The schools are sharks too. Colleges need students so they can keep money coming in. I know when I was in college, we were always told how marketable and transferable our skills were. It wasn't always true. Some degrees like art are practically worthless and not necessary in real world applications. Degrees like psychology or physics often will not get you in the door at a job unless you have your PhD. You end up in the same job as someone who did not go to college.

And believe me...even looking into bankruptcy was a LAST resort. I don't think I should "get out" of paying debt that I incurred. I borrowed the money and it's mine to repay. That is not what people are so pissed off about as far as the controversy over private lenders.

These private lenders are predators, and more and more restrictions are being put on them now. They know that these debts can never be discharged and they jack up the repayments to impossible amounts and refuse to work with people whatsoever to try and pay them back.

No students are taking these loans thinking "ha ha, I'll be able to get away with a free college education!". You are told growing up that your "job" is to get good grades, go to college, and you'll get a good job because that's what going to college will get you. You think you are doing the RIGHT thing. You are young and have your whole life ahead of you, and will have no problem paying back loans once you have that good job.

I spent hours on the phone repeatedly with my private lender, in tears, trying to figure out any way possible to not have the loan default and to somehow pay less than the $600/month (which was still going up yearly). They REFUSED to work with me at all. I basically had to get to a point that I had to accept that there was nothing more I could do, I was making myself sick with stress, and just had to let it default. Yes, I would have bad credit for probably the rest of my life and never buy a car, house, or have a credit card again...but it's not like they could kill me or put me in jail. I could still LIVE and be happy, even though life would be a little more difficult.

There are young people all over the country in the same boat. There are a few online forums I've found regarding this topic and you would be surprised by the number of people planning to leave the country to never return because their credit is ruined so badly because of these loans and they can never go back to school to make more money, can never buy a house or a car, renting an apartment is difficult. Even potential employers do credit checks these days. There is no way out of the mess and people are so desperate that running away seems like the best option. It's really sad.

While I think bankruptcy should be a last resort for anyone, I DO think it's ridiculous that I could have just gone out partying my life away and buying designer clothes and purses and racked up tens of thousands of dollars in credit card debt and THAT would be discharged with bankrupty. You can't give any of that stuff back either.

You can bankrupt almost any debt other than money you owe the gov't, child support and federal and private student loans. I am not arguing that private student loan debt should neccessarly be dischargable in bankruptcy, but *something* needs to change.

And yes, perhaps a psychology degree was a bad choice, but I wanted to help people and was planning on going into the Peace Corps after college (which I ended up not being able to because my private loan wouldn't defer payments during Peace Corps service like Federal Loans would). My job in working in Social Services actually does require a degree, but the pay of any sort of Social Service work is usually pretty dismal and most people I know with no degree are making more than I am.

He needs to see a finance lawyer. They can get breaks for their clients on IRS debt, they may be able to help with this.

I'm sorry for your situation Jenn. I can tell how frustrated you are just by your writing.

I am in no way blaming people who find themselves in this situation. I don't think it's right that 18 year olds can essentially sign their life away. The responsibility comes from the predator private loan companies, the students themselves, and the parents to fully understand. I remember being 18 and being completely naive about it. When you don't pay rent or have 30% of your paycheck taken in taxes or have to pay for groceries or utilities or all the other things that you take for granted when you still live with your parents, it's hard to properly anticipate what these loan terms are and what it's like in the real world.

While I think an education is infinitely better than the reckless spending that you used as an example, I just think it's a slippery slope to be able to clear student loans with it. Most people at 20-22 years old have no credit history anyway so declaring bankruptcy doesn't seem like such a bad option because you get to start over in some sense. I think if it were allowed, you would see a LOT of abuse of the system by people taking out massive loans not only for tuition bills but for new cars, shopping, etc then just declaring bankruptcy when they graduate and not having to pay it back. I already know people who take out student loans and buy non-school related things all the time with the money. It would then likely hike up the repayment terms for everyone else to cover all the defaulting. It's sad that there are so many that will ruin things for the people who have done everything right.

I do agree that something should be done about the predator private loan companies. You shouldn't be penalized for the rest of your life for trying to educate yourself.

That sucks Jenn,

Their should be some regulation on student loans such as interest rate caps, total loaned caps, etc. That's just not right.

We are in the process of looking for ways for DS to go to college next year. sometimes I think he should skip it altogether but it's so ingrained in my head to "get that degree" that to not do it goes against my every thought.

Magic, one thing I would recommend is not to be afraid of the super expensive private schools. A lot of people don't even bother because they assume they can't pay for it but it's actually cheaper for a lot of people. We didn't have much money and I was able to get a $200k education for about $15k. The private colleges have a lot of reserves to help out families and a need-blind admission policy. If you get in, they will find a way to make it happen. I did not have a scholarship. They figure out what the family can afford, then give a very reasonable capped loan amount ($15k for me over four years), then give free grants to cover the remainder (I was given over $30k a year for free). In my case, it ended up being cheaper than going to a state school. Just something to keep in mind.

Thanks.

It is so overwhelming right now and him being a typical boy keeps putting it off. He's driving me crazy!

Magic, if he can get a scholarship with wrestling, have him do that. Otherwise, I would recommend State schools and/or Community Colleges. Unless you are going Ivy League, then it doesn't really matter where your degree comes from. Nobody cares unless you're in some prestigous position.

As long as he gets federal loans he will probably be fine. Just say NO private loans. Or, after age 25 your parent's income doesn't matter anymore so you can get a lot more grants.

The only grant my expensive private school offered me was a small "transfer student grant". The amount was almost nothing. The only other option was loans. Unfortunately for many "middle class" students, your parents don't make enough to give you money for college, yet the colleges/FAFSA say they make enough to be contributing, so you don't get grants. My friends who came from families who were very poor got tons of grants, and my friends who came from families that were well off and paid for theirs.

His best bet is just to apply to a bunch of places and then see who offers him the best financial aid package with the least amount of debt.

Jenn, your post sums it all up. I had no idea this whole problem even existed (on a national level) until my young friend confided in me, and he explained why he broke down in tears when his father suggested he start making plans to buy a house down the road.

He did the math, and based on the amount of debt and the interest rate and current payments, it'll be 25+ years before this debt is paid off.

I do NOT believe in bankruptcy, but the whole point of bankruptcy is to give people a second chance in life. A kid coming out of college should not be facing 25 years of a massive monthly payment and huge debt.

Rose

Jen - your story is one that all high school kids should hear!

We are lucky enough to be able to pay our kids college tuition - but it is to a state school only. In-state only. We laid it on the line to them. They could pick the school - and pick their major, but they have to be realistic. Life is tough and you sometimes have to pick a way that will make money.

I tried to talk to some of their friends that are determined to go to a private college and fund it 100% with loans. Fell on deaf ears - I wish them well down the road.

I think it is time for reality for kids - you can follow your dreams - but for heavens sake, get real! Tough to hear.

I hope something can be done for your friend, Rosemary. Sound like a good kid.

Wow Jenn, I feel for you.

Rosemary, I think there is hope for your friend but he'll probably have to give up 5 years of his life.

If he juggled several jobs in college, I'm sure he can juggle two now. And every extra dime should go towards his principal. Is he willing to move back in with his parents? Or find someone who's willing to consoliate his loans into one (or back him up).

How did Sallie Mae end up collecting everyone's student loans anyway?

My son took out college loans for his master's and law degrees in another state. We offered to help him and paid the tuition and books, but he turned down further help. (His bachelor's degree was 100% covered by us.) He got a small scholarship too. But some of the loans were high interest, and others were reasonable. He paid off the high interest rate loans first.

He balanced the cost of the loans against what he could expect to earn as a lawyer, and so the $120,000 in loans sounded reasonable for his situation. Even at that, he says that he had the highest loan of anyone he knew in his law school. He is paying the remaining lower interest loans off slowly while saving to buy a home some day.

I was listening to financial guru Dave Ramsey the other day, and a young man called in to ask for advice. He and his wife had $80,000 in student debt, and most of it was his wife's debt. Dave asked how she earns her living, and the young husband said she is a social worker. Dave Ramsey could not believe it, and asked how on earth she could commit to such debt preparing for a career that will not pay much at all. He was flabberghasted, and I was too.

Young people facing a decision to make such loans need to understand their career choice's earning possibilities before borrowing at such high interest rates. And they also need to understand what interest compounded does to the total cost of a loan and how to shop for loans. I see we need some college student seminars on this subject.

Let me put a few words in here that may not be too popular. I put myself through nursing school, did not have a brand new car, in fact drove clunkers for the first 42 years of my life. I did not own fancy toys, good furniture, designer clothes, did not get expensive hair cuts etc. At one point in my life we had a 23% house mortgage, most of our mortgages were 12-16%. I worked full time for about 32 years as a nurse. Many of my co-worker got their degrees by going to school part time while working full time. It was a lot of hard work, sometimes very frustrating financially but I learned and benefitted by this experience. Bankruptcy was never an option for me...that is the easy way out.

This generation has had a lot of luxuries that we didn't have in the past. I often call it the "you owe me" generation. How many times have we heard a parent say...."I want my child to have everything in life that I didn't have." I have seen many of my friend's children take that student loan and buy a brand new car, new clothes, microwave, mini fridge, computer, cell phones etc. with the loan. I'm not even counting all the parties that are so frequent in college crowds. Sooner than later, the good times are over and it is pay back time.

It is a good lesson in life. They will treasure their education when they have to pay for it.

Times are tough now, but they were tough a generation or two ago as well. We were just very careful with our spending but we survived and so will they.

I think there should be a class given in the senior year of high school covering the various types of student loans being offered and all the pitfalls to watch out for so that these young people aren't saddled with huge debt and no way to get out from under it. When you are young, as someone pointed out, you don't think about how you are going to have to pay it off and unfortunately many parents don't talk to their kids about it because they aren't educated about this either.

I agree with Minnie,go to Suzeormon.com and ask her.She's very helpful and talks about money problems all the time.I think she will also agree that 24% is overkill and help you find a way to lower it.

It can't hurt,may help and her site is free.
Kathi

The interest rate you cited seems very high but I wouldn't put anything past Fannie Mae. I'm not fan of that company. I know when my daughter was in college this company was charging very high interest because there was about a year when banks were not giving out student loans especially to certain colleges and majors. My daughter was scrambling at the last minute to get her loan amount and she ended up going with a different lender. She's not able to consolidate that loan either so she is making two loan payments. We are thankful that she is only in debt $15,000 and she has the potential to get some loan forgiveness in 5 years because she is teaching in a low income school district.

Now as for her boyfriend, he went to a school (not a 4 year) that was a private for profit school. It was a program in heavy equipment operation. He learned a lot but unfortunately no company will recognize the school so essentially, the degree is worthless. In order to pay for the school he had to take a loan from Fannie Mae. There was no government loans to get because the school is a for profit school. Things like that really anger me. He really should have been warned about these things but he wasn't. Even his father thought that this was a great school. Had he asked my husband about it, he would have told him but she had only just started dating him when he started that school.

Long story short, he's in debt much more than my daughter and with a higher interest rate. I will say though that by making regular on time payments on time, the interest rate has gone down a bit. Perhaps that is something that will happen to your friend.

My daughter is getting married to this boy next year. They are both working to get loans paid off. It won't happen by then but hopefully they'll only be married for another year and at least his will be paid. They are waiting to see if she can get some loan forgiveness so she is making the minimum payments on time.

I hope your friend can get this monkey off his back soon.

24% sounds like loan sharking. Have you son talk to a bankruptcy lawyer. Maybe they can negotiate a refinance. The one holding the 24% loan will be no help because at that rate, they wish to continue. However, they may sing a different tune if there is a threat of bankruptcy and they could end up with only partial payment.

This thread reminds me that I've got to establish a college fund for my grandkids ASAP! Their educations are apparently gonna be a LOT more expensive than their parents' were (which thankfully we paid without them getting loans).

I sure would have had a better taste in my mouth if, when bailing the banks out, our govt had also made the banks forgive some debt like this so the CITIZENS also got a benefit...win-win!

OH MY heather, wonderful post! The "you owe me" generation is so true! My husband always talks about how this new generation has this HUGE sense of ENTITLEMENT that's just so unbelievable! I think this generation is now getting a huge dose of reality though...hopefully they will learn from their mistakes.

I think right now many people are so desperate to get an education, they cannot afford it, so they are blindly agreeing to these crazy student loans. They still think a college education is a guarantee to some amazing paying job like their "friend's friend's Dad" has that makes $200,000 a year. Not realizing this type job belongs to only the scant few luckiest people in America. Reality is more typically they can't find a job and they are working as a waiter at tgi friday's.

In my immediate family I have several people that have their degrees and they cannot find a job...are going for more education thinking that's the answer but most likely it's just going to mean more debt...still no good job. I even have a niece(in law) that has a staggering $170,000 in student loans...yep you read that right! She has a degree in a virtually unemployable field, Art Teacher...she actually lucked into a job that pays great but has absolutely nothing to do with her education.

What's the answer, I have no idea, but what I do know is that at some point a college education will be more expensive than it's worth...if it's not already. I doubt the niece with the $170,000 will ever even make enough money in her life to pay this debt back...will most likely get married, have kids and stop working. I'm sure "Mom and Dad" will pay her bills...until they die that is...

No wonder there are so many non-Americans in our colleges and universities. Americans can't afford them.

Every generation needs to re-align their expectations. University degrees are the "new" norm for a "basic" education as high school certification once was. Years ago, that the way to the top paying jobs came to the relatively few that proceeded to university. Everyone wanted their children to reach that goal. Now it is a basic educational expectation for the majority. Entrance qualifications were lowered so that the goal was open to the majority. Universities are a business and as such, expansion is a necessity and they take advantage of the predator loan companies. But university as basic education, can no longer guarantee access to instant elite jobs anymore. New grads must also climb the corporate ladder. They weren't taught to expect this.

When I started in nursing, only the Director of Nurses had a university degree. She achieved this while working as a nurse. Now a BScN is a entry level requirement for employment at that hospital as a general duty nurse. How times have changed in only thirty-five years! Those that succeed up the ladder will still be the ones with talent, creativity, motivation, good work ethics, organizational and management skills.

The successful in society will be the ones living within their means, bucking the "sense of entitlement" the media promotes for designer clothes, luxury cars and new large homes for first time buyers with granite countertops, stainless steel appliances and double sink ensuite bathrooms. The stressed will be those maxing out their credit cards to achieve the above.

I recognize that university costs have skyrocketed over those years. It's just unfortunate that money saved for children's educational needs haven't matched the rising costs. Instant gratification took over. Those $200 sneakers, excessive unessential toys, designer must haves, cell phones, restaurant meals, cars for sixteenth birthdays etc. that parents indulged their children with mean the children are now paying the price of their own education.

Maybe there is hope for future generations who will learn from the lessons learned from their parents much the same way I learned from my parents who went through the depression. I learned to save for emergencies. Starter three bedroom home was paid for in fifteen years (25 yr mortgage) and I still live in it. I learned to prioritize my needs from wants. I am debt free and always have been. I travelled a lot. I retired at fifty with a reasonable pension. Alas..... my countertops aren't granite, appliances not stainless, no ensuite either. New luxury car though! And yes... I paid for my own nursing education, teacher's college certificate, and other university courses. Maybe the current generation paying those loans will change their value system and raise their children with that knowledge.

Ranting about what you perceive as the entitlement generation is hardly helpful. These loans stink like all the other garbage the banks have been involved with. When people first started losing their jobs and realizing there was no way for them to make their mortgage payment, the banks refused to work with them. When the same banks got stuck with a slew of foreclosures, they changed their tune.
To me these student loans seem the same. When the leaders have the loans all go into default maybe they will be willing to work out a better payment schedule. It's legalized loansharking. 24%? Give me a break.

So you think it is right that these loans go into default and the rest of us have to pay for these deadbeat students? Sure it may take time for these loans to be paid off, and the student may have to learn how to budget, but I wasn't a co-signer to these loans. I worked from the time I was in Grade 7, taking on any job available to pay my own education. My parents taught me good work ethics and how to manage my finances. Sure I was envious of my classmates with all of their fancy clothes and brand new bikes as I wore older well worn clothes and rode a second hand bike I bought with my own hard earned money. But I paid for my own education. My point here is that I saved up for it from the time I became a teenager.

Perhaps it is time for the banks to be limited by the government in the amount of interest they are allowed to charge. Perhaps it is also time that we all step back a bit and realize that we don't need the newest and best of houses, appliances, cars and clothes. Perhaps the answer is that a student take fewer courses and work throughout the year to pay for education taking a few more years to get that degree. At least paying off the years education as you go along would save on the added interest of a loan. It is time that we re-evaluated our priorities in life.

What a kettle of barnyard byproduct to be in - too bad the lenders aren't in it, instead!

From when I was young, in World War II the hired hands went to war, and what Dad and his 10-year-old son and a couple younger got done ... got done, and the rest didn't. We had an allowance during the year and Dad paid us wages in summer, and we were to buy our books and school clothes.

I'm glad that from such an early age I began learning how to handle money. Some years ago when I had a financial planning display at a fall fair, when one person asked what right I had to call myself a financial advisor, I told him that all I had to offer someone was to look at money management a little differently that s/he ... for if I looked at it in the same way, s/he wouldn't pay to talk to me (selling no financial products, I didn't earn commissions, trailer fees, etc.), and if I looked at it very differently, s/he'd not consider trusting the guidance re money management to " ... that flake!" And that when I'd learned to look at money differently from many was when I grew up on the farm ... which that listener discounted entirely: he was hugely unimpressed!

A couple of years ago, rather prior to an election, if I remmber correctly, I called the office of our local home builders' association, suggesting that possibly some of their members might consider suggesting to our politicians that they consider providing more funding to post-secondary education.

When they suggested that such an idea had little relevance for their members ...

... I suggested that if college students graduated owing half of a mortgage ...

... that they wouldn't be able to consider buying a home for half of a generation, now, would they?

They hadn't thought of that ... to which I suggested that they hadn't thought very far, then, had they?

ole joyful ... somewhat less so when I consider the vise that these young people are in

Perhaps it is time for the banks to be limited by the government in the amount of interest they are allowed to charge. Perhaps it is also time that we all step back a bit and realize that we don't need the newest and best of houses, appliances, cars and clothes. Perhaps the answer is that a student take fewer courses and work throughout the year to pay for education taking a few more years to get that degree. At least paying off the years education as you go along would save on the added interest of a loan. It is time that we re-evaluated our priorities in life. I agree Heather! Most of the kids today get out on their own and want a house nicer than mom and dad's. Of course the banks tell them they can afford it!

Thankfully my DH and I have been able to put our DD through 4.5 years of college without her having to borrow anything. She still has her internship which she may have to get a small loan for... depending on how much it is. We're pretty much tapped out with what we had set aside.

I agree with what someone else said above that schools should make a mandatory class for seniors - one that teaches them about money and loans. I feel sorry for students that are saddled with these loans and are unable to comfortably repay them. I know a lot of kids who are borrowing a lot of unnecessary money in addition to their tuition... the banks make it way too easy. Something needs to change.

"I had no idea that these college loans were so horrific and harsh and unforgiving. Just no idea.

And they can't be discharged through bankruptcy.
It's really disgusting. "

MOST loans are single digit loans. I have no idea how or why he signed on for a 24% rate.

I personally am GLAD they cannot be discharged. What will stop everyone from going to expensive colleges, extending their stay, racking up huge bills, then declaring bankruptcy?

Nobody is paying for my student loan that is defaulted. My loan is defaulted and I am still paying on it, every single month. And if I wasn't paying...they would sue me and garnish my check to pay it. It will be paid by me one way or the other.

Not ONE single person I know who has had issues with private student loans is a "deadbeat", and that's ridiculous to assume and insulting. They all went to college and got good grades, most worked during school, and all are working full time now as a functioning member of society.

I've never gotten a free ride for one thing *ever* in my entire life. Have rarely even owned cars, and when I have they are cheap ones, I shop at thrift stores and rarely buy new clothes, I get my hair cut at Supercuts. I don't own one single fancy thing. I don't have cable, or a fancy cell phone, my laptop is a crappy hand me down, I am very thrifty.

To assume that people who have had issues with private student loans has anything to do with "entitlement" and not being able to make exorbitant loan payments because they are out buying fancy things is way off base. BUT when you have to make a choice between paying a $600-$800 loan payment because they won't accept less, or paying your rent to avoid being homeless...most people are going to choose the rent.

Jenn, you are 100% right in all that you say.

I am 52 years old and it's not been an easy life, but I survived. I also don't think people should be given free rides in life, and I'm opposed to bankruptcy, but...

We have rigged the game for these young people and it's very twisted and wrong. It's the very people who are working their arses off that get crucified by these student loans.

I know so many kids whose parents wrote them a check to put them through school. But not everyone has parents like that. It sure would be nice if they did. Many parents don't have the financial wherewithal to write a check to junior to pay all his bills.

The kids who weren't born to parents like that are the ones - like my friend - who worked a series of crappy part time jobs trying to keep it all together.

And he did.

And he graduated with honors.

And now he's saddled with massive debts, probably for the next 30 years or more.

It's wrong, wrong, wrong.

Jenn, I so appreciate your comments. You're spot on in everything I've read here.

Rose

Jennmonkey if you are still paying for your loan you are not a deadbeat. Deadbeats to me are those that go bankrupt, and never pay off their loans but expect others to take the financial hit for them. I'm talking about people that walk away from owing any money at all and start over fresh with a clean slate. I'm sorry, I guess I wasn't explicit when I said default and not bankrupt. I commend you for carrying on paying. You have your priorities in order by choosing to budget and spending your money wisely. Sadly so many of my friends children are still going hog wild with the spending instead of paying off their loans. Even though they are now adults, they still expect mommy and daddy to support them financially. They buy their monster homes, expensive cars and all of the toys, max out their credit cards and then whine that they are way over their head in debt.

You are exactly right Rosemary. It's setting people up for failure who are trying to do the right thing.

Heather, I understand the kind of people you are talking about. And yes, unfortunately I think our society pushes this sort of frame of thinking. Buy, buy, buy....don't worry now, pay it back later. Our entire country's financial system counts on people doing that very thing. I constantly hear that the way to get our economy on track is people going out and spending and borrowing more. It's messed up from the top down. That's a whole other thread.

But this private student loan fiasco is completely different animal. I guarantee you that the problem, for the most part, isn't students taking out loans to party it up with no intention of repaying. It is student who don't have the money to otherwise attend college who are trying make a life for themselves that are applying for college, and then the college itself presenting you with a student loan package that includes these loans. And you know you have to go to college (otherwise you look like a loser for that alone), so you look at this loan package, know it's your only option, so you accept it thinking that once you have a degree and get a good job that the payments should be doable. You don't know that within a few years the payments will probably be almost half of your take home pay...the school doesn't tell you that because they want your money, and the banks don't tell you that because they want your money.

Yep, it's probably a huge lack of foresight on the part of the students, but when you are 18-19 years old, although you understand you have to pay something back, you don't have the life experience to have lived through owing tens of thousands of dollars and you don't think of things like lay-offs, bad economies, or think that you'll only barely be making more with your degree than when you were working at Burger King in high school.

I understand I am at fault here, but why do you think these banks go around offering these GIANT loans to students with no credit or co-signers? They certainly aren't doing it out of the goodness of their hearts because they feel sorry for all these kids whose parents can't afford to send them to college. When I got offered my financial aid package, the only credit I had was a Bon Marche card with a $100 limit and a credit card with a $200 limit. I was handed over $60k to go to school. Anyone in my financial position at that time could have NEVER got a loan like that for anything...not a house, not a credit card, not a car. But they are handing them out to students left and right who are desperate to do anything to go to college. They are purposely setting people up to fail because they will get their money either way in the end.

Believe me, I am not going around feeling sorry for myself every day or whining that I got myself into this mess. However,I'm glad this came up because if by reading this thread ONE person stops their kids or grandkids from making this same mistake, it will save them decades of stress and financial trouble.

I am sorry for your friend getting into this mess. But being "young" or "naive" isn't an excuse for a 24% loan any more than people who bought houses during the "bubble" and "qualified" for a 600k loan on a 40k income because the "bank said I could" and then lost the house to foreclosure when they couldn't make the payments. Where is the personal responsibility in such student/house loans? If one of my kids took out a 24% loan for college (all 4, aged 31-41, paid/pay their own way because we couldn't, all 4 with Bachelors, one with Masters, 1 in Doc. school, all making 60k-130k) I would have had them committed! (well, maybe not committed, but would have told them they were crazy.) They learned common sense from their parents. And if they hadn't learned it from us, there's a wealth of information on the internet about finances. Ignorance is no excuse for life. Sorry your friend is in a helluva lot of financial pain because of the poor choices he made.

drewsmaga, here's the thing about common sense...it's quite uncommon these days. I think my husband said it best the other day "common sense has turned into complete insanity!" Children aren't learning common sense from their parents because their parents don't have any to teach! Yes I realize that some people do have some common sense but really, it is quite rare these days!

I still don't understand how a 24% loan is even legal? Didn't they put some caps on interest rates? Perhaps to late?

A 24% loan likely represents the use of a credit card. Please have a look at the historical rates on actual student loans of the types most students take. These rates are legislated. They are much lower than 24%.

Here is a link that might be useful: historical student loan rates

Well if these loans were taken out on credit cards then the person could claim those in a bankruptsy. I do not believe these are credit card based loans that these people are speaking of. They are "student loans", not credit card debt.

those loan rates are for the Stafford and Plus loans. I believe that Jenn's and Rosemary's friend's loans are private. They got screwed, they should have looked around elsewhere for loans and not justfrom the packets from the college. when DS was going to college the private loans were 12% and above. He didn't think that was bad, we had to explain it to him. Not a good thing. A lot of kids don't have parents will help them figure things out, and some kids want to figure it out all on their own. Poor choices are made. I know, at 17, my son was quite naive about things like this. A parent should step in and explain, but if the kid isn't asking questions, well, you might not have a clue. We paid for almost all of DS's college, but he had to choose schools that had a decent tuition. He wanted to attend one that was over $45,000 a year. (not including room and board) We had to DRILL it in to his head, that the major he was choosing, would NOT allow him to pay off his loan for 30.. LOL Thank goodness he got it.

I'm so sorry that your friend and Jenn got such awful finance rates.

I remember my mom flat out refused to give me any money for college if I picked a major she thought was useless. I thought it was silly at the time but I'm grateful she did that. I have a friend who majored in Medieval Studies and found it really difficult to get a job.

The trend now is that you really have to have a master's degree to get good jobs. So many people have them now that a lot of employers don't even have to consider people with only Bachelors. I never got my Masters because I didn't want to go into debt again and I'm not convinced it would pay off in the end in any of the areas I'm considering, but sometimes I wonder if that was a mistake.

I wish I had done one of those dual degrees to get your BA and Masters at the same time. People with kids entering college should really consider that as I think it would be cheaper than doing it separately and it really seems to be the new standard of education now that college degrees are equivalent to the high school diplomas of a few decades ago.

Those programs are great, chi83. A friend of mine got her doctorate in Pharmacy through an accelerated program at a Kansas school. 5 years total start to finish and now she's making really good money at a job she loves. You just have to make sure you know what you want to do right away, instead of doing like some people and waiting until their soph/jr. year to make a decision.

My son got student loans to help get by during his master's and law degrees. We paid all expenses for his bachelor's and though we offered to do so for his graduate work, he declined other than tuition and maybe books. So he borrowed to provide living expenses and other costs. When he graduated, some of his private loans were much higher than other loans he taken out over the years, but even the high ones were still single digit interest percentage. He knew he would be making very good money when he got those loans. So he paid the high interest loans off first with his law internship income and first paychecks as a lawyer.

I wonder if this young man could borrow money at considerably lower interest from somewhere or someone to pay off the high interest loans in one lump sum and then make regular payments on the lower interest consolidation. He would be money ahead.

My 32yr old daughter lives at home with her mother and works full time as a field service tech for an environmental testing agency that conducts EPA testing on landfills & industrial cleanup sites. She drives an older 4x4 pickup, which she needs to get in and out of the jobsites, wears mens work clothes and I don't think she even owns a skirt or dress.

In addition to working 40 to 60 hrs a week she has been carrying a full course load at the University of Massachusetts at Amherst for nearly 6 yrs until she finally graduated last July with a "Masters in Environmental Sciences".

After graduation she came by the house and we had a long discussion about where her life would be going from here. I was thinking that now that she had her masters she could give up her entry level position with the company and either seek a substantial promotion or go with another company, I mean, lets face it, she has a Masters from a fairy pretigious university with a 3.97gpa and nearly 5 yrs work experience in her field, what could be better than that?

She told me, no way, she was planning to stay in her current position for at least another year, unless of course this employer were to offer her a promotion, but under no circumstances would she leave this company for at least a year.

I could not understand her reasoning because at the moment they are only paying her $21/hr. Surely with her diploma she could improve upon that but she said, this job is a gold mine if I keep it for another year.

She said it has been tough getting through school and it will continue to be tough for the next year, but there is a program in the state of Massachusetts that if a state resident graduates in this state, then works in their field for a minimum of one year after graduation all their remaining student loans will be forgiven.

She says think about it POP, I make approximately $40k a year on the job and if they wave my outstanding student loans that will be another $110k or more, so while it appears I am making entry level wages, in truth I will make over $150,000 this year. Not bad for openers.

I think she is a pretty smart girl.

What program is that? I used to live in MA and I never heard of anything like that. That's amazing.

chi83,, I am not sure what they call the program but Kim told me it is something new that they just put in place about 3 yrs ago. If she stops by this week I will ask her what they call it.

Not sure if you're talking to me, but I can't remember, I'll have to ask her the next time I see her.

Hi unambitious unmatured dog (or, if you were/it's female ... but we won't go into that),

Does the daughter need to stay with her current employer in order to qualify to have the student loan forgiven?

If she were able to find a position in that field with another employer in your state, could she still qualify?

If she's not tied to her current employer but could look elsewhere without jeopardizing the forgiveness program, now that she has her degree, will the current employer be willing to jack her rate of pay up substantially in order to forestall her leaving?

ole joyful

Kim called me from Pittsburg tonight and we discussed the program a bit. She said she is not sure of the exact name of the program but as soon as she gets home she will bring the contract by for me to see.

According to her, she can work for any company in the state, providing she is working in a field related to her degree.

Like you, I mentioned that she might like to consider checking other companies to see what they could offer her, but she say's no way. While she was still attending school she had to primarily work out of the local lab here so she could be close to the school, but now that she has finished school the company has promoted her to a full lab & field service tech with a substantial pay raise.

She says she much prefers to work in the field taking samples and working field analysis. On top of that she says the company she is working for has operations in all 50 states and since she is single, she is free to travel at will.

She says that when she works in the field if she is more than 100 miles from home the company pays a generous mileage rate on her vehicle plus they provide nice motels and give her a daily per diem rate for expenses that is nearly equal to her salary.

She says she will be in Pittsburg area for about two weeks, then she is off to Colorado and Wyoming for a couple months.

OH yea, she says she got rid of that old beater pickup she was driving and now she has a Ford F-150 4x4 extended cab with all the bells and whistles, and she got that at a fleet price and financed through the company.

Hi lazypup,

Sounds like that daughter has her head screwed on right.

Apples fall close to the tree, around your area?

ole joyful

Sounds like Obama is trying to offer some relief. I'm not sure if it applies to private loans but hopefully it'll help out some people here.

Here is a link that might be useful: student loans

Here is a website with some links to loan repayment/forgiveness options.. the ones I clicked on were for health related careers, but there are a lot to look at.

Here is a link that might be useful: Loan repayment/scholarships

The next financial disaster for this country is the student loan problem. Those loans combined are in the trillions of dollars. They have to be paid back, but the thinking now among some are the government should forgive them... what a joke.Go boycott the universities that are sitting on billions of dollars in their endowments and take a look at the salaries of the hierarchy in colleges. These are the folks that need to have their paychecks slashed, ripping off this country for decades and nobody says boo..Just pay the dam tuition bills. College education is not a necessary evil as it once was. Unless you are planning on being a Dr. or Attorney think twice before putting youself in that kind of debt for a mediocre education.

My two kids, now crowding 50, each paid about a third ...

... their Mom paid about a third, and I paid about a third, and if they didn't grad debt-free, it was close to it.

I think that it helps to encourage a young person to take a serious approach to the issue if part of the paying comes from the sweat of her/his brow.

ole joyfuelled