The burden of Student Loans on our children

Nataliesgramma · ‎03-28-2015

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.

colliegirls · ‎05-13-2012

The high cost of college is a major problem for most families. Something needs to change.

debic · ‎09-02-2010

I agree it's crazy. Our son's was more than what we paid for our home.

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*Off The Deep End~A very short trip for some!*

ms traditional · ‎03-09-2010

my parents saved for my education. i worked summers when i was old enough to build up my college fund. my parents took me to interview at colleges we could afford. there might be an example there.

ValuSkr · ‎03-15-2014

Colleges and universities charge a lot because they can. Fee increases have out-paced inflation in recent years. Most of their costs are payroll and benefits related, often-times required by union contracts. I think state schools have done a slightly better job of holding down costs - but only slightly. The wealthy kids will continue to attend the private schools and get better jobs; others will shift to state schools. The situation will feed the economic divide that some politicians have tried to address.

millieshops · ‎03-09-2010

It is a serious problem and I'd never pretend to have the answer to all of it, but several pieces of the problem come from the lack of knowledge among kids about money. That combined with a lack of fear about debt among many exacerbates the problem.

Way back in the early 60's, I had student debt, too, but in a way I was lucky because that debt was fairly within reason - it equaled pretty close to what I earned in my first year after graduation - that's a goal lots of financial gurus recommend even today when graduates can pay off debt over 30 years or can wipe out debt by entering some helping professions, etc.

Further, all of my debt was used only for tuition and fees - no Spring Break trips, no pizzas, etc. I'm appalled when I hear kids using their loans for the latter, but that's what I meant when I said they don't seem to fear debt, certainly not the way I do anyway.

Overall, I don't think we're too smart about how we use student debt. Too many students accumulate more debt than they can earn even once they find jobs --and too many have no idea what they can expect to earn.

Sadly, I don't think expecting high schools to teach kids this reality works well, especially for those teens who are well cared for at home and get to use pretty much all they earn for cars, clothes, and carousing. When reality sets in a week after college graduation, and there's rent to pay and food to buy and a huge loan to pay off as well, it's an ugly world. Even my "little" loan seemed burdensome, so I can't imagine one two or three or four times my first year's earnings.

ETA - Should have added that my parents helped me -- by telling me my choices were limited to the colleges within driving distance of home. No room and board and no car; I rode a bus or bought gas for a classmate. Not ideal, but it worked.

violann · ‎03-10-2010

It is very difficult to reconcile the conduct of the Rutgers University football coach who was just fined $50,000, with the costs of a college education for middle class kids who just want to EARN a degree leading to a desired job.

Another school in our state has spent an ENORMOUS amount of money to buy a statue of a LARGE BIRD, said to have been purchased to raise student pride and spirit.

I'm thinking that scholarships for needy students might accomplish the same goals in a more practical manner.

sandy53 · ‎03-12-2010

I think it boils down to the fact that students are attending schools they cannot afford. There are so many tood choices for where to go to school. They borrow lots of money and then seem surprised that they have a burden of debt. If If they are smart enough to go to college and graduate, then why are they shocked and whining?

Winifred · ‎03-09-2010

Have been told that one of the reasons for the very high cost of these student loans are the number being repaid as they should be is very low. Many students never have made an attempt to pay anything and the rest are paying for some of this.I personally know a couple people who ignored their responsibility for quite a number of years and then got nailed. Quite frankly I had no sympathy for them as they made NO attempt to negotiate or pay anything - just ignored it for a very long time. And yes, they eventually got in big trouble over it.

I agree, the costs are very high just to enter higher education and that needs to come down before the loans will lower. Bottom line, everyone is in the lending business to make money and borrowers need to remember it. Not always easy to do, I know that. Even our community colleges which once were super reasonable for an education have now gotten very expensive - just to buy a book is usually well over $100. And the cost to the college has gotten expensive also - just not right.

TNRatPack · ‎07-31-2015

@sandy53 wrote:
I think it boils down to the fact that students are attending schools they cannot afford. There are so many tood choices for where to go to school. They borrow lots of money and then seem surprised that they have a burden of debt. If If they are smart enough to go to college and graduate, then why are they shocked and whining?

This. I know to get an education is enormously expensive. My daughter who finally obtained her PhD worked her way through. It was tough on her but she was determined. She rented a room from an elderly woman for housing, drove a 9 year old car and worked two jobs. She put all her wants on the back burner to achieve her goals. She really learned during this time how to budget.