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Honored Contributor
Posts: 16,578
Registered: ‎03-11-2010

Re: The burden of Student Loans on our children

The one thing that is horrible about student loans is that most/majority can not be discharged by bankruptcy.  They will haunt you to Social Security.  I wish more people are aware of this. 

 

I don't think it is fair when people who waste their money on junk are allowed to start over, and kids/adults have to keeping paying.

I am not saying that ALL student loans be erased by bankruptcy but their should be occasions to do so.

 

Suzie Orman (not one my faves) is trying to change the laws about this. 

Regular Contributor
Posts: 226
Registered: ‎03-14-2010

Re: The burden of Student Loans on our children

Our son had a well funded college fund, but in getting his Doctorate - both the Master's and Doctorate were both at private schools...that was gone and he now has massive debt.  The real thing that I complain about is this: it is a government loan - not through a private bank as some student loans are....and the interest rate is over 6.5% which accrues from day one.  That interest rate is totally out of line, and apparently it is fixed in stone.  When he is finished paying his loan (which he is doing) he will have paid nearly $500,000.00  Much of it being interest.  THAT I object to. 

The other objection I have: in spite of high GRE scores and ''honors'' graduation in both undergrad and Master's.....he could not get into a state school - why? foreign students here on VISA's....  Great.  guess we no longer educate our own first.

Honored Contributor
Posts: 18,778
Registered: ‎03-13-2010

Re: The burden of Student Loans on our children

My ma never let me forget how they spent SO much money.......and I only got "an ordinary job"...............

♥Surface of the Sun♥
Super Contributor
Posts: 416
Registered: ‎03-09-2010

Re: The burden of Student Loans on our children


@Desertdi wrote:

My ma never let me forget how they spent SO much money.......and I only got "an ordinary job"...............


Enormous = ???$$$

What type of  job did you have?

Honored Contributor
Posts: 10,199
Registered: ‎07-29-2014

Re: The burden of Student Loans on our children

[ Edited ]

@sfnative wrote:

@Nataliesgramma wrote:

My son-in-law came from a large family and his College education was funded by Scholarships and Student Loans. He was able to land a good job in his chosen field, but it is entry level. I can't believe how much he owes for his Student Loans.

 

They purchased a modest home and are frugal with their money, but they are struggling. I feel bad for the kids who can't find a decent job after college.


@Nataliesgramma

 

Right off, I think it's wonderful that your SIL was able to qualify for and obtain schoarships!  A majority of prospective college bound students cannot, so he must consider himself fortunate in that regard.  And, of course, the amount of the student loans has everything to do with the tuition charge by the university: generally speaking, big name university - big time costs.

 

I'm going to speak to my hsband's experience, which I hope will make sense to you, but I must preface it by telling you that he went to law school for 3 years (you talk about expensive tuition!), then decided to go back to college for his engineering degree.  Truly - he was meant to be an engineer, but that law school debt was horrid.

 

OK - now he's back in school for his engineering degree and, yes, on student and GI loans.  When he graduated (now he has 2 and nearly 3 degrees), he started his engneering career in Silicon Valley with Rockwell.  His was an "entry level" engineering position in 1973.  I believe his salary at that time was $45,000/annum.  We were thrilled!

 

Important point here:  In many to most cases it's going to be "entry level" in your chosen field.  THERE'S SO MUCH TO LEARN!!!  And entry level is where you start applying all the book learning and "practicals" from your university engineering courses.

 

Also, we vowed NOT to purchase a house until our household income had achieved a certain level and our student loans were paid off.  AND, we would not have a child until we had purchased a house.  This may seem cold to some people, but it's really easy to let life carry you away in the wrong direction.

 

A good family plan that includes long-term planning is a must. 

 

Don't feel bad for those who can't find a "decent" job after college, because most don't qualify to enter the corporate world as a highly placed Manager or Director.  They must pay their dues and work their way up.

 

p.s.  I met a late 20s female who had done nothing but go to school her entire life.  When I learned she was working on a Ph.D., I asked her what her goal was.  She said she'd be getting a job to "direct" research teams in the San Diego area.  My reaction:  Ha-ha-ha-ha-ha!!!  because I had gotten to know her and there was no way in H-E-double tooth picks that she could ever qualify for such a position - Ph.D. or not.  About 4 years later, after she left the organization where I met her, I asked how her directorship position was coming along. Laughingly she said, "Oh, I decided that was going to be way to much work [Yes, I was right!], so I'm writing a book."  Duh!


 

It's not harsh to me, Becc.

Houses and (yes!) children -  plus pets and cars and lots of other stuff - are luxuries, NOT necessities.

 

People may have a right to some things, but NO ONE is "entitled" to anything.

Honored Contributor
Posts: 10,199
Registered: ‎07-29-2014

Re: The burden of Student Loans on our children

[ Edited ]

@LTT1 wrote:

@cerb  Congratulations and good work for your daughter!  You must be very proud!  Vet schools used to be more difficult to get into than medical school... is this still true?

And I thought vets made an outstanding yearly salary... has this changed also?


 

Sorry to butt in, and yep - it's still true.

 

If you think about it, veterinarians are actually smarter than people doctors in the sense that they have to thoroughly learn about multiple species, not just one (human beings).  

Respected Contributor
Posts: 2,941
Registered: ‎03-30-2010

Re: The burden of Student Loans on our children

DH and I paid his student loans off at the rate of one paycheck out of every month for 5 years.  We never thought we shouldn't be obligated to do so.  He went to school year round for 3 years and got his EE degree.  During those 3 years we also had 2 babies!  How did we do it?  We didn't have a phone while he was in school, we lived in the cheapest furnished apartments available as we had no furniture.  Our babies' items were all hand-me-downs.  Neither of us bought new clothes and we certainly didn't take vacations, even after graduation.  Young people today have been coddled and are extremely entitled.  You borrow money, you pay it back.

Respected Contributor
Posts: 4,443
Registered: ‎03-10-2010

Re: The burden of Student Loans on our children

There's no doubt that college is expensive today and costs are getting out of sight.  At the same time you have to do what you can afford.  If that means, living at home, going to the community college for two years and working a part time job, then going to the local university for the final two years, then that's what you do.  There is absolutely no reason to go to a $50,000 a year school, whether you're smart enough to get in or not if you can't afford it.  My DH lived at home for two years while he went to school, of course he hated it, anybody would but that's what he did.  You do what you have to do in life, life isn't easy and fun all the time.  To be able to afford college for our two children, DH & both worked & saved.  We never went out to lunch, we packed our lunch, we didn't drive fancy cars, just basic cars, we didn't take fancy vacations.  We did splurge once in a while but we knew out goal was to educate our children & plan for our own retirement.  Many young people are doing what my DH & I did while many are not.  If you take a loan out, you're expected to pay it back.  If you pick a major that doesn't translate into a decent paying job, who's fault is that?  You have to make enough money to be able to keep a roof over your head and pay your loans back.  That's why they're called "loans" and not "gifts".  If these students are so smart they should know what the difference is between a "loan" and a "gift".  This country is going broke and if everyone doesn't start living within their own means, we're all going to sink.  Wake up!

Honored Contributor
Posts: 25,929
Registered: ‎03-09-2010

Re: The burden of Student Loans on our children

[ Edited ]

College has become so very expensive. And, truely, not all kids should go to college. I know most parents want their kids to have good educations so they have a better life. However, there are so few kids going into the trades these days and there is nothing wrong with being an electrician, a HVAC guy or driving heavy equipment or being a plumber, or a carpenter and these "professional" tradesman make very nice livings these days. One of the most successful young men I know - a friends son - went to community college, studied TV and communication, and now works for a major TV station as a cameraman. He gets a ton of OT , is in a union, and makes a very good salary. Now he and friends from work are producing videos and doing very well with that side business.Making commercials for local businesses. More kids should consider community college or a trade school instead of college. Too many kids go to college and the major they persue does not even prepare them to make a living. the same friend whose son I described above , older son got a degree in philosophy and hasn't worked a day since he graduated. He just keeps going back to school and racking up more loans he can't pay.

Honored Contributor
Posts: 34,519
Registered: ‎03-09-2010

Re: The burden of Student Loans on our children

@Roni

Pardon me for asking numerous questions, but as a recently retired teacher I am still in a "helping" role for some former students.

 

@Roni@Nataliesgramma@151949@Hayfield@this is my nic

 

I thought governmental loans were low interest 1% and did not begin accruing interest until 6 months after graduation?

Our DD gotta "Hinton-Hazlewood" loan/grant (State) -- not due until 6 months after grad. 

Aren't masters/doctorate degrees qualification for even more priority funding?

DD earned her Masters degree at night school and her job granted her tuition help. Isn't this still a viable option?

 

There was also available a California (?) parent loan at a very low interest rate.

 

My advice to parents anticipating paying tuition and incurring expenses is to start early letting your student know the financial implications of college. Our FAFSA form did not rob us of our retirement savings. (A fear of mine). No, it is not right that student loans are ineligible for bankruptcy... Another discussion.

 

The "beef" I have is with the institutions and false promises. 

~Have a Kind Heart, Fierce Mind, Brave Spirit~