Once more, My Show of Appreciation for helping me avoid this

[Saharapost]

When I see pictures like this or read about those in such situation, I cannot but wonder how it's possible that they never heard about the so many "alternative routes" to going to school without messing one's life. Stories like this help me to acknowledge the value of everyone on this forum and also appreciate the great work you all do to take the "gospel" to the ends of the earth. Once again, thank you.

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[sanantone]

When people accumulate a lot of student loan debt, it's due to ignorance, but not necessarily ignorance of alternative sources. There are mainstream ways of keeping debt low.

1. Don't attend an expensive college that offers little non-loan aid.
2. Attend a community college for 2 years and transfer to a public, 4-year college.
3. Do not use an excessive amount of student loans for living expenses. Try getting a part-time job, living with parents instead of a dorm, or living with roommates.
4. If you can get in, attend a school that offers a lot of non-loan aid e.g. Princeton University where the average student has less than $6,000 in debt.

This lady's situation sounds like she was paying for a long time on an income-based plan. I can't think of any other reason why a $26k loan would balloon to over $71k. When you stay on an income-based plan, you're not paying much money toward the principal. You're mostly just paying interest. So the question is, how come this woman couldn't afford to pay the full monthly payments for a $26k loan? Her monthly payments should have been rather affordable unless she was working a job that paid less than a middle class salary. This is where choosing your major and having a plan for entering your field of choice comes into play. You also have to learn how to be flexible. For example, a lot of people with bachelor's degrees in psychology are underemployed and make low wages. I bet most have never considered parole or probation. Even though they would still be underemployed because a degree isn't required, I bet a lot haven't considered law enforcement where their education could actually be helpful. If you work at a large police department, you can start out making $45k-65k after the academy.

[Lindagerr]

I feel sorry for these people but I do not want to pay their debt. I offered my sons friend help in getting at least 30 credits from CLEP, he couldn't be bothered, he was sure getting his degree from Drew without any credits by exam would be better.

Agirl I know saved over $20K by doing 30 credits by CLEP and getting her degree from NYU in 3 years. The girl got a better paying job first and so is up more than $40K. So why should I feel bad for the one who carried $80K in student loans for 4 years without a job?

I am just tired of people who think "the Government" owes them, who do they think has to pay when the loans aren't paid back?

Ok that was my rant for today:o

Oh and good for you Sahara you are welcome but you are the one who took the initative to find this site.

[mrs.b]

I'd bet she used the maximum forbearance allowed, where she made no payments but interest continued to accrue. Forbearance should be used in extreme cases of emergency, but too many people use it because they want to go on a vacation and want to save those extra dollars, or because it's just not convenient that month. It amps debt and prolongs the inevitable. Even on an income-based program, unless she was severely underemployed (see Sanantone's comments on options to minimize that), the payments should have at least been designed to keep her at break-even, not increase debt. That says to me she was doing something to create the rising balance. At least in two more years, she'll be eligible for loan forgiveness if she has made 300 regular, on-time payments. She's coming up on that 25-year line.

In some cases, excessive educational debt is due to innocent ignorance, but honestly, I think most of the time it is pride and laziness. Must go to that top-named school, not the state school with the same (or in some cases, better) education opportunities for less tuition. What kid wants to work while in college to keep debt minimized? Why put in extra time researching options when you can just do what the registrar says and be another sheep?

[cookderosa]

I'm not a fan of "blame the victim" but I don't like the attitude of helplessness that people have when it comes to student loan debt.

I think somehow there is an assumption that we must bow at the altar of higher education at all costs; no matter the cost, it will be "worth it" ...... It's simply an attitude of acceptance that people blindly march on in- sign up- and worry later.

I'm not saying you shouldn't ever borrow money, but it should never be first. And for many people, it's first.

I can't tell other what to do, but in my own family, I'm busting my rear to make decisions for our family (that includes my husband and I who each earned multiple degrees as an adult). Are you attending a community college that will guarantee your transfer and admission to a 4 year school? Have you used as many cheaper options as possible to bring credit into your community college degree? (CLEP/AP/DSST/ACE, transfer credit from other CC's with lower tuition via online learning) Are you living with your parents instead of an apartment for those 2 years? Is your school in-state/in-district so you're eligible for the lowest tuition rates? Are you eligible for a Pell Grant (if so, you don't need to borrow a single penny to get through community college). Are you doing a part time job or work study? Are you buying your books used? These are real factors we used in our decisions, and when guiding our kids.

Upon transfer: Are you living on campus so you can avoid the cost of a car? Are you in state? Are you completing a major with an easily identifiable career path? (nursing school = nurse) Are you meeting people in your career field and volunteering in your down time to build a network that can land you entry level employment over the summer or immediately after graduation? (6 months grace isn't as long as people think). Is your social life limited to cheap/free/activism/hobbies/clubs/sports/exercise or is it filled with dating/parties/restaurants?

In our family, we've made a big move in 2012. My husband took a job at a university that allows our family (including me) free tuition. That's a half million dollars if all my children and I earn only 1 degree. The university offers graduate degrees at 90% discount, you can bet by the time he retires, that school will know "DeRosa" in their halls lol. Furthermore, we make the kids pay cash for everything. So what it you have to work a year and resume studies next year?! A year of working SO THAT you can pay cash trumps a life of student loans. Remember, if your kids get married, they'll also incur the debt of their spouse.

I also don't accept that there is only one college or the best college as a means of justifying cost. It's probably because I'm too old and read too much social science. The variables in one's future are unimaginable. If you fall on hard times, you'll be happy you don't have student loan debt.

[sanantone]

Upon transfer: Are you living on campus so you can avoid the cost of a car?

This depends on where you live. If you live in a city with public transportation, this is not an issue. A lot of colleges and universities are surrounded by apartments that cater to students. Even though we don't really have a public transportation system in San Marcos, Texas State University offers shuttle bus service that goes all over the city. You don't have to pay a fee when you board; the price is included in your student fees.

In San Antonio, where the cost of living is low, it is cheaper to live in a one-bedroom apartment alone than to live on campus in many cases. It is definitely cheaper to live with a roommate off campus.


My calculation above is wrong because I used what she originally owed plus what she still owes. Adding up what she paid and what she owes is almost $78k! I think it's still the case that consecutive payments only count after a certain year for forgiveness purposes, or did they recently change that?

There are other ways to get forgiveness. If you teach in a low-income school for 5 years while making all of your payments, part of your loans will be forgiven. The threshold for being a school to be labeled low-income is rather low. The last time I looked, which was a few years ago, a school was classified that way if 30% of its students were economically disadvantaged. Those who work for non-profit and public organizations can seek forgiveness after 10 years of making 120 consecutive payments.

[KayV]

I got through undergraduate with a combination of scholarships (National Merit and a Douglas Fellowship) and part-time jobs, so I graduated with no debt.

For my master's degree, I got a teaching assistantship to pay tuition and a stipend, but I also became a resident assistant in the graduate student dorm to pay for room and board. I *highly* recommend that combination for grad school.

For my specialist degree, I had saved the money and paid as I went to avoid student loans.

I am so thankful that I did not burden myself with huge student debt just to attend Big Name U.

[LaterBloomer]

Someone I knew fought tooth and nail against her father's desire for her to go to a military academy (free education). She wasn't having any part of it. Guess what? She ended up going into the military (enlisted) during her 20s to get money for college.

[Prloko]

3. Do not use an excessive amount of student loans for living expenses. Try getting a part-time job, living with parents instead of a dorm, or living with roommates.

So true. I knew several people who would borrow way more than they needed and would use it for certain living "expenses", like a car, or fraudulently, like one poster on here stated, so he/she can buy investment real estate. I took out a loan one time. I needed $2,000, I was offered $6,000. I took the $2,000 and even that I regreted.

[UptonSinclair]

It is tempting to say, "they should know better," but I try to remember we are talking about college aged kids. Many have never dealt with debt before so the reality of it doesn't register like it does with us old timers. At that age, I was in the military running up debt like there was no tomorrow. Combine the immaturity with colleges that are telling them cost shouldn't be a factor in their decision and you end up with young adults with a lifetime of debt.