The Human Face of Student Debt

[TrailRunr]

Another way to think of the student loan problem is that it is a backdoor taxpayer subsidy to the private colleges, universities, and vocational schools. They probably have a lot of lobbyists. The student loan programs used to be a back door subsidy for the financial industry as well. All that's needed is to trick people into thinking an overpriced school is good even if the job prospects are poor. I do think people need to take personal responsibility for poor choices such as going to UOP or choosing a useless major, but the government sleeping in bed with the banks and the private schools doesn't help.

[selash]

College is not a reason to go into debt at all. I moved out of my parents house at 19 and worked my way up from a minimum wage job, paying my way through my undergrad--which took me four years. I had absolutely no financial assistance from my parents at all--and I didn't qualify for financial aid. Now, with my bachelor's, and currently being accepted into the best school in the state for my master's, I live on my own and have $0 in debt. It can definitely be done. Takes hard work, devotion, and a almost crazy determination to make it happen--but it is totally possible to graduate debt free.

[SweetSecret]

I'm sort of 1/2 and 1/2 on this. I had absolutely no support or encouragement towards college, and without my parents being willing to file the FAFSA I was pretty much stuck and had written college of as something I couldn't afford. Maybe the reason for this had partly to do with working for a credit card processing company at one point before turning 18, which always told us not to call Asian owned companies because they were less likely to ever accept credit cards. The thinking back then that my boss passed onto me was that many Asian people didn't believe in credit - you either had the money or you didn't and if you didn't then taking a loan meant you couldn't really afford it. Without guidance into college by family, school counselors, etc and then seeing all my friends going made me envious... thus the "keeping up with the Joneses" sets in. I had however been stupid enough upon turning 18 to co-sign on $3k in home appliances/electronics for a guy I was dating, because the store was running a 6mos no interest offer and I knew he had a good job. A few months later he hadn't paid any of it off and I freaked, which lead me into working [moonlighting] in my previous career, along with keeping my non-profit low-paying day job. Needless to say I had the the entire debt paid off in 2 months, took him to court and never saw a penny of the money from him.

I stuck with the moonlighting job though and bought a reliable car (mine was constantly not wanting to start) and then decided to go to college... because at that point I knew I could afford it. I paid the majority of my college all in cash, but I did take out $15k in high interest student loans (because I didn't have a co-signer) initially because I wasn't sure the first year if I'd be alright since the college was in a totally different city/state. Honestly, the car I bought and college I went to were both unnecessary overly-priced expenses. I needed a car, but I didn't need such a fancy car. I needed to go to college, but I didn't need to go to such an expensive one... again this is what happens when people don't know any better due to lacking guidance even when asking for it. Do I regret those experiences though? Not really. I was robbed the first week of college, so the loan came in handy for replacing windows and being able to buy new things including clothes which the robbers took. I didn't finish college there because of personal (relationship) issues, and ended up switching to a community college and then taking time off after getting my associates degree to travel for work for many years. I had the opportunity to see pretty much every part of the country, enjoy different cultures/food/people and in a way it was like constantly being on vacation... until I got sick of living out of suitcases or seeing the industry decline. I also became really great at being able to quickly "read" people, predict their responses, and how to close a sale or guide them towards something... which are useful skills in many jobs. Going through my injury sucked, especially not being able to get unemployment since I was a 1099 contractor, but in the end it has been all working out and I'm back on track with my education and working from home.

Having a degree at 21 or 22 would have been nice, but again I honestly didn't need it. I found a way to get by that may cause some people to judge me, but here I am... without $30k, $60k, $100k, or $300k in student debt and I'm pretty happy about that! I'm actually at the point now that I've offered to pay for the application fee and first competency exam of another woman coming out of a similar situation to mine, because in the long run I think doing it this way is so much smarter. My biggest problem is that I deal with a lot of physical pain from the movements of the past work... but at some point we all get old and generally have to deal with that. Overall I'm happy with how things are turning out.

[jawbreakingrr]

Research has to be done! I was talking an employee at a Subway restaurant. She was telling that she is studying Criminal Justice at a University that is $25K a year. I was like F***!!!! I wanted to tell her that she was crazy and that she necessarily did not need a CJ Degree for law enforcement, especially a $100K one. She was excited and proud, so I didn't want to burst her bubble or upset her. If she would have complained about the university or the cost, I would've chimed in. So sad $100K in debt for a CJ degree. I did both my AS and BA in CJ for under $10k. Also, she is taking student loans and is working on her winter break saving up money to buy food and go out while back at school.

[passit1]

Even if someone is uninformed about college, there is no reason to rack up that debt. It was always assumed I would go to college but, aside from an uncle, no one in my family had gone. There was no parents taking me to colleges or talks with guidance counselors to figure out majors. Suddenly in senior year of high school, I was supposed to know what to do. I didn't. Went away to college and was so homesick I wanted to come home before the first semester was over. But my parents talked me into finishing the semester with passing grades and said I could live at home while attending community college for the rest. They didn't lose their investment on that first semester and I had an entire semester of college credits that transferred first to the community college and then to TESC. Truth be told, I never should have gone away to school instead of living at home and I shouldn't have been left to figure out the college thing on my own since I had no clue. But even in mistakes, figuring out the best way to handle the situation still can happen.

And now I feel like a hypocrite.....full transparency....I didn't pay for any of my college credits. My parents said they'd pay for college when I was 17. They constantly reminded me about this, first when I returned to college in my mid-twenties for an associates degree in a major completely different than the business major I left before getting the AS. Then again when I went to TESC for, of all things, business! My father and I actually argued about it since I was a 44 year old who took too damned long to go back for a bachelors, I would never expect them to keep that very old promise. I couldn't stay stubborn with my sick dad though and I let them cover the TESC tuition. But I used these forums to make damn sure I did it in the most economical way possible. Now mom insists on paying for my masters cause it's what dad would have wanted. And I'm planning on doing WGU in 6 months to keep that tuition as low as possible. Bottom line...I have the best folks who have the financial ability to do this without incurring debt. But that doesn't mean I need to take advantage of them or overspend.

[Devanna]

I do feel sorry for some of the people in the video. Our educational system definitely has issues that need to be addressed, like the ridiculous costs. That being said, I can't say they are entirely victims either because in the end they had to make the choice to get where they did. In order to fix this problem both issues must be addressed.

[cookderosa]

US Dept of Ed has data.
https://nces.ed.gov/fastfacts/display.asp?id=76

"Question:
What are the trends in the cost of college education?

Response:
For the 2012–13 academic year, annual current dollar prices for undergraduate tuition, room, and board were estimated to be $15,022 at public institutions, $39,173 at private nonprofit institutions, and $23,158 at private for-profit institutions. Between 2002–03 and 2012–13, prices for undergraduate tuition, room, and board at public institutions rose 39 percent, and prices at private nonprofit institutions rose 27 percent, after adjustment for inflation. The price for undergraduate tuition, room, and board at private for-profit institutions decreased 7 percent between 2002–03 and 2012–13, after adjustment for inflation."


So- let's say you want a 4 year degree. You do the smart thing by starting at your local public community college and then you transfer to your public in-state university. The stats they collect don't include books, so there's that, and also the most current info is from 2013, so figure a tad higher there too. These are not my dollars- these are actual figures across the US.

Here's the bill assuming you completed every credit, failed nothing, and successfully completed 30 credits per year with a PERFECT transfer into the university:

2 years at the community college with housing: $8,928 x 2 = $17,856
2 years at the state university with housing: $15,022 x 2 = $30,044
Total before books: $47,900

Here's the bill if you did it at an average private non-profit college:
4 years at the private college with housing: $23,328 x 4 = $93,312

Now, the obsession here is finding low cost and faster alternatives, but let's be real- not everyone is going after an online degree. You can't use clepped out online degrees as the yardstick for the rest of the population. The fact remains that college is expensive and people borrow money to go.

[sanantone]

One way to cut costs is to not live on campus. Live with your parents or get an apartment with a roommate.

[clep3705]

I wouldn't universally say don't live on campus. After my first master's degree, I had a good job and enrolled in one course just so I could live on campus. It was less than half the cost of an apartment. Sometimes on campus rent without a meal plan can be a bargain.

[sanantone]

I wouldn't universally say don't live on campus. After my first master's degree, I had a good job and enrolled in one course just so I could live on campus. It was less than half the cost of an apartment. Sometimes on campus rent without a meal plan can be a bargain.

If you're going to live by yourself, then living off campus might not be cheaper. Unless your parents are asking you to pay thousands of dollars in rent, then living with them will always be cheaper than living on campus. Getting a roommate may or may not be cheaper.