A not very talked about situation

[Szajko]

I get the maximum amount of grants allotted to me (expected family contribution is 0) and I will still have $20k in debt when I graduate next year. Sad thing is that it isn't only the tuition that keeps going up.

I go to UNC Charlotte and our parking was just raised to $415 now which makes our parking the most expensive out of any other university in NC to my knowledge. Also, my school health insurance that cost me $300 last year just went up to $750 this year!

I swear these schools nickel and dime us...

 

[leprecaun jon]

I get the maximum amount of grants allotted to me (expected family contribution is 0) and I will still have $20k in debt when I graduate next year. Sad thing is that it isn't only the tuition that keeps going up.

I go to UNC Charlotte and our parking was just raised to $415 now which makes our parking the most expensive out of any other university in NC to my knowledge. Also, my school health insurance that cost me $300 last year just went up to $750 this year!

I swear these schools nickel and dime us...

sounds about right..... i remember my first semester at the community college i was riding my scooter ( refer to the silver bullet in my albums) they made me pay almost $200 to park my scooter in the parking lot for one semester.....and i couldn't just tie it up to a bike rack....it had to be in a parking space.......mind you there are only like 200-300 spaces to park at in this nova campus.....so my dinky scooter was taking up someone else's parking space......thats BS....on top of that they wrote me a $50 ticket for parking my scooter on the white line of the parking space -_- .....( i was parked next to my friend = 2 scooters in one space)

 

[CrazyCawi]

I get the maximum amount of grants allotted to me (expected family contribution is 0) and I will still have $20k in debt when I graduate next year. Sad thing is that it isn't only the tuition that keeps going up.

I go to UNC Charlotte and our parking was just raised to $415 now which makes our parking the most expensive out of any other university in NC to my knowledge. Also, my school health insurance that cost me $300 last year just went up to $750 this year!

I swear these schools nickel and dime us...

your very fortunate. My expected family contribution is high....and my parents havent paid a dime for me since I graduated high school. Thanks government for assuming my parents pay :jerk::jerk::jerk:

 

[KeysRider3]

You can't make it not political because it is nothing but pure politics. If the bank wants to increase arm fees by .25 , its all over the news, its horrible , big wall street, those bastards, bla bla......

BUt universities raise tuition thousands year after year and its not Big Education, those bastards.... Instead its thats ok... Doesn't matter....you can just borrow more to pay for it...why worry? Where is the occupy education crowd? Never happen. Maybe its because most of them are a farm team for liberal politics and votes.

Whoa, where have you been? Complaints about rising tuition and fees are in the news every year, even to the point of some colleges and universities rescinding increases. Farm teams for liberal politics and votes? Where do you think all the people who comprise big business, Wall Street got their educations? It's not politics, and certainly not pure politics. It's economics, and whether the current economy has any regulation, either by itself or from the outside. The argument of conservatives is that markets regulate themselves. That doesn't seem to have worked very well. Even Reagan and Bush understood that there has to be some regulation. Banks aren't bastards, but the people who run them can be, and in becoming so they're elevated to "smart bastard" until their particular house of cards falls. There are, of course more "smart" men and women looking to milk the system than there are protecting it, and they got "smart" by attending those same colleges and universities you say are most fertile for liberal politics and votes.

 

[r0ar]

The title of this thread is now incorrect , as this is a very talked about subject here haha.

 

[MiltonDorkenhoff]

So I was doing a bit of research....and this is a tough subject and I do not intend it political. But I just cannot fathom the damages to our country for this....

On average there are roughly 1.2 million unemployed Americans between the ages of 18 and 24 who had completed some college or a college degree....

The united states education department reported in the 2009 fiscal year, that the defaulted student loan total was $50.8-billion....after taxes collected from us to pay it down, and thats not 100% correct, there is alot of fluff and buff on those numbers to make them smaller than they are according to many articles i read and researched.

so lets just take an average....20.4 million students attended college in 2011.
Statistically between private and public 4 year colleges....28.7% of those students will default on their loans.....

respectively lets say 18.7 percent begin repayment and get a few years into it before default....if just 10% of those people default.....thats 2,040,000 students defaulting in a year.

at 2.04 million students defaulting with an average loan of 25k(which is the national average)



the total assumed debt by our country just from student loans is

$51,000,000,000...a year....for every $100 of defaulted loans....the government requireds a payback of $122 from tax dollars

which means 62,220,000,000 is owed by the tax payers each year....
Yet there is no regulation on tuition costs

Not only is this economic destruction....what are the ramifications of the 18-25 year old students who for the next 10 years at a minimum will have wages garnished, tax refunds garnished, and can not get a loan and some cannot even get jobs. There needs to be regulation on college tuition cost, and truly should be a cap on for profit colleges, or atleast a strong education of the student on the ramifications of the for profit college and the effect of debt on their life, because as of right now its like sharks in blood infested waters.

Hope you guys enjoyed my research....

Sorry, I don't doubt what you've written, but I need sources before I actually believe it Some of your numbers don't seem to work out. For example:

so lets just take an average....20.4 million students attended college in 2011. Statistically between private and public 4 year colleges....28.7% of those students will default on their loans.....​

The NY Times said that 15% of borrowers defaulted in their first two years. That's just about 1/2 of your 28.7%. The article I found was from last September. Maybe there are newer numbers?

 

[BoneJj]

your very fortunate. My expected family contribution is high....and my parents havent paid a dime for me since I graduated high school. Thanks government for assuming my parents pay :jerk::jerk::jerk:

I feel you on that one man. When I came back from the military and decided I was going to go to school and get a degree I went to my parents to see if they would help me and they flat out said no at first.... I was floored.

I spent 2 years figuring out how I was I going to pay for college. I ended up finding that I was eligible for a program through the military that was different from the program I lost (lost my gi bill because of medical discharge for injuries, F'ed up I know). It ends up that there is another program for people in my situation and it's a better program in fact... So Now they pay me living expenses and so on. I got lucky in that they had just changed up the program recently to allow me to get living expenses and so on to be able to attend college.

I have a friend that is now staying with another friend that is under the same program I am in. He's just a regular kid that comes from a family that has no money but he doesn't quality for grants either. it's messed up, they kid can't even afford a car and even though he works his butt off he doesn't qualify for any programs that we have been able to find for him. My friend that he lives with works in the financial aid office on the campus and he's been trying for the last year to find something that will help him out. Nothing.....

So me and my boy todd help him out as we can but it's crazy. He (our crazy mexican friend) comes from a poor family, they have 3 other kids and barely make enough to support them but they can't qualify for any assistance for the oldest one because of a couple dollars difference in income and so on. We've worked the numbers 100s of ways and they just don't add up. We spent an entire week one time with his parents and him crunching the numbers to find a way to get him some help, no luck. This year is actuallly going to be different though. His mom got her pay cut and it's changing her numbers enough that he's now going to qualify for assistance to pay for school and reduce the amount he has to pay out. It's stupid that before they were off by 200 a year and now that she makes a couple grand less a year her son is going to be able to qualify for over 10 grand in assistance to help pay for up coming year of tuition.

Before we told her (his mom) she should just quit working because if she did then not only would her older son qualify for way more in assistance than her job was providing that her other children would also qualify for tons of assistance and basically her loss of job would net her almost double that pay in assistance....

It's stupid how the system works. Once you reach the cutoffs you get nothing at all.... but if you are just under them you might as well end up rich... It's disturbing the way this stuff works. also you can easily qualify for 3-4 programs at one time...

I find it all utterly retarded...

 

[CrazyCawi]

Sorry, I don't doubt what you've written, but I need sources before I actually believe it Some of your numbers don't seem to work out. For example:

so lets just take an average....20.4 million students attended college in 2011. Statistically between private and public 4 year colleges....28.7% of those students will default on their loans.....​

The NY Times said that 15% of borrowers defaulted in their first two years. That's just about 1/2 of your 28.7%. The article I found was from last September. Maybe there are newer numbers?

My statistics were based off the first 5 years of the loan going into repayment, and directly from the US board of education, not an article.

 

[MiltonDorkenhoff]

My statistics were based off the first 5 years of the loan going into repayment, and directly from the US board of education, not an article.

Sorry, today is my slow day. I went to the *department* of education web site and found statistics for 2009 or so (the latest they've published, the article says), and they're still much lower than your ~30%.

 

[Cmltoe]

I still think these students need to take some of the responibility for not being able to pay off their loans. YOU NEED TO BE WILLING TO MOVE TO FIND A GOOD JOB. It sucks leaving friends and family, but you have to go where work is.

Wooster's entire quote pretty much hit it on the head except one addition. PARENTS need to be responsible for instilling these values in their kids. My wife was raised by great people who taught her to follow her passion at all costs. I was raised by great people who taught me to follow the money and expect to make sacrifices (relocating etc...).

Flash forward a few decades (I'm 35) and I recently paid off my wife's student loans while mine were paid off 10 years ago. At the same time, she deals with the same headaches I do at work, but she gets paid a quarter what I do.

If you're hung up on following your passion, then make money your passion.

Passion wears off after years of watching others live like you want to. Of course there are exceptions like Bill Gates, Mark Zuckerberg but they are certainly not the rule.

As I approach the end of my rant, we all seem to acknowledge which way this country/empire and every other before and after it is heading. The system is tilted to the haves at the expense of the have nots. If you understand that, you probably won't be rushing to study English or poetry. Not that what you actually studied matters once you're 5+ years into a corporate environment but I suggest the following roadmap if you're planning on attending college:

1. Study something universally respected by future employers; Business or Classics (ability to understand Latin demonstrates intelligence and ability to grasp complex subjects).

2. Get an internship with a WELL KNOWN, LARGE company while in college and do everything to eventually be hired by that company. All major companies recruit from colleges local to them. We pay graduating seniors $50K base out of college not including bonus. It's very easy to go from a Large well known company to a small unknown company and demand premium pay. Not so easy the other way around.

3. Build a network and keep it so you can one day have people to provide internships for your kids (this is the most important step on how the wealthy stay ahead; through their contacts).

4. Always remember money allows you to enjoy SOME of the finer things in life but can never replace good old fashion time on the floor or at the park with your family. Money is a tool to help others. I spend about 10% of my money on myself and the other 90% on family (wife, kids, parents, brother).

:deadhorse:

 

[See red]

I'm 17 years old(almost 18). I finished high school yesterday.

I am choosing to work for $8 an hour 40+ hours a week. I personally think that school wouldn't be worth it for me. I also don't wanna add to the statistics.

And my job is fun.

I was making 18 dollars an hour at 18. That was 20 years ago! If you find what others won't do and you enjoy work, you can and will make money. I know it's has to be tough for you out there, but good for you, cut your teth the old school way, and keep your head up. You at least are making less effort in straining the rest of us, and more effort in doing something to be productive.

 

[3leggeddog]

30.4 percent of that debt comes from public schools....that means 69.6% of this is coming from "for profit schools" such as Rasmussen, or mn school of business, phoenix online, ect ect......

Students come in with no guidance...which isnt anyones fault really....but smoke screens are applied and students may go into a for profit school, start up, and get 1/4 way through the program and decide "shit thats not what I want to do" and have to restart a program from the beginning...when you switch programs they dont tell you now you realize your program starts over and you already accumulated 15,000 in debt, and its another 45k till you graduate. Their credits dont transfer to state schools either, so students who realise it half way through....cant switch. Its either pay and finish...or lose what you just paid for.

CC, it's funny you mention this because I had the same thought the other night about tuition increases and student loans. I kept thinking, "The cost of tuition increases, but where does the money go? Salaries for professors? Facilities? Sports? Salaries for administrators?" Costs are certainly going up, but where in the heck is the money going?

Now, I will say that I have a problem with people defaulting on their student loans. I went to a private school knowing that I'd have some cash to pay back when I got out. Granted, the economy wasn't as bad as it is now, but I knew full well what I was getting into and knew that the money had to be paid back. I made payments over 10 years, but I paid it off. I'm wondering how many of those students just chose to not pay the money back?

 

[madmike]

Costs go up because there is no competition. If the Fed gaurantees loans, the universities are free to keep jacking up costs knowing that students will simply borrow more. Take away the federal backing, and banks make it harder to borrow, and unis can't raise prices or their admissions plummet.

Same crap happened with the housing markey. Everyone blames greedy bankers, but the fact is, the Govt told the banks they would gaurantee the loans (Fannie and Freddie) and at the same time told the banks they would penalize them if they "discriminated" against low income earners and minorities. They basically steered the bankers towards bad loans and then told them they would gaurantee them against losses on those bad loans.

Whenever the Govt interferes with natural capitalism and free markets, they almost always f it up.

this thing with the student loans is simply housing crash part 2.

 

[bobski]

What happens in the USA when someone defaults on their student loan? Here in Canada student loans are the only thing that don't get captured and dealt with in a personal bankruptcy . . they survive through that process and remain to be dealt with even after the bankruptcy . . so basically, in my understanding of the matter, there is no way to actually 'default' on your student loan in Canada!

 

[Detrich]

Student loans in the US are equivalent to taking a loan from a loan shark or the mob. Financial institutions have nearly unlimited leeway recouping if u default. They can do things beyond bankruptcy protection. The only type of loan u can never get out under is a student loan.

 

[Fizzer6R]

Student loans in the US are equivalent to taking a loan from a loan shark or the mob. Financial institutions have nearly unlimited leeway recouping if u default. They can do things beyond bankruptcy protection. The only type of loan u can never get out under is a student loan.

i understand what you are saying, however a loan shark/mob will pursue and even do harm if you don't pay. student loans get deferred for almost forever if you do it right, and repayment plans can be based on your income. you can owe $100k student loan and hold it off for years and even decades, try that with a loan shark/mob

 

[CrazyCawi]

but they can also garnish all wages and tax returns if they go IN DEFAULT. Those other things are default preventions, and you must qualify. a huge margin of people do not qualify but still default.

 

[FSXlover]

Trust me. Go to school...

What benefits would school offer me when I have no idea what to do other then what I am doing now. So I got to school and get a "Business" degree. Then what? I'm put back into the world and I owe money.

Heres a very interesting video about college.
http://www.liveleak.com/view?i=936_1336688993

I just feel that working would be better for me.


Why do you think I should go to school?

 

[JSP]

What benefits would school offer me when I have no idea what to do other then what I am doing now. So I got to school and get a "Business" degree. Then what? I'm put back into the world and I owe money.

Heres a very interesting video about college.
http://www.liveleak.com/view?i=936_1336688993

I just feel that working would be better for me.


Why do you think I should go to school?

I think a huge thing for employers is to see that you went and completed a further education. They see you tried, stuck with and succeed in something. It shows you have passed college level courses and are somewhat competent. If you land a job in your degree then excellent, but it is still not a waste if you branch out in another field. If you love what you are doing now, go to school for something in that field. Go to school for business management. Any field you go into you can move up into management positions... Those are things to look into.

Sorry, but $8/hr is not much to be proud about. Dont take that the wrong way either please. That is less than minimum wage here. You will not survive making that for the rest of your life. It may seem like bank now at 17, but trust me, it will wear down on you quick and you will wish you had something that could get your foot in the door at a place that will pay you more, with benefits, etc. Try and support a family, mortgage, car loans, etc on that wage. Yes, the education system is rough but its still worth having.

What do you do right now for work?

 

[FSXlover]

It's a starting position at a golf course. The pay starts at $8 and grows to $12+ in 3 or 4 years.

I also hate school. And personally I would rather do manual labor all my life. I hate being stuck in a building all day. I just think school is a waste of time and money for me.