Why the Student Loan Crisis Is Even Worse Than People Think

[calinewarkwc69]

More than 25% of students who take on college debt are graduating with way too much of it, this leading expert says. And the repercussions could be lifelong.

When discussing the student debt crisis, most people focus on the rapid growth in outstanding debt and several recent milestones. For example, student loan debt exceeded credit card debt in

Comments

[ericadawn16]

The advice about counseling and not letting people borrow the money kind of ignores...
We're told we need college to get a good job.
Without the loans, we can't afford college.

So, what are they going to do about THAT instead of continuing to put all the responsibility and blame on US?

[electric_mole_x]

This is my take on it tbh. Is that you're only solution? Tell us that we shouldn't have borrowed so much, when on the otherhand we were being bombarded with messages that we couldn't make a living doing retail forever, which is a total lie lol. My friends that went straight into the workforce (retail or construction) after HS have been able to start their lives, while I'm nearing 30 and don't want/can't get a house/kids/etc cus I'm buried in debt and the only jobs that will hire me are retail.

[molkat]

There needs to be a mandatory session or class to discuss loans with Juniors/Seniors that includes students and maybe parents that goes over the implications of getting a student loan. It is predatory that 18 year olds can take out a massive loans when they likely have no clue what they're doing.

I know when I was 18 I didn't know this stuff, all I knew is that I must go to a prestigious private school because my high school drilled it into my brain they were superior. My dumbass 17 year old self passed up a full scholarship to a solid university because it wasn't ranked high enough. Luckily I dropped out of my fancy university after a year and when I returned opted for a state school because I would have been destroyed financially.

[tabloidscully]

This argument is straining my marriage right now. My husband and I both want me to finally complete my school. I put it on hold to support him through law school and raise the kids. I'm 31 and I feel like my prospects are over. We are about $12,000 in debt between cars, credit cards, and student loans with a yearly income of around $80,000. On the whole, the debt to income ratio is pretty good, but I refuse to go another $15,000 in debt when I won't even be able to return an income of twice that for five years or more post-graduation. Why go through the rigamarole of earning a $600 per month payment for an education that won't pay me more than $1,200 per month anyway, and when it will involve another $200 or $300 per month in expenses related to working anyway? Earning $300 a month isn't worth it.

[screamingintune]

Financially, tbh, you sound like you're in a very privileged position to go back to school. Is it your age making you balk, because that's silly? 31 is very young and I didn't start undergrad until 30, and when I stated my MA/PhD program at 34, there were loads of people there older than me (at an elite school, mind you). I don't know what your field is what you'd go back for to finish, but that amount of debt is very small compared to most people, and that high of an income is pretty impressive unless you live in like, idk, midtown Manhattan.

Don't say you have no prospects at 31. It's just not true. We need to set on fire and torch to the ground this idea that you have to have everything done and figured out by early 20s.

[tabloidscully]

I can see how mentioning our relatively low debt-to-income ratio and an annual salary of $80,000 makes it seem like I am, but to be honest, I live in the Bay Area. It may not be "midtown Manhattan," but where I'm at, a two-bedroom shoebox runs $1,800. In addition, we're a family of four, and my husband's son doesn't live with us, so we also pay out almost $1,000 a month in child support in addition to supporting him when he's with us, so my husband's actual take home pay, including after taxes and child support are calculated in isn't $80,000, but closer to $67,000. And when you have another child home, debt, and rent that's more than $2,000, you'd be amazed at how little there is at the end of every month. We have a little in savings, but I do mean little--like a couple of hundred bucks

[screamingintune]

Oh yeah, well, all of California is a money pit, I get you. And working for family is never an ideal situation. Everyone I've known (including myself) who've worked for family have been grossly taken advantage of. It's sad how the people who love us are the last to pay us our actual worth.

And with your husband being out of town half the month, I can see how childcare can be a big deal. Some schools do have childcare on campus, though, something to consider.

[tamingheadfauna]

I know John Oliver talked about subprime lending in the Auto Loan business... And the likelihood that this bubble will burst (or have a micro burst) in the near future.

This is scary enough.

Between for-profit colleges and student loan debt--coupled with the inability to restructure student loan debt even when filing for bankruptcy-- I have a really bad feeling this is the scarier bubble?

[screamingintune]

the subprime lending offers I get for cars are RIDICULOUS. like, guaranteed $40k in credit? I'm a grad student I don't even have taxable income lmao

[pairatime]

There needs to be a major push for colleges to keep their cost down and for students to be educated more about what they're getting in for if they take on the debt. Some jobs will be able to pay off large loans but some jobs will never pay off 50K of loan. Over all people need to be better informed and schools need to cut cost.