biblical on you. now

In Proverbs 6:16–19, it is stated that "(16) These six things doth the Lord hate: yea, seven are an abomination unto him:" (quotes from King James Version (KJV) translation of the Bible). These are:

(17) A proud look,

a lying tongue,

and hands that shed innocent blood,

(18) A heart that deviseth wicked imaginations,

feet that be swift in running to mischief,

(19) A false witness that speaketh lies,

and he that soweth discord among brethren.

re: Subprime loans, part 2: The college edition

Jen — Wed, 08 Oct 2008 23:20:46 GMT

THANK YOU!

As a junior in college, it frustrates me to see so many people with gobs of student loan debt. Most of them get loans for much more than they need, in order to fund partying, car payments, and rent. They just don't realize that they WILL have to pay back the loans eventually and the repayment may hinder them from being able to buy a home, travel, or move on with their lives.

Thank goodness that when i was 18 i was smart enough to choose to go to a cheaper school that was close to my home. I figured why pay double the tuition for the same education?

re: Subprime loans, part 2: The college edition

Texas student — Wed, 08 Oct 2008 19:44:37 GMT

I'm about to graduate from a 4 year public college in Texas & I am so glad that everyone is posting here today. I am considering grad school and would like to find a way to do it without student loans. Dave Ramsey cured me of student loans -- I actually walked back into my school's Financial Aid office at the beginning of this semester and told them I would be returning my loan monies. They freaked! One lady said, "Why don't you want your money?" And I answered, "Dave Ramsey". The other lady stifled her laughter. It was pretty funny! Seriously, I had lots of scholarship money and grants -- really didn't need the Federal loans...it was just fluff money. Read these posts, folks. A college degree absolutely 100% does not guarantee future job success. I'm only finishing this degree for a specific career later.