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Student loan debts are becoming major problem

  1. "Graduating seniors who just finished their degrees on average carry debts of $19,000 or more. On the other hand, medical graduate students carry debts in the range $19,000 - $105,000 (Source: Department of Education).

    Tuition fees have risen 32% at 4 year private colleges whilst they have risen by 41% at public universities and colleges. Average accomodation and board and room fees at private colleges cost $29000 at private colleges while costing $12000 at public institutions."

    read full article here http://www.moneysavingfreetips.com/student-loan-debts.html
     
  2. i know... i'm feeling the pain. and its still accumulating. paying about 3.7k/quarter, times 3.
     
  3. If you cant afford it or dont want repay a debt loan then dont attend college.
     
  4. Well, if that is the cost of admission to society's upper echelons, isn't it worth it?

    In any case, the statistics are misleading - there is very little "Average" debt for graduate students. Either your folks paid for all of it or they didn't. So, your 'average' debt is either $0 or $200,000 for grad school.

    Who I feel sorry for are the poor schlumps who choose their career choices poorly, and end up with major school debt and no real prospects of paying it off. $80,000 in college debt when you are an english major almost certainly ensures you will be a slave to debt for the rest of your life.

    OTOH, while you can't get rid of student loan debt through bankruptcy, at least they can't lobotomize you & take back your knowledge.... use it wisely...
     
  5. I agree with you. Unless someone else is paying for your college/university education, I think it is extremely important to view it as in investment, one that you are making for the purpose of being able to increase your earning potential in later years. It just happens that I was actually very much interested in business (particularly finance), but I do feel bad for art majors with $30-$50K+ in student loan debt...

    As for myself, I basically have worked my butt off during university, so I have kept my debts quite minimal. I would say that I will be paying them off rapidly, but interest on government student loans is tax deductible up here in Canada, so they are my lowest priority. Still have a couple of semesters to go, but things are looking good.
     
  6. My parents have it covered along with grad school :) Does suck for those who don't.....
     
  7. As a 24 year old, I can see how many of my friends struggle to have a balanced budget. Not because they dont get paid enough, but rather they are big spenders. I do believe if they get organized they will pay eventually their debts and start worrying about building equity.
    I payed my college with hundred of sleepless nights in high school and college to have a full- scholarship. Still, I did accumulate some stupid credit card debt of in my four years, which I paid off two months ago.
    I could do it, I have seen others do it. I believe our whole generation will do it,. A frugal style of life at our age is not what we expected, but it's the only way to make it through.
    lol my first post yay!!!
     
  8. I agree that lifestyle has a great deal to do with this. More specifically, one can either live within your means and focus on paying down debts, or one can decide "hey, I'm done university, time to live life!!"

    If one does the former, things should work out pretty well; the latter choice generally leads to getting yourself into large amounts of debt. For example, I'm going to be moving soon, and one thing I will need is a new TV. I could either buy a nice little 27" tube TV to last me a few years (until HDTV takes over) for about $300, or I could walk into Best Buy and pick up a $6000 plasma TV on credit. Many people in our society would likely go for the second choice.
     
  9. Nice comment. This type of mentality will assure that the education level of USA will rival those of third world nations.
     
  10. Now, in fairness, while I commend the writer on their ability to defer gratification, you need to think about this -

    Option #1 - purchase a $300 27" regular TV, use it for 3 years, and throw it away. Then, when you have "made it" , buy a $1000 HDTV flatscreen.

    Option #2 - purchase a $600 HDTV LCD 27" TV, use it for 6-9 years, and then purchase the $1000 upgrade TV. Finance the $300 extra on a credit card at 15% interest for a year for $45 in interest. Total cost $645.

    I would argue that option #2 is actually more cost effective, even thought the initial outlay is slightly more expensive. However, at the end of 3 years you have spent $1300 with option #1 and $645 with option #2. Since you are starting out, option #2 actually makes more sense. Of course, you need to be disciplined in your purchases and make good decisions.

    I remember when my sister bought a $300 Coach purse while in college. While I wondered what she was thinking, she tried to justify it to me as an"investment." I laughed to myself and thought about how anyone could consider a consumer good consumable as an "investment." Particularly one that is likely to be stylish, and require replacement in 2-3 years. By the way, she leads a high-consumption lifestyle and I don't let her advise me on my portfolio.
     
  11. You have a good point regarding the choice of TVs, though I also deliberately exaggerated the high-end example somewhat. My point was mostly that many people seem to live far, far beyond their means, whether we're talking about TVs, cars or toasters (my girlfriend told me about something she saw on Oprah where people were buying $2,000 toasters...).

    I've actually been considering buying a low-end HDTV instead of a traditional tube TV, but I should say that I've been thoroughly unimpressed with the majority of lower end LCD TVs that I've seen. The image quality on some of the cheaper LCD TVs is just terrible in my opinion, I haven't seen anything going for less than $1300 CND or so that piqued my interest.
     
  12. Not to mention can't find jobs after graduating .... this site is very enlightening....take a look when you have a second.... Americans are drowning in debt....

    www.economyincrisis.org

    It's worth looking at...


    I agree with you..........
     
  13. Here is another site packed full of info on this country and it's debt . http://mwhodges.home.att.net/ . I left my job back in 2001 to cash in my stock and paid off our house and all debts we had. Granted we don't live in a huge mansion and drive new cars or motorhomes etc. but we have security in that if my wife and I both lost our jobs we would be fine for 10+ years. I started my own business and now work for myself part time hours. My wife is an RN and also works part time. We're not rich but we have plenty of time to enjoy our lives not being saddle by debt and having to work our arses off to pay for it. I watch people in my neighborhood constantly buy new toys but they work so much they can't play with them or enjoy their kids or anything. To me its just not worth it. I personally won't go into debt ever again if at all possible. Just my little rant.

    T
     
  14. Sounds like a very intelligent way to go, I hope to do the same for myself someday.
     
  15. Yes, college is expensive and getting even more so. But the people who are willing to pay the "price" go to college. Poor kids who work their butt off and get full ride scholarships, those who work all through college to pay, and those fighting in Iraq right now to have a chance at college when otherwise not financially feasable.

    This is without mentioning the many possible grants, and no-interest until you graduate loans the government offers.
     
  16. That awesome. I have just my mortgage, which I could pay off, but my fixed rate is low, and I like the measley deduction. You must have read Millionair Next Door. Ironically though, if more folks were like us the US economy might collapse, because consumer spending is such a big part of GDP.