Gosh, I’d like to be pumping that money back into the economy, rather than continuing to be a serf to the federal government for my completely worthless advanced degree.
geeze, I wish my debt was the average amount. But any measures to mitigate the burden will likely be limited to more recent borrowers… leaving behind a generation of indebted to float the boat on our interest rates while others scurry off the sinking ship.
The worst part is that the college degree involved don’t seem to (if there was one) guarantee or aid much in finding your first professional job these days. Find out how many of them got extensions on their first payment because they are not yet working.
I propose we give state/federal employment preference to those with student loans. Maybe then the borrower can pay the government back.
- Arthur Andersen - Wednesday, Mar 11, 15 @ 10:48 am:
Exactly right, Word. Better to keep the Assistant to the Vice Deputy Provost Chancellor at $100k plus than to cut costs.
My first thought was the same as Tex and Jim (and mine is all federal loan money; no private student loans)! My second thought is that this level of debt is killing the ability of students to go to college and take lower-paying, but vital, public service jobs in government and the non-profit sector.
Let’s cut out the amount of profit the federal government makes on these loans. After all, they borrow at what, virtually zero percent.
Yeah PS, let people off the hook, sorta like Obama did with the auto industry. That turned out well for the taxpayers. Sheesh, let’s give everybody a lollipop and tell them to have a wonderful day.
thats just the average. additional pain and suffering resides with those who have that amount or more debt, but didnt finish a degree, and are under/unemployed.
i managed to graduate without debt 40+ years ago. it seems almost quaint now. that made it possible to tend bar, go to grad school, and afford to start at the lowest rung professionally.
According to labor dept statistics the median non-college earnings are about $40K and with a BA the median is $65K.
- Debt Loaded College Grad - Wednesday, Mar 11, 15 @ 10:53 am:
-Hacksaw Jim
I couldn’t agree with you more. My federal loans are high, but the private ones are carrying a 9% interest. The millennial generation, being crippled with student loan debt is hurting the home and auto industry. Hardly anyone can save up for down payments after loans and other expenses are payed for each month.
My parents basement is nice though, so I have that going for me… Which is nice.
States used to pay enough into higher education that this level of borrowing was unheard of. Today, not so much. As states cut spending, students and families are borrowing to make up the difference. And since the housing collapse, families no longer have home equity to help finance a college education.
You’re on your own is basically what the states are telling these students.
Those figures don’t include the private student loans that many students must take out - as there is often a big gap between what the maximum state and federal grants and loans cover - and what the cost are.
“If you work in the public sector your loans are forgiven after 10 years. One of the benefits of working in the public sector.”
Umm…I am going to call BS on that one. I have worked in “the public sector” for 20 years and, so far, there is NO loan forgiveness. The program you are referencing is for a specific segment of public sector employees, not even close to everyone as you erroneously implied.
Student loan debt can be very crippling. I graduated from law school 8 years ago, and there were many times where I felt that the cost was not worth it. I have a combination of federal and private student loans, and the minimum payment each month is approx. $1100. I have come a long way from where I was 8 years ago, and I am greatful for the opportunities that I have had. With that said, as a society we need to re-evaluate the cost of higher education as well as the mechanisms for providing financial aid/incentives for students. We need an educated workforce. We as a society need to invest in our future.
Of course we the people are the ones they owe the money to; forgiving that debt just means everyone else eats the loss.
- BlameBruceRauner - Wednesday, Mar 11, 15 @ 11:05 am:
Its very hard entering the work force with this kind of debt. College is not for everyone and I blame the high school system for pushing to many kids this route. Many wind up never using that “history” or “liberal arts degree”, other than to wait tables, bar tend, clean houses, etc. I am very lucky to have made the choice to go to community college and get my Associates before plunging into the State University System. I only had to borrow two years worth. I still worked almost 40 hours a week during that time to pay for rent/food/drinking money. I actyaully got a good job in my field, but it still took me 9 years to pay it off, but hey it sure felt good when it was gone. I like the idea of free community college, it might just be the ticket to helping kids manage the debt load they are left with, and might get kids focused on careers early so they don’t avoid falling into the college trap if they are not suited for it.
- Formerly Known As... - Wednesday, Mar 11, 15 @ 11:06 am:
Yet previous generations managed to graduate without such debt.
I’m guessing there will eventually be a change in law to allow student loans to be included in bankruptcy. Right now you can’t include those loans if you file bankruptcy. This debt will never be repaid. The system needs to be reformed and part of that fix is likely going to have to be loan forgiveness of some sort.
- Urbs In Horto - Wednesday, Mar 11, 15 @ 11:07 am:
Demoralized, you correctly correct Anonymous (10:51 am). The loan forgiveness program is woefully insufficient. I tried to do it, but it set my monthly-for-10-years payment at an amount that (A) my family couldn’t afford without resorting to SNAP; and (B) left me with virtually nothing to “forgive” in 2025. What on earth is the point? Just call me and my wife The $80K Couple, alas.
==Yet previous generations managed to graduate without such debt.==
Good for them. Now what’s the point of that statement? Because I can tell you that neither myself or any of my friends went to college without incurring student loan debt. Without student loans I wouldn’t have received a college education.
- Urbs In Horto - Wednesday, Mar 11, 15 @ 11:09 am:
Let me guess, Formerly - you paid $2-3K a year, right?
- Urbs In Horto - Wednesday, Mar 11, 15 @ 11:13 am:
Anonymous (11:08), given that you’re anonymous, would you be willing to share your math? I.e., amount owed, interest rate, yearly salary, monthly payment, and anticipated amount that will be forgiven? Just curious, if not, understood.
- Because I Said So.... - Wednesday, Mar 11, 15 @ 11:13 am:
So cutting appropriations to higher ed by 31.5%, as Rauner proposes will only continue to drive up tuition rates.
Higher ed funding in Illinois has been on the decline since 2002. This years proposed cut is more that 2002 to present combined. Apparently the governor thinks 4 yr degrees are only for the one percent.
===Right now you can’t include those loans if you file bankruptcy===
You can thank Republicans like Mark Kirk for that. In 2005, Congress passed a sweeping bankruptcy overhaul for consumers that made private student loans nondischargeable.
Also, total student loan debt has doubled since 2007. This is almost completely due to states cutting funding for higher education.
And I paid my school debt and my kids school debt. Buck up and be accountable.
And here is another thought—If you want to go to college and study business, how about allowing kids to skip these electives like English Lit in the 15th century or Art History if you have zero interest in those topics.
- Urbs In Horto - Wednesday, Mar 11, 15 @ 11:17 am:
Rich, you’ve put your finger on the problem - education costs have grown in a manner ludicrously out of whack with the CPI.
When I graduated with my MBA in 1982 I had over $35,000 in student loan debt (this was in current dollars, not adjusted for inflation). Of this about $22,000 was in Federal loans at a 7% interest rate, and $13,000 in private loans at various interest rates up to 14%. I did not fully pay off my loans until I was 41 years old. On the other hand, because of my MBA, I made at least $10,000 per year more than if I just had a BA. The loans did not prevent me from getting married at 27, buying a house at 31, sending both of my kids to college, saving more than adequately for retirement, etc. Based on my own experience, I firmly believe that the problem today is not so much high student loan debt, but the lack of career opportunities and earning potential for graduates. Having high contractual obligations to pay is fine only if you have high earnings on the other side of the equation.
I was fortunate enough that my parents paid for my college education. In turn we also paid for our daughter’s education but in order to accomplish that we literally saved from the day she was born.
I’m not sure she appreciated it at the time but I know she appreciates not having to live under that debt load now.
The solution can’t be to simply forgive all debt. That’s an argument to say it should be free. Didn’t these students have to have a co-signer to get in this predicament? Understandably, kids don’t fully realize the real consequences of owing this much, but parents must.
Education has gotten hopelessly out of whack for every economic level. It’s a serious problem. Even some community colleges are over $5K carrying a full 15 credits a semester. As long as people are lining up to go to these schools and there are loan programs like these, supply is going to exceed demand without any accountability (in some cases) of having to pay for it.
Talk about dangerous precedents…Oy vey.
- Rayne of Terror - Wednesday, Mar 11, 15 @ 11:30 am:
From Time Magazine: “Two decades of further tweaks to the bankruptcy code ensued until 2005, when Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which made it so that no student loan — federal or private — could be discharged in bankruptcy unless the borrower can prove repaying the loan would cause “undue hardship,” a condition that is incredibly difficult to demonstrate unless the person has a severe disability. That essentially lumps student loan debt in with child support and criminal fines — other types of debt that can’t be discharged.”
Private student loans were added as nondischargable in 2005 in the Bankruptcy Abuse and Prevention Act, which Kirk voted for in the House and for which NelNet, Sallie Mae and other private lenders spent boatloads of money lobbying for. I helped lobby to prevent including private loans in that bill, and Senator Durbin recently introduced legislation to allow the discharge of private loan debt in Chapter 7 bankruptcies. But again, nobody should hold their breath waiting for that bill to pass.
Federal loans have been dischargeable with conditions since 1976. You had to pay them down for at least five years, but it was possible to get them discharged. Since then, additional measures have made it more difficult to discharge federal loans. Here’s more info:
We need more pro-consumer advocates in Washington. I think we have enough pro-business representatives. If students voted in the same proportion as senior citizens, tuition would be much more affordable.
Someone bring back that letter/editorial thing posted on capfax a week(or more) ago about increased administration costs. Let’s fix that rather than have the government continue to subsidize (and therefore justify?) these insane costs.
==Didn’t these students have to have a co-signer==
My name was the only name on my federal student loan debt and as far as I know that’s how all federal student loan debt works. It’s the student borrowing the money.
==Yet previous generations managed to graduate without such debt.==
When I went to college in 1970, tuition at the U of Illinois was $300 per semester. Tuition at a good private school was $800 per semester. I earned more than enough from my part-time and summer jobs to pay for that.
I don’t think there are too many part-time and summer jobs these days that would pay the annual $12,000 plus in tuition at a state school, or the $40,000 plus at a good private school. And of course now they also get you with additional “fees” that are just more tuition in disguise.
- Debt Loaded College Grad - Wednesday, Mar 11, 15 @ 11:39 am:
The cost of college is rising at an exorbitant rate, the costs of text books alone is around $500 a semester for many majors in the science fields. Perhaps there is an ever bigger problem, that universities refuse to acknowledge.
The rapidly expanding rate of university bureaucracy. It is time to cut the number of administrative officials and trim the fat of public schools.
Maybe because of the particular school one of mine attended, it required me as a co-signer. I remember explaining to him what I was guaranteeing. Naturally it completely went over his head and he never had any doubt that I would sign it (my fault!). I did sign. I did pay. Nothing close to the numbers folks are describing here. I only made that particular guy go through this process so he seriously understood that he needed to finish 4 Mays from now. If he did, it was my debt. If he didn’t, it was his. He didn’t finish in 4 years…but eventually did. I paid.
– And that’s how states have managed to severely slash funding for higher education. —
And that’s how colleges and universities, together with the insane requirement to hold a bachelor’s degree or more for almost any non-minimum wage job, have managed to justify tuition rates increasing four times faster than the CPI. It’s called a death spiral - borrowing increases to pay tuition, tuition increases because there is more money available to pay increased tuition, college students simply borrow more because they must and they incur no immediate damage, rinse, repeat.
- Not Shocking - Wednesday, Mar 11, 15 @ 11:47 am:
I had $10,000 in federally guaranteed student loans when I graduated in 1986, and that was the extent of my debt. Adjusted for inflation, that’s a bit less than $22,000 today. So, yes, it appears that costs have gone up a bit, but this figure released by the White House doesn’t seem exorbitant to me. My college education was the best thing that money ever bought for me, and I have been repaid many, many times in all sorts of ways, not just economically (but that, too).
If you can get a degree these days and emerge with less than $30,000 in debt, I don’t think that’s too bad–that’s not much more than what a new car costs, and a college education is worth a lot more than any car on the road. I understand, however, that mine might be a somewhat simplistic view. I’d imagine that some of this debt is owed by people who went to for-profit “mills” where they learned nothing and emerged unemployable. That’s not good, and we should do something about that. There might also be some private debt that’s not counted here, but I’m not sure how much that would be, given that banks wouldn’t seem likely to loan money to someone who has no collateral or job, which is the situation for most college students.
End of the day, 27 grand for something that really opens wide the door to success in life is a bargain, so far as I’m concerned. And if you goofed off in school or majored in basket weaving or otherwise emerged unemployable because of your own actions or inactions, there is only one person to blame for that.
- Old Shepherd - Wednesday, Mar 11, 15 @ 11:48 am:
My wife and I have a Federal Consolidation Loan, and have paid faithfully on it for going on five years now. The principal has remained essentially the same during that time span. At this rate, we will pay on this d*%n loan for another 12 years. A car loan in an equal amount would be paid off in 6 years.
===It is time to cut the number of administrative officials and trim the fat of public schools.===
There is some fat to be trimmed, certainly. But you aren’t going to solve the tuition inflation problem by eliminating “waste and inefficiency.” If that was possible, it would be done already.
Higher ed is like health care. The costs of delivering quality go up far faster than inflation because they deliver a custom-made product that is unique for each customer and the industry requires a lot of expensive to train and employ practitioners as well as continuous upgrades in technology.
College has always been expensive and it always will be. It has become less affordable in recent years because family incomes have been stagnant and states have cut financial support.
My $60k plus for two degrees is one of the many costs, including a year in an unpaid intership, to be able to work in the field I wanted and often times wished I didn’t. Working part-time, sometimes two jobs, did little to nothing to help reduce the costs of tuition. I waited to go to graduate school to earn some money and work experience. Unfortunetly, the cost of tuition nearly quadrupled during that period of time.
I was very fortunate. My parents paid for my NU education with a 50% scholarship. I told my daughters (7th&8th graders) that we just can’t afford to send them to the kinds of schools that their mom and I went too. So we decided together to shoot for Navy ROTC scholarships. They really like the thought of being Navy officers and we promote it constantly. God help me, it’s all our eggs in one basket. If they cut ROTC money, I’m shot. But for now one has the dream of being a Naval Attache to France and the other wants to be in NCIS. I’m thankful for now that I don’t have to challenge dreams that might lead them towards majors in college that will doom them to financial hardship. (Like their old man, a music major, who only survived by changing careers shortly after college) I truly think that student loan failure will be the next thing that destroys our economy.
The price of tuition has gone up about 20-fold since I went to college in the early 70’s. The cost of a new car has also gone up about 20-fold since I went to college in the early 70’s. And so has the price of gas. Unfortunately, wages during that period have only gone up about 10-fold.
=== Demoralized - Wednesday, Mar 11, 15 @ 11:49 am:
Guy
Was your loan through the federal government? All of my loans were federal government loans.===
Honestly, Demo, Mrs. Guy made the arrangements and I don’t remember. I just showed up to sign along with the Mrs. I absorbed the cost for all 3 Kid guys for college, which was a tension filled experience. I wanted them to enter the work force qualified with no debt, so they would be serious about getting on with life. To this day, I’m not sure if that was the right or wrong thing to do. My folks could not have done it. While a strain, Mrs. Guy and I were able to. Sorry I can’t answer the question. The exercise was to re-enforce my seriousness about finishing on time (Ha!) He needed a bit more convincing than the others. They’ve all gone on to do very well, so that makes me think it was somewhat useful. No one living in the basement. That’s worth a lot to me. lol
- Urbs In Horto - Wednesday, Mar 11, 15 @ 12:26 pm:
@ Old Shepherd:
“My wife and I have a Federal Consolidation Loan, and have paid faithfully on it for going on five years now. The principal has remained essentially the same during that time span. ”
You should bump up your payment. Even adding just $50/month would drive the principal down enough that you’ll get ahead of the interest. To not have lowered your principal in 5 years is crazy. Why are you only paying on interest?
I am definitely on the high end of it. It’s absurd im locked into a 6+% loan that the federal government profits off of. Will re-pay every penny but this would seem something reasonable adults in congress should be able to fix in about an hour (which of course means there won’t be any action)
I’m with Joe M on this.
Salaries are not keeping up with school and most other expenses—the expense portion keeps climbing.
I can remember people going to undergrad and MBA programs paid by tuition reimbursement by employers. This seems unimaginable now.
Soon it will not matter if you make it through high school since college is just not affordable. Do you really need to finish high school to be trained as a barista?
I don’t think there are student loans that a parent “co-signs” for unless it’s through a private lender outside of FAFSA. “Co-sign” means secondary guarantor.
Through FAFSA, there are federal loans in which students are the debtors, and Parent Plus loans in which parents are the debtors. Neither is on the hook for the other.
Parents Plus are generally taken out after a student has maxed out grants and loans under the FAFSA formula.
Why doesn’t Durbin introduce legislation to slash the interest rate in half for all student loans? You know, if he really cared about middle class families and all.
- The Way I See It - Wednesday, Mar 11, 15 @ 12:57 pm:
Student loan debt is the real squeezy the python, but on the economy as a whole. A generation of consumers trapped by debt with ruined credit.
Just curious. It’s just that I thought all federal student loans were in the name of the student. Either way it’s debt owed by somebody.
My parents took out a loan for me the first semester of my Freshman year but it was all me after that. Glad you were able to help the kiddos out. My parents worked hard but simply didn’t have the means to help me out at that time. God bless them for trying though. Unfortunately I think my kids will be in the same situation I was in.
For a lifetime investment, based on the educational rate of return you still get, actually $27,000 I’d say is defensible. It’s an awful deal relatively compared to what previous generations got, but what is new (see just about everything today, including public and private pensions). You acquire more from a 4-year college BA in terms of increased lifetime earnings than you do from purchasing a car. You have to stagger the repayment obviously but the bigger problem there is the lack of good-paying jobs with a real upward-earning career track when these students graduate right now.
I also would like to stab many of the -for- profit college institutions with a fiery stake (University of Phoenix, I mean you), because there you do have some predatory institutions it looks to me leaving students with $50K, plus, in debt.
You are absolutely correct. Now that we are in a position to do so, we do make extra principal payments. When she first graduated from college, we weren’t in such a position.
I use it more as an example to perhaps explain why student loan debt is so huge in this country. If people are struggling and paying the minimum payments, then other than the interest rate, having student loan debt is no different than having credit card debt.
- PublicServant - Wednesday, Mar 11, 15 @ 1:52 pm:
===the bigger problem there is the lack of good-paying jobs with a real upward-earning career track when these students graduate right now.===
This. My son is graduating in May with a Masters in Aerospace Engineering from U of I. 3.9 GPA, Engineering Honors, from an Engineering powerhouse. Been sending out resumes for months now…nothing.
My partner and I owe somewhere in the vicinity of $250,000, for law school (which is a terrible, terrible investment, btw) and graduate school. It’s made having kids out of the question for the foreseeable future, and ever owning a house all but impossible.
To Anonymous at 10:51 a.m.: The Obama Administration is trying to cap the 10-year public service forgiveness at about $57,000. If you owe more than that, sorry about your luck.
Paid off my $25k last year with a very tight budget. People under 30 are trapped with burgeoning debt and little opportunity, and the few opportunities that exist pay very low.
I’m from a small family and my brother and I were fortunate to have had our educations (me: BA, MBA) paid for with the help of my parents and grandparents. My partner, a physician completing his residency at Rush, was not so lucky, and we currently suffer his (temporarily) low salary and crushing student loan debt, whose retreat below 80K we recently celebrated. By no means am I complaining: my salary has allowed us to achieve much of what we both want (condo, car, some creature comforts), but given our debtload, a lot of the other things we want from life (larger or second home, adoption, surrogacy) seem far off or improbable. We’re only in our early 30s.
- Been sending out resumes for months now…nothing. -
Aero is a tough field. I’d recommend looking at industries outside that field, maybe more in line with mechanical engineering. For entry level engineers most places aren’t terribly picky about the specific degree.
Before all of the cuts to education made by Sprigfield a high school student who owned a 4.0 GPA, who was an Illinois State Scholar, a Prarie State Scholar, an AP Scholar, who belonged to National Honor Society and had a 28 ACT would have received awards from the state to attend an Illinois public university. That is no longer true. These students, who are among our best and brightest are forced to compete for a pool of ever dwindling scholarships and university ‘grants’. They eventually wind up taking out student loans just like every other student.
I know this because my family is currently going through this situation with my son.
- GraduatedCollegeStudent - Wednesday, Mar 11, 15 @ 9:10 pm:
===JoanP—Really?? You are gonna ask that question about fulfilling grad reuquirements in different areas such as humanities??? C’mon! ===
Because humanities courses are about the only courses left in college that occasionally try to instill critical thinking skills. STEM tends to teach “how” rather than “why” and for business school…well Rauner literally has an MBA from Harvard and few here would suggest he has strong critical thinking skills.
- Late to the Party - Thursday, Mar 12, 15 @ 8:38 am:
I have family members who have almost 10 times that amount in student loans. Their choice. Their debt. If you wanna be a doctor, then you gotta go to school. And pay the price. College, at all levels, should not be paid for by Joe Taxpayer.
A related problem is that too many people make minimum payments on their student loans and treat them like a 30 year mortgage. They do that so they can buy a new car (with payments), and buy a flat screen TV (on payments), and go out to eat using their credit cards (more payments).
I will gladly develop and enhance my critical thinking skills in econ, marketing and finance—not in english lit and art history.
Bulldog, my daughter had a 4.3 on a 4.0 scale in a private, college prep high school and she received zippo in schollies and that was more than a decade ago.
Wow, anon 9:04, that’s hard to believe. You must have put in no effort at all to help your kid land scholarships.
With all your sharp critical thinking schools in Econ, marketing and finance, just a minimal effort could have helped your kid land loads of financial assistance with grades like that.
Well Word, she wanted to go to Illinois. Even with those grades, she wasn’t in the top 10% of her graduating class. Yes, she could have gotten some $ from EIU or Western, etc. but those schools weren’t in play.
Don’t feel terrible at all, but thanks for caring about me. It is very touching!
- Wordslinger - Wednesday, Mar 11, 15 @ 10:38 am:
And that’s how states have managed to severely slash funding for higher education.
- Anonalopolis - Wednesday, Mar 11, 15 @ 10:39 am:
That’s not counting any private student loan debt? Yikes.
- PublicServant - Wednesday, Mar 11, 15 @ 10:40 am:
Let’s allow that debt to be dischargeable as a start to resolving the problem.
- AnonymousOne - Wednesday, Mar 11, 15 @ 10:41 am:
Becoming unaffordable for middle class families who have to actually pay for this. I think that’s the plan.
- Elijah Snow - Wednesday, Mar 11, 15 @ 10:42 am:
Gosh, I’d like to be pumping that money back into the economy, rather than continuing to be a serf to the federal government for my completely worthless advanced degree.
- Tex - Wednesday, Mar 11, 15 @ 10:43 am:
geeze, I wish my debt was the average amount. But any measures to mitigate the burden will likely be limited to more recent borrowers… leaving behind a generation of indebted to float the boat on our interest rates while others scurry off the sinking ship.
- Oswego Willy - Wednesday, Mar 11, 15 @ 10:43 am:
Cue Oprah:
“You owe a car! You owe a car! You owe a car!”
That’s a lot of debt.
- Apocalypse Now - Wednesday, Mar 11, 15 @ 10:44 am:
Cutting the extremely high administrative costs at higher education institutions would be a great step in bringing about lower tuition and less debt.
- Hacksaw Jim - Wednesday, Mar 11, 15 @ 10:44 am:
I would kill to only have $27,303 in student loan debt right now.
- Anon - Wednesday, Mar 11, 15 @ 10:46 am:
~$600 a month in payments for me for another ~17 years. On a modest public service salary it keeps me near poverty wages after taxes.
Hate thinking of the things I could have with that money. A home, a car, a few vacations.
It’s tough but often times students don’t know how deep in the hole they are going.
- Wheeelp - Wednesday, Mar 11, 15 @ 10:46 am:
Only a paltry $24,800 right here!
- mythoughtis - Wednesday, Mar 11, 15 @ 10:47 am:
The worst part is that the college degree involved don’t seem to (if there was one) guarantee or aid much in finding your first professional job these days. Find out how many of them got extensions on their first payment because they are not yet working.
I propose we give state/federal employment preference to those with student loans. Maybe then the borrower can pay the government back.
- Arthur Andersen - Wednesday, Mar 11, 15 @ 10:48 am:
Exactly right, Word. Better to keep the Assistant to the Vice Deputy Provost Chancellor at $100k plus than to cut costs.
- Katiedid - Wednesday, Mar 11, 15 @ 10:48 am:
My first thought was the same as Tex and Jim (and mine is all federal loan money; no private student loans)! My second thought is that this level of debt is killing the ability of students to go to college and take lower-paying, but vital, public service jobs in government and the non-profit sector.
- anon - Wednesday, Mar 11, 15 @ 10:50 am:
Let’s cut out the amount of profit the federal government makes on these loans. After all, they borrow at what, virtually zero percent.
Yeah PS, let people off the hook, sorta like Obama did with the auto industry. That turned out well for the taxpayers. Sheesh, let’s give everybody a lollipop and tell them to have a wonderful day.
- Anonymous - Wednesday, Mar 11, 15 @ 10:51 am:
@anon
If you work in the public sector your loans are forgiven after 10 years. One of the benefits of working in the public sector.
- Langhorne - Wednesday, Mar 11, 15 @ 10:51 am:
thats just the average. additional pain and suffering resides with those who have that amount or more debt, but didnt finish a degree, and are under/unemployed.
i managed to graduate without debt 40+ years ago. it seems almost quaint now. that made it possible to tend bar, go to grad school, and afford to start at the lowest rung professionally.
- Stones - Wednesday, Mar 11, 15 @ 10:52 am:
I know several graduates that owe in the six figures.
- Anon - Wednesday, Mar 11, 15 @ 10:52 am:
According to labor dept statistics the median non-college earnings are about $40K and with a BA the median is $65K.
- Debt Loaded College Grad - Wednesday, Mar 11, 15 @ 10:53 am:
-Hacksaw Jim
I couldn’t agree with you more. My federal loans are high, but the private ones are carrying a 9% interest. The millennial generation, being crippled with student loan debt is hurting the home and auto industry. Hardly anyone can save up for down payments after loans and other expenses are payed for each month.
My parents basement is nice though, so I have that going for me… Which is nice.
- Demoralized - Wednesday, Mar 11, 15 @ 10:55 am:
==If you work in the public sector your loans are forgiven after 10 years. One of the benefits of working in the public sector.==
Only the BALANCE of your loans are forgiven and the only way you have a balance left after 10 years is if you are on an income-based repayment option.
- 47th Ward - Wednesday, Mar 11, 15 @ 10:55 am:
States used to pay enough into higher education that this level of borrowing was unheard of. Today, not so much. As states cut spending, students and families are borrowing to make up the difference. And since the housing collapse, families no longer have home equity to help finance a college education.
You’re on your own is basically what the states are telling these students.
- Ducky LaMoore - Wednesday, Mar 11, 15 @ 10:56 am:
Had my Burl Ives moment before incurring debt.
- JS Mill - Wednesday, Mar 11, 15 @ 10:56 am:
Can’t they just say it is unaffordable and “reform” the school loan debt down to a more manageable $0 so that they can “live within their means”?
- 6184life - Wednesday, Mar 11, 15 @ 10:56 am:
Pay As You Earn has been a life saver. $30k here and climbing…
- Arizona Bob - Wednesday, Mar 11, 15 @ 10:57 am:
@hacksaw jim
=I would kill to only have $27,303 in student loan debt right now.=
How much do you charge for each “hit”?LOL
- Joe M - Wednesday, Mar 11, 15 @ 11:00 am:
Those figures don’t include the private student loans that many students must take out - as there is often a big gap between what the maximum state and federal grants and loans cover - and what the cost are.
- JS Mill - Wednesday, Mar 11, 15 @ 11:00 am:
“If you work in the public sector your loans are forgiven after 10 years. One of the benefits of working in the public sector.”
Umm…I am going to call BS on that one. I have worked in “the public sector” for 20 years and, so far, there is NO loan forgiveness. The program you are referencing is for a specific segment of public sector employees, not even close to everyone as you erroneously implied.
- Hacksaw Jim - Wednesday, Mar 11, 15 @ 11:03 am:
Student loan debt can be very crippling. I graduated from law school 8 years ago, and there were many times where I felt that the cost was not worth it. I have a combination of federal and private student loans, and the minimum payment each month is approx. $1100. I have come a long way from where I was 8 years ago, and I am greatful for the opportunities that I have had. With that said, as a society we need to re-evaluate the cost of higher education as well as the mechanisms for providing financial aid/incentives for students. We need an educated workforce. We as a society need to invest in our future.
- Harry - Wednesday, Mar 11, 15 @ 11:03 am:
Of course we the people are the ones they owe the money to; forgiving that debt just means everyone else eats the loss.
- BlameBruceRauner - Wednesday, Mar 11, 15 @ 11:05 am:
Its very hard entering the work force with this kind of debt. College is not for everyone and I blame the high school system for pushing to many kids this route. Many wind up never using that “history” or “liberal arts degree”, other than to wait tables, bar tend, clean houses, etc. I am very lucky to have made the choice to go to community college and get my Associates before plunging into the State University System. I only had to borrow two years worth. I still worked almost 40 hours a week during that time to pay for rent/food/drinking money. I actyaully got a good job in my field, but it still took me 9 years to pay it off, but hey it sure felt good when it was gone. I like the idea of free community college, it might just be the ticket to helping kids manage the debt load they are left with, and might get kids focused on careers early so they don’t avoid falling into the college trap if they are not suited for it.
- Formerly Known As... - Wednesday, Mar 11, 15 @ 11:06 am:
Yet previous generations managed to graduate without such debt.
- Demoralized - Wednesday, Mar 11, 15 @ 11:06 am:
I’m guessing there will eventually be a change in law to allow student loans to be included in bankruptcy. Right now you can’t include those loans if you file bankruptcy. This debt will never be repaid. The system needs to be reformed and part of that fix is likely going to have to be loan forgiveness of some sort.
- Urbs In Horto - Wednesday, Mar 11, 15 @ 11:07 am:
Demoralized, you correctly correct Anonymous (10:51 am). The loan forgiveness program is woefully insufficient. I tried to do it, but it set my monthly-for-10-years payment at an amount that (A) my family couldn’t afford without resorting to SNAP; and (B) left me with virtually nothing to “forgive” in 2025. What on earth is the point? Just call me and my wife The $80K Couple, alas.
- Anonymous - Wednesday, Mar 11, 15 @ 11:08 am:
@ JS MIlls
You can read the info for yourself on the program at: https://studentaid.ed.gov/sites/default/files/public-service-loan-forgiveness.pdf Most people working in the public sector don’t know about. Combine it with income based loan payment plan and it adds up to a huge benefit.
- Demoralized - Wednesday, Mar 11, 15 @ 11:09 am:
==Yet previous generations managed to graduate without such debt.==
Good for them. Now what’s the point of that statement? Because I can tell you that neither myself or any of my friends went to college without incurring student loan debt. Without student loans I wouldn’t have received a college education.
- Urbs In Horto - Wednesday, Mar 11, 15 @ 11:09 am:
Let me guess, Formerly - you paid $2-3K a year, right?
- Urbs In Horto - Wednesday, Mar 11, 15 @ 11:13 am:
Anonymous (11:08), given that you’re anonymous, would you be willing to share your math? I.e., amount owed, interest rate, yearly salary, monthly payment, and anticipated amount that will be forgiven? Just curious, if not, understood.
- Because I Said So.... - Wednesday, Mar 11, 15 @ 11:13 am:
So cutting appropriations to higher ed by 31.5%, as Rauner proposes will only continue to drive up tuition rates.
Higher ed funding in Illinois has been on the decline since 2002. This years proposed cut is more that 2002 to present combined. Apparently the governor thinks 4 yr degrees are only for the one percent.
- Rich Miller - Wednesday, Mar 11, 15 @ 11:14 am:
I had some student loan debt, but I think my tuition at Sangamon State was something like $800 per semester plus a few dollars in fees.
Yeah, I’m old, but I’m not ancient. Tuition these days is insane.
- 47th Ward - Wednesday, Mar 11, 15 @ 11:14 am:
===Right now you can’t include those loans if you file bankruptcy===
You can thank Republicans like Mark Kirk for that. In 2005, Congress passed a sweeping bankruptcy overhaul for consumers that made private student loans nondischargeable.
Also, total student loan debt has doubled since 2007. This is almost completely due to states cutting funding for higher education.
- Rich Miller - Wednesday, Mar 11, 15 @ 11:16 am:
===You can thank Republicans like Mark Kirk for that===
Pretty sure that exemption from bankruptcy protection has been in law much longer than that.
- anon - Wednesday, Mar 11, 15 @ 11:17 am:
And I paid my school debt and my kids school debt. Buck up and be accountable.
And here is another thought—If you want to go to college and study business, how about allowing kids to skip these electives like English Lit in the 15th century or Art History if you have zero interest in those topics.
- Urbs In Horto - Wednesday, Mar 11, 15 @ 11:17 am:
Rich, you’ve put your finger on the problem - education costs have grown in a manner ludicrously out of whack with the CPI.
- Wordslinger - Wednesday, Mar 11, 15 @ 11:18 am:
FKA, previous generations did not support university operations to the extent they do today through tuition. It’s no mystery.
- 47th Ward - Wednesday, Mar 11, 15 @ 11:18 am:
===I’m guessing there will eventually be a change in law to allow student loans to be included in bankruptcy.===
http://www.wsj.com/articles/white-house-studying-new-bankruptcy-options-for-student-loan-borrowers-1426004272
Don’t hold your breath waiting for Republicans in Congress to act though.
- JoanP - Wednesday, Mar 11, 15 @ 11:20 am:
@ anon 11:17 am: “allowing kids to skip these electives ”
An “elective” is, by definition, and course that students are not required to take. What’s to “allow”?
- Anon - Wednesday, Mar 11, 15 @ 11:25 am:
@FKA The price of college has skyrocketed exponentially…
I just graduated recently and in the four years while I was there the price went up several thousand dollars a year.
- Andy S. - Wednesday, Mar 11, 15 @ 11:26 am:
When I graduated with my MBA in 1982 I had over $35,000 in student loan debt (this was in current dollars, not adjusted for inflation). Of this about $22,000 was in Federal loans at a 7% interest rate, and $13,000 in private loans at various interest rates up to 14%. I did not fully pay off my loans until I was 41 years old. On the other hand, because of my MBA, I made at least $10,000 per year more than if I just had a BA. The loans did not prevent me from getting married at 27, buying a house at 31, sending both of my kids to college, saving more than adequately for retirement, etc. Based on my own experience, I firmly believe that the problem today is not so much high student loan debt, but the lack of career opportunities and earning potential for graduates. Having high contractual obligations to pay is fine only if you have high earnings on the other side of the equation.
- Stones - Wednesday, Mar 11, 15 @ 11:28 am:
I was fortunate enough that my parents paid for my college education. In turn we also paid for our daughter’s education but in order to accomplish that we literally saved from the day she was born.
I’m not sure she appreciated it at the time but I know she appreciates not having to live under that debt load now.
- jerry 101 - Wednesday, Mar 11, 15 @ 11:30 am:
I’ve almost paid off my student debt. I graduated well over a decade ago.
- A guy - Wednesday, Mar 11, 15 @ 11:30 am:
The solution can’t be to simply forgive all debt. That’s an argument to say it should be free. Didn’t these students have to have a co-signer to get in this predicament? Understandably, kids don’t fully realize the real consequences of owing this much, but parents must.
Education has gotten hopelessly out of whack for every economic level. It’s a serious problem. Even some community colleges are over $5K carrying a full 15 credits a semester. As long as people are lining up to go to these schools and there are loan programs like these, supply is going to exceed demand without any accountability (in some cases) of having to pay for it.
Talk about dangerous precedents…Oy vey.
- Rayne of Terror - Wednesday, Mar 11, 15 @ 11:30 am:
From Time Magazine: “Two decades of further tweaks to the bankruptcy code ensued until 2005, when Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which made it so that no student loan — federal or private — could be discharged in bankruptcy unless the borrower can prove repaying the loan would cause “undue hardship,” a condition that is incredibly difficult to demonstrate unless the person has a severe disability. That essentially lumps student loan debt in with child support and criminal fines — other types of debt that can’t be discharged.”
- 47th Ward - Wednesday, Mar 11, 15 @ 11:31 am:
Private student loans were added as nondischargable in 2005 in the Bankruptcy Abuse and Prevention Act, which Kirk voted for in the House and for which NelNet, Sallie Mae and other private lenders spent boatloads of money lobbying for. I helped lobby to prevent including private loans in that bill, and Senator Durbin recently introduced legislation to allow the discharge of private loan debt in Chapter 7 bankruptcies. But again, nobody should hold their breath waiting for that bill to pass.
Federal loans have been dischargeable with conditions since 1976. You had to pay them down for at least five years, but it was possible to get them discharged. Since then, additional measures have made it more difficult to discharge federal loans. Here’s more info:
http://blog.credit.com/2013/03/do-we-need-to-change-bankruptcy-rules-for-student-loans/
We need more pro-consumer advocates in Washington. I think we have enough pro-business representatives. If students voted in the same proportion as senior citizens, tuition would be much more affordable.
- Anonymouse - Wednesday, Mar 11, 15 @ 11:32 am:
Someone bring back that letter/editorial thing posted on capfax a week(or more) ago about increased administration costs. Let’s fix that rather than have the government continue to subsidize (and therefore justify?) these insane costs.
- Demoralized - Wednesday, Mar 11, 15 @ 11:37 am:
==Didn’t these students have to have a co-signer==
My name was the only name on my federal student loan debt and as far as I know that’s how all federal student loan debt works. It’s the student borrowing the money.
- Joe M - Wednesday, Mar 11, 15 @ 11:39 am:
==Yet previous generations managed to graduate without such debt.==
When I went to college in 1970, tuition at the U of Illinois was $300 per semester. Tuition at a good private school was $800 per semester. I earned more than enough from my part-time and summer jobs to pay for that.
I don’t think there are too many part-time and summer jobs these days that would pay the annual $12,000 plus in tuition at a state school, or the $40,000 plus at a good private school. And of course now they also get you with additional “fees” that are just more tuition in disguise.
- Debt Loaded College Grad - Wednesday, Mar 11, 15 @ 11:39 am:
The cost of college is rising at an exorbitant rate, the costs of text books alone is around $500 a semester for many majors in the science fields. Perhaps there is an ever bigger problem, that universities refuse to acknowledge.
The rapidly expanding rate of university bureaucracy. It is time to cut the number of administrative officials and trim the fat of public schools.
http://www.wsj.com/articles/SB10001424127887323316804578161490716042814
- A guy - Wednesday, Mar 11, 15 @ 11:43 am:
Maybe because of the particular school one of mine attended, it required me as a co-signer. I remember explaining to him what I was guaranteeing. Naturally it completely went over his head and he never had any doubt that I would sign it (my fault!). I did sign. I did pay. Nothing close to the numbers folks are describing here. I only made that particular guy go through this process so he seriously understood that he needed to finish 4 Mays from now. If he did, it was my debt. If he didn’t, it was his. He didn’t finish in 4 years…but eventually did. I paid.
- anon - Wednesday, Mar 11, 15 @ 11:43 am:
JoanP—Really?? You are gonna ask that question about fulfilling grad reuquirements in different areas such as humanities??? C’mon!
- JB13 - Wednesday, Mar 11, 15 @ 11:44 am:
– And that’s how states have managed to severely slash funding for higher education. —
And that’s how colleges and universities, together with the insane requirement to hold a bachelor’s degree or more for almost any non-minimum wage job, have managed to justify tuition rates increasing four times faster than the CPI. It’s called a death spiral - borrowing increases to pay tuition, tuition increases because there is more money available to pay increased tuition, college students simply borrow more because they must and they incur no immediate damage, rinse, repeat.
- Not Shocking - Wednesday, Mar 11, 15 @ 11:47 am:
I had $10,000 in federally guaranteed student loans when I graduated in 1986, and that was the extent of my debt. Adjusted for inflation, that’s a bit less than $22,000 today. So, yes, it appears that costs have gone up a bit, but this figure released by the White House doesn’t seem exorbitant to me. My college education was the best thing that money ever bought for me, and I have been repaid many, many times in all sorts of ways, not just economically (but that, too).
If you can get a degree these days and emerge with less than $30,000 in debt, I don’t think that’s too bad–that’s not much more than what a new car costs, and a college education is worth a lot more than any car on the road. I understand, however, that mine might be a somewhat simplistic view. I’d imagine that some of this debt is owed by people who went to for-profit “mills” where they learned nothing and emerged unemployable. That’s not good, and we should do something about that. There might also be some private debt that’s not counted here, but I’m not sure how much that would be, given that banks wouldn’t seem likely to loan money to someone who has no collateral or job, which is the situation for most college students.
End of the day, 27 grand for something that really opens wide the door to success in life is a bargain, so far as I’m concerned. And if you goofed off in school or majored in basket weaving or otherwise emerged unemployable because of your own actions or inactions, there is only one person to blame for that.
- Old Shepherd - Wednesday, Mar 11, 15 @ 11:48 am:
My wife and I have a Federal Consolidation Loan, and have paid faithfully on it for going on five years now. The principal has remained essentially the same during that time span. At this rate, we will pay on this d*%n loan for another 12 years. A car loan in an equal amount would be paid off in 6 years.
- Demoralized - Wednesday, Mar 11, 15 @ 11:49 am:
Guy
Was your loan through the federal government? All of my loans were federal government loans.
- 47th Ward - Wednesday, Mar 11, 15 @ 11:51 am:
===It is time to cut the number of administrative officials and trim the fat of public schools.===
There is some fat to be trimmed, certainly. But you aren’t going to solve the tuition inflation problem by eliminating “waste and inefficiency.” If that was possible, it would be done already.
Higher ed is like health care. The costs of delivering quality go up far faster than inflation because they deliver a custom-made product that is unique for each customer and the industry requires a lot of expensive to train and employ practitioners as well as continuous upgrades in technology.
College has always been expensive and it always will be. It has become less affordable in recent years because family incomes have been stagnant and states have cut financial support.
- CLJ - Wednesday, Mar 11, 15 @ 11:51 am:
My $60k plus for two degrees is one of the many costs, including a year in an unpaid intership, to be able to work in the field I wanted and often times wished I didn’t. Working part-time, sometimes two jobs, did little to nothing to help reduce the costs of tuition. I waited to go to graduate school to earn some money and work experience. Unfortunetly, the cost of tuition nearly quadrupled during that period of time.
- Honeybear - Wednesday, Mar 11, 15 @ 12:20 pm:
I was very fortunate. My parents paid for my NU education with a 50% scholarship. I told my daughters (7th&8th graders) that we just can’t afford to send them to the kinds of schools that their mom and I went too. So we decided together to shoot for Navy ROTC scholarships. They really like the thought of being Navy officers and we promote it constantly. God help me, it’s all our eggs in one basket. If they cut ROTC money, I’m shot. But for now one has the dream of being a Naval Attache to France and the other wants to be in NCIS. I’m thankful for now that I don’t have to challenge dreams that might lead them towards majors in college that will doom them to financial hardship. (Like their old man, a music major, who only survived by changing careers shortly after college) I truly think that student loan failure will be the next thing that destroys our economy.
- Joe M - Wednesday, Mar 11, 15 @ 12:21 pm:
The price of tuition has gone up about 20-fold since I went to college in the early 70’s. The cost of a new car has also gone up about 20-fold since I went to college in the early 70’s. And so has the price of gas. Unfortunately, wages during that period have only gone up about 10-fold.
- A guy - Wednesday, Mar 11, 15 @ 12:25 pm:
=== Demoralized - Wednesday, Mar 11, 15 @ 11:49 am:
Guy
Was your loan through the federal government? All of my loans were federal government loans.===
Honestly, Demo, Mrs. Guy made the arrangements and I don’t remember. I just showed up to sign along with the Mrs. I absorbed the cost for all 3 Kid guys for college, which was a tension filled experience. I wanted them to enter the work force qualified with no debt, so they would be serious about getting on with life. To this day, I’m not sure if that was the right or wrong thing to do. My folks could not have done it. While a strain, Mrs. Guy and I were able to. Sorry I can’t answer the question. The exercise was to re-enforce my seriousness about finishing on time (Ha!) He needed a bit more convincing than the others. They’ve all gone on to do very well, so that makes me think it was somewhat useful. No one living in the basement. That’s worth a lot to me. lol
- Urbs In Horto - Wednesday, Mar 11, 15 @ 12:26 pm:
Joe M., I don’t know about since the early-70s, but, since the mid-80s: http://graphics8.nytimes.com/images/2012/03/02/business/economy/economix-02costs/economix-02costs-blog480.jpg
- How Ironic - Wednesday, Mar 11, 15 @ 12:27 pm:
@ Old Shepherd:
“My wife and I have a Federal Consolidation Loan, and have paid faithfully on it for going on five years now. The principal has remained essentially the same during that time span. ”
You should bump up your payment. Even adding just $50/month would drive the principal down enough that you’ll get ahead of the interest. To not have lowered your principal in 5 years is crazy. Why are you only paying on interest?
- Very Fed Up - Wednesday, Mar 11, 15 @ 12:29 pm:
I am definitely on the high end of it. It’s absurd im locked into a 6+% loan that the federal government profits off of. Will re-pay every penny but this would seem something reasonable adults in congress should be able to fix in about an hour (which of course means there won’t be any action)
- Belle - Wednesday, Mar 11, 15 @ 12:30 pm:
I’m with Joe M on this.
Salaries are not keeping up with school and most other expenses—the expense portion keeps climbing.
I can remember people going to undergrad and MBA programs paid by tuition reimbursement by employers. This seems unimaginable now.
Soon it will not matter if you make it through high school since college is just not affordable. Do you really need to finish high school to be trained as a barista?
- Wordslinger - Wednesday, Mar 11, 15 @ 12:31 pm:
I don’t think there are student loans that a parent “co-signs” for unless it’s through a private lender outside of FAFSA. “Co-sign” means secondary guarantor.
Through FAFSA, there are federal loans in which students are the debtors, and Parent Plus loans in which parents are the debtors. Neither is on the hook for the other.
Parents Plus are generally taken out after a student has maxed out grants and loans under the FAFSA formula.
- anon - Wednesday, Mar 11, 15 @ 12:41 pm:
=== · 1,809,000 federal student loan borrowers
· $49,391,513,000 in outstanding federal student loan debt ===
Rauner is doing his part by proposing to slash state funding of higher education by 31%.
- anon - Wednesday, Mar 11, 15 @ 12:46 pm:
Why doesn’t Durbin introduce legislation to slash the interest rate in half for all student loans? You know, if he really cared about middle class families and all.
- The Way I See It - Wednesday, Mar 11, 15 @ 12:57 pm:
Student loan debt is the real squeezy the python, but on the economy as a whole. A generation of consumers trapped by debt with ruined credit.
- Demoralized - Wednesday, Mar 11, 15 @ 12:57 pm:
Guy:
Just curious. It’s just that I thought all federal student loans were in the name of the student. Either way it’s debt owed by somebody.
My parents took out a loan for me the first semester of my Freshman year but it was all me after that. Glad you were able to help the kiddos out. My parents worked hard but simply didn’t have the means to help me out at that time. God bless them for trying though. Unfortunately I think my kids will be in the same situation I was in.
- ZC - Wednesday, Mar 11, 15 @ 1:24 pm:
For a lifetime investment, based on the educational rate of return you still get, actually $27,000 I’d say is defensible. It’s an awful deal relatively compared to what previous generations got, but what is new (see just about everything today, including public and private pensions). You acquire more from a 4-year college BA in terms of increased lifetime earnings than you do from purchasing a car. You have to stagger the repayment obviously but the bigger problem there is the lack of good-paying jobs with a real upward-earning career track when these students graduate right now.
I also would like to stab many of the -for- profit college institutions with a fiery stake (University of Phoenix, I mean you), because there you do have some predatory institutions it looks to me leaving students with $50K, plus, in debt.
- train111 - Wednesday, Mar 11, 15 @ 1:37 pm:
At the present payment plan, I will be 68 when Mrs Train 111’s loans are paid off. So much for early retirement.
- Old Shepherd - Wednesday, Mar 11, 15 @ 1:38 pm:
@How Ironic-
You are absolutely correct. Now that we are in a position to do so, we do make extra principal payments. When she first graduated from college, we weren’t in such a position.
I use it more as an example to perhaps explain why student loan debt is so huge in this country. If people are struggling and paying the minimum payments, then other than the interest rate, having student loan debt is no different than having credit card debt.
- PublicServant - Wednesday, Mar 11, 15 @ 1:52 pm:
===the bigger problem there is the lack of good-paying jobs with a real upward-earning career track when these students graduate right now.===
This. My son is graduating in May with a Masters in Aerospace Engineering from U of I. 3.9 GPA, Engineering Honors, from an Engineering powerhouse. Been sending out resumes for months now…nothing.
- LS - Wednesday, Mar 11, 15 @ 2:20 pm:
My partner and I owe somewhere in the vicinity of $250,000, for law school (which is a terrible, terrible investment, btw) and graduate school. It’s made having kids out of the question for the foreseeable future, and ever owning a house all but impossible.
- LS - Wednesday, Mar 11, 15 @ 2:22 pm:
To Anonymous at 10:51 a.m.: The Obama Administration is trying to cap the 10-year public service forgiveness at about $57,000. If you owe more than that, sorry about your luck.
- 47th Ward - Wednesday, Mar 11, 15 @ 2:56 pm:
===at about $57,000. If you owe more than that, sorry about your luck.===
If you owe more than that, you’ve made some poor decisions too.
- Mittuns - Wednesday, Mar 11, 15 @ 3:09 pm:
Paid off my $25k last year with a very tight budget. People under 30 are trapped with burgeoning debt and little opportunity, and the few opportunities that exist pay very low.
- RV_Matt - Wednesday, Mar 11, 15 @ 3:17 pm:
I’m from a small family and my brother and I were fortunate to have had our educations (me: BA, MBA) paid for with the help of my parents and grandparents. My partner, a physician completing his residency at Rush, was not so lucky, and we currently suffer his (temporarily) low salary and crushing student loan debt, whose retreat below 80K we recently celebrated. By no means am I complaining: my salary has allowed us to achieve much of what we both want (condo, car, some creature comforts), but given our debtload, a lot of the other things we want from life (larger or second home, adoption, surrogacy) seem far off or improbable. We’re only in our early 30s.
- Anonymous - Wednesday, Mar 11, 15 @ 3:40 pm:
- Been sending out resumes for months now…nothing. -
Aero is a tough field. I’d recommend looking at industries outside that field, maybe more in line with mechanical engineering. For entry level engineers most places aren’t terribly picky about the specific degree.
- Bulldog 58 - Wednesday, Mar 11, 15 @ 4:07 pm:
Before all of the cuts to education made by Sprigfield a high school student who owned a 4.0 GPA, who was an Illinois State Scholar, a Prarie State Scholar, an AP Scholar, who belonged to National Honor Society and had a 28 ACT would have received awards from the state to attend an Illinois public university. That is no longer true. These students, who are among our best and brightest are forced to compete for a pool of ever dwindling scholarships and university ‘grants’. They eventually wind up taking out student loans just like every other student.
I know this because my family is currently going through this situation with my son.
- GraduatedCollegeStudent - Wednesday, Mar 11, 15 @ 9:10 pm:
===JoanP—Really?? You are gonna ask that question about fulfilling grad reuquirements in different areas such as humanities??? C’mon! ===
Because humanities courses are about the only courses left in college that occasionally try to instill critical thinking skills. STEM tends to teach “how” rather than “why” and for business school…well Rauner literally has an MBA from Harvard and few here would suggest he has strong critical thinking skills.
- Late to the Party - Thursday, Mar 12, 15 @ 8:38 am:
I have family members who have almost 10 times that amount in student loans. Their choice. Their debt. If you wanna be a doctor, then you gotta go to school. And pay the price. College, at all levels, should not be paid for by Joe Taxpayer.
A related problem is that too many people make minimum payments on their student loans and treat them like a 30 year mortgage. They do that so they can buy a new car (with payments), and buy a flat screen TV (on payments), and go out to eat using their credit cards (more payments).
- anon - Thursday, Mar 12, 15 @ 9:04 am:
I will gladly develop and enhance my critical thinking skills in econ, marketing and finance—not in english lit and art history.
Bulldog, my daughter had a 4.3 on a 4.0 scale in a private, college prep high school and she received zippo in schollies and that was more than a decade ago.
- Wordslinger - Thursday, Mar 12, 15 @ 10:03 am:
Wow, anon 9:04, that’s hard to believe. You must have put in no effort at all to help your kid land scholarships.
With all your sharp critical thinking schools in Econ, marketing and finance, just a minimal effort could have helped your kid land loads of financial assistance with grades like that.
You must feel terrible.
- anon - Thursday, Mar 12, 15 @ 10:14 am:
Well Word, she wanted to go to Illinois. Even with those grades, she wasn’t in the top 10% of her graduating class. Yes, she could have gotten some $ from EIU or Western, etc. but those schools weren’t in play.
Don’t feel terrible at all, but thanks for caring about me. It is very touching!
- anon - Thursday, Mar 12, 15 @ 10:33 am:
And to add a little more, if you think those grades land you loads of financial assistance at UIUC, they don’t.
Thanks for playing, and maybe bone up on the flagship university in your spare time.