More college students graduating with more debt

primroselane · #1 11/30/10, 02:30 PM

"A new report from Pew Research Center finds that 60 percent of all college graduates took on loans in 2008, compared with 52 percent in 1996.

College students who graduated with a bachelor’s degree in 2008 owed $15,425 on average. That’s a more than 50 percent jump from 1996, when graduates had an average of $10,138 in debt.

The biggest jump in people borrowing money for education was among those who earned degrees or certificates from private, for-profit schools such as University of Phoenix and DeVry University. The researchers found that 95 percent of people who graduated from those programs in 2008 borrowed money for their education, compared with 77 percent in 1996."

http://lifeinc.todayshow.com/_news/2...ng-with-degree

Jenni979 · #2 11/30/10, 03:40 PM

I worked in for-profit colleges and they are ALL sales... Their Admissions staff are all sales-people... I know... I was one and then, later, hired & trained them.

Most of the students who managed to graduate did so with WELL OVER $60K in debt, for a BA...

I'm the only person I know of amogst my friends who does not have student loans... And I have friends who have some well into the $100's of thousands (and they aren't even Dr's or lawyers...)

I just don't see how these kids will ever be able to pay these loans off...

salmonslayer91 · #3 11/30/10, 04:32 PM

myself and my fiancee are both dealing with this now myself in my sophmore year credit wise will have almost 7k owed to chase bank at the end of this year with intrest of course so by the time i graduate im looking at about 15k owed that cant be bankrupted EVER and the only way i see that we can eliminate this debt is to live in a rental home with our not so great out of college careers which are hopefully better then our in school fast food and walmart employment then to pay off student loans THEN attempt to buy a better CAR pay some of it off maybe start a family or buy a crappy house then start its a bit rediculas i cant plan for life i guess it just happens!

Wags · #4 11/30/10, 05:14 PM

I'm wondering just how much of that debt is actually necessary or it is just lack of a financial planning or lack of impulse control?

If you don't party, and don't "need" luxuries you can get by for a month on what some students blow in a single weekend. Yes, you won't be part of the "cool" crowd or have all the latest gadgets, clothes etc but you will manage to graduate without a lot of debt. And if money is tight to begin with, then doing your first two years at a community college makes a lot of financial sense.

Our community college has a program where starting at 16 yrs old high school students in the local school system can earn 2 yrs of college credits without cost and count it towards their high school graduation. One of our friends that home schools has a son doing it and he will have a fully paid for 2 yr degree by the time he is 18.

mnn2501 · #5 11/30/10, 05:19 PM

I worked while in college and paid for it as I went, took me a couple quarters off to earn some more money during it, but I had zero debt when I got done. Lived at home with parents and drove a 10+ year old car.
Sorry, but the good things in life sometimes require sacrifice.

salmonslayer91 · #6 11/30/10, 07:41 PM

well when you have no help from parents you have your own (mini family) <fiancee two dogs etc> and failed to do a running start program in highschool then i guess that sucks i cant live with my parents i spend 735 a month in rent 100 for all the rest excluding food and gas then goes tuition 400 somthing a credit at oregon state so though we both work part time (only jobs availible) and go to school with a full course load then please tell me where i can get another used* chemestry book for under 200 when its 375 new i shop at goodwill for clothes both of us do (no abercrombie hollister etc) we buy food at the amish store (scratch and dent) .35 cents a can i dont mean to come off rude or anything and i sure wasnt trying to get you to feel sorry for me and i surely was not complaining just stating a comment but sacrifies have been made. though i do wish i would have started with a community college i didnt and cant go back in time so here i am

georger · #7 11/30/10, 09:01 PM

Yes, when I graduated from DeVry, with interest my student loans were around $36,000. It took me 10 years to pay it off. It's expensive to get a good education but it's worth it later in life.

Tricky Grama · #8 12/01/10, 07:55 AM

I had about 6 hrs of college & went back to school after my kids were in school.
In 2 yrs I was in the middle of a divorce. If you think it was easy for me to get a bachelor of science degree w/3 kids & 3 part-time jobs, think again.
I had some student loans & 2 'grants' that were only a few hundred bucks. We did ok, no new clothes or cars, had food stamps my sr. year.
Even so, took me 10 yrs to pay the loans.

English Oliver · #9 12/01/10, 08:39 AM

I made a deal with my three kids, if they went straight into college after high school I would help them with expenses. None of them took me up on it. #1 daughter laid out a year before she went and got her BS in graphic design. #1 son waited six years before he go a BS in environmental geography and a minor in aviation. #2 son waited two years, got married, and had a child before he got a BS and Masters in computer engineering. None of them asked for or received any help from me and none of them had loans to pay back when they were done. It was tough for them but they did it.

"O"

willow_girl · #10 12/02/10, 07:35 AM

Well, let's put this in perspective.

If the degree enables them to snag a job making $3 an hour more than they would have otherwise, it will have more than paid for itself in just 3 years of full-time employment.

That's a decent investment, AFAIC.

mnn2501 · #11 12/02/10, 11:42 AM

Quote:

Originally Posted by salmonslayer91

well when you have no help from parents you have your own (mini family) <fiancee two dogs etc> and failed to do a running start program in highschool then i guess that sucks i cant live with my parents i spend 735 a month in rent 100 for all the rest excluding food and gas then goes tuition 400 somthing a credit at oregon state so though we both work part time (only jobs availible) and go to school with a full course load then please tell me where i can get another used* chemestry book for under 200 when its 375 new i shop at goodwill for clothes both of us do (no abercrombie hollister etc) we buy food at the amish store (scratch and dent) .35 cents a can i dont mean to come off rude or anything and i sure wasnt trying to get you to feel sorry for me and i surely was not complaining just stating a comment but sacrifies have been made. though i do wish i would have started with a community college i didnt and cant go back in time so here i am

There's always a way, you've made some life choices that would have to change if you want to do it bad enough.
Sorry, but I get fed up with people telling me why they can't do something instead of finding ways to get it done. This is a rant of mine in general.

Can't find a job where you are then move to where jobs are.
Got too much debt, then cut up your credit card and stop spending money you don't have.
Can't go back to college cause you're living with a non-spouse and 2 dogs living in a somewhat expensive rent area...well you get the idea.

Sorry, but there is always a way to do something if you want it bad enough.

salmonslayer91 · #12 12/02/10, 12:11 PM

"Can't find a job where you are then move to where jobs are."

school and education is a first priority in order to get a higher paying job

"Got too much debt, then cut up your credit card and stop spending money you don't have."

No credit cards all is payed with a checking account or cash

"Can't go back to college cause you're living with a non-spouse and 2 dogs living in a somewhat expensive rent area...well you get the idea."

Wedding date is set 11-11-11 been together for 4 years but ill admit the rent is a little high but 600 is about the cheapest in the area for anything not a studio

yes if there is a will there is a way to reduce the debt but at the same time do i choose cancel INTERNET? basic 12 channel cable? some indulgences are needed but thats our problem so again I'm not nor was i complaining just stating my opinion on the thread sorry for the hijacking of the topic

mnn2501 · #13 12/02/10, 06:31 PM

Quote:

Originally Posted by salmonslayer91

"

Wedding date is set 11-11-11 been together for 4 years but ill admit the rent is a little high but 600 is about the cheapest in the area for anything not a studio

I underlined what could possibly be the key words in your post.

I wasn't necessarily picking on you or anyone in particuler, just commenting on the negativity of some people. There is ALWAYS a way to get something done - you may not like what it takes, but its always there.
DO you think I liked living with my parents while I was in school? or working while I went? No, but its what I had to do to be able to go to school, knowing my future earnings would offset a few years of "pain".
And since you replied, I'll pick on you a little bit::: If your already living together why are you waiting til 11-11-11 to get married (obviously someone's cute idea), isn't she worth marrying today? Whats so magical about 3 numbers?

And yes I'm a geezer that speaks my mind-something we need more IMHO.

salmonslayer91 · #14 12/02/10, 08:18 PM

thats the day she wants and thats the date we decided the differance is really just a matter of time i would be willing to get married tomorrow but the magical date will be the day just because of preferance and i like IMHO's because there is no acting one way to one person and another to another person everybody should have one view and oppinnion id rather everybody was honest

Jena · #15 12/02/10, 08:52 PM

Well, I have spent years in the work force, raised a family and am now back in school. I no longer have the family financial obligations I had before and am in a pretty sweet financial position and it is still very hard.

Tuition is expensive and the current financial aid laws really hurt younger people. It is assumed that their parents are paying for their college, whether they are or not. If their parents are on the higher side of the middle of middle class, the kids get no help from financial aid, even if their parents do not pay one red cent of tuition. Often kids are left with no other reasonable alternative but to take some loans.

It is not feasible to change schools in the middle of degree program just for cheaper rent. It is also not always feasible to live at home. Sometimes home is quite a distance from a school. Community colleges are nice and I got my first degree from one, but it is not always the same quality of education.

Most of the ones I know are very frugal and do all they can to minimize the loans but it hard when tuition runs $15K a year, books run $500-1000 a semester and school really is a full time job if you want to get good grades.

Salmonslayer, you just keep on doing what you are doing. I feel your pain and understand. You are not required to live under a rock or forego anything remotely called a normal life in the name of a debt free education. It's still worth it. Do what you can and it will be ok. consolidate, pay your interest now if you can (my graduation present to my daughter was to pay her accumulated interest on her nonsubsidized loans before they rolled it into the principle), and never stop learning! Go to grad school too...at least they will pay for that!

Jena

Sonshine · #16 12/02/10, 09:56 PM

I payed as I went. I did have the help of the military. They matched what I paid, but even without that I would have payed as I went, even if I had to take breaks here and there.

primroselane · #17 12/03/10, 02:53 AM

$50.8 billion worth of loans were in default by the end of the 2009 fiscal year, compared with $39.1 billion at the end of the 2008 fiscal year.

http://thechoice.blogs.nytimes.com/2...nder-scrutiny/

Beeman · #18 12/03/10, 10:28 AM

That's another big problem, people think "screw the gov't I'm not paying back my college loan". I know a kid around here that quit college and had student loans, very common as most never graduate. Of course his student loan was waaaay down on his priority list, way behing big screen TV. What a surprise he got when he didn't get an income tax return as it instead was used towards his loan. I believe the non-payers also cannot get a fed. gov't job nor receive their SS until the debt is paid.

Jena · #19 12/03/10, 04:43 PM

You can never get away from a student loan. You can't even have them discharged in a bankruptcy. They do discharge them sometimes if you take certain jobs or participate in some volunteer programs, but over all, they are there forever until paid.

Those who default and ignore them will have interest continue to pile up until they finally address the debt.

Tom in TN · #20 12/03/10, 04:57 PM

In many respects, the lottery programs that most states now have can be thanked for the outrageously escalating costs in colleges. When billions of dollars are poured into that market segment each year, it is inevitable that the prices charges for the services will sky-rocket.

Cut out the "Hope Scholarships" and the student loans and see how much the colleges could cut back on their prices.

BTW - I paid for both my wife's and my education costs through Master's Degrees without any help from anyone. It took me 10 years to earn my Bachelor's Degree, but I did it nonetheless.

I have little sympathy for people who rely on others to pay for their expenses.

Tom in TN