Student loan fugitives

Wow!!! I don’t even know where to start. First off it saddens me, and I am not kidding, to see that so many people in this country are being screwed over because they were trying to better themselves and get an education.

Now for my story, I had this great awesome dream and still do, to work in the film industry, to be a great photohgrapher. So what did I do, I went to college, biggest mistake I have ever made, sad right? I never though going to college would be a mistake, but in the great USA it is unless your parents pay for it. So I went, and now here I am 5 years later, lots of forberance time later, with a mountain of debt, nealry $60,000 and climbing thanks to wonderful interest. I have searched for several options, but there are none for private loans. Now you might be asking, why didn’t I take out federal loans, oh I tried and I got a tiny bit about $6, 000. The government wouldn’t give me anymore than that, why, because I was 22 at the time and so I was still considered a dependent, even though i had been living on my own for over 3 years. They approved me first semsester, because I had proof of living on my own, leases, bills, etc. 2nd semester they wouldn’t. So what I needed was my parents tax info so that I could get approved off of their income, since I was still a “dependent” in the governments eyes. Well not an option, my parents are deadbeats who don’t care at all about me or my brother.

Well now I am drowning in student loan debt and have nowhere to turn, I am making interest only payments right now, which are onyl hurting me, just racking up the debt.

I even resorted to joining the militray in hopes of getting the Navy college loan repayment option, well once again, big suprise, they only do that for federal student loans.

I need options, me, and the thousands of others who are in the same shoes as me.

Why is their a solution for federal loans, credit card debt, mortgages, but nothing for private loans? We have to flee the country, that’s our option? God bless the USA!

H Dowingtown- I can come and go to the US as much as I like- student loans are a civil issue- not a criminal one. they will only take notice if I work in the US (which I never plan on doing). They would then garnish my wages. but since I live overseas I can do what I want- debt free. My new country doesn’t care about my student loans and getting citizenship was a piece of cake.

I have been wronged all my life – I am owed dollars!!!
I first went to university in the 1980’s and had to leave for financial reasons. I paid back my student loan and did it so well, that I was evicted for non-payment of rent, so well that they discounted the last few payments and said the loan was paid in full. This, I believe was because lots of people weren’t paying. Fast forward: Unable to get any kind of work in New York City, drowning in more eviction notices, and soon to be homeless, I went back to school. My university, The New School University, is so determined to be multicultural and politically correct, gave great scholarships and work study jobs to minorities, but even though I was on the Dean’s List for all but one semester, my scholarship was not that great. I took out $35,000 in regular Sallie Mae loans and $10,000 in a private Chase Bank loan, convinced that with a college education, finally, I would get a job. Even though the government gave me work-study, every time I applied for a work-study job at The New School I was turned down by some snotty, younger student. I went to the Financial Aid office and complained and I complained that most of the work-study jobs were taken by foreigners and I was told I was a racist.

I graduated in 2002, one month before I became homeless and had to endure the depravity and danger of the homeless system, even as some of my poetry was being published, even though I made the Dean’s List consistently. Now it is 2006, I live in Public Housing with my husband whom I met in the homeless shelter. He receives a check from the government, $626 a month for both of us, Supplementary Security Assistance (SSI). Sallie Mae is not the only money-hungry jerk killing the citizens of this country. Congress again is the culprit. If I earn over $240 a month, they take money out of his check. And I still CANNOT get a job. I have ideas as to why, but I would be called a racist again. In New York City, restaurant jobs go to illegal aliens or very young girls or guys (for waiters), as for secretarial etc. jobs, Affirmative Action is rampant. Even if I get a temp job, and that is rare, the whole office is Black or Spanish. I am also 53 years old, so that is a factor too. My social security, if I live that long, will only be about $400 dollars a month, because of my horrific luck at getting a job. And I can’t pay my student loans, so they will attach 15% of that. I have not done this on purpose.

I paid my first student loans when others were not. I am harassed about 10 times a day by snotty, inarticulate, insipid, brainless SALLIE MAE employees. I tell them, will Sallie Mae give me a job? Then maybe I can pay. They start yelling at me. I hang up. Someone from on high, an executive called, and I explained my situation and still, these amoebas continue to harass me. I think our country is a piece of crap to treat people like this, to have Congress bought by a company. Between the laws Congress passed about spouses of SSI recipients and the laws about student loans, my life is really over. Even if I get a job, which is unlikely, I will never be free. This country should stop telling people they need a college education to get a job, then implement Affirmative Action, hire illegals and let age discrimination go unchecked. Last week, I took a grueling proofreading test, passed with flying colors, had a great interview, and still was told, “It was pleasure meeting you. It was a hard decision, but we had to go with someone else.” Code for: You are too old, too pretty, too white, too legal. This country should do what Germany does. Let everyone learn a skill, they pay for it and you’re on your way.

I have finished with bankruptcy and it now is all for naught. My student loans have exceeded deferment and forbearance. My $10,000 loan is now $18,000. My $35,000 loan is now about $42,000. The least they could do is not add penalties and interest. The LEAST they could do is listen to the hopelessness of my situation, and everyone’s situation, and realize they are killing us, causing tortuous stress and migraines. What good is getting an education if the rest of your life is poverty-stricken to pay back the loans? And what good is an education if then, in New York City, they tell you that you are overqualified, too old, too this, too that.

What happened to the days where if you couldn’t find a job you wanted, you could at least get a crummy job? Now the crummy jobs go to the very young, the Affirmative – Action crowd, the immigrants and the illegal immigrants. Before this country keeps paying for MEDICAID and schooling for ILLEGALS, why don’t they straighten out the horrific conditions of the student-loan borrowers? Why are we being shoved aside to let illegals gain access to the phony American dream?

Maybe if they hired people who can’t pay their loans, instead of uneducated, foreign and stupid people there wouldn’t be a problem either. And I don’t want to hear the whole thing about illegals ONLY doing jobs Americans don’t want. Illegals are now earning 30-40K in places like Swift. And what about all the construction jobs they take away from Americans. This whole country is falling down. Our jobs are also being outsourced at a record level. I bought into the whole thing that the reason I couldn’t get a job was because I didn’t have an education completed. My IQ was always high, it’s still high, my education didn’t make it high, and I still don’t have a job. And I have been published in over 50 literary journals, but I can’t be hired for a lousy job? I can’t get a proofreading job even though I did great on the test and interviewed very well? I am sick of my own country. Congress should all drop dead as far as I’m concerned. I don’t care about my country anymore.

In 2003 I became homeless because I couldn’t find enough work, or sometimes ANY work to pay my rent. I went to a private university. I now have over 60 publishing credits in good and great literary journals. I was just nominated TWICE for a literary Pushcart Prize. I still cannot get a job, except maybe a couple times a year, a low-paying temp job where they treat you like you’re garbage. Shouldn’t the interest and penalties at least be stopped if you are homeless?

I also take care now of a mentally disabled husband and we are living on a little over $600 a month. And technically the SSI is HIS money. The government cannot take it. And my husband is willing to pay out of this paltry sum $45 a month. To keep me out of default and I am having a hard time convincing Sallie Mae to take this sum. On their insipid website they say you could pay your loans if you didn’t have cable. So, my husband is supposed to not watch television because of this? He didn’t do anything wrong. Oh, and speaking of being disabled, this government is so screwed up. My husband has his college paid for by a government agency BECAUSE he’s disabled. Too disabled to work, so he collects money, and then they pay his college. If you’re too disabled to work, how come you’re not too disabled to go to university?

And because I am married to someone on SSI, if I earn over $240 a month (I’m lucky if I ever do), they subtract money from his SSI check. Do you believe this. I am being punished by this sick, sick, government. So how would I pay my loans anyway? I hate this government. They do everything for non-citizens. They are screwing me on both ends. On three ends:

Affirmative Action
SSI related
Student Loans

And I can’t even apply for Grad School to maybe eventually get a job, because I can’t afford the applications and GRE costs. So, I sit here, graduate from a private university, published in over 60 literary journals, a two-time Pushcart Prize Nominee, a caretaker for a disabled person, and I HAVE NO OPTIONS for any kind of a life. This is America – land of the free – NOT, America, land of opportunity – NOT, America – land of the brave – NOT our Congress. WE are brave, brave to suffer through this raping of our lives.
Once I had to do data entry. The damn whore who was telling me what to do because she was jealous. I had put my purse in the aisle so I would have more room, and she tripped and spilled coffee on it. I slammed my computer to the ground and demanded my money for the day. So don’t tell me I don’t work, you TOAD!

The last times I tried to temp, the minute they saw me they said they had no work! Then why did they call the temp agency? I’d worked there before and they had work. It is AGE DISCRIMINATION. I am a far better employee than any of them!

So, you shithead pervert, celebrate paying off your loan. Maybe you will get some calls and letters! If jobs were based on merit, I’d have long distance service and call you myself!

JACOB WALSH – STALKER:

H 2356 W 58th St
Indianapolis, IN 46228-1714
(317) 255-4872
Household: Carol R Walsh, John Walsh
Jake Walsh
North Central High School

Indianapolis, IN

I can’t find a job. Screw them! I take care of a schizophrencic husband. THAT’S ENOUGH! And why can’t I get a job???? Because of RAMPANT affirmative action, including in NYCHA and HUD. The VERY people doing the shootings, dealing drugs, doing drugs are the VERY people who could GET JOBS through affirmative action, but they CHOOSE to be animals. The whole system is corrupt. And that includes welfare and food stamps. Michael Belfonti couldn’t change these savages if he wanted to.

One more thing. The whole Section 8 thing was a liberal experiment to try to get ghetto people mainstreamed – some liberal Harvard guy thought that “showing” them how “real” people live would make them more responsible. It doesn’t. There is a gorgeous building near me that has gone Section 8 and now the tenants are screaming every day to shut the Section 8 people up – their loud music – their hanging in the hallways, etc. EXPERIMENT FAILED.

As a former upper middle class person, I see firsthand what these people are like. Every day I smell pot coming from a single mother’s apartment and LOUD MUSIC – great example to her daughter. Every day there is piss and garbage in elevators. As for HUD and NYCHA – I;m lucky if I have heat twice a week and then HERNANDEZ (chairman) lies about it.

Blame the government and the savages.

To all those people who left the country: Didn’t you have any problems applying for a new passport etc. What if you ever wanted to come back for a visit. Could you be arrested?

Yes I paid my taxes to Uncle Sam who used that tax money to bail out the banker who holds a promissory note over my head like a slave master’s whip.

It’s time for a revolution people.

In the next few decades, expect America to experience a brain drain as all the people with education decide to leave the country. Look people.. the US Government no longer benefits the people of the United States. The US Government helps bankers and businesses.. not it’s citizens. In fact, this country’s government has opted to help the banker enslave you in a mountain of debt and there is no practical way for you to get out of this debt. Time to leave America to the bankers. They win.. and the government helped them cheat by giving them the bailout instead of us.

Do not be ashamed of expatriating from a country that enslaves it’s young in a mountain of debt.

I would not call these people in debt “lazy”… you never worked 3 jobs unless they were all part time or on commission. Even with your way of making money to pay off these loans, in today’s economy, working 10 dollars an hour at 3 jobs working 60 hours per week is just enough to eek a living with a little food on the table. These loan schemes were not designed to be paid back… they were designed to keep the debtor in debt in perpetuity. I would call it a form of Slavery. The people who profit from such scams are committing usery.

The student loan program in America is a scam designed to enslave Americans to the banker. It’s part of the New World Order agenda of the bloodline freaks.. such as the Bilderberger’s, Rockefeller’s, and Rothchilds. Once everyone is in debt to the banker, we will have a one world government and you can say goodbye to your civil liberties, and say good bye to the US Constitution.

I understand there are some unusual circumstances as to why people can’t pay for their student loans. For the ones that this does not apply it’s mostly due to being lazy. Why are mother’s handling their child’s student loan process? Your son/daughter is 21 years old and has had you the parent spoon feed them for 4 years. They don’t have a clue about the real world because mommy and daddy took care of anything that gave them a chance to be a responsible adult at age 18.

Honestly some schools have no business being in business. They over promise and definately under-deliver; which is especially the trade or vocational schools. Thousands and thousands of dollars wasted on fashion design, culinary and truck driving school.

Some of these people complain about working one job and only making a certain amount of money. What about working 2 or 3 jobs to meet your obligations and keep your credit in good standing. People just get lazy and take forebearance after forebearance and what was once a $20,000 loan is now $40,000 6 years later with not ONE payment being made.

I’m unable to find work in this economy. I have a strong work history and my degree in Business. However, I have not found work, and I’ve been out of school since April. Some of my student loan was sold to department of education, which is $50/month, and my main loan is $195/month. I have no monthly income coming in. I don’t know how I’m going to repay. I think it’s sad, that after paying so much for school, we can’t find work. I just pray daily that I will find something.

I’m a public school teacher, 25 years old and spent 6 years getting a math degree at a private school. This private school choice was not mine but my parents who told me at the time the money would not be an issue, its the “faith based learning that counts”. I complied, met my wife there, and enjoyed it. But, just a year out, I can’t make payments on $119,320.99 prinicple loans at about 7% interst.
i even have to go back to school to get a teachers license…how will that work? ive ruined my credit with these loan issues. im screwed and not alone.

My son owes an outstanding balance of $55,478.63 to be exact in private student loans, and I am his co-signer. He was diagnosed with a mental illness in 2005 after completing his first year in college. He made numerous attempts to stay in school, but he had trouble doing so due to his illness. My son has been in out of hospitals since his intial hospitalization for the past 4 years. He recently was approved for social security benefits. I submitted this information as well as documentation from his mental health provider. I was told prior to this on numerous occassions by representatives that the private loan could be “forgive”, but he was denied. The required monthly loan payments are approximately $438. and he only receives $475 a month from social security since he still lives at home. Over these 4 years, the loan company has only been communication with me requesting payment since I am his co-signer. I informed the company’s representatives that they should first attempted to a repayment agreement with my son since he was the borrower and exhaust all avenues before attempting to seek repayment with me. Am I right for requesting this ? Should I or my son attempt to dispute this ? And how ? We live in NYC and the the college and the loan company are in S.C

To melanie from Boston so your dad spent 25 years paying back his student loans was he smart? in your eyes he was!. So what! why would anyone spend 25 years paying for something other then a home is beyound me!. The fact is students are being ripped off plain and simple no matter how you want to slice it these companies are fed by greed. Double what you owe give me a break!. Also your comment read the fine print who can understand that print anyway I guess your one of the few lucky ones that can.

I know of some one with students loans they can’t repay.

Too bad that there has been an industry built around “U.S. Education.” Young people shouldn’t have to begin life with debt because they wish to be educated and more employable. Some countries only charge students lab and book fees as taxes support their Universities.

Unbelievable that the “richest and most powerful country in the world” bases its riches on the debt of the population and can’t competively educate or give universal health care that all of the other western industrialized nations can give to their citizens.

I became a Chiropractor in 1997. After several years of pre-chiropractic college and then the 4 year chiropractic program I ended up with around $120,000 of debt. I was so happy to consolidate into a Direct Loan Income Contingent program. After 11 years of not making over $35,000 a year my student loan with its negative amortization now has a pay-off of over $315,000 !!. I will never pay it off. True, after 25 years in repayment the unpaid portion will be forgiven. So what?! You still have a huge tax burden for the unpaid but forgiven loan. How do I come up to pay the taxes that will be due on the $350,000 that is forgiven? In my case I will be 65 years old then. The IRS will collect andyway they can, and the student loan may not be released through bankruptcy. My entire financial life is ruined and no amount of saving and investing with attention to interest rates will ever change that. A lifetime prison. I SHOULD have just gotten a trade as mentioned. The college education is a fallacy. Tradesmen have the right idea. Think about it and dont think having a college education will necessarily give you a better life. I did all the right things and now I have no future to look forward to.

What about those who have private students loans that require payments that are untouchable???

I went to college so that I wouldn’t have to worry about money, and so that I could take care of myself…. But I see now that was a HUGE mistake. It took me 6 years to graduate from college because I was working 2 jobs and going to school. I finally graduated and now I owe over $160,000 in student loans. The total cost of my tuition was only 100K, the rest is interest that my lenders tacked onto my loans. My payments are over $1,200-$1,400 per month, well over half of my income. I’ve tried EVERYTHING and there is no help for me. I’ve been told by all my lenders “Sorry, but your stuck like a rock in a hard place, there’s nothing we can do.” I supposedly make too much money to qualify for income sensitive repayment options and I’ve exhausted all of my deferment and forbearance time with my lenders. I don’t know what to do. I can’t afford to pay my student loans and my rent, car utilities, food, gas etc.. Is there anything I can do? I’ve been applying for a second part time job but no one will hire me since I can only work weekends. I’m afraid for my future. I recently got engaged, one day I want to have a family and buy a house and I can’t. I am barely even feeding myself right now and I can’t pay all of my bills. I wish I would have known this before I went to college! There is a lack of communication and education when it comes to financial aid for college. I was not informed how high my payments would be or how much I would actually be charged in fees and interest rates. I was shocked after I graduated when I found this out. I am not looking for a way to not pay back my loans, just A WAY to pay them

I can somewhat relate to this article. I am 27 now and went to a private college as soon as I left high school at 18. At 20, I transferred to a local community college because the private school was too expensive. Granted, I wasn’t the best student in high school (2.7GPA) but I still think that high school doesn’t prepare anyone for college well. There are a bunch of problems with our educational system that I have seen during my time in it, and while I’m not exactly supportive of someone running outside the 50 states, I can understand why.

First, collegiate education is way too expensive. The average wage in the USA is around $27,000 as of 2009. (The median and average are completely different, BTW). Even if the average collegiate wage is $35 – 40K, that is NOT enough to realistically afford $35-40K in student loan debt, and it sounds like the average student loan debt could be much higher than that. You also have to consider that most well paying jobs are in the larger cities which have a COL much higher than depicted in the media. FYI, I graduated with only a couple thousand in loan debt thanks to the community college being so cheap and graduated with an A.S. in marketing (yeah, laugh it up). While I don’t regret going to school, I wouldn’t do it again given the current circumstances.

Two, the educational industry overall puts out a poor quality product. We’ve all had experiences with doctors who don’t comprehend basic hygiene or sanitation, engineers who can’t do basic math, accountants who can’t manage their personal finances right, etc…it’s almost comical. The problem here is that college degrees aren’t really education anymore; they’re a commodity to be bought and sold. As with all commodities that are bid up (like housing), the quality of the product usually drops badly. I won’t go into the rest of the politics and games that go on at colleges, but I can tell you both from first hand experience and from real world observation that the current college model is DOA; doesn’t matter what your thoughts or feelings are.

Third, our schools are dealing with the same problems as most other American institutions are; most American institutions (government/business/religion/education and so forth) are functionally obsolete. They’ve been obsolete probably for at least as long as I’ve been alive. Education is an industry that can’t be run like a business, especially the authoritarian business model. It doesn’t work in the real world as authoritarianism isn’t flexible. Like our government, the educational system preaches omniscience when it doesn’t have it. Education requires competence and skill that can’t be solved by a corporate/small business model. For those of you who majored in psychology and/or sociology, have you ever considered this?

I probably sound very arrogant and self-righteous for a 27 year old, but that is cold hard reality. (I understand the issues in America better than the vast majority of people because my life situation required me to think much harder and faster). You won’t be able to have people go to college, run up $30K/40K/50K/or more in college debt and come out to a job market that simply doesn’t have enough jobs to pay down such debt, and it probably never did have enough jobs. They had problems with college grads driving taxi and waiting tables back in the 70s. It’s just the laws of mathematics; your politicians’ and ‘intellectuals’ opinions mean nothing. If it costs 2K per month to service college debt but your income is less than that, all of the political/social rhetoric means nothing. You’re losing money!

I don’t know what to do. I, like any other high school student, worked my butt off to get accepted into a great college. When I was accepted to Fordham University I was so proud of myself. Without thinking about the damage it would cause in the future I decided to go there. Looking back I realize how helpful it would have been to have the student loan system explained to me. I didn’t qualify for aid from the government because in their eyes my parents made too much. But they didn’t consider the fact that my parents have 2 other kids & their own bills. We have always lived from paycheck to paycheck. My parents have never been able to actually save. So I had to take the private loan route. For 3 years I took out $30,000 to cover tuition, room & board, meal plans and books. When you’re in college and as driven and ambitious as I am you think I’ll be able to pay that back no problem… I am going to be a success. Unfortunately, things did not work out that way. I wasn’t able to get a cosigner for the 4th loan so I had to leave Fordham and start working. Everything changed but I never lost faith in myself. I have an entrepreneur’s spirit. I always have ideas and I’m very good at bringing them to life. In addition to my 9 to 5, I have been planning events on the side to create another source of income. But now… I’m lost. I decided to go back to school and consolidate my loans with Education Finance Partners (which filed for bankruptcy in 2008) this seemed like a good idea at the time. When I put all 3 loans together the total was $105,000 and now that this consolidation loan has gone into repayment I owe $170,000 which the bank is requiring me to pay back in 8 years at a monthly payment of $2,900. I only make $2600 a month after taxes. What am I suppose to do? I have a car payment, mortgage payment, credit cards, transportation and the list goes on. The worst part is I haven’t been trying to hide. I’ve heard horror stories about people running from their debt so I’ve been making an effort to stay in contact with ACS and it hasn’t done me any good. I’ve discussed mys situation with them at length. I let them know that Im not trying to get out of it. I know that I have to pay and I am willing but $2900 is just impossible. They have been completely unwilling to help me. I’ve called so many times & each time I am told that maybe when the loan goes into default the collection agency will be willing to give me another option. But I don’t want it to get that far. I am trying to be proactive. My father who has sacrificed everything for me co-signed on this loan. I can’t do this to him. He has worked so hard all his life and to have my problem ruin everything he has built is just wrong. What can I do? I’m trying. I work hard everyday and I go to school full time so that I can finally get that degree and hopefully be able to make more money. I am only 25 and already I am considering filing for bankruptcy. It’s like my life is over even before I got to start it. I have a great boyfriend but how can I marry him with all of this. He too has worked hard to be where he is now and how could I let him become a part of this mess. He will have to pay for my mistakes. I feel completely helpless and that’s not at all who I am. I’m a fighter, I’ve always made things happen for myself and now everyone I turn to is telling me that there is nothing I can do. I am realistic, I’m not asking for this to just disappear. I want to pay back my debts… I just need help!

I migrated to another country 8 years ago because of massive student debt and credit card debt that could not be repaid. I went to public university but still owe $60,000 in student loans and $25,000 in credit card bills. I am happy to be free of this crushing debt and will never again live or work in the USA. Best decision I ever made.

i’d just like to point out that a music degree is required to even apply for jobs in most orchestras all over the world.

I am about 45,000 in debt, living in berlin and happily avoiding the loan. I never planned on coming back in the first place. I make money here, the people are more interesting, I learn more. The music is better. to that first kid, glad you left the states. Gimme a call sometime and we can talk about the suckers!

What’s infuriating is listening to people who are convinced someone else should help them pay their debts. YOU took out the loan to get YOUR education and YOU should pay for it.

Maybe Sallie Mae lied to you. Maybe your University lied to you. Whose fault is that? Yours. You should have done your homework before getting yourself into such a mess. If you didn’t have the paperwork in your hand and yet you went ahead with education you couldn’t afford, you deserve to be saddle with debts for your own stupidity.

I’m well aware that in this economic climate, the rich are stable, the poor receive aid, and the middle classes. I’m also aware that this country really needs to tighten its wallet and learn to live withint its means. If you don’t have the money to afford the education, and you’re not willing to sacrifice prestige and attend a cheaper, public university or community college, then you make the conscious decision to put yourself into debts. If you are surprised at the amount of loan payments you have, it isn’t the lender’s fault! It’s your fault for knowing zilch about economics and yet wanting something you can’t afford.

To all those people who think the government should pay for education– IT DOES. It’s called PUBLIC UNIVERSITY. I’m a junior pursuing a double degree program at Boston University, which costs close to $50,000 a year, but guess what? 50% of that cost is covered by my SCHOLARSHIP, and the difference is being paid mostly out-of-pocket with money my immigrant parents saved up. I have approximately $5,000 in student loans per year, and I’m getting an excellent education, but I was smart about it. I could have chosen George Washington University, except I would have graduated with 180K in loans with little to no hope of paying it all off.

My dad spent 25 years paying off his loans from university, medical school, fellowship, a house, and 2 cars. (To all of you who say “doctors make a lot of money, shove off,” think twice about the cost of education you’ve been complaining about. My family of 4 lived in a one bedroom apartment for quite a long time.) He didn’t run away to a different country–He accepted responsibility for what he did.

This country is suffering from the antics of people exactly like Chris with his unnecessary, overpriced and completely useless music degrees (and don’t get me wrong, I’m a solo pianist, and have been playing for 14 years, practicing 3 hours a day, but I’m not stupid enough to spend $160K on a music education that won’t bring me such returns) who think they’re entitled to something they’re not.

Take a leaf out of the settlers’ book– This country is there for you to make it, but you have to work for it. No one is handing you the perfect debt-free life on a platter. Who ever told you that you deserved that anyway?

And while you’re busy sitting around unwilling to work 3 or 4 jobs to pay off what you dutifully should (because it was your own fault you’re in this mess), look up “return on investment.” If you’ve invested $160K, you best be making at least $80K per year if you want any chance of paying that loan back in your lifetime.

Shame on you, CNN for seemingly advocating running from one’s problems.

My wife took out 40k in student loans. Well before we ever met. She never finished college. She can’t go back since it has been too long and her credits have termed, as well as, owing too much in loans to be accepted.

my wife has accepted this and we have since had two beautiful children. my wife makes a meager 14k (as of last yr) working part time and part time stay at home mom. I hold only an associates degree and earn 30k.
Between basic living expenses for the area, bills, and two children, we rarely have money left over to put in the bank each month. Our families have been very helpful financially and even help watching our children so we can work without worrying about child care expenses. As you can see, moving out of the area where cost of living is cheaper would actually place a heavier burden on our finances since family would not be there to help. My wife has long defaulted on these loans which are quickly rising with interest. She has been sent a hardship form from a collection agency, yet, they require my financial information as well. I do not make much, but it is enough to provide for my family month to month for now. I am afraid they will now try and hold my income accountable for these loans taken out prior to our marriage. What can i do to avoid this?

Hey Scott Hey Alex I feel you pain and frustration! Let’s give the whole country a reset. We are the only country that does this to its best and brightest. I joined the US Army to fund college and still ended up taking over 40K in loans….was so sure I would pay them off and yet here I am 10years down the road with NO decrease since I make minimum payments which are all I can afford. I heard whispers of a program to reset EVERYONE’s credit in this country! Hey we give it the big guys. Why not the little guys and gals? Check this out, wouldn’t you enjoy your job SO much more without this crap hanging over your head??

I feel for you. It seems the government is Big Brother who has your social security number who can hunt you down and make your life living hell if you don’t pay up! That is exactly what they did to me!!
I underwent a severe economic hardship in 2001. I was layed off by a big company. Two weeks later, 9/11 happened. The doors closed shut tight from anyone who was looking for work. Months went by and I used up my savings. I had two credit cards I could no longer pay for and I knew I couldn’t pay for my two student loans that I kept deferring. My $28,000 savings was gone and I felt extremely helpless. I filed bankruptcy for my to credit cards. I went into default of my student loans. Collections was calling me and Sallie Mae and Direct Loan were sending me coupon booklets to pay the student loans with a letter stating that they knew I filed bankruptcy and said they did not recognize economic hardship. Again, I sent them documents of my health problems, economic hardships, and told them I was filing for disability. I am a CRS patient with Sjogrens Disease and suffering from depression. I am in pain all the time. Even though I was not working and not receiving unemployment benefits, Collections seized my tax refunds three times. It was such an insult to the poor! I had nneded that monies to supplement my scripts. So I was forced to apply for food stamps and medical after that. Finally, Legal Aid was able to guide me in getting all the paperwork to be discharged for total and permanent disability under ED. I understand that it is in review. It now has been three years since I filed for Disability through SSI!! I have tried different avenues because of the time it takes to get anything done. I have considered at times to leave the country just so I can start a new page over again and do it right. But you need money for that! Where is the forgiveness?

Law schools use voluntary response surveys to claim high alumni salaries – but what incentive does a poorly paid alumni have to answer such an embarrassing survey? The over-paid braggarts will return the survey claiming high salaries. Thus these surveys are totally unreliable, and yet schools use them to fool unwary students into borrowing huge amounts of money to pay for their tuition.

The truth is average lawyers make only about $50,000 per year working miserable and stressful jobs. Hairdressers and plumbers make more money!

My advice to prospective students – don’t go to school. You can learn more by simply reading books at the library. Go work for 4 to 8 years and save up your money to start your own business in some field that you enjoy. You will be happier and probably make a lot more money. (If you ever do need a lawyer, you can always pay one to wash your Mercedes Benz for you.)

My school loans of over $140,000 require self-employment earnings of about $4000 per month since I could then net the $2,000 after taxes to make the interest payments. But try as I might, I can’t make this sort of money in my “chosen field” since it was a big mistake and I ended up in a flooded field that I am totally unsuited for. My expenses are killing me and I’m totally demoralized working hard and getting no where using my education. I’d love to just get some simple job in the country. My $3,000 per month (self-employed) is getting me no where. How am I suppose to double my income when I’m already losing my mind doing what I’m doing currently?? I’m burned out.

I want to start over. Someone else can have my degree, it’s worthless to me. If I had a failed donought shop I’d be able to walk away free after BK, but for some reason school loans are permanent.

There is no student loan BK in the USA … so what can I do but go to Canada and start over?? I visited over the last year: it’s clean, orderly, less expensive, and has job opportunities. I’ll have the money next month to make my highly-skilled immigrant application to Canada and I plan on leaving as soon as I hear back.

I too have a bit of student loans about 140,000. I went back for a second degree in higher paying field. I’ll try to pay but if I don’t I’m not going to get too upset. If you think about it a lot of the problems are caused by the lenders themselves. If you have someone with no job, no assests, and not perfect prospects ask for 20-30k would you give it to them. Thats really really bad business sense.

My wife and I were making a decent wage combined and we had paid off all of her student loan debt when I decided to complete my degree. With a new baby I knew I wanted to try to increase my income potential. I signed up for courses over the internet with a reputable school and the loans were made through Sallie Mae. The first set of loan papers came to me without totals or interest rates filled in and I was told this was because although I had been accepted, the loan had not gone completely through the approval process. I was told this was normal and given the following information:

* Sallie Mae is the largest student loan guarantor in the world
* Interest rates average 4%-6% depending upon credit scores, mine was 730 at the time
* Loan amopunt would be roughly $4000.00 per semester for 4 semesters

Unfortunately I took the company at face value and signed the paperwork. The paperwork was “lost” several times but the school advisor made sure to let me know the semester was paid and to carry on. I had completed that semester and moved into my second semester when I noticed a pattern…..the paperwork was lost again.

I was in the third semester (which SHOULD have been my last one) when I got my loan paperwork. My Sallie Mae loans that were supposed to be 4%-6% were actually sitting at 15% and 18% respectively and the amount was closer to $6000.00 than it was to $4000.00.

Due to my income level my wife and I decided to complete the schooling and pay the loan as quickly as possible.

4 years have passed now and I am divorced. I was involved in a car accident that left me unable to work for a short time almost 3 years ago and had to file bankruptcy on my credit cards and other debts.

I pay out $2000.00 a month in Child Support and rent. I pay both bills every month without failure. I am NOT a dead beat.

I pay $242.00 per month on the school loans NOT owned by Sallie Mae and the principal just doesnt seem to be getting smaller.

I cannot afford the payment that Sallie Mae wants from me. Sallie Mae wont negotiate with me. When the NY States Attorney filed suit against Sallie Mae for unfair loan practices and against the schools for illegal recruiting and loan practices, my school was listed for the years that I attended.

After the settlement, and being found to have broken the law and caused grief to thousands of Americans…..I still owe every cent of my loans, with interest, and Sallie Mae got a slap on the wrist.

This is fair in what way? I understand that I share some of the burden here, but if they broke the law, why do I have to carry the load? Oh wait, they have lobbyists and money.

To all of you that have typed on here calling names and talking trash to the people that cannot pay their loans, shame on you. I do NOT hope that you yourselves run into financial hardship because I wouldnt wish it on anyone, but I do hope that someday someone kicks you square in the nuts for being such a jerk.

You know, it drives me nuts reading of how these people on here are writing about getting a clue and be more responsible.

Yes student loans should be bailed out. Of course they should be.

The Financials which knew everything about their risky lending got it and soon homeowners will get relief too.

I have very little debt and loans left, thank God. But listen to youselves and think about things.

Students today and right before the current recession, unless wealthy, are
getting buried in debt that they cannot afford nowadays. The main reason….The economy.

Poor economy = Poor Earnings = Cutbacks = Layoffs = Higher Unemployment = less demand #1 for housing = downturn. etc etc

Example…A current Law student will amass roughly $150k in student loans. Now what schools want everyone to believe is that there is pay off for these loans. Its good Debt right! During a efficient economy the answer YES. well most of the time. Median salary of a lawyer is “100k” maybe. NOT TRUE. A typical lawyer will make between 40-60k. The median is a large group of people giving their salary ranges…so If so many people are making huge incomes 160k and more, it ups the median. So now you take your typical lawyer making 50k and drop over 1k of student loan a month…minimum, plus rent, food, car, gas, etc etc. It makes that glory of a life seem very distant.

I myself am not a lawyer, but I understand the situation. And please hold you comments about how they should know what they are getting into and blah blah blah.
The fact is…coming out of college…or high school…unless you’re directly connected to someone who knows everything about what career youre getting into. Nobody knows anything. Yes there are horrible websites that tell what you could be making in this or that position. But really you dont know till you’re in it.

And for all you potential lawyers out there..here is the best advice for you. Go to the BEST SCHOOLS and be in the top of your class. Otherwise forget it…unless you are wealthy that is. You will save yourself a lifetime of agony.

The point Im making is that when the economy is in the dumps nobody can truly get ahead because there is just nowhere to go. No Jobs is no pay.

So stop blaming people and saying they are stupid. Granted a music degree might not be worth it but then maybe a Juris Doctorate isnt either.
We need to change our education on finance all together. Teach what needs to be taught…FINANCE…i cant believe this isnt a subject at schools. And if it is get your kids to take it. We also need to teach kids about real life and careers. I didnt have anyone I could turn to concerning the job field that I am in now…luckily I have been…well lucky.
But the government needs to crack down on these lending giants…Sallie May. etc. And laws need to be put in place to protect the borrowers in these circumstances as well.

I know i rambled on and on about a few different things. Mostly because i cant really see what im typing anyways because this type box is so small.
But have mercy on these borrowers..Most werent careless about getting these loans, its just that they were duped into believing what they didnt know in the first place.

The government bails out corporations that employ the “educated.” Where is the bail out for those of us who are “educated” who took the academic road to increase our incomes only to have higher taxes and larger tuition repayments. If the corporations can be given billions why can’t those of us with outstanding tuition be bailed out.? I am a middle school teacher. To acquire the credentials and BA in psychology cost me over $35 thousand dollars plus accruing interest. I net approximately $40 thousand a year. With further pay cuts in the making.????? If you want me to pay the loan you have to pay me!

I agree with you. We don’t need to pay that scam. I had $160,000 in school loan debts and got all of it discharged by winning a bankruptcy case. My lawyer is a great guy. So now I’m free of all those debts. And I got a free education.

It’s funny when poor people talk about taking responsibility and paying off your loans. Wall street never pays it’s bills neither do other large corporation, so why the hell should I? I have 100k in student loans and moved to Europe to avoid paying this scam. So Fannie Mae suck on it and thanks for the free education lol.

I know a lot of people in debt for student loans are young, but some are not. In case you’re not aware, it looks like your debt can be forgiven at age 65. Look here:

http://www.bankruptcylawnetwork.com/2007/08/05/student-loans-and-income-contingent-repayment-plans/

I am an indentured servant. For me, there will be no “American Dream” or marriage, family, or grandchildren while living in this country, or, for that matter, keeping an American citizenship. I can’t get a loan for a mortgage, and I can not bear to bring a loved one or potential husband into the financial disaster that has become my life. However, I have found happiness in spirituality and security knowing that I am perfectly capable of living within my means.
Through no fault of my own (and it has taken years to break the barrier of humiliation and indignance to say that) my loans went into default before I ever had a chance to make the first payment. I only had a $17,000 loan, and much of that was to be paid off as I taught each year. That “paperwork” was apparently never filed, but that is the least of my problems. I have paid out over $10,000 in cash toward my loans; however, with ridiculous and unjust fees applied, I currently “owe” $32,000. I was a language major in college. Can someone please explain THAT math to me?
In the last ten years, I have not received one income tax return, nor did I receive an economic stimulus. Funny, though, on my meager teacher’s salary I have managed to pay over $120,000 in federal and state taxes over the last twelve years (I am single and am not a homeowner, obviously), and the students that graduate through me offer this country the promise of more. The federal bailout of $700 billion is more than I can tolerate. Why is more money than I’ve paid in taxes in the last 12 years going to individuals as a BONUS when I ‘ve worked my butt off, humbly, for this great nation for the last 18 years—a nation whose dreams have been denied to me by the very government that I so adamantly praise while standing in front of it’s future leaders each day? It’s appalling. To add insult to injury, had I graduated eight months later than I did in May 1998, my loans would have been automatically forgiven by my years of service in the classroom. I teach in an area of teacher shortage, and for teachers who graduated starting in January 1999 with a certification in an area of shortage, loans are forgiven based on years of service. Sorry to have missed that opportunity—I guess my service counts for nothing but dashed dreams and a headache.
Another debt collector contacted me at work two weeks ago threatening garnishment. I’m sure it will happen; it has before. When I said I would probably move, she said to me, and I quote: “We will hunt you down and find you.” I feel like I’m being tracked by bounty hunters!
My only option now is to renounce my citizenship completely. I speak French and Spanish, so finding a place that I can be a true member of society will not be hard. If I move to Canada, I will only be a 10 hour drive from my family, which will be nice. I finally have enough money available (if I cash in my retirement) to apply for Canadian citizenship, which, I assure you, doesn’t even come close to $32,000 dollars. It breaks my heart to have to immigrate, but what other choice to I have?

Sincerely,
Rebecca Stewart
Goodlettsville, TN

I graduated and at the age of 23 started paying $1,000/month in student loans. I understand I took this burden on myself but my underlying frustration is that there is a problem with our system!!! I hope with all of the defaulting going on and credit tightening (making it harder to get loans), that universities are forced to examine the cost of higher education. As soon as kids don’t have access to money something has to change….

I’m torn about this whole issue. When I started school, SUNY was $200 a semester, and I could make enough working the summer to pay for it all. The military intervened, and I ended up finishing all paid for by the GI Bill.

I now owe around $80,000 toward my kids’ educations (if you have a decent income, expect to pay a lot.) The older two are paying back their loans (around $20K each in Stafford Loans) with no major problems. The youngest is in grad school on a free ride with a stipend, so she should end up OK as well.

That part of me says it can be done, but… We have a decent income between my wife and me and we live modestly and are happy to be able to help our kids. Most people aren’t as well off. Most people cannot afford to borrow this much.

The schools are complicit in this. How, in good conscience, can they charge these prices knowing that the value of that music degree will never be worth what that kid paid? Why don’t our schools teach the economics of living? These kids are victimized by the higher education racket.

My degree was worth what I paid for it, and today I never would be hired for the job I have without it. But I learned my trade in the Marines. Yes, it was risky joining during the Vietnam era. My family was not well off, and it was clear that if I wanted to go to school, it was going to be with my money. I made sure my kids understood that they were responsible for paying back their loans. I made sure they didn’t get into credit card debt and that they knew that was a sure way to ruin their lives for a long time. Why aren’t the high school guidance counselors explaining this?

Congress ought to be investigating this, not the latest “whatever Bush did.” Why is college so expensive? Why is there no competition on price?

Im tired of it being everyones fault but thier own when they cant make thier payments wether on thier house, school, credit card, etc. Take some responsibilty. Id like to know what kind of car this guy drives and how big his flat screen TV is.

I cannot express how disgusted I am at reading this trash. That’s the only viable option to avoiding College Debt? Fleeing the country? Where did you find these people? Someone virtuous would stick around and face the music, whereas a coward would cut and run. I love the way this guy claims student loan debtors are “punished for doing the right thing”. Unreal. People borrow money they can’t possibly pay back and then the blame belongs to someone else? Grow up. $160K for a music degree…. enough said

Silly kids. Leaving the country will only postpone your problems. For those that are already in default its too late, but for those that are not and are having problems making payments, remember that the special collection rights only apply to qualified student loans. If for example, you pay them off with credit cards, end of special status . . . now it’s just normal bankruptcy. Same thing would happen if you took out a home equity loan (not sure these are still available but if they are)once the bank pays off the original lender, you’re out of the special collection status of student loans.

Remember its a system, be smart and work it, don’t let it work you.

To the insensitive boobs who are condemning the people in this story, chill out. Our country depends on loans and banks and agencies profit from the collection of both good and bad loans. Its set up to fail. Blame the banks first.

Secondly, this happened to me and I only owed 14k after colleage, but blew it off for 15 years. I was overwhelmed with payments I could not afford and when I was in between jobs, I could not defer or afford to pay it off. It eventually caught up with me and the consequences later are much worse – collections, leans, etc.

Advice – contact the agency in question and set up a reasonable payment plan for 1 year. Its in their best interest to get you back on track. Secondly, pay all of these payments ON TIME for one year. Your loan will go out of default and it will get resold. Once resold you can re-negotiate your loan payments to be manageable.
When speaking to the collection agencies or the student loan officials, be respectful and honest. It pays big time.

My total debt was 44k at one time. I’ve successfully cut that in half in less than two years and I’m required to only pay $166/month now as a minimum payment. I restored a credit score of 390 to a respectable 780. Since then I’ve gotten loans, credit cards, etc. Now I can afford to pay my debt off more aggressively, which also pays off in the long run – less money out of pocket, better credit.

i owe $85,000….my mentor with walden university drug out my proposals…was lax in responding to my proposals…so each quarter i was being popped by walden for $4,500….i thought i could get through the doctorate pretty quick…had completed all course work and lacked three knowledge area modules (KAMs)… walden changed their policy on charging for the KAMs after i was with them a year…i am outraged, embarrassed, and broke!!

i tried to change mentors and walden balked…i told them i wanted to quit and within 5 minutes the mentor called and apologized for stringing me out…i bought into it and tried again…after another year i became fed up and dropped the doctoral program…

I am reading the comments from the people and fully understand their feelings. I have always paid my debt. However, I can identify with the students. My children went to college on student loans. They didn’t qualifty for grants because we made too much. We are appoachig retirement and with the worth of our home & 401k diminishing we are in no shape to offer assistance. This is not a good time for graduates to land big paying jobs like a few years ago. Six mos after gradation you are expected to start paying loans back whether you have a job or not. If they are fortunate to have one, the payments are more than they can afford. They schools encouraged these loans and oversimplified repaymen of them. Much like the banks did with mortgages. Once again Americans were duped by Sallie Mae! So before you stand in judgement of people trying to better themselves (no necessariy the person with the $160k loan in music) ask this question – Why aren’t the real criminals being held responsible?

Why on earth would you borrow $160k to get a degree in a field that would NEVER allow you to make enough money to pay it back? Running away and shirking your financial responsibilities is not the answer. Shame on you. Get a job and pay it back. Period.

I am absolutely appalled at this article. Effectively, these people have taken money and won’t pay it back. This is exactly how we got into this credit mess. For those that have left for this reason, stay out of this country. Education that you can’t afford is no different than a house you can’t. To Chris, the Masters in Music, you didn’t need a $160K education, particularly in a field where you won’t get a job that pays significantly higher. Please don’t flood CNN with sob stories like this.

As a responsible person,borrowing funds for anything,whether it be for an education,starting a new business,buying a home,etc.,you have a responsibility to PAY THE MONEY BACK!!!! Should unexpected issues arise that burden your financial situation or not…most institutions will work with the lender and payments can either be reduced or postponed,,but the feel you can just walk or run away is being a coward and dishonest,i have instilled values in my children that hopefully they would never consider doing this,my oldest daughter owes for her education and sometimes has to suffer the consequences and do without in order to make ends meet but she has also reaped the rewards of furthering her education thanks to the lender,,,if there were NO LENDERS,,,many would do without the education,,,so,,PAY BACK WHAT U OWE SO THAT SOMEONE ELSE CAN BORROW FOR THEIR EDUCATION OR FOR SOME OTHER NEED!!!!!

When I decided to attend a private university I assumed my parents would help foot the bill. When I graduated and realized I wasn’t going to get a penny towards loans, I became overwhelmed with debt. The system for getting Federal loans is based on your parents income. Mine earned too much to qualify for a large amount of federal loans, leaving me 22 and $75,000 in debt with no job. Those first three years I worked two jobs just to afford the payments. As my interest rates when up and up I was faced with a choice of either quitting my jobs and applying for a forebearance or giving up real food and switching back to Ramen Noodles for each meal. There is NO RELIEF for those of us with private loans. There are multiple options for students carrying Federal Loans, but my Federal loan payment is a little less then $200. My Private loan payments are $450/mo. Add both together and I am paying close to $650. You cut corners wherever you can, but debt creates more debt. When your car brakes down you put the charges on your credit card. When gas prices sky-rocketed you end up putting it on your credit card. It is such a cycle and it feels like I will never get ahead. I loved my college. However looking back I regret ever attending. I should have chosen a crappy state school and paid not even 1/4 and left with little to no debt.

Seems to me since YOU got the education, YOU should pay for it
not me (or other hard working taxpayers)!!

Why do so many in this country seem to feel that others have to carry them on their back?

My wife and I had $26,000 in school debt in 1985…which was a lot for the time.

We came close to default once, but I contacted the loan agencies and they were very willing to help me keep up to date and out of trouble.

I get annoyed when I hear sob stories about student loans. We paid every cent and all the penalties too.

Get to work. Be honest about your financial realities. Work hard.

Don’t blame the loan agencies for your own decisions.

after graduating high school i enlisted in the navy reserves. i believed that this was my only option if were going to be able to attend college. after a year of active duty i began my reserve status, and finally enrolled in a community college. at the time i believe the navy contributed about $300 a month to my education, though my weekend pay for drilling was part of this. the biggest thing i thought the navy would help me with was my status as independent on my financial aid application. since i was twenty years old at the time, there were many restrictions as to who could claim themselves as independent and therefore be eligible for more aid. unfortunately, things would not work out as i’d hoped. i learned from a financial aid adviser early on that since i was eligible for student loans and because the school has a limited amount of grants which could be dispersed, i would mostly likely be overlooked for the grants, which would be given to those students not eligible for student loans. and so i was. i currently have approximately sixty thousand in student loan debt, from an original loan amount of just under thirty thousand. the benefits to my education which i believed enlisting in the military would give me, in fact became the worst thing, in terms of my college debt, that i could’ve done. i don’t know that i will ever be free of this debt, and at least for now, i can’t imagine it.

I worked hard for 5 years to pay my student loans in full and was thankful for that money because it enabled me to graduate from college. Student loans are like any other debt, if you sign for it you must repay it. Skipping out on any debt is not the answer. It is not the degree you receive in college, it is how you apply and network yourself when you graduate that allows a decent salary.

I am tired of everyone complaining after they get a bill that they didnt know what they were getting into. I am married, 26 yo, I own a house and have student loans. My wife and I pay our bills on time, know what we can afford and what we cant. It is time for people to start taking responsibilites for their actions and stop blaiming other people and companies for all their problems that they brought on themselves

I graduated from law school with about $90,000 of student loan debt. Seven years out, I’ve managed to pay off about $3,000 of the principal. (BTW, a law degree is not necessarily a license to print your own money – I know several lawyers struggling to make ends meet.) I recently enrolled in some courses at a local community college for personal enrichment, and to my surprise I qualified for a student loan deferment! I intend to continue to pay on my loans while I attend class, but perhaps becoming a “life-long learner” will be a way to reduce interest payments on student loans – after all, if you receive an in-school deferment, any interest on subsidized loans is waived.

I pay my monthly student loans on time, every time. If it was not for the government helping me out finacially I would not have been able to afford college.

Going to another country to avoid student loan debt is beyond ridiculous. You should not have the option to return….

Maybe you should have chosen a degree that provides a healthy career, and not have pursued an interest or hobby.

Reading this story infuriates me…how can people think they can borrow money and not apy it back…do they not read the loan agreement they signed? That is the problem with this country…people think they are entitled to have the loans forgiven. One way or another you have to pay it back…i do not care how long it takes.

“It took me 15 years to pay off $80,000 in student loans. I feel for these people as it sucked paying most of my income to pay the debt off. I rent and refuse to go into debt again, it was a horrible experience. Don’t take out student loans.
Posted By Ken Cook, San Francisco, CA: October 25, 2008 10:55 am”

wow…
What did you go to college for? Obviously not Economics. Debt is not a bad thing if you keep track of your spending and pay it back. It is impossible to make any money without using credit. I am 25, it took me 6 years to graduate college. I just bought a house. I have about $60K in student loans and about $230K in a home loan. At least the coal company doesn’t own your soul…

WELCOME TO ADULTHOOD. You’ve received a COLLEGE EDUCATION on the borrowed money you AGREED to pay in exchange for a degree. Again, WELCOME TO ADULTHOOD!

It took me 15 years to get my Bachelor of Engineering Degree in Mechanical Engineering. I paid for most of as I went along class by class each semester. Part was paid by tuition reimbursement by my various employers. I never could qualify for a student loan since I had to work full time to support myself mostly with 2 to 3 jobs at a time or tons of overtime but I maintained my GPA out of desperation to get off that treadmill. Now I FINALLY have my degree I worked SO hard for with a 3.75 GPA and have also aquired 19 years experience in the engineering field. This is just in time as 10,000’s of engineers (if not more) are being laid off, especially here in MI, but also the rest of the country. I do not have a student loan, but I will being getting laid off also as more and more jobs disappear, with little hope of finding a job with a “living” wage. Also tuition reimbursements (not to even mention healthcare) are disappearing also so I have no idea how to further my education. I am not suprised people are not and cannot pay off their student loans. Graduates need good paying jobs, healthcare, and a future with a better life. Jobs have been, and still are, being all shipped off-shore or wages/hours are being forced lower and lower within the country.I could not get any kind of student loans or scholorships regaurdless of my 4.0 GPA for 3 Assoc. Degrees previous to my BSME because I could not go to school half time or more BECAUSE I HAD TO WORK since I had noone to support me while I went to school. I knew the banks would be crying someday because they were more interested in giving money to those who did not work than those who did and DESPERATELY – SO VERY DESPERATELY -wanted a better job. Our whole system has been broken down. Massive layoffs happening everywhere in all kinds of fields. You need a good job to pay for things!!! No job – no money -no house-no ability to pay for medical bills-no education-no way to get to work-no money for roads and other infrastructure,no food, etc……gee whiz – are we close to “winning” the race to the bottom as we “compete” with third world countries yet?
Do you go to “Self serve” cash registers? They take away jobs and YOU work for FREE!

I own 60,000+ for my daughter’s loans at a private school and have been current until the democrats low income credit housing fiasco hit. Now that 1) obama and his socialism, 2) policiticians doing bailouts to banks, 3) politicians bailing out homeowners that took bought more house than they could afford and 4) obama and his radical funding and “spread the wealth” programs being foisted on me – I quit. I have been paying taxes to all these parties and see the coming obama reparations.

I am looking for ways to get some of my hard earned money back and this is one way – I am not paying anymore and they can do their best – 1) there is no debtors prison, 2) put an answering machine on your telephone and 3) get a po box address and dont give out your cell phone number.

It is easy blowing off these professional leeches. You are going to need all the relief you can get if obama is elected – they will give everyone relief but you college debtors – cuz you are not their constituents and not of their ilk.

You are educated and not of color. A few of the big debtors are minority, but by and large this is a caucasian thing and you will not get relief – only the banks, politicians, wall streeters, selfish homeowners.

GOOD LUCK ON YOUR BATTLE WITH GOVERNMENT.

I took out 34,000 in student loans and have always paid them whenever I had the means to do so. I have paid back 18k over the years and now I owe 75,000. Sallie Mae makes no effort whatsoever to educate it’s “customers.” Customer Service is essentially non -existent, and if one is lucky enough to get someone on the phone, it is usually someone who speaks English as a second language, puts you on hold forever, or drops the call. A lot of young people take out student loans because they do not have a grasp of the capitalized and deferred interest scenario. Sallie Mae offers “forbearance” and “deferment” options that only drive up the interest. I was paying over $500.00 a month, little did I understand that all of my payments were going only to interest and not to principal. Again, the banks offer loans to young people who do not have the income or understanding that they will be paying back heir student loans for the rest of their adult lives, that their credit will be ruined, and that they will essentially forgo their chance to be a homeowner. I still 75k dollars in debt, 14 years after graduating from college. i continue to make my minimum payments, I do not own a home and will probably have no money for retirement. This system is broken and needs to be fixed! Sallie MAe should be included in the Bail Out in my opinion, if it is good for the banks, it is good for the citizens who are footing the tab with our taxes.

The fact that our government backs loan repayments to SLM and others, is why these institutions harass people who are in default. Our gov’t must realize that this system is failing and it will hurt so many students who are about to face a recession right out of college. and this country will see many youngs moving out of the country. (maybe our gov’t will enact a law stating ‘you cannot leave the country while in debt.’ lol)Interest rate is so high and these lenders are not willing to negotiate. this is not even funny. This article features 160K loan on music degree………………..isn’t this odd? it could’ve easily done Mary who took out 50k loan for economics degree.

I have a friend who is an expat, and left about $60k USD in student loan debt 15 years ago and moved away permanently. The sum is so huge he has no hope of paying it off without hyperinflation.

In my opinion, that is the only way most of these debts will ever get resolved. We need a Weimar style economy to get out of this mess.

For anyone out there blaming the students for these problems, I believe you are incredibly short sighted and naive. The culture tells impressionable 18 year old children with no experience that they must have a degree, and then ruthlessly saddles them with indentured servitude for the rest of their lives when they fall victim to this brainwashing. That is the real crime, not the failure to repay.

The failure to repay is the obvious result of a broken culture that needs to seriously rethink its foundation. It’s possible people who don’t repay may be the only smart ones. Moving overseas may be a student’s only option until a currency crisis eventually inflates these debts away.

I always wanted to work with animals. When I saw this new degree in zoo science I thought this is it, this is what I want to do for a living. I was extremely excited when I found out that I got accepted to this small private college. The only problem was that it was a really expensive school. I come from a single parent home where my mom didn’t make a lot of money. I figured I would apply for student aid and everything would be ok. Wrong! Student aid somehow decided my mom made too much money. So with my partial scholarship and limited student aid I still had to come up with close to 25,000 a year on top of books and other things. I had a wonderful mother who knew how much I truly wanted this degree so she cosigned loans for me. My mother and I were both new to the whole process and we didn’t know a lot about student loans. We asked a lot of questions and pretty much it came down to pay for school out of pocket or get loans. Fast forward 4 years down the road I graduated with a degree in zoo science and I owe over $80,000. My college required an exit interview with the schools financial aid department and the last thing the lady said to me was “who let you borrow this much money”. “You will never be able to pay it back”. I went to a very bad school. I didn’t get what I paid for. They lied and told students you need this degree if you want to be a zookeeper which you don’t. I got a great job as a zookeeper but I don’t even make $20,000 a year. I love my job! I worked through college, I got a job in my career field and I have a second job now. I thought I was doing everything right but I was so very wrong. I have used all my deferments and I can’t pay my loans. The payments are more than $500 a month and with rent, food, gas, and other bills it’s just not possible. The worst part is that my mom is the cosigner and it affects her credit too and that’s the part that hurts the worst. It’s not fair for people who can’t afford school to not be able to go. Colleges should not be able to charge for a degree that will not make enough money to cover the cost of the college. At 19 years old most students don’t understand student loans and colleges take advantage of that because they want your money.

I am a senior student at the University of Mississippi and I’m actually scared to leave school in May because of the hefty debt I have gotten myself into while in school. It seems students are being punished for attempting to better themselves. There has to be a way to fix the system. Whether it is offering more scholarships or increasing the federal pell grant more. Everyone (teachers, parents, leaders) tell kids to go to college but they fail to explain the debt that accompanies a college degree. Moreover, students enter the working world with no job offers. After reading this article, I too will start looking for positions overseas to get away from this debt. I will be away from my family but I will also be away from Sallie Mae.

I am troubled – $160,000 for two degrees in Music and he doesn’t want to pay? What has happened to individual responsibility and simply “doing the right thing”? Essentially abdicating one’s responsibility in this situation realy does nothing but deny the next needy student the opportunity to borrow. A free ride was never promised anyone. Time to become a real man, assume responsibility for what you borrowed (it does mean to pay back) and take that 2nd job – send something. But to walk out on what you assumed merely denies those coming after you. What a disgrace. And yes, I did borrow for Under-graduate (worked nights in a gas station) and did without during Grad school. I paid my bills, andit did take quite a while, and self-denial was part of the diet. Time to stop whining and step up.

Some of you people still don’t get it…

Forbearance is a terrible scam with private loans, especially if they’re of large amounts.

They have companies like Sallie Mae laughing all the way to the bank. It’s so cruel that so many students are forced to put their loans into forbearance when they can’t afford the current payments only to discover that they’ll own sometimes HUNDREDS OF DOLLARS MORE A MONTH when they return into a repayment.

How the hell is somebody who can’t afford their current payment suppose to be able to afford a newer, higher one? Also, loans that concur interest while you are in college should be banned.

The lending industry is sick all around. They do this to students like they have some collateral… “You can just sell your education back! It’s called a job!”

I’m not going to buy a house I can’t afford, I’m not going to buy a car I can’t afford. But a cheap car will still get you from point A to point B, and a cheap apartment will give you a roof over your head, but a cheap education or no education at all will get you nowhere in today’s economy.

What do you expect us to do? Let the top 1% wealthy go to all the good schools?

Honestly, it’s a sick joke. Come from a poor family, get into a good school, work hard, be forced to take out loans, and then get a job that pays more than your parents ever made, only to have your loans take away so much of it you’re practically at where your parents started.

I can see why people would get desperate. You default on your car loan, you lose your car. You default on your house loan, you lose your house. But, if you default on your student loans… you lose your life.

Don’t you dare compare us to those morons in the housing market and those idiots who run up credit card debt. Student loans are a whole different issue.

Education shouldn’t be a privilege, it should be a choice.

If anyone at CNN can forward these comments to the appropriate lawmakers, it would be a good thing. This student loan policy is destroying our country. Civilizations are judged on their level of education. But the middle and lower classes can’t afford to pay for it. The only opportunity given to us now is the opportunity to be saddled with debts at high interest rates, and late payment fees on loans with changing due dates.

I don’t know if student loans have late fee penalties but if they do, then those fees- along with the compounded interest of the loan plus the compounded interest of late fees- might explain the weird math in previous comments. Some people may not know how they got there, but I’m pretty sure they know the original loan amount, and their current balance, and I don’t doubt their honesty.

I took in a homeless man from my church for 2 years. He had many very bad psychiatric problems, and I wasn’t able to get him to a good psychiatrist. He had post-traumatic stress disorder, schizoid personality disorder, anxiety disorder, and at least two other disorders I can’t think of right now.

After a flood of debt-collector calls, I found out that he had debt. I took him to a bankruptcy lawyer. The lawyer said that a person can’t declare bankruptcy on student loan debt, and the car loan debt wasn’t enough to declare bankruptcy on- about $11,000. The lawyer advised that the only way to get rid of it is to pay it, or simply never have a bank account, or job, or ever own anything. The only good news was that he wouldn’t be put in jail, the thought of which had been plaguing him for years.

He wasn’t able to hold any job for more than 2 weeks before his disorders got him fired. And I wasn’t able to find any way of helping him, nor could I afford to let him keep staying with me after two years.

After he left, there was a paper among things that he had left in his room. It seems he had taken out a $5,000 student loan in 1988, and in 2005 when he left, the current balance was $58,000. I don’t know how it got from point A to B, but that’s what the paper said.

He had previously told me that when he graduated college he had the student loan, a car loan, an apartment, and a job. And he was paying everything.

Then he lost the job, the car was repossessed, the car company froze his bank account, he couldn’t pay the rent, and he was homeless.

While he was homeless, the car people took him to court and got automatic judgments in their favor, even though they had already taken back the car, and even though they sent court appearance notices to places where he no longer was, and he had no idea of any court activity.

The collectors still call my house looking for him even though I have no idea where he is or what became of him. But it saddens me to think he’s out there, still hearing imaginary voices, in a situation that has no way out.

I couldn’t help him; my church couldn’t help him; Social Services couldn’t help him; and a bankruptcy lawyer couldn’t help him.

How could any government devise such a cruel system?

Review this for thought:The Education system is broken to some degree.I have a 10k student loan and for the past few years,my wages was garnished paying back the loan bi-weekly-faithfully until 2007…When I filed for my income taxes last year,the I.R.S./Dept.Education pulled a jacked up-low degrading move:they also garnished my tax refund(for the first time-ever) while still garnishing my payroll…Now here’s what so jacked up about it:when they got the money,it did not pay off my individual loans completely…They had “spread the wealth”over the entire bal-rather than eliminating the loans…If that would’ve happened-my entire bal would’ve reduced-but it had’nt…My tax refund could have eliminated at least 4 or 5 individual loan amnts out of the 11…What made it so bad,I was’nt notified in a timely manner when they “sent letters” out and not only that,I reqsted a copy of the letters and they said that the computer cannot send out copies of the letters…

Living by ones means is not a problem, especially in the period of life where one is most energetic and capable. After graduating from school, most have planned or have been prompted toward a rewarding career.
For those who have not, their financial repayment schedules are broken. Essentially the same graduating class, almost regardless of performance, fractures into different salaried/hourly economic tiers. This is where repayment solutions and schedules could and should be made. With the temporary state of the economy, high interest rates on private student loans have to be reviewed and scrutinized by governing bodies.
With advances in technology and a declining workforce, the country is not in an unmanageable situation looking forward. Corrective measures have to be applied to the economy benefiting those who are at the end of their career first, followed by those who will influence its growth through the next century. I personally feel this economic boost could be attainable by the creation of new infrastructure.

This is laughable. I have a masters degree and have only $15,000 in student loans. I did running start and got two years of community college free, went to a highly ranked state school for my bachelors (worked several jobs at one time), and paid as much out of pocket as possible in grad school while working full time. I also own two houses (on my own, no help) and carry no credit card debt. I also drive cars that were paid cash for. I am 26. People succeed and fail based on their decisions. Funny, you don’t hear people who succeed putting the responsibility of it on anyone else. There lays the difference: when one realizes responsibility is his or her own and budgeting and planning are conscious efforts at succeeding, they look at student loans, home loans, credit card loans, etc. as something that cannot be escaped and is an investment that is only worth investing if it provides a return.

My story is similarly bleak to the lead story.

For some reason I thought choosing a college major was about selecting the area I was most interested in. Actually, this was bad thinking. I should have looked at the job market and then picked a path that would lead to a middle class lifestyle instead of satisfying my curiousity in an “interesting” program like sociology.

I applied to job after job when I finished school. When it became clear that I was going to be working as a secretary or substitute teacher my whole life I became disheartened. It’s not that these aren’t admirable professions, it’s just that I was working for morons who made more money and there was no hope of rising out of my condition.

My debts have sometimes precluded me from getting a job, an apartment, and even a girlfriend! Most employers (and girlfriends) do credit checks now. When they see you have huge loans and unpaid bills they decide you are a liability. Many landlords won’t rent to you. It’s a vicious cycle.

When I was younger I realized that one needs a car to get a job and a job to get a car. But, that’s not all. You need a loan to get a car and credit to get a loan and a solid job and no debt to get credit.

So, what do I do?

Of the debt I have now 30,000 US Dollars of it is interested alone. It’s debilitating.

Unscrupulous Wall Street types, Credit Card fools, Home Owners, and others all have a way out. I’m stuck.

It’s not about wanting the things in life my peers have (possesions). It’s about securing a future, establishing a family, and being able to save rather than throwing my money down a black whole.

I sometimes think I could have done better if I NEVER went to college.

The amount that I owe for this degree is FAR GREATER than it’s worth.

Can I sell it back to the university? I don’t need it anymore. It hasn’t served me as promised.

Now, there’s a breach of contract.

Lost in the discussion of high interest rates and greedy lender is the people who suffer when Mr. Music major skips town on his $160,000 debt. One of the thousands of people who is hurt is me.

A couple of years ago being retired I was looking for a conservative investment, so I loaned $150,000 from my IRA (a large percentage) to Sallie Mae. This money enabled Sallie Mae in turn loan the money to students to get an education Nobody was getting particularly rich in this business the interest rate Sallie was going to pay me on the bonds was the inflation rate plus about 2.5%. That rate was slightly above the treasury rate. I figured Sallie Mae bonds were pretty safe because the government stands behind the repayment of most (but not all) student loans.

However, too many music majors and few other posters on this board, didn’t pay back their loans. The losses were severe enough that Sallie and most other banks got out of the business private loan business and required more subsidizes by taxpayers for student loans.

Now it looks very likely that Sallie will suffer the same fate as Fannie and Freddie and get taken over by the government. All the shareholder of Sallie Mae will be wiped out. As bond holder my fate is uncertain, but right now the value of my bonds has dropped to between .35 and .40 on the dollar. Meaning that I’ll have lost $90,000 of my life savings thanks to Music major stupidity and irresponsibility. Frankly, the country is better off without deadbeats like him.

When starting college I was like most students, and I had no idea what I wanted to do with my life. I was going to a local community college (to save money) where I worked on my basics. After completing two years of schooling the path that seemed the most logical for me was business. I began looking at transferring to a university to complete my studies. The problem that I ran into was all the State schools only took their internal students into their business programs. Why would they want a community college kid with a 3.5 GPA when they had waiting lists of students that had already been going to their schools? My choice became clear: I could go to a lower ranking school, or go to a private university. Hindsight says I should have gone to a State school from the start, but it was too late for that now. The option was tearing me apart. I had been working since I was 12 years old. Having come from a very large family I had never been given anything, and had worked for everything. Credit was not something that I even understood other than I had always been told that it was BAD. I made the decision to go with the private university thinking that the better and more expensive education would be offset with a higher paying job. What was not taken into my equation was that working 40+ hours a week, and going to a difficult school, would influence my grades. I did make it through with a business degree and majors in Real Estate, Management and Human Resources, but this was coupled with 70K+ in debt. I am newly 24 and have been out of school for a year and a half now. I work in a commissioned job for a mortgage company. Genius I am! Honestly though after taxes, rent, car payment, gas, food, bills, and a $700 student loan payment (30 yr payment schedule) there really is no way that I am going to make it anywhere on less than 50K a year from a job. Right out of college jobs that are salary pay less than this, but my bills sure do not care. I cannot afford to work somewhere as an entry level employee. I have to work sales with no advancement opportunities, and hope that one day I can pay off this debt so that I can do something that I will actually like and not worry about money the whole time. I want so badly to start one of these 35-40K jobs and work my way up, but this is not what I get to do. I get to work 10-12 hours a day trying to make enough to pay everything, and hope to have some extra money for my loans. I think back on the actions that brought me though my college years and wonder if this was all just bad decisions, or if I am just a part of the masses that are facing these problems that we all face in this economy. Seeing these postings helps me realize it is not just me making all bad choices, since that is not it than how do we fix these problems in our economy? I am so tired of the finger pointing, and blaming. I want to see a healthy America, for this is the place that I love! I want to see healthy CAPITALISM in the market place. I want to see Opportunities for me and my fellow Americans that give us a way to MAKE it in life. I actually want to see all this, but I am one of the few who do not want it from our government. I want it to come from me and the other hard working Americans. We are the ones who will propel us forward. Our forefathers got us to this point, and it is up to us moving forward. I do not like my situation currently. I wish that I could work somewhere else. I would go back and go to the State school from the start if I could. The truth is though I am just going to have to make it with what I have dealt to me, and hope that others will do the same. Who knows, with us all putting our best efforts forth we may just make it through these tough times. Best of luck to you all, and God bless America!

Yeah, sometimes the weight of my student debt is so overwhelming that I have to lay on the floor and breathe into a paper bag to stop from jumping out of a window.

I was blessed with the opportunity to attend a private college after failing to gain admittance to a public institution. I heard the voice of my father urging me towards a higher education even though I could not afford it. Student loans seemed like a viable option and the school seemed happy to assist me in procuring 100% financing for my education. “Do what you love”, they said “, and the money will follow.” In my youth and naïveté, I believed them.

Well, I studied philosophy and loved it. I graduated thinking I had a deep understanding of a wide range of subjects and the critical reasoning skills to tackle any career path. I also had over $60,000 in federal and private loans.

Most employers don’t understand the meaning of a degree in philosophy or see its application. I applied for over a year (while telemarketing) with steadfast perseverance, hoping for the opportunity to prove myself (I don’t mean to sound arrogant, but delegate a task and I can do it, give me a project and I can complete it, tell me to learn a skill and I can do it). Without internships or a set of specialized skills (e.g., html and css coding, proficiency with InDesign, Quark, or MS Office programs) I was left with a wonderful career in telemarketing and after six months the impossibly high loan bills started coming in.

What I needed was hope. I could live off eight dollars an hour if I thought I could be making $20 an hour in five years. I believed that hard work would be rewarded. But instead financial anxiety increased to full blown depression and eventually it grew into to a full psychotic breakdown.

I have now exceeded my six month grace period and have fallen into default, hide my face in shame from friends that thought I was “accomplishing something” by attending college, live with my mother, take enough lithium to tranquilize a horse, and often pray that a truck runs a red light and ends my misery.

I tell people to forget what they love and do something practical. I tell them to become an accountant, to take classes in IT, tell them to learn a technical trade, or, if they have the acumen, pursue a law degree in hopes of working 35 billable hours a week at the rate of $300 an hour advising affluent alcoholic 40 somethings who can’t seem to cope with their affluence so resort to constant philandering.

The army seems like an attractive alternative to telemarketing. They promise debt repayment for service but it seems a shame that the choices for my future are eight hours a day of reading a script into a headset or returning from Iraq with post traumatic stress disorder.

Students need hope not indentured servitude. In a world where the workforce is becoming more competitive, where a college degree is as necessary as a high school diploma, and predatory lending takes place at the detriment of the national population, the federal government should be investing in the educational infrastructure and providing opportunities for the next generation not encouraging new debt mechanisms and facilitating the despair of an entire generation.

Contrary to the beliefs of older generations, we want to work. Our generation wants to work and contribute and give back and find meaning. But markets are based on confidence, and saddling thousands of young people with home mortgage sized debt before they can even begin their careers breeds despair; overwhelmingly crushing despair.

The people that take out debt then run from the country digust me. College students need to think about how much they borrow as well as will they be working when they get out of school. It is also up to the parents to make sure their child understands what they are getting into. Working in a college I see how many parents still do everything for their 18 year old ADULT. I have student loans and yet some how manage to pay mine every month on time. I pay everything that I have ontime. I make decent month but not excellent money, and yet everything is paid ontime. I drive a older car because I know that I cant afford a 2009 payment. If you are going to take out student loans, do research, what are payments when I get out of school? what will my salary be? can I afford to pay my payments? I understand everyone falls on hard times but a phone call helps the situation. People now have the attitude who cares, then wonder why we have the economic issues we have now. No wonder why every other country hates us, we have destroyed the financial’s in other countries with our stupid citizens not paying their bills.
I hope all you people out of the country scared to face the issue that you created are caught up with someday and they make you pay as well as throw you in jail.

This story really hits home. I’m saddled with 55K of student loans with just a bachelor’s degree, paying the price for being a naive 18-year-old when I first signed that promissory note.

I take responsibility for this financial mistake. However, I agree with fellow posters that education for new borrowers is the key-especially mandatory counseling BEFORE signing on the dotted line. We need to stress that college is a significant investment that shouldn’t be made hastily. Full disclosure is necessary for buyers to make an informed decision.

We need to look closely at the system which defines financial need and family contributions. If the federal system, which all universities use, states that a family with a gross income of 60K should contribute $10,000 a year to their child’s education, then the state schools aren’t much of a bargain anymore. Parents are then left with the unenviable position of mortgaging their retirement or forcing their children to endure financial hardship very early in their careers.

The problem with student loans is they hurt the very people they are supposed to help. This is a class issue, because the children of the rich (or rich enough) don’t need loans to go to college. They have no debt when they graduate. If they have the opportunity to do a job that pays well or not there are no consequences.

The consequences are laid on the backs of those that are the most vulnerable – the poor. I know, because part of my family is rich.

Student loans first offer hope, however education is no guarantee of a well paying job. Education is a “social good”. Some will earn well and some will not. Some will be able to repay their loans and some will not (this is no different than with students that don’t need loans.). The very fact that a poor student needs to borrow so much is a symptom that the educational system is sick and doesn’t work for the majority and helps to camouflage the real disparities between rich and poor.

I think there needs to be a national discussion with all points of view about the student loan system. Hard questions need to be asked and politicians need to be held accountable for policies that overlook the interests of the society on behalf of business and a fast buck. This is cheap opportunism that has essentially made the rich richer and the poor poorer.

I live in another country now, so it’s not my problem anymore. Naturally, I still love my country, but I have to say America looks a lot like Rome did back in 4th century A.D. – desperate and in trouble. Desperate countries like desperate countries make desperate laws.

After reading many of the blogs, it just shows you that haves, become very narrow minded. Many don’t give specifc information, that the may have inherited a small fortune from parents or grandparents or that they may have just been lucky that misfortune never knocked on there door. Our country has lost its way and many have become spoiled and are like the rest of the United States of Hypocrites, that they don’t see the forest for the trees.America was founded on the principals of helping your neighbor but
the spoiled, like the present administration do not want to see the poor and the sick in the richest country in the world but shut their eyes to the poor elderly that have to
choose medication over food because our government would rather coy favor with rich corporations instead of helping our veterans that come home with the injuries of war and injuries you can not see but our President lied to them and extended their tours that may have avoided them their present living nightmare. If you have conscience and are an adult, you don’t have to be extremely intelligent to see that our country, it belongs to all of us, is becoming a heartless nation of I’ve got mine, don’t bother me because I don’t see you and what’s worse I don’t care. Maybe it’s time for use “Baby Boomers” to remember all the things we so strongly protested for. I’ rather be happy, than live in a housejust to impress my friends becuase if you have to do this, they are not your real friends. Friends are people you help without judgement because you love them. I think many if not all of us are guilty of this type of behavior, whether we want to admit it or not. We can’t take material things with us and “Baby Boomers” as fast as time is going, the next jouney is just arournd the corner. Just think about what would really make you happy because we are not leaving it to our children and grandchildren. I guess that is what brings people into education, unless life has just hardend you and your heart to stone. There are many of us 45-65 years of age realize it’s almost too late to change or help our country but your wrong. Making unpopular decisions take courage and guts to make unpopular decisions. Our governing system in this country favors the elite what about just average or the old and poor. These people count as much as me an you in the scheme of life. Our government must change, why were we the envy of the world, to where we’re now despised. We don’t have to look to far for the answer. Look at most in Washington who were born with th silver spoons in there mouths and followed a President blindly who has the blood of 5,000 victims of a war on his hands. His vengful proficy,was on his agenda before 9-11.Take a look where he has led us.Change has to come why does it take 5 billion dollars to win a Presidency. I vote, no vote on this election so, I have no right to complain but I see no leader as a choice.

I don’t feel bad for this person. Typical thinking of a lot of people in the US that think they don’t have to pay for something. This is exactly what is wrong with economy. If you don’t pay your loans they should take away your diploma.

Students saddled with this debt are in a tough situation. Often these individuals are first generation college students with little family experience to coach them on loans.

I agree with that. My guess is that most of these young people have no idea what they’re getting into. In my family it’s up to the parents to pay for college. I graduated after 5 years of fulltime schooling with BS degrees in Computer Science and Industrial Technology. Now I’m saving so that my two girls can get their degrees. Perhaps they won’t be able to go to private colleges, but there are plenty of really good public universities out there (the calculus text they use at MIT is the same one used at the U of ND).

Parents – help out, save some money, let the kids live with you – whatever it takes, but get them through without any loans. It’s the greatest gift you can ever give them.

AS

I graduated from the University of Oklahoma with my Masters in Social Work in May of 2008. My husband and I got married 6 months before I graduated. I had 36k in loans ( federal Stafford loans and Perkins loans) and a 7K car note. Here we are in Oct of 2008 and we have paid off all but 12k! A social worker and a seminary student! We live very frugally ( im talking 50 bucks a week for groceries and a date night every now and again). We are set to have all debut paid off by April of 2009. AND … we are paying for all of his seminary expenses out of pocket. No loans! We have no credit card debt and only have one very fuel efficient car that is paid OFF!

Whats ironic… is that while I was going to school for my MSW I was working full time at the OU financial aid office. I saw first hand some pretty irresponsible borrowing by students. I was like … dang, you really think its a good idea to take out 40k for a BA in English!! Our financial aid office consistently counseled students on how to go to school for less. But students didn’t want to hear it.

Now, my husband is working full time at The University of North Texas in their financial aid office while he is going to school. He says he is seeing the exact same thing.

People borrowing too much and not wanting to work full time. People wanting to live in their own apartments (instead of getting roommates and splitting the bills).People wanting new cars instead of paying cash for a used car.

Here is a motto you all should pass on to your kids ( and yourselves I might add).

Better to live like a poor college student while you are in college, than to have to live like a poor college student after you graduate due to your student loan payments.

Yall need to take a money management course. Google Dave Ramsey and follow his lead. You might have eat beans and rice and rice and beans for a few years but seeing the light at the end of the debt tunnel is worth it!

We are planning on calling into his show and sharing that two newlyweds ..one being a social worker in a nursing home and the other being a full time seminary student, paid off 43K in debt in a year and 4 months!

Its been hard at times and we have had to go without a lot BUT it is worth it to know that we can have this monkey of our backs and leave for the mission field after he graduates! Debt free.

We all make bad decisions ( i mean, come on, I took out 36k for a Masters in SOCIAL WORK for goodness sakes … what was I thinking!!!) BUT , if we can discipline ourselves and be good stewards of our money, MOST people can pay back what they themselves borrowed.

It feels a lot better to pay off your debt honorably than to run away and hope someone else bails you out.

As a retired college professor I must say I have seen it all.
One of the main problems is that many students choose a career area that does NOT pay much. They often choose their particular area because they are fascinated with it and NOT looking into what is at the end of this education. I was VERY fortunate to have been connected to a private university where most career areas led to successful employment. Most of the students at the university were REQUIRED to do on the job work while completing their majors. Many of the students were offered employment after receiving their education.
I am SHOCKED to see that many students assume such large loans when they are not even sure they will have a job, let alone one that will enable them to make the necessary payments. Also, for most of the students, WHERE are the parents in all of this???? Should they not be advising their children about assuming loans. I graduated from two large universities many years ago and at that time MOST students did NOT have loans. There were FEW loans out there. I chose a profession where I knew I would always have a job, not necessarily the money. People who are married with children and have housing costs should rethink their interest in furthering their education IF they CANNOT make the loan payments. In the meantime, Congress will probably have to pass a bill that will make it possible for ALL college loans be forgiven and NO payments will have to be made. Let the TAXPAYERS pay off the loan, We are doing it for everything else.

when I finished undergrad, I had about $45,000 in student loans, at a 5.9% interest rate. I’m in my last year of graduate school, and my loans have nearly doubled and the interest rate has crept up only 1%. My parents always encouraged me to attend college and were thrilled when I got into a top notch, public grad school. But as I’m looking at my loan repayment schedule, it will be around $700/month. As someone who is looking for a job in the journalism industry, the amount of my loan payments and the lack of a stable, paying job with benefits are absolutely terrifying. Like many others, I believed that going to school and getting a good education will not only help you get a good job, but a well-paying job too. Now I’m wondering if that notion is simply a myth. While the cost of a quality higher education may be outrageous, what is more outrageous is the student loan scandal that directed so many colleges to take loans with companies like Fannie Mae and Sallie Mae; there should be more government oversight for this type of corruption as well as high penalties for those who arrange these deals. I think CNN should follow up on what has happened with the student loan scandal in the last two years.

Here’s a tip: don’t go into debt for a useless degree. That includes practically any liberal arts degree.

I as many other have a sizeable student loan hanging over my head.I am a public high school teacher. No matter how you look at it, what the federal government has done for the banks and really did not have a plan how and where the money was to be distributed is so typical of the W administration. The United States is so off kilter on it’s priorities. Even people who decide to work in public education don’t have many outs, due to the selection method of student loan forgiveness. What public school teachers, that teach at inner city schools, deal with should be considered a dangerous job to their health. Low performing schools are a pressure cooker to work at, you work 10-12 hours a day, schools in this shape have new headhunter principals that are trying to make a name for themselves by walking all over their teachers and then we still have to deal with disrespectful students, that don’t come to school to learn and create an environment that hurts the students that are there to learn but can’t, due to the environment. No one has the right to critcize teachers until they spend a day with them in the classroom, a whole day!At 55 the pressure has effected my health. I have hypertension and dealing with a student that has just cussed you out, you are in a dangerous health situation from either having a stoke or heart attack. Anyone willing to teach in public schools for more than 5 years, should have all their students loans forgiven. America, you ask why we are behind other countries in educational levels,it is because you get what you pay for and treat you teachers like second class citizens.
I started teaching in the mid 90’s, I had to retrain due to a job accident,that was my employers fault but I still lost my case in federal court even though the U.S. Dept of Labor substantiated every accusation I made through depositions of my co-workers.My the first years of teaching I had to defer my studnets loans because I just could not pay my bills.
So what started as $17,500 is now $50,000. I’m about 6 year away from retirement, so with the new legislation
on student loans, I have to work ten years paying $500+ p/month for the next 10 year which means I won’t be able to retire until 65. So I don’t have my Social Security garished. The question now is will I live long enough under the present school conditions to ever enjoy my retirement. Many Americans are in far worse condition than I but I don’t own a home to retire to. So it still comes
down to whether it is all worth it or not and why our education system is as it is. You get what you pay for and your countries priorities which are so
ridiculous, why bust your hump for something you may never live to see. The Good Old United States of Hypocrisy at it best!!!!!!!

I paid my student loans back in full. It did take me longer than originally intended but I did borrow the cash. It was a hardship but I had made the commitment to the process when I signed the promissory (the word promise is in there somewhere) note for the loan. I was sixteen years old when I signed my first college loan papers and my mom would not or could not co-sign for me, she still had two little girls to feed, educate, disciple, nurture, and provide for. Silly me, I am still paying my mortgage on-time and in-full each and every month, also. There are always options: may be several less Starbucks a day, one less vacation per year, ride the bus… The word that comes to mind is sacrifice. How these folks in good conscience are able to just walk away and leave the rest of the country holding their baggage baffles me. I grew up in a single-parent home but my mother managed to instill some values and responsibility in her children. I and my two younger sisters are all college graduates w/ advanced degrees and all three of us had student loans and all three of us have repaid those loans, in full. Excuses are like bottoms…

Student loans need to be placed in the same arena as other loans such as credit, mortgages, etc. This is not neccessarily to give people the opportunity to declare bankruptcy and walk away. It falls more under the heading of competition and customer satisfaction. It is amazing how quickly some credit companies cut rates and are more receptive to working out financing when you have been offer better rates and credit terms elsewhere. These institutions will probably be more apt to come to an understanding knowing the bankruptcy alternative they face.
It is unfortunate that our government places more interest in feeding their financial children than supplementing and reinforcing the need for (higher) education. Little Timmy cannot be our next rocket scientist unless daddy works for AIG or a hedge fund. His intellectual equal (or superior) in middle america must weave their way through a financial maze that places them in a financial head lock.

Why run to another country? That’s the stupid way out . . . I owe $180K and will never pay it back. All my assets are in a trust that I am the trustee of and were placed in it before I went into default. I’m judgement proof and work for cash money. I make nothing. My 1040’s show me under the poverty level. As trustee of the trust, I have a life estate in the large, luxury house the trust lets me stay in. They’ll never collect jack squat from me – I own nothing, not even my car. Since Social Security will be bankrupt by the time they ever get around to paying me out, who cares, there’s no wage garnishment in my state. I changed all my phone numbers and just live comfortably off the radar. Too easy. So my advice is: Don’t leave the country when you can stay right where you are!

I will graduate in 2010 with 120,000 in student loans. I’m working full time now and make $36,000. Tell me how I’m whiny and lazy? I don’t go to an ivy league school. I don’t have a useless degree.

Starting salaries in my field range from $40-55. Did I mention I live in Queens. My rent is 1000 a month – not a lot.

Someone tell me how I could do better without moving somewhere where I don’t know anyone just to pay less in rent.

“These are people new to borrowing and they didn’t understand what they were getting into,” says Mark Kantrowitz of Finaid.org, an online student loan information Web site. “It’s a very sorry situation that it comes to students feeling they have no option than to leave the country,” he says. “It’s a sign the system is broken.”

I am commenting on the above quote. This story is so ridiculous it boils my blood. How can anyone not understand that they need to pay back a loan and how can this be a sign that the system is broken? Do people expect everything to be handed to them on a silver platter nowadays? Do they expect to get a $160,000 education and not have to pay for it? If you take out a loan, you must repay the loan.

I do not agree that it is unfair that student loans cannot be included in a bankruptcy. In fact, I am highly in favor of tightening bankruptcy law so that it becomes more difficult for people to try to take advantage of the financial system.

Banks are given such a bad reputation for being ‘predatory lenders’ or not explaining the terms and conditions of loans to consumers. Every time the typical US consumer runs into some sort of difficulty with a loan or a mortgage, it’s the fault of the banks.

People are not accepting responsibility for their own misjudgements. And this is a major contributing factor to today’s financial system meltdown.

I have been out of college for 7 years and am still paying off student loans like a lot of other people. I know several others who have been out of college for more than a decade and are still paying off their student loans. It’s a process that I have gotten myself into and I accept responsibility for it. However, a lot of people turn the tables around and then try to put the blame on the banks.

To sum up this story: This guy Chris has been able to get an education worth $160,000 because a bank was willing to give him a loan. He has that $160,000 education and now doesn’t want to pay off the loan. He turns around and says that it’s unfair that people who run up $160,000 credit card bills can opt for bankruptcy whereas student loans cannot be included in a bankruptcy. He blames it on the banks. He literally escapes by leaving the country.

Stand up and be a man and pay off your loans!

Joan in Tuscon. Please please apply for subsidized housing. Your rent will be based on your income. Also food stamps are available so we can use them in times of need and you have a need. Please apply for food stamps and medicaid if you don’t have it. Take Care,

College education is NOT a right. Life. Liberty. PERSUIT of happiness. THESE are our inalienable rights as Americans. We do not have the right to happiness at any cost, we have the right to persue it at our own risk.

WHAT EVER HAPPENED TO THE CONCEPT OF PERSONAL RESPONSIBILITY????

Like everyone else who has commented I also have a college education and over $40,000 left in loans to repay. It also took me 8 years to finish a BS because I could not afford to be there continually. I CHOSE to go to a private school, knowing the expense, therefore it is my responsibility to repay it. I am blessed to have a husband who values me being a stay at home mom more than me working to pay off my loans, therefore he has chosen to take that upon himself. It is not easy, but it is our choice. We don’t have cable tv, we don’t go out all the time, we payed cash for our used cars that are both over 10 years old (Hondas) shop frugally, and by on sale and consignment. I also cannot think of one piece of furnature in our house that was purchased new aside from $10 end tables. This has been by choice. This is how my husband has maintained excellent credit (in spite of my past mistakes). We still make mistakes, and sometimes overdraw or forget a payment, but we learn from our mistakes and don’t blame anyone but ourselves (usually me) for our failures.

I work in a small, Canadian technical recruiting agency in their immigration profile division. Almost every applicant we get now is from the US and all running from student loan debacles. We gladly here them and assist in immigration if they meet the qualifications which include high skill sets, particularly in software development and engineering. It is definitely a brain drain towards Canada. When they do arrive they love our health care and social services and our retention rate is over 90% measured for a 5 year span. As Canada has a lower birth rate than the US, our program will double in the next year due to the overwhelming number of applicants. Furthermore, the cost of pursuing a student debtor here would cost about $40k CAN. It’s simply not worth the return as a Canadian court would be far more lenient, blaming the lender as much for the predicament. Since a Canadian Social insurance Number will allow a new credit profile, many of our applicants are able to start over up North. We have terrific feedback from our clients, the companies that do the hiring and pay us for recruiting.

After reading this article I’m glad I didn’t attend college. I was never one for institutionalized learning.

After graduating HS in 1996, I went straight to work (much to my mother’s dismay) in the manufacturing field. I made supervisor the following year and was promoted to Operations Manager in 2000 and have held that title ever since.

I never lived beyond my means, saved, saved, saved, and invested wisely, always aiming for the long-term. Now I never have to worry about money even during this recession. Who says you need to go to college to make it in this country?

For those of you who wish to leave the country to avoid paying loans, please do so. It’s better that you’re part of France’s cultural DNA.

If you are a prospective college student, or a parent of one, please consider the following:

* If your education is creating a debt that you cannot repay, you are not improving yourself. Nor are you a net asset to the country. If we have to subsidize you, you’re part of the problem and not part of the solution.

* Just because you can go to a certain school, doesn’t mean that you should. It may seem unfair, but nobody is entitled to the premium product. Go to the public school and work hard. Then your kids can go to the fancy private school.

* In most cases, the benefit an elite degree diminishes significantly after you are in your first job. At that point networking, hard work, and softer skills become much more significant.

* If you do want the fancy diploma, consider attending that university for a graduate degree. You’ll only have to pay for 2 years, and grad school is generally better subsidized.

* It amazes me how students will put so much effort into prepping for standardized tests and selecting the “best” school; and then do little to research the best funding options. It sounds like many of these private financing options are unfair. Walk away from them. Also, there are tons of scholarship and grant opportunities to be found if you dig (yes, even for the Honkey-Americans). The workers at your school’s financial aid office should know you by sight.

* Working a minimum-wage job during classes is dumb. The extra $10k that you make over 4 years pales in comparison to the benefit of having a 0.5 point higher GPA. Learn to live as cheaply as possible. Ramen won’t kill you.

* Working a co-op job is smart. You’ll earn a much higher salary, it won’t interfere with your classes, and it will give you a leg-up on your peers who don’t have experience in your chosen field.

* If you want to make a lot of money, choose a field that pays well, isn’t likely to go away, and has a plan B. Unfortunately, universities are best for vocational training — not education. Sorry to disappoint you. There are plenty of ways to learn about art, philosophy, history, and sociology that don’t cost $20k a year.

* The reason that universities are focused on vocational training is because more dumb people are attending. Think of some of the people sitting next to you in class. Think of the questions that they ask and how much they whine about homework. Do you think that $20k a year can polish those turds?

I managed to get out of undergrad at a state school with about $3,500 in loans. I had no parental support and entered school with only about $2k in grants. I became a fixture at the financial aid office and found a couple of obscure grants. I co-oped every other quarter at a job that paid about 3x minimum wage, which covered the next 6 months’ living expenses. I budgeted about $15 a week for food and stuck to it. I lived with 5 roommates in a house and took the unheated attic room to get the lowest rent. After graduation, I worked for 3 years to pay off all my debts and save some cash while my wife went to school. Then she worked and I was finally able to go to a “Top 20″ school.

I agree. I am a teacher and I owe 34K after I am done paying it will be 78k. This is my 3rd forbearance and once I am out of forbearances I will be in default. The payments are too high. Slow economy, high food cost, just the cost of living is high and I am unable to deal with this. I cant even get my transcrpit, I owe the school 3900 that went to the collevtion agency the added 1300 now I owe 5159. Please help bail me out. Why do I have to pay taxes to bail out all street when I need a bail out. Education should be free.

At the end of the 1980’s I graduated with a electronic engineering degree and the debt to prove it. I had trouble finding work and the creditors started calling, so I did the unthinkable. I choose a less attractive career path and continued to live within my income. No cable TV or new car and bought a house in a rural area where a new house today cost half the price of a new one in the city 25 years ago. Its all paid for today, by ME, with no bailout from the government. Why shouldn’t everyone have to pull their own weight, if a handicapped person like myself can? No wonder American is becoming a second rate nation.

I have about $250,000 in school debt that was acquired when received a masters and medical degree. The interest rate after consolidation is 2.5%. The repayment term is for 30 years at $1800 per month.

I have to say that when I was signing up for these loans I had no clue as to the implications. I think many believe that physicians will have no problem paying back the loan – and this is for the most part true.

My view is that the loan was an investment in myself for my family and my career. It allows me to do what I’ve always wanted to do – help heal others. For that it’s worth it. But if I ever become disabled or unemployed, life will change in a big way. Would I do it again. Hmmm. Yes, but I would have borrowed less and lived leaner. BTW, I don’t own a Mercedes!

Oh, the poor, mistreated and vulnerable students! Give me a BREAK. This is yet more evidence that the latest generation aren’t willing to work, or repay low interest debts they willingly took! Stay in France! We don’t need your burden on our society.

I went to a state school and still owe 40K dollars. I know I’ll never pay it back. The job market where I live is terrible and I’ve got a degree that is pretty much useless. I have’t made a payment in years and really don’t care anymore. There is not much they can do to you other than ruin your credit. Corporations can lie cheat and steal their investors and have their loans forgiven. Yet college graduates have no recourse, America at it’s finest.

Stupid, and Totally irresponseable.
Is this what College taught you to be? irresponsible to your fellow citizens, who loaned you this kind of money, money you now refuse to repay. I see College taught you nothing, and this is the real reason you can’t find an honorable job that pays decient wages. this will haunt you for the rest of your lives, now live with it.

I have $234,000 plus in student loans. I’m 47 and stayed at home with my children while my husband worked. He never paid a penny back on my loans yet his career flourished while I took care of the kids…which was what he wanted. Three years ago I had several spinal surgeries to correct scoliosis and suffered permanent neuropathy in my leg. The Department of Education refused to discharge the debt based on disability because my doctor answered “uncertain” on a questionaire as to whether I would ever recover. Well the neuropathy doesn’t get better. After 20 years of marriage and no support either financially or mentally from my spouse I filed for divorce. In the end I ended up with nothing but debt. Because I had already filed bankruptcy because of medical bills in previous years I’m not eligilble to refile until 2010. Even then there is no guarantee that I can get it dismissed under hardship. How can the politicians hand out billions to businesses who had bad practices and grossly overpaid CEO’s NOT take notice and make student loans dischargeable under bankruptcy? Why doesn’t the government declare that all American citizens no longer have debt? Cancelling debt for the common citizen will do more to stimulate the economy than giving money to corporations. Yet in the end it will be the citizen who will pay for this bail out. Indeed, at some point I too will move overseas and not come back to this country. It seems we are truly headed to being a third world country. It’s a shame we have fallen so low.

Boo-hoo! Sounds like this guy was simply irresponsible and he’s obviously a deadbeat. How could you have thought that your payments were going to be $600? So basically the rest of us have to pay for deadbeats like you. You should’ve went to a cheaper school or a different field.

To the idiots who think I am not responsible I say, “take the time to understand the situation”. If it boiled down to a bunch of people who were irresponsible, would it really be news-worthy?

I work hard everyday, at a job I love. I am really lucky that way, because I would do this for free…which means, I can do it for less money in retirement and still be happy. Having a lot of student loan debt means I wont get to retire. Not every job pays 6 figures.

I also think it was a responsible decision to NOT bring children into this world because I didn’t have the money to raise them. Sure I could have raised them below the poverty line in a “house full of love”. But child-rearing is also about the joys of parenting, right? Why should I spent 20 years of my children’s life worrying about the disadvantages my kids will face because I didn’t have the money for them to join a community soccer team or take piano lessons or go on family vacations (not high end vacations, just driving vacations).

I finally got married at age 38 and my wife had a child from a previous marriage. They were already used to a life without a lot, so I guess it worked out for me, right?

I also still live in a starter home and drive a starter car. At one point in my life, I lived in a YMCA.

When I signed my student loan paperwork, I was just out of the army and I didn’t know that the “American Dream” was mythical. I always heard as a child that “if you go to college you will be much better off”. so I did what I hear my elders suggested (not just my parents, all adults said this).

I signed those loan papers literally thinking that there were career paths that were only available to those with college degrees and that my degree would be the ticket to a rewarding future. I didn’t have wise parents around me to tell me that the “American dream” is mythical and that it only seems dream-like in hindsight, after LUCK and HARD WORK payoff to get you one of those coveted 6 figure jobs.

Right now, I make as much as a seasoned iron-worker, so I guess I could have skipped college and been in the same spot, minus the debt. I have 175K in student loan debt. My payments were never enough to fully cover interest, so interest kept growing, even when I paid.

Right after college my student loan payment was $600 per month. I was shocked by that dollar amount. I had nobody to turn to for guidance or perspective, so I lived in fear. My loans defaulted quickly, but I consolidated them and put them in forebearance. I figured that would stop future defaults while I found a job, even if that meant interest would make the loan grow larger.

Four years after college (and after several $9 per hour jobs) I found my calling. I was good at what I did and the pay was good. I took another look at student loan payments. They were more than $600 now that they sat in interest-accruing forebearance for four years.

I was making $14 per hour, but not working 40 hours yet, so my pay went a little higher and the payment went higher, too. I was in the same boat! In addition, I was still thinking about making sure I had the basics in life.

People who got lucky (it’s not all about hard work…even living rent free with your parents for a little while longer helps out, if you have that option) seem to forget that time passes and life gets lived.

It took me years to make sure I was meeting even my basic needs properly. With age and wisdom I realize I could have delayed college to ease the debt, but at 21 how would I know to make that decision?! When you are young, you need parental guidance to know how to make this call.

So let’s summarize the responsible parts: I drive a cheap car, live in a cheap house, didnt sire kids I couldn’t afford, and have tried to live “within my means” all my life.

College loan officers would have talks with us about the importance of paying our loans back…but they never did anything to dispell the myth of the American Dream…they were in business to make money, and they let us buy into that myth. I know if I heard the student loan councelors tell me that a college degree was NOT an assured way to make enough money to pay the loans back, I may have walked away right then and rethought my career path.

So now, instead of Carl paying his debts to creditors, WE will eventually have to take the burden for him? Carl is only a microcosm of the grim situation in which people spend money that they don’t have under the assumption that one day, they will have the money? I can understand a $150,000 loan for someone in medical school, but MUSIC? What’s the average musician make a year? $25,000 give or take? Thanks, Carl. You just made it a little more difficult for grad students like myself…

I have read some of the self-righteous comments about the entitlement in America. So you have a job, you’re paying off your debt, and you’re sitting on your lofty perch looking down on the delinquents. I have news for you. I have a job too, I work very hard, I live frugally, and I’m not delinquent on my debts. But I understand the plight of Americans. (1) First of all, one of the main qualifications for getting a good job and subsequent promotions is self-confidence. Self-confidence is not learned in school. It is partly nurtured by parents, partially inherited, and partially merited. (2) Secondly, the public school system does a horrible job of teaching personal finances, law, the rules of the “American Game”, critical thinking, and personal independence. (3) Third of all, banks give out mortgage loans and student loans that they themselves know that the size and the terms of the loan are unrealistic. They do it anyway, because they are greedy vultures with no social responsibility. These banks understand the complicated laws and the terms of the contract much better than the average borrower. These banks, encouraged by crooks like as Barney Frank, are doing a great deal to destroy our country’s economic stability and wealth. I would say that these banks are getting exactly what they deserve, except that now American citizens are bailing out the banks for their reckless debauchery. (4) Fourth of all, American companies are instilling covetuousness in the minds of Americans with ridiculous TV advertisements insisting that you must buy this and that to be a happy socially acceptable person. (5) Fifth of all, American citizens are falling for all of these unscrupulous scams. It is sad and embarrassing. And the executives and politicians don’t care. Once they have sucked this country dry, they’ll move on to the next.

America is in trouble — plain and simple. Why? We have become a society devoid of values. Read what Chris said in the article:

“I am upset at myself. I could have gone to a cheaper school,” Chris says. “But I’m most angry at the fact that for anyone who has debt that’s not student loan debt, there’s relief. You can get into $150,000 worth of credit card debt and you can declare bankruptcy and you can go on with your life. But with student loans, you’re being punished for being a better person.”

Better person? Running away from your obligations is being a better person? Chris, you are not a good person. Indeed, you are a deadbeat. You took and took, but when it came to repay, you ran. Pathetic!!! And, anyone else who supports/condones those running away — shame on you too!!!

And, to Rob Christensen, pls go to South America, but leave your citzenship behind since you are ashamed of our country. Funny, you blame the govt, but never cast blame on your family for not wanting to support their child. Not that a family is obligated, but why are they off the hook and the govt isn’t?? Again, a value system that has gone awry.

Finally, let’s blame the companies that have loaned us the money b/c they want to make a profit (i.e. interest). First, you agreed to the terms of the contract…live w/ it! If you don’t like the terms, renegotiate. But, don’t blame the companies. They gave you the money based on a promise that you would pay them back w/ interest. Again, promised — that value thing keeps popping up.

This comes right back down to the root of our problem, EDUCATION. Our financial systems have become so convoluted that without someone ever teaching you about what it means to take out a loan or what financial terms like locked-in, forbearance and default mean, you’re stuck trying to learn this on your own WHILE defaulting on your loans–learn by doing. Financial responsibility should be taught in middle or highschool before you’re even old enough to get into financial trouble. Otherwise, the only way you’ll ever learn about our complicated systems is if your a business or finance major and you choose to study the field. When I was in the 7th grade, I was lucky enough to have a bank executive come to our class once a month, for the entire year, to teach us about checking accounts, LOANS, and the stock market. God bless you Mr. Whalen for setting that up because, I am happy to say, I am a financially responsible individual. However, my younger sister had a different teacher and never got to learn about the financial system. Now, she’s gotten herself into quite a couple of messes, not just with school loans, but also car loans and she lives paycheck to paycheck. I recently had to loan her $1200 to fix her car because she’s doesn’t have extra money to set aside for emergencies. If you’re a parent and you have young children, you should definitely get them thinking about financial responsibility now. However, I think it’s important enough that it should be reinforced in schools. It affects our society as a whole and to be honest, some parents don’t know all that much about our financial systems. My parents would have never been able to teach me about the stock market. I’m teaching them.

I’m a single mother working in a state job with around $23,000 in student loan debt. Because I’m helping one child through college — he’s at an in-state college and his loans don’t cover his in-state tuition — I can’t affort to start paying off my loans. The short-term answer? Get more in debt by enrolling in a graduate program that may or may not help me make more money in the future. Your college degree no longer means you can make enough to pay off a student loan; it only means you’re more likely to get a job in the first place.

So, here it is again. People who don’t consider the consequences of borrowing. The good things in life are hard to come by, in this case a well paying job that you like. So you might ask youself how do I get one of those. Well for starters people will tell you “go to college”. The part that they don’t tell you, which I will here is: “major in something society values”.

The issues brought up in this article, is that this person when to a school he had no business being at, as it was outside his means, and he did not major in something that society values, in this case Music.

Among the postings below, i notice a trend. An underlining statement that the USA should do more to encourage and make more accessable education for it’s citizens. The reality is that we as a country do alot to encourage education. Just look at the number of junior and community colleges that are funded by the state and federal governments.

So, here is a hard truth, “going to school is not going to be easy”, for you or your family. If you do not have alot of money or don’t come from money, then do what many americans do, and go into the military. It is only 4 years of your life and you can easily go to the school of your choice after you are done. And percentage wise your chances of dying are very low.

Net, net, don’t visit your problems on socieity, when you run from your responsiblities then you just make it more unaffordable for others to go to school. In this case by going abroad to avoid paying your school debt will only make it more unaccessable for future music majors to borrow and attend college.

I am a grad student who is approaching graduation in May 2009. I will be finishing with a Master’s degree in social work, which unfortunately enough, is not a very high paying field. Although I knew this before pursuing the degree, I decided to go forward with it because I knew it was what I wanted to do with my life, and I do not regret pursuing the degree at all.

I have always been a good student, I received a 1/2 tuition scholarship to a private institution for undergrad work, and was disappointed to find out there was not much by means of grants, scholarships, or funding for the master’s degree. However, this time I chose to go to a state university in which tuition was much less. The only downside to all this was that as part of my degree requirement, I have to work nearly 20 hours a week at an unpaid internship, while taking about 18 credit hours of classes per semester, then having to work 30-40 hours on top of that to have sufficient income. In the midst of all this, I decided to take out some private loans because I was not able to concentrate on the degree I was supposed to be “mastering” and I was just plain burnt out. It seemed like to logical thing to do to maintain my health, focus, and sanity…and it did help. However, now I am facing a huge amount of debt which may not be so bad if I was in a field that payed a larger starting salary.
It does not help either that I am located in a city with immense amounts of poverty, joblessness, and lack of growth which are all contributing to a pretty bleak outlook at this point.

It is pretty unfortunate that there are so many people pursuing degrees and working toward a future in which they can contribute to society in a greater way, and many will not be able to use the knowledge they have gained because they will be forced to work in areas probably totally unrelated to what their true passions or talents are in.

While I fully understand the concept that it is important to live within one’s means, when an 18 year old traditional student starts college, the security of their economic future is not always at the forefront of their minds, especially if they are the first from their families to attend college. The “wisdom” of smart borrowing and knowing that a private vs. public university probably won’t make much difference especially in terms of an undergrad degree is not always there, therefore often leading to poor borrowing decisions that will not be realized for years to come, but will be felt for many years after. Why is it that there is not more assistance, especially from our government, to help students who prove to have great potential to attend a university at very low cost or even free? Why do many European nations not charge for attendance? I hope in the future this issue is looked at more seriously and that more students can feel as if they are being rewarded versus punished for their pursuance of an education, something we all should be entitled to.

I can relate to the trials and fears of students who flee the country to avoid paying back student loans. I went to college late (40’s) after my plant shut down and the government offered the option. I had already taken a few classes and wanted to be able to get a good paying job where I wouldn’t have to work physically hard as I had for 25 years. In less than a year I had an associates degree and should have stopped there… but had more than a years worth of free education left and yearned to be a succesful writer/communcator, so went on to a 4 year college. I needed several classes and the free tuition didn’t cover my living expenses, so had to take out loans to live on. By the time I got my degree I was 30K in debt. I was unable to find a job that paid much more than half what I made in factory work and after a year searching and working part time I went back into a factory with the promise when something opened up in their office I would be a shoe in… that didn’t happen. So I moved to another plant that paid more and was closer to home, discouraged and dejected that I was back where I had started with a huge debt to pay… with payments that were over what I could afford to pay and maintain a scratching living. I got deferments which added huge interests over time. Now my debt is near 50K. I am 60 years old, with no one to share my finiancal burdens and just scraping by. I truly want to be able to repay my debts and get out of debt, but it is so depressing and dishearting to even contimplate managing this load. I pray for Devine interviention because the Lord is the only One I feel can help me at this point.

A quote from the story, “But with student loans, you’re being punished for being a better person.” How arrogant. You went to the dance , PAY the piper. But no, you would rather contribute to the current economic disaster facing America. Stay away don’t ever come home.

I signed up for an education, NOT SLAVERY!its easy for people to suggest that at 18 or 19 “you should know better” but how many of us actually understand the hardship of having a mortage-sized debt before we’re 25? It just does not compute. I am furious my parents let me take out these loans. they will never be paid off. I will not pay half my salary for the next 15 years. If it means leaving this country, I will.

Here’s an interesting idea, geniuses – how about SAVING for your education instead of borrowing to pay for it.

Simple solution for everything:

If education is free for all kids from kindergarten to 12th grade, why not make it free through the end of four years at college too? Now, not saying it all has to be free. But a basic college education should be, and that will level things out. If someone ‘elects’ to go on to Masters or PhD courses, then sure, let them pay for that on their own with loans or whatever at their own risk. But no one should be denied a basic college level education in this country.

Our biggest problem with our current society is that there is a growing gap between the “haves” and the “have-nots”…one cause is the equal access to education.

Personally, I earned a lot of scholarships to a private university but still had to take out about $30k in school loands. I even worked through college to pay some of it back, but it didn’t put a dent in it.

I did everything responsible during college – offset my costs through scholarships, worked two jobs, and drove a beater car. I have never taken out any credit cards and have always paid my living expenses on time. However, I still cannot get rid of that 30k or so which keeps going up and up. I consolidated them a few years ago, then that company went under and sold them off to someone else. I had no clue who to contact, and then I found out that company turned it over to some collector, who then tells me that they’re discharged. Now I keep getting calls from another collector saying they’re still due (and now at 42k).

You can know what you’re doing, know what you’re getting into, and still get screwed. Why? Because those that run the system can change the rules to their favor anytime they want.

I’m Joe the Student Loan defaulter, and I approve this message.

I think this article is so sad, for the student living abroad. We live in a country where are future brightest have to flee from for fear of the “student loan” man?

One thing I totally find misleading about the person giving out loan relief information is the part about making arrangements to get loan out of default by making 9-12 payments. I had a close friend that tried so hard to get his loan out of default, went through this process 5 times. If you miss one of those payments ( WHICH IS SUCH A HIGH AMOUNT ) you have to start the process over, with no regard to how much you have just paid. He begged them to take 350.00 a month but they would only accept 800.00 a month for 12. months, and now 4 years later he is in default. He had a huge hardship, went to bankruptcy court, got all his debt discharged BUT his student loans, despite the fact his wife was dying, her medical expenses being over 150,000 a year for 4 years and that he had to quit his successful business he built to take care of her for 3 of those years, all which was documented by the student loan people did not care in the least.

I guess my point is that while this article might in theory have some good points and good suggestions, let’s not pretend like the student loan collections people are reasonable or moral, it is all about the bottom dollar.

After graduating with a bachelor’s degree in business, I found myself paying around $500 per month just for a private loan. After returning to the northeast after graduation, I found the job market especially difficult. Looking in and around the nyc area was cumbersome and not very promising for a canidate such as myself. I saved the most money possible from my $12 data entry job and got the heck out of dodge! I headed west and for the last month it has been much of the same; still have no security career wise and that student loan…well.. its in forebearance. When my rent is less than my monthly payment for the loan, it is a no brainer as to which gets priority. En fin.

I understand this concept of entitlement and abuse of loans, but to the simple minded few out there who lump everyone into this cateogry, what about those of us with legit problems?

I’m a high school teacher making under $30k after taxes. Only in my 4th year of teaching, I don’t get to see more than $70k after 30 years. NCLB demanded teachers get their Master’s degrees, but unlike MBAs, we have to finance it without reimbursement. Most get student loans.

If NCLB isn’t going to fund the degrees they want teachers to have, and since most of us live paycheck to paycheck, how are we supposed to pay back these student loans?

Most people see this as complaining. To this simple minded people who make $60k on entry level positions with company reimbursements on furthering their education, I demand you wake up and see that there are underpaid and underappreciated jobs out there.

If we’re expected to have a higher degree and don’t get paid enough to do so, how are we expected to pay back the loans that we needed to get the degree commanded by our president in order to keep our jobs?

Expect a teacher shortage in a few years as most are leaving for higher paying jobs.

I am a current 3rd year law student who will graduate this year owing about $80k. Even as a lawyer, the current job market will make it difficult to make the monthly payments on a standard 10 year repayment plan. Readers should know that there IS a federal debt forgiveness program.

Upon graduation, you can consolidate your various federal loans into a “federal consolidation loan”. The payments on this loan are equal to about 14% of your AGI. If you work in public service for 120 months, the balance of the loan is forgiven. If you work in the private sector, the same is true after 25 years. Note that in the latter scenario, your loans will likely be paid off before the 25 year repayment term expires. This program makes it possible for people like me to enter into public service without the fear of eternal debt.

I hope this post helps some of you. If you are just entering school DO NOT TAKE OUT PRIVATE LOANS, as this program only applies to federal loans.

It seems that a number of people commenting don’t really understand the connections between higher education quality, costs, career paths, opportunity, and earning potential. While there are some students who would cheat the system by getting loans with no intention of repaying, they are a small minority of graduates. Like so many issues that face US citizens, this one is tremendously complex and cannot be distilled down to a 3-word sound bite or slogan as some critics would want.

Here is the basic problem: over the last 2 decades (and especially since 2000), college costs have become decoupled from what most graduates will earn, yet many professions can be accessed only by the pedigree that comes from an expensive school. Many graduates gambled the cost of their education *then* on what the market will pay them *later* — is it their fault the economy failed them?

I’m trying to figure out how anybody who accumulated $160K in loans expected the payment to be $600/month. If the rate was 0%, that would take over 20 years to pay.

The people who are in the same situation as our Music Graduate are lacking in a combination of mathmatical ability, common sense, and personal responsibility.

The bankruptcy code needs to be re-written to allow for relief on educational loans. Here’s an idea: pay down all of your school loans with credit cards, and THEN go BK. What a stupid system.

I graduated with a Fine Art degree 3 years ago and planned to move to NYC with some friends and be an artist.. Live my dream lifestyle..When I got my first student loan statement it was for $1100.00 .. Needless to say i wasnt able to move to NYC and still haven’t. But it has pushed me to become a shark, I never stop working and im always on several jobs and projects. I graduated knowing how to paint and draw, now im also a graphic designer, photographer and direct films. So on one hand I’m barely making ends meat paying this insane student loan debt but it has also pushed me to become someone i never thought i could be and learn things i wouldn’t have come across.
Students should be explained throughly what they are getting into. And how repayment works and how long it’s goin to take. When i was in school they told us we would pay around $340 a month for about 15 years. I WISH i was paying that..

It’s hard to grow in society when you only have $400 a month for food and expenses after Loan Payment

I neglected to add that my student loan company, Sallie Mae, is a giant corporate bully. It’s really too bad that they didn’t go under during the recent downturn for several large companies, and my hope is that they still might. The people who work there, for the most part, are uneducated themselves, and nasty.

A big take-away from this story: seek outside counsel in terms of financial planning and your career options. I’ve spent a number of years working in Career Services offices and have a few observations on what has worked for some.

1. Talk to admissions representatives and career offices about earnings outcomes BEFORE you enroll. Many schools keep stats on starting salaries of graduates by degree programs and job type–consider both starting salary and loan payment before you enroll. Factor in cost of living and salary when determining where to live.

Once enrolled, stay in touch with your financial aid advisor–and also talk to a financial planner off-campus.

2. If you can’t afford hefty tuition, consider attending a well regarded community college and then transferring to a four-year-school. For example, the state of Virginia has a great program that helps graduates of two-year programs transfer into four-year degree programs at other Virginia schools.

http://www.schev.edu/Students/factsheetTransferGrant.pdf

3. If you have a pre-existing loan, educate yourself on programs that can help you pay it down. For example, programs such as AmeriCorps and City Year offer participants the opportunity to apply for forbearance for most federally-backed student loans during their program participation, and also offer individuals who complete one year of service up to $4,725 to pay educational costs for past or future degrees.

I was a single mom struggling to get by and couldn’t find a good paying job in my field for quite a while. I went into default, not really knowing what I was getting into. When I “rehabilitated”, I was put on the income contingent program. Still a single mom making less than $35,000 a year, and my “income contingent” payment was more than my monthly daycare costs. The system is outdated and completely unrealistic for todays needs.

Now see some people ’say live within your means’…but most of us are. And the school I went to was a private Art College. When I went to a state school, I went there for 2 years totally free. Scholarships and federal money. But as soon as I decided to change schools I would have to pay for it myself. My mother did not have any credit to help me co-sign and I only was granted about $20,000 in federal loans total over 3 years. FAFSA and Cal Grants did not give me any money. The private loans is what kills. The school told me I would be making more than enough to pay off loans. And also, I thought my loans would be abut $500-$600 a month. But over $2,000 a month is unbelievable. I barely make that a month. It sounds irresponsible but interest rates were confusing and all that paperwork from the loan company never made any sense. And the loan company has there operators overseas, and when I call to ask questions I cannot understand what they are trying to explain to me through their accent. It all seemed so big. But everyone told me, “its what you have to do to get through school. Everyone has student loans.” Now 2 years out of school, my loans are making $20,000 a year in interest and I have been in forebearance every month.

I recently got married and am going to try and have my husband co-sign, but even then, they can only get my monthly payments down to $1,100 a month. We live within our means, no car payments, low rent in a not so great part of town, and shop with coupons and give up quite a bit. We are supposed to be starting our lives together, saving for a house and kids, but in reality its much more scary with almost $200,000 in private student loan debt.

I need advice!

Don’t borrow the money unless you intend to pay it back. Take a realistic view of your income potential before you decide to go to a very expensive private institution. Many people struggle to pay off their school loads….its not easy. No-one ever said it would be. I hope to pay mine off in a couple of years…have been paying over 8 years now.

Maybe I should just move to another country because I made some bad business decisions or I can’t pay my house note…. I have an understanding of your issue, I have no empathy for you, if you choose to neglect your obligations.

Although people claim not to understand what they are getting into, they still sign away on the promissory note and accept the money being given to them. It is not a gift.

You cannot refund an education, like reposessing a vehicle or foreclosing on a house. That is why student loan debt is non-dischargable.

I believe that student loans have gotten completely out of hand. I have a doctor of physical therapy degree, which is a very high demand field. I also have almost $200,000 in loans from graduate school alone. I’ll admit, I could have gone to a cheaper school in a city that has a lower standard of living, (Boston is a little pricey). But, when you are offered the chance to go to a top 5 school for what you want to do, your competitive side emerges, not always the fiscally responsible one. It the same competitive edge you have to have to make it in this world and when you are making these decisions you want to the best education possible. When you are young and start out on a path, you are focused on making in, not the price tag. When you are 18-20 years old you don’t know what it costs to live. You just want to be successful, and maybe get a taste of the American dream that is essentially dead for my generation.

The price of the education you are getting has to commiserate with what the field is paying to start. I now have this huge amount of debt and still making the standard 60k a year to start. After taking out the monthly loan payments, my yearly salary is around 30k a year, and will most likely stay there for many years to come. There is an inherent risk to all of this, you gamble that getting the education will lead you to a better standard of living, but these days it doesn’t. I now work like a dog (50+ hours, salaried), may have to get a second per diem job (which my current boss does not like), and still barely able to make ends meet. I truly think that, in a way, had I not gone to school I may have been better off. I might be able to get a job with my bachelor’s degree at 45k, not had all the stress of this debt, and would have to live with not being as satisfied with my job.

It seems as if the generations before us have made it extremely expensive for the younger generations to get the jobs they want, and have not reciprocated with better starting pay. You have to go to school these days, and tuition keeps going up and up. Kids are coming out of school with 100s of thousands of dollars in debt. Starting pay adjusted for inflation has not changed significantly for 25 years.

You want to know the other side of why the housing market is tanking? Nobody I know in the 23-35 age range is looking to buy a house, we can’t afford them! My parents both went to private colleges in the 1970s, graduated, got married, had me, and bought a house. My dad was 26 and my mom was 23 and DIDN’T WORK for a few years. My dad continued on to get a master’s in accounting afterward. This situation absolutely astounds me, I mean, I know that they struggled a bit, but they did it. There is absolutely, positively no way that a middle class kid could do that these days. I am 27, no house, no kids, and my fiancé wants to have kids somewhat soon after we get married next year. Who’s paying for them? The uphill climb is too steep to pull that off nowadays. Why? Education debt is the black hole for income, and younger folks are tossing their possible mortgage or even kids into. That’s why there are more people over 65 than under 18.

So you finally have the older generation who are finally stepping down from positions, moving out of houses, and retiring, except the vast majority of younger folks cannot fiscally come up to hold value on these houses. Younger folks are using credit cards more because we don’t have cash, (thankfully, a problem I don’t have.)

Coming out of the gates of the educational realm, we should be ready to start tackling the problems of the world, not being scared that we won’t be able to keep our heads above water. I was truly hoping that with my education I could build a better life, I never thought I would be a slave to $1350 loan payments for the next 20-30 years.

What sort of idiot takes out a $160,000 loan to get a degree in music? Did Chris actually think such a degree would put him in a position to pay off his loan? And as for his being “punished for being a better person”, he is not being punished at all, nor has he demonstrated superior humanity. Rather, he is encountering the consequences of his own freely chosen path. The sympathetic tone of this entire article reflects the entitlement mentality that underlies our current economic meltdown.

You’re all missing the point. Let’s get to the root of the ROT. So many colleges spend way too much on operations (salaries and plant&equipment). Unlike a real business, they just keep raising the rates to the students. They go with these bogus and self-serving comments that “hey, over the course of your working life, you will make much more, therefore we are worth it”. They pay ridiculously high salaries across the board, while giving free tuition to children of employees. Then of course there is the lunacy of “free scholarships” for varsity athletes (haha, silly me, I thought colleges were institutions of learning!).

Address the ROT. Dump the union contracts, start canceling the crazy sports programs (I mean varsity – keep the intramural). Focus on LEARNING.

Also start looking at the crazy “food courts” some of these colleges have. Close them. Go back to fundamentals.

This system is fundamentally broken. Having the government come in and provide more money is like solving an alcoholic’s problems by giving them more cash to buy booze.

My name is Pat and I am currently having my pay check garnished ($400 a month) because I defaulted on my student loan after a divorce. After years of dodging the collections, they finally caught up with me. I am not willing to give up my job just to stop paying the loans. I could not have gotten my job without my education which I could not have finished without my loans. I am barely getting by and don’t know what I will do if this economy causes me to lose my job, but I am glad I am finally paying off my loans because they will be PAID in 2 more years and I can be free of the worry,stress and financial hardship it has caused me. I have found that I can bear this burden by living very frugally until it is over. I have a cheap used car, I bike to work, and I pay only cash for what I need. No credit. What people don’t realize is that loans are just that…loans. You have an obligation to pay them back and by not doing so, you are preventing others from getting that money so that they, too, can get an education. Anyone that flees the country to get out of paying their bills should be ashamed. You gave up your country because of that? Come back and face the music. Collectors are willing to work with you if you will just talk to them. Running is not the answer. In the long run, it will only make your loan even more unaffordable. Do you really want to give up your family and your country for money? Come home, pay what you can…and be free.

I have a bachelors degree in music, a masters degree in music, and an MBA in finance. I worked near full-time the entire time I attended college. I paid all my tuition and fees myself; no loans, no grants, no scholarships, no family assistance. I attended well-respected state-supported schools in my home state. I typically lived in a run-down rent house near campus with 3-4 other students. I worked mainly at restaurants where I ate most of my meals. I had no car until my senior year as an undergrad; and I paid cash for it. I bought clothes at Goodwill. My undergrad GPA was 3.8 and graduate was 4.0. After 10 years with a great high-tech company, I now earn just under $160K/year as a financial analyst, not counting stock options. I also have a highly-rewarding side-career/hobby in the music field. America is a great country for people who work hard and have a dream, and a plan. Neither of my parents attended college, and they were not financially able to assist me with college costs. But they had the wisdom to advise me to work hard, pursue my dream, and stay out of debt.

For those of you posting your sad stories here and looking for someone to blame (lenders, collection agencies, the government, etc), I strongly suggest you look in the mirror. And don’t expect my tax dollars to get you out of this. I worked very hard and made good decisions. If you didn’t, then maybe now is the time to start.

It is so frustrating that the government is bailing out these banks who took on bad debt whilst those of us who took on good student loan debt are left floundering. How much better would it be for the economy to have all of the student loan debtors liberated from these crippling monthly payments!

This story is so true. I went to college and have 2 degree’s the fields that I have my degree’s in I can’t make enough money to pay off my loans. So I’m at another job working overtime just trying to make a payment and put a small dent in my loans. It’s so sad that you can file bankruptcy on credit cards, but there is no help for those of us who work hard everday to pay our bills, to have shelter, put clothes on our back and still those loans are there. I want to know why can’t the government help out those of us who chose to get an education. The government has tons of money they spend on every other reason, well why can’t one of those reason be someone who isn’t even making $33,00 a year and needs help paying on their loans. Why can’t the government make a program to help those in need, you dont’ need a sob story to get relief just asking “please” should be enough. Let’s get some help for those of us who might not have children, who are still single with no husband, and who just plain work to make a living without a drug or alcohol those of us whose motto is “work to live” can some of us get some help?

Student loans – My loan started out at $4000 and it is now $30,000. Sallie Mae adds interest upon interest. When I started college I was married with two children. Two years into college and my husband decides to quit being a married man and be a single man. He abandoned his family. I had to quit school and with two minimum wage jobs raise my kids. I wasn’t always able to make the student loan payments. Food vs student loan and food is going to win out everytime. Now I have a good job and 1/4 of it goes towards those loans. I will never be able to pay those loans off. How come they are bailing out huge corporations and people who buy too much home but they aren’t helping those of us who are trying?!? Forget about helping us. Treat those loans like every other loan – why are they different? Are these people and corporations who get bailed out going to be held to the same standard the student loan borrowers are?

Look at a student loan as an investment.

Say you have 100k in loans when you finish college and your payment is 1300 a month (hypothetical).

A single person might hope to start at $45K a year on that type of loan because they have an engineering degree.

So after tax, let’s assume that take home pay is 35k annually. That is a little under 3k a month.

1/3 of your take home pay is for loans.
rent at 800 a month and that is almost 10K annually

We are now left with about 10K a year for transportation, food, clothing, medical insurance co-pay, cable tv, a phone, car insurance if you have a car.

Now when you go to college and get this degree there is risk that you will not get a job right away or worse you end up in a severe recession, so the loans pile up while you try to get a job.

Get the picture?

What is wrong with the picture is that higher education is very, very risky and more often than not a BAD INVESTMENT. The rate of return for what some colleges cost will not make economical sense 99% of the time.

The cost of college is about to plummet because enrollment is going to fall off a cliff. It is no different than the ponzi sceme that was the housing bubble, only the “go to college” myth is an even bigger bubble.

How do we take off negative student loan reporting on our credit report. I have been trying to rehabilitation my loan payments and have made consistant payments and would like to remove the only three late payments off my credit report. My loans are now very low, now under $3,500 total.

Just another example of wanting e something and not having to pay for it. Live with in your means. If you cannot afford a new car don’t buy it. If you cannot afford a vacation don’t take it. Why do you think the economy is so bad, because buy now and never pay. Just because someone offers you a credit card with a large credit does not mean you have to use it. Give me a vreak, this guy got himself in debt, let him get himself out of it.

The student loan system here in America does not work. Congress needs to throw away the higher education act and start over. We are destroying Americas future. Now we are forcing our educated people over seas, and we have Americans scared to come home? Student loans should be treated like any other loan, the statue of limitations should be enforced to prevent these lenders from destroying more of this country. Just look at what has been going on. If Congress cannot defend these students, or provide education that is affornable where student loans are not needed. This country will fall, if it isn’t already to late. To the students out there with Collection Agencies after them, contact your congressman, know your rights. You can have their activities stopped, most are illegal based upon the state you live in, and Federal Laws as well. Only You can stop this. Before Kennedy got sick he was trying to get the Statue of Limitation Defense back into the Higher Education Act..the act that allows collection Agencies to come after anyone with a defaulted student loan forever. This goes with Murder too…Boy do we think we have a problem here….

Why hasn’t the Presidential hopefuls addressed this issue that is so vital to the careers, futures and well-being of our young people. If the American taxpayer can bail-out high-risk Wall Street schemes; This student loan crisis needs a quick solution and legislative priority.

How dare anyone say “Live within your means” to anyone else when it comes to student loans. The reason one incurs student loan debt and goes to school is to be able to have a better life. I did everything I was supposed to do, I went to community college for two years then transfered to a four year college, I worked part time throughout college, plus lived at home for the duration (missing out entirely on the whole “college campus life experience”) and still was $45,000 in debt. Student loans are the only way for the middle class to go to collge (I graduated Summa Cum Laude and never qualified for or received any scholarships). Going to college to better yourself and this country should not be limited to those who have the means. Education should not be a priveldge reserved for those who are lucky enough to have a trust fund. Student loan debt is a horrible curse- I am 26 years old still living with my parents due to my student loan and car debt and I probably will continue to do so until I am in my 30s because that is desponding reality of student loan debt. I need to make more money, to make more money I need a Masters degree, to get a Masters degree I need to go back to school, to back to school I need more student loans- not really a possibility- so now what? Get on a good anti depressant I guess.

It has been said often that such a large debt load is difficult on young people. True. Please add to those of us worrying about the cost, those who are in their fifties (or thereabouts) who have to have student loans in order to get a decent job. These people will have no early retirement, and will most probably be paying these loans back the rest of their lives (50 yrs old plus 20 year loan repayment.) Yes, we took out the loans, we’ll pay it back, but when the 20to30 something gets their loans paid off, they’ll be saving for a home and/or retirement. So, please consider the impact of such a debt load on a wider range of individuals as you ponder the future of education for Americans.

Although the cost of tuition has gone up every year, people should expect to have to pay back their loans in full. There is where the credit crisis originated – people took out loans/mortgages they couldn’t afford. To default on your loan, and leave the country is inexcusably irresponsible. If you can’t afford an education, don’t take out a loan, and instead work until you are confident you can meet the terms of your loan. College is expensive, but don’t ruin the credit market by borrowing money you can’t pay back.

It’s really, really easy to voice opinions when you are not in a situation that involves debt you never intended to not be able to afford, fully intended to pay, but circumstances did not work out as intended. Things happen. That’s life it seems. Opinions of some critics about “our fault” might be different if roles were reversed. Some seem to misunderstand what caused our current economic situation in this nation. It’s not just people at the bottom who can’t pay. That’s a fantasy, the convenient lie for some.
The situation I have found myself in was most certainly never intentional. I decided to go into teaching back in the early 90’s. I had to put myself through school, working in a job with inner city kids at the same time. I paid close atttention to what I borrowed. Because of the experience working with kids my advisor placed me in an internship after alternative certification through a second university, as recommended. That meant loans at two universities, with as much in grants as allowed, as few loans as possible. Yes, one a private school, but well known for its education program, putting out exceptional teachers and very tough. Two different financial aid administrators, one at each school, told me that my loans could be “forgiven” under plans the Clinton Administration was developing. They told me what type of loans to take out to qualify. The only stipulation was I had to teach in a qualifying low performing school for five years. This sounded like a good idea, all based on what I was told. As advised I followed this path, taught in a qualifying urban school. In the meantime Sallie Mae bought out my loans from the original lenders, not something I had an option on. It just happened. When I found out I contacted Sallie Mae. They told me a different story about forgiveness programs. I was a single dad with two children to support as well, only making around $32,000 to start. When I contacted the two financial aid departments, one told me the programs had changed,not worked out as they anticipated, but some loans could still be forgiven once my five year period was up.Some programs ended up with qualifying dates, and much of the information originally given was incorrect, the information I trusted from two different financial aid administrators. The second school simply told me the laws were so complex they knew no one who understood them all, and the original person was only going by what they understood at the time, but some should be eligible for “forgiveness” because I was teaching in an urban low performance school( bringing state scores up from 54% to 91% at the same time). Now all this time I had thought most of my loans would be forgiven as originally told, at least some, and suddenly found out I was given incorrect information/advice, and do now wonder why these “financial aid advisors” should not be accountable for their information and advice. Moreso than offering a figurative “Ooops!”
I ended up with about $65,000 in loans, including the certification process. I called Sallie Mae back after they bought my loans and talked to the two FA officers. Their advice? Consolidate and defer until able to pay. So I ended up doing so. However, Sallie Mae failed to tell me one thing. Once consolidated the loans that were once eligible for forgiveness would no longer be. I only found that out ex post facto, after I completed the five year period I was originally told would qualify me for forgiveness by teaching in a low performing urban school. And you can’t undo a consolidation you were sold on. So much for a public service career, trying to do something noble by teaching, and apparently doing it well.
I was, and still am, really upset because I had trusted the advice of those who should know, and never told consolidation would disqualify any forgiveness. All I was able to have forgiven was one loan directly through one university for $3,000. The rest I’ve had to leave in economic hardship deferment, and forbearance status, which I did qualify for. However, interest at Sallie Mae’s rate (which went higher after consolidation which they also did not tell me would happen at the time), has caused the balance to rise over time to over $150,000, more than the original balance of all my loans combined. Payments right now would be near $1,000 a month, not quite affordable on a teacher’s salary. I have one year of eligibility left. Once up I do not know how I will be able to afford payments, especially still helping my own two children trying to go to college now themselves. All I can say to them is, “Grades, grades, grades! Scholarships, scholarships, scholarships! take out as few loans as possible, find a cheap school and work too.” They are listening, but still need help. Such is the situation with our economy and cost of education today. As for my loans, I’m angry. Even at the current amount, I can never buy a home, and will be paying past retirement age. The sad part is, I’m not alone. I know several teachers who are in the same situation, missed qualifying years, were given bad information, and many are forced to leave the profession for higher paying jobs, many very good teachers. Bottom line, we made no intentional mistakes, except for trusting those we expected would advise and give accurate information, and fully informed us of all stipulations. Sad part is, I now teach American History/Government. I teach the dream. And apparently well with scores at the top in the district, and kids who come back every year to visit, even some now in college themselves, because they remember my class. The dream of our nation is the foundation we build a great society on. Unfortunate that it’s about to be my nightmare. The system is broke when you have stories as mine, and those of others. It’s not negligence. Education is the greatest weapon of a free society, and we have not learned that as a nation or people would not encounter the debt and problems so many have. That’s not my belief. It was that of our founders. Only an educated people remain a free people.Our failure is in valuing money more than education. That’s the inconvenient truth. If not, people would not face such expense in getting educated, and we would not lose good teachers every year because of the debt of their own education. Oh, there’s cause and effect. And we wonder why we are in such trouble with the latter today. Go figure.

Unbelievable that people think higher education is a right and that only the rich have the opportunity to go to college. I went to college and have become a CPA and my parents aren’t rich. They sacraficed and I worked part time while I was in school. I didn’t even have a scholarship.

I can’t imagine having $160k in college loans for a master in music. Not that there’s anything wrong with having a music degree, but common sense should tell you that it’s going to take some time to pay that off.

We need to stop the mentality that we are entitled and that having money is evil. Hard work an determination will get you a long way in life. Our country was built on those principals.

You people that can’t pay your debt make me sick. Did it ever occur to you what it would take to pay it back??
Live within your means–that means create a budget and cut what your don’t need. That means getting a used car, canceling cable, and eating out less often. Because of you and these idiots buying houses they can’t afford, my 401k took a 25% loss. Thanks, now I am paying for your mistakes. A Music degree, what the hell do you plan to do with that? When you choose a major in college, the first thought should be “Can I make a living at this?”

If your salary isn’t more than 1 years tuition, in my find you have failed!

I believe the true core of this problem is the attitude in America that you “can go to any school you want”. You know what? You can’t. Not if you want to live a fairly normal life after school. I went to a mildly expensive private University in Pennsylvania for a Business Degree, partially because of the networking community that exists with the alumni. I’ve benefited from that degree a great deal, and can afford to make my student loan payments, but a key factor in attending that school is that I got a good amount of financial aid as long as I maintained grades. I could not have attended the school otherwise, and I knew that. I graduated with around $70,000 in loans, private and federal. I make my payments every month, and I go without things to make extra payments and still save money towards buying a home.

To me, there is no excuse for not repaying a debt, whether it be credit card, student loans, mortgage, etc. You should be fully aware of the terms before you get yourself into 10s of thousands of dollars in debt, especially as an 18 year old with no income. Get a part time job in the summer and during the school year, pay for part of your tuition. Attend a state school. People need to start realizing that money IS a factor in the decision of where you go to school. If you can’t afford it, you shouldn’t go to that school.

Currently, the amount that I would pay over the amount of my student loan is $170,000 at $800.00/month. I can’t afford this and I don’t know what to do about it. I am making payments to two different agencies with one having an interest rate of 8.25% and the other at 6.8%. Are there any agencies available that would consolodate these two loans at a lower rate. I am very stressed about this and I lose a fair share of sleep on a regular basis because of this. I have two daughters and daily living expenses, I can’t seem to pay them, even with an $80,000 salary. In about two years I will eliminate a debt by paying off my truck, but I can’t keep it forever, but I would be able to somewhat manage the payments. If anyone know of any programs that can lower the interest rates please respond to me.

My son had four interviews as part of our evaluation of several schools he was interested in attending. As his mother, I was asked to sit in on the interviews which were completed on the phone or in person. We typically were shown a web site or powerpoint presentation and given the typical sales job. I understand why schools approach potential students this way.

These interviews lasted 2-3 hours and a mere ten to fiften minutes was spent on the financial portion of the program. As a financial planner, these admission counselors were well aware of what I do for a living. Near the end of each presentation I was given the opportunity to ask questions.

Total cost for a three-year, year round program to obtain a Bachelor’s degree is 100K. Placement rates after graduation were anywhere from 72-78 percent. Typical first year income from a variety of fields requiring these degrees was a mere 29-34K a year with these types of jobs only found in and around larger metropolitan areas.

In all of these interviews these were the typical results. There is no way that a young person can afford to pay such high tuition/education expenses which will only result in a Bachelor’s degree and then maintain any sort of lifestyle that would keep them alive.

When I pressed the counselors some time later, they attempted to disregard my concerns regarding their miserable placement rates, their high cost and the simple fact that a 100K for a bachelor’s degree just doesn’t add up. A position resulting from such a degree will not pay enough to allow the student to pay off the loan and live simultaneously. I have worked with families for years and am seeing dramatic changes in how people think about higher education for their children.

If this country is truly concerned about our children, their education and our competitiveness in the world, then something has to be done to curb the appetite of these higher education programs. And, we as parents and students need to explore all avenues for education that are far more reasonable and useful for the long-term.

Young university-age students should consider going overseas in the first place for their degree. I recently completed my graduate degree in Australia and while I still graduated with debt, my program was infinitely cheaper than comparative programs in the US and I was still able to use US student loan money for all my overseas coursework. I left Australia with a diploma that was equally viable in the US – one that attracted a lot of positive attention from prospective employers when I was job-hunting, and got a long-term study abroad experience too.

This burns me, my ex-wife and I had our loans combined and then an accident happened and she became disabled and we received a discharge of the loans. The total of mine was about 20K. 3 years later I get a notice at the office that someone from a collection office needed to contact me (They had contacted my employer.) I explained that they were discharged,and even sent them the paperwork showing it. However about a year later I get Garnishment notices at work for my next check. (This is all totally against what is on the education department sites but when they give them to a collection company, they do not have to follow the rules the education department does) I tried to follow the appeal process and I’m told, “sorry I’ve turned it down” before they even received the paperwork.
I don’t mind paying, but at least give me notice, they sent notifications to everywhere BUT where I resided despite the fact they had my address all over the student loan site. On top of that, the loan in 4 years went from 22k to 45+k (Love that interest rate) and there is no help with this. I was told and I quote
Me- When the total is paid off how do I stop the garnishment.
Collection company rep – “Who says it will, we’ll decide when to stop it.”
It even took me almost two years, two appeals and umpteen phone calls to even find out how much I supposedly owed.
So to the people who took off, good for you, you didn’t play by the rules, but then again, neither do they!

O.K. First off I am sick and tired of people talking about careers in the Art’s being “fun and easy”. That they are not. I have been studying Animation for three years now and the impression I have had from mentors who work in the field is that it is a very high stress very demanding job. Some of these men and women work 13 hour days and hardly get to see their kids… for what? So that you doctors and lawyers out there can have something to pop into the DVD player to keep your snotty kids entertained! Yeah that is very very easy. People who are creative really have NO OTHER CHOICE in the matter. AND quite frankly, NO CAREER IS EAZY!! No one ever promises you anything, no matter how prestigious your school is… you could go to Harvard law and still be working as a Barista to try and make your monthly payments. I did get a degree in Studio Art and while my loans are in forbearance right now, I know I will be paying them back perhaps for the rest of my life, EVEN if I do get a great job at some studio, I will still be struggling to get ahead. What am I doing about it now? I AM LIVING WITHIN MY MEANS! Yes that’s right. I don’t own a Television (HUGE time waster) I ride the train to work everyday, I bring my lunch, and I only own two pairs of sturdy shoes that I rotate every week. Sure I may not look as slick as most of these A types do in the city, but I am learning to be grateful for what I have and I am getting a lot of reading done So yes I do feel it is the right of every American to seek and to get higher education, but along with it we should also educate ourselves on how to live in the coming century. America is no longer the land of plenty and so we have to conserve. Those of us who are still trying to keep up with the Joneses are only making matters worse by driving demand. Spend a week away from your T.V. and you will realize how much better your life can be without all this crap and clutter.

Boo Hoo… I went to a small community college to get my degree. 24K in loans at the end of 4yrs. Yet I work along side people who paid 5X as much for their degree. It’s not about where you go to school, as much as it is about wanting to learn. So suck it up… and pay your debt.

Great. So I, who went to a public school and lived at home, not racking up debt from college parties and a useless liberal arts degree, followed by savings for several years before graduate school, have to pay for all the “poor” idiots who took more debt than they could afford and partied their way through college (and graduate school)?

Maybe I should move overseas and avoid paying taxes.

In my first year of graduate school in the University of California system, I was hospitalized from a bicycle accident and forced to stay home and recover for several weeks. However, I was advised by the university administration to stay enrolled in classes and continue teaching because if I took medical leave, not only would I have to start making student loan payments, I would be dropped from the UC health insurance plan and have my medical bills increase from $6,000 to $38,000.

In a system where graduate students do most of the teaching in undergraduate programs with very little effort on the part of the faculty, how is it that we continue to pay teaching assistants at wages close to the poverty level (most I know make $10,000-$15,000/year), forcing them to take out undue burdens in student loans and increasing the pressure when they finally graduate into an economy with dismal employment opportunities for those carrying PhD’s and other terminal degrees?

The AK Student Loan Corporation (ASLC)has destroyed my life. They said that I defaulted in 1995 and demanded full payment. I did not default, however they did have a computer glitch in which they lost all records. They then gave my debt to a known corrupt collection agency in Colorado, NCO Financial Systems. I never received a single piece of mail from them and they never answered their phone. The ASLC confiscated my Alaska Permanent Fund Dividends (PFD) and gave them to NCO to ‘manage’ my debt. A recent letter I received from ASLC stated that the payments I made,including the PFD’s, may or may not reflect the balance of my loan? Unbelievable! This particular NCO agency no longer exists and my debt is back with ASLC and they garnish 15% of my paycheck! What is even more unbelivable is that I recently realized that Alaska has not given me a PFD since 2001! These missing PFD’s total $12,294.16. I have declared all these PFD’s on my taxes, believing that the ASLC was applying them to my loan. According to the AK PFD division, the status of my PFD’s are somewhere between ‘unknown’ or that I did not apply for them. I have been a resident of Alaska for 24 years. Why would I not apply for free money? There is a lot of corruption in Alaska; perhaps this is one more scenario. So as a 54 year old single female, I cannot even get a JC Penny credit card…much less a mortgage or any type of loan. I drive a 20 year old rusted out Subaru. I have one WFB bank card I have had for 30 years; I’ve never been late with a payment. My limit used to be $14,000; they reduced it to $7,000 for no reason. When all is said and done I live off that one credit, usually maxed out at a very high interest rate. I only borrowed $16,500 from ASLC. I have paid them back $16,500 over the years, and they tell me I still owe them $16,500. I hired an accountant, but she could not get to first base with ASLC. I have an AA, a BA and was working on a Masters which I had to give up on. I am at the end of my rope, financially and emotionally. This had taken a great toll on me; I am not the person I used to be. I wish I had never gone to college; it destroyed my life as I knew it. Thank you for taking on this topic; I am obviously not alone here. If the Feds can bale out Wall Street and the bankers, hopefully they can bale me out also..before I die.

AW-
really well written.
love the ending…..
is it difficult to come back to the USA for visits?
or do you get hassled somehow.

This is one of the most absurd articles and premise I have ever heard. Let’s see–I’m a college graduate and now that I have the means to make money I want to get out of paying the debt I incurred to provide the means to get the means to make the money. There is forebearance and consolidation and ways to get it paid back. To try to say that the system is broken is ridiculous. I have been there and am still paying back and times were tough and I had to forebear and juggle but it certainly never occurred to me to say that I shouldn’t have to pay it back.

I graduated college with only $15,000 in college debt. I worked through college and got a degree in Economics. Right after college, the beginnings of the Recession began to hit my state. My state of RI has the highest unemployment rate in the country. Right after i graduated I got sick from a bacterial staph infection that my body couldn’t fight. This staph infection is a negative externality from having so many people uninsured and the dumping of antibiotics in Latin America. Many superbug are formed and carried by immigrants due to the over availability of medications and the ability to receive any drug without a prescription. I was sick and out of work for 6-10 months with horrible surgeries. I did not have health insurance. I could not afford it, I could not find a job. For 3 years it was hell. I had also racked up $20,000 in medical bills. I had the all too common perfect storm of new American nightmare, not the American dream. My loans have been deferred and the Gov’t has been good about deferrment, I am very lucky that I do not have private loans. I would be hiding overseas if I did. I now have a job, but lay offs are constantly looming. Hopefully I can make enough money this year to get out of this trap.

I had about $50,000 in student loans after finish a master’s in teaching. I chose a graduate school that would be covered by the federal loans. I knew before I started what my payments would be. When it came time to start payments, I decided to extend the 10 year plan to a 25 to keep the payments lower in the beginning, planning to pay more than the minimum to try to knock the loan out before 10 years. I pay about 7% intereset on the loans. My minimum payment, which was all I could do for the first year after graduating, was about $5 more than the total interest. Because interest is calculated daily, if I paid one moth’s payment earlier than the due date, and the next one right on the due date, the total interest was more than my minimum payment. I couldn’t figure out what was happening, since I’d keep making payments, and never paid late, but it wouldn’t even cover the interest. Instead of ignoring the problem, I stressed over it until I found the answer–the timing of my payments. Now I am very careful to make my payments on the same day every month (even if it’s a week earlier than the due date). I also always plan to pay at least 50% of the minimum to knock off even more of the principal. I figure I have another 2 years before I really start seeing the interest amount go down.

A friend of mine makes minimum payments while she saves up a bulk amount of money–$3-5,000, then applies it all at once. I think this does more to reduce the interest accruing, and also makes an immediate impact so you feel like you’re getting somewhere. You just have to be disciplined enough to save for awhile.

These posts show how un-educated the public is concerning college and advanced degrees. Education is a commodity now and you really do get what you pay for. The real problem is the federal undergrad student loan maximum is too low. Thus, if you want to go to a better school and you don’t have a rich family and working full time while in school still doesn’t foot the bill, you get a private loan. The private loans are the problem and they are just as bad as the sub prime mortgage crisis. My direct loans have been great about repayment options. If the federal direct loan program had higher limits on lending, less people would get the predatory private loans. I know the financial aid offices at the colleges are mis-managed as well. I went back for a second undergrad degree, talked to the financial aid office about using federal loans since I still had not taken out the max in loans. They looked at my records and said I would have enough eligibility to cover the five semesters. The financial aid office made some math errors and the direct federal loans were maxed out before my last two semesters. I could either leave without my BS degree in Chemistry or get a private loan. You really don’t want to quit when you are that close, so it looks like the private loan is the only option. I got a loan with Bank of America, a reputable lending instution, but the interest is still so high the payments are painful. Even as a chemist I my salary is only in the 30th percentile of pay for my years of experience and degree according to the American Chemical Society’s last salary review. 16% of my monthly income goes to the private loan, 21% goes to my federal loans for a total of 37%. I really think employers should do more to offer options for loan payment assistance in the same way they offer tuition reimbursement. I’ve got the degrees I need for my job, help me pay them off since they would have paid for me to get them.

Rob – Tahoe City –

Just a little FYI – Costa Rica is a third world country. go live there, eat your heart out.

France – where everything is free, unemployment rate consistently hovers around 10-11%. Go live there, good luck getting a job.

To Mike in Syracuse,
No, Mike, some students have to go to special schools as I have a friend whose daughter has a hearing problem, and she can not be assisted in the normal classroom in a higher educational situation to a very appropriate degree, so she goes to an expensive school far way which treats her as a human being not a problem. Getting accommodations with disability students is not always easy in their community. I am glad you are fine and normal, working, and paying your loan. Maybe in your area you have had a choice of schools which is not always possible for students throughout this expansive country. Just remember students go where they will be have their disabilities accepted and minimized with an overcoming attitude, or their talents developed, for that is the rule for higher education not the price tag. Yes, you will say ADA provides for all students in all settings, but that law is not that easily implemented, so most students would rather go where they get accommodations without legal hassels. Oh, because they have problems, I guess you would say they should not get loans beyond their means. I am sure they will all be successful if we give him a tiny car and tell them not to go to movies and save their money to pay their student loans to schools that treats them poorly. Would it help, if I tell you they have no car, and only go to discount movies if a friend pays? I believe that if we live in a country where we can send free textbooks around the world, we live in a country which could provide free higher education to our citizens and maybe even non-citizens if they are worthy. Educating the mind does not compare to buying a house, a car, etc. Those are other issues that need to be addressed from people in the appropriate areas.
Babs

It seems as if most of us are in the same boat. I have about $70,000 dollars in student loan debt. Life happens, and my husband (at the time) and I lost our jobs just as he had a massive stroke and…you get the picture. I am a person who takes responsiblity for my actions but sometimes, you cannot control what happens in your life. You can have a job, be living within your means, and take the loan out thinking that nothing will change and you will be able to pay it back because, as financial advisors will tell you, student loans are not typical loans, they are “good debt” and considered an investment. But, life does change, stuff does happen… I have learned to live with the idea that I have debt in student loans because I have realized that it is only money. If you don’t have it, you don’t have it and money problems have a way of working themselves out.

I empathize with Chris. My profession requires a doctorate degree, which requires a bachelor’s. I obtained both, at a cost of $170,000 in private and federal student loans. I was fortunate to receive nearly $80,000 in scholarships/grants, otherwise my debt load would have been nearly $250,000. I work in the public sector which means that my earning potential is nowhere near what it would be in the private sector, making my $1200/month for 30 years student loan payments nearly 50% of my take-home pay. Forbearance and deferrment are not as easy to come by as the article suggests. When determining if you are in a “financial hardship” the private loan companies do not have to take into account any of your other loans. So, as my loans are broken up between 6 different servicers, when they take their loan individually, I’m not in a financial hardship. I find it demoralizing that I am punished for trying to better myself while people who rack up credit card debt or took out mortgages they couldn’t afford when they took them out can now claim bankruptcy or “refinance” with minimal repercussions to their credit but my only option is to “default” and continue to accrue interest and penalties even though I diligently pay more than 50% of my take-home pay towards this debt. I’ve written to my representatives and tried to write to those organizations or representatives that are interested in reforming student loans but it seems to fall on deaf ears. Those of us with student loans can’t even take the full interest rate deduction if we make more than $50,000 but people who have had their home mortgages forgiven don’t have to claim as income the forgiven amount. Makes no sense! Someone making $55,000 but with $150,000 in student loan debt that they are paying on-time should be allowed to take the full student loan interest deduction over someone making $49,000 with $15,000 in student loan debt that they pay late. The system needs to be revamped, and quickly. These debt loads definitely hinder my ability to contribute positively to our economic picture — I have no discretionary income and will not have any for another 24 years (I’ve been paying for 6). And I can’t just quit my job — since I work for the government I have a 2 year post employment restriction — how would I make money if I can’t work in my area for 2 years?! Maybe this article will make someone wake up and pay attention to this growing crisis!

$160,000 in student loan debt (taxpayers’ money) to get a Master’s Degree in Music?
He deserves to live in exile.

People act like they have a gun to their head about incurring debt. Nobody forced you to get a Master’s in Music (can you say “paper or plastic?”). People think they deserve something simply because they want it and that working hard and sacrificing is optional. Here’s an idea, maybe put off incurring huge debts until you can actually afford it. Simple math should have told you that $600/mo doesn’t come anywhere near servicing a $160k debt. Even a 30 yr mortgage with excellent rates is more than that.

…but then, we’re not very good at math here.

“It’s a sign the system is broken”? No, it’s a sign that more people are shrugging off their personal responsibility and harming those that will need student loans in the future because noone will want to lend anymore.

Erik – Madison WI

It would be extremely unwise to allow anyone to modify the terms of their contract/agreement. If the government or banks start to modify terms on a wide-scale, all of a sudden everyone will have “problems” or “hardships” they did not foresee. The whole system will collapse on itself if people don’t readily accept responsibility for their actions and comply with the terms of their agreements.

In regards to student loans in general, when I was in college and getting a masters degree, I was horrified to see the amounts that were available to college students. I had a full-time job to support myself and my family while getting a masters degree, yet I was somehow eligible to received $35,000/year in student loans? I was abhorred then and I’m absolutely sickened now.

Government is not part of the solution here, it’s part of the problem. Educational institutions take advantage of the fact that there are large amounts of government aid available to their students and thus have increased the amounts of their tuitions commensurate with the available aid. The more money you make available to students who haven’t earned it yet, the higher the price of education will rise.

I wish the student loan lending would really be exposed by the media and the government would really fix it. I funded most of my education with Grants, including Work Study Grants, and Scholarship money, but still a small percentage of my education was financed via loans and I was encouraged to take these extra funds through the Universities Financial Aid Office, whose employees (at that time) were given incentives on the loans they were issuing. When you are 17 and speaking with a Student Aid Official that explains how you will be able to “make more money getting your degree, so it will be easy to pay off,” you are impressionable enough to think this person, given the title, knows money management.

The guaranteed student loan program “backed by the government” perpetuates the eagerness to issue excessive loans by the lenders. If you can’t make minimum payment (that high paying job wasn’t out there when you finished) you follow the step, (a) Deferment and continue with school to increase your qualifications for a better job, then eventually (b) file for economic hardship, if you make the mistake of not paying interests because your income is low, (which is the BIGGEST mistake one can do,) the lending companies begin buying and selling loans, doubling fees, penalties, interest rates and eventually tip the scale to really make it impossible to pay off, as the monthly payments are more than what you can make in a month.

The “plans” to get out of default? Make payments for a year then they will talk to you to reschedule your payments, but if you don’t make as much as you owe, then that is not a plan.

I would like to see the statistics on people that were able to recover from economic hardships programs, as well as if there was any percentage of people that were able to crawl out of default, through the current plan.

I would trade a bad mortgage for a bad student loan any day. Then they could just have my house and be done with it… and could eventually rebuild my credit.

PS> To the “AMERICAN IN CANADA WHO IS COMING HOME” if you are currently in default, you better stay put… (or at least post a link to the program you are referring to.)

I have been trying to get my student loans discharged for about a year. I filed the initial paperwork about a year ago for Permanent and Total Disability…having not worked since 2004 due to medical conditions. Over the years and through periods of unemployment due to my health, I either was paying my $27,000 loan or put it in deferment or forbearance. My loan is now something like $45,000. I knew I was in trouble when I started taking out payday loans to cover my student loan payment.

The process has not been without its pains, though. My treating physician died in July while they were requesting additional information about how my condition prevented me from working. My loan was quickly, despite my pleas, put back into repayment.

The student loan servicers would not allow me to have a past physician submit evidence on my behalf which is why I’m now in the position of taking a loan discharge application with me to a new doctor who knows nothing about me or my history.

All very maddening. And, I too, was told that if I had a college degree I’d be on top of the world. No one once cautioned me about what it’s like living on disability income. I am thankful for what I have, don’t get me wrong.

Ana –

Why did you pay $80,000 for film school when you had no realistic way of ever earning enough money in a “film career” to pay it off? Are you asking us to feel sorry for your poor choice?

I agree that living within your means is important. But I have also been shocked by how easily the banks will loan students money without giving them any indication as to what their payment will be and comparing to their income. I’ve done this a couple of times with my daughter and she was shocked. I pay $550/month – that’s a car payment! She won’t be making even 1/2 of what I’m making because she wants to be a music education major. At some point, you have to determine what’s in your means if no one else is helping you do this.

Another thing that is upsetting is that while the intrest rates have gone down and down – if you’ve consolidated, the company WILL NOT change your interest rate. They are just looking to get as much money out of you as possible. I think for every year that you pay on your loan that your interest rate should go down a 0.25% – kind of a bonus for paying (and paying on-time)… maybe down to a ‘lowest’ rate of 3 or 4%. Why punish people who pay? There should be some perks.

Did you not take the money out? Did you not sign a promissory note? Did you not think, “gee, how will I repay $50,000, $100,000, etc., when I only make $40,000 a year?” Instead of generalizing about what others do (e.g., people with credit card debt filing bankruptcy) which is irrelevant anyway, why not negotiate with your lenders to reduce payments? Student loan managers are very willing to work with you if you are pre-emptive in your approach.

Moreover, there are plenty of less expensive colleges one can go to and you can work while in college to pay off your debt. It is very difficult for me to sympathize with these extreme cases. So you have money to go live in Europe, but you can’t pay your loans back?

Coming from a blue collar family (neither of my parents had a college education) I was able to put myself through school with a combination of scholarships, jobs, and savings. And yes, in grad school a few loans. These loans are my responsibility–no one elses. Whine if you will, but we all make choices that have consequences. Skipping out on your loans means I (and other responsible people like me) have to repay for your loans and your irresponsibility through higher interest rates.

Can you say BS or since you have an education that you don’t want to pay for can you spell it. I have paid back a student loan along with other loans. I think that people that use there age, color. and other excuses for not paying back moneys that they agreed to pay back are full of BS. They should have to own up to there obligation just like the rest of us

I decided to not even attempt to pay off my $120,000 in student loans after the collection companies (and the Government itself) refused to work with me and demanded a monthly payment of 2/3 my monthly income. I repeatedly explained that this would not even leave me with enough money to pay my rent, but they simply put me through a bureaucratic form-filing procedure and continued to harass me and my employer.

I lost my job in March because two separate student loans — which could not be further consolidated — garnished my wages separately (dismissal for garnishment by more than one creditor is perfectly legal, I was surprised to learn, and this was a policy the company had enforced on others.) I was devastated. They not only kept demanding money, but the situation made me lose my only source of it.

I am now living with relatives, jobless, with a law degree and a masters degree. I work temporary jobs, but am afraid to take a permanent position because the garnishment efforts will catch up with me within a few weeks. I am also unable to file bankruptcy — since I have no non-student loan debts, no credit cards, etc, and these direct student loans can’t be discharged in bankruptcy.

Changing the bankruptcy laws to exclude student loans was the cruelest thing Congress could have done to squeeze a generation of us who are fugitives to debt.

I graduated with an undergradate degree with no debt at all. An accomplishment to say the least, given the fact that I went to a private school but I had the help of scholarships and my parents. Then, I decided to go to a private university for medical school instead of the state medical school because I wanted a “better education.” I had no scholarships and my parents were not able to afford the tuition. I managed to accumulate over $170,000 in student loans over 4 years. I haven’t started paying back my loans as I am still in residency and the loans are in deferment, but I can only imagine the financial burden these loans will be once I start. I agree that people with a large debt burden should live within or below their means, but I can see how easy it would be to default on loan repayments.

I have an issue with a few of the posts regarding this topic. First of all, the choice of going to a “cheap” school versus an “expensive” school for further education is becoming less of an option now a days. In fact, I think it is nonexistent. The statement- “if you can’t afford the expensive school, don’t go” is unrealistic given the current environment. Both private and public school tuitions are skyrocketing exponentially while we are making less every year. Some of my friends who went to the state medical school still left with a substantial debt (anywhere from $50,000 – $75,000). If we waited until we could afford the school, we’d be dead in the grave.

Loans are a necessary evil, but I think financial planning is the best option. The financial aid offices at these universities have a responsibility to prepare their students for the burden of loan repayment once they get out of school. Unfortunately, students often don’t pursue this and the schools fail to properly prepare the students for the future financial burden. My suggestion is to get a financial advisor to help with loan repayment plan that is within your budget, either just before graduating or just before starting the loan repayment process. That’s what I plan to do once I have to start paying back my $170,000 in student loans.

I can’t help but respond to a comment about higher education being a right. That is just not correct. Your education up to that point is a right. College education is not.

To continue to state that the rich keep getting richer is a wrong. The majority of the sudents that I attended school with were all in the same boat. We had to work while in school, we earned scholorships, and we took student loans as needed.

We did not depend on assistance from our parents, the state, or federal government. We did not qualify for some assistance because out parents made a good living, but not necessarily good enough to foot the entire bill. In hindsight I wouldn’t want it any other way.

With kids that are only 1, 3, and 6 I have already started telling them that their job at school is to get good grades. The kind of grades that will earn them scholorships. I do plan on helping them with their college expenses, when needed. However, they will need to be helping themselves along the way.

They need to realize that when they get to this part of their life they need to earn it because IT IS NOT A RIGHT!

Dude, come home and face the music (no pun intended). You seriously thought borrowing 150,000K for a music degree was a good idea? I borrowed just a little bit more than you and I’m a physician. Bad choice man….don’t make young people pay for you poor decision by defaulting on your student loan. You are in essence a very dishonest person now….a criminal perhaps in some respects.

As someone about to finish his masters, with roughly $160,000 (I’m guessing, I can’t bring myself to get the true total) in both federal and private student loans, this article gives me both hope and dread. I hadn’t considered moving abroad, but I had heard that if you became permanently disabled, that is another way of having your loans discharged. This is ridiculous. It’s not that I have a problem paying back the loans I owe, I’m not asking for a clean slate the way you get when you declare bankruptcy or when the government bails out the entire lending industry because of the mortgage crisis… but it would be nice if they at least considered changing these programs to help people pay these loans back!!!! I mean, when you have exhausted your options, moving abroad seems like relief, which is why these people did it. I hope I don’t have to follow them, but if I do all I can here and there’s no assistance put forth from the government or other programs, I may be using my Passport.

I have an estimated $85,000 in student loan debt. I graduated with a BLS degree which amounted to a sheet of paper. I had a job that ended and was left with no choice but to go back to school. Of course to do that, I relied on student loans and work. Two years later I had a license to work on aircraft. The aviation industry was very promising and the money was there. Then, September 11 occured. I faced 3 lay offs, 2 job transfers and an uncertain future. When I landed a technical job in my field I was elated. A few years ago I decided to get a Masters Degree in Aviation to further myself in the company. While in grad school, I worked full time and attended school full time in another state.
Currently, my student loans have been in voluntary forbearance to pay off my credit cards (that I also used for school). I do want to make payments on my student loans but it is really difficult to make sure that everything is paid for. I am unable to work a second job due to my hours at my primary job, however, when overtime is offered I am the first to request it. Sometimes, working 10 or more days in a row.
It is frustrating watching people file bankruptcy and walk away from their houses knowing they have relief.

Something seriously needs to be done. William D. Ford should not be in the business to make money. They make a heck of a lot from those of us who didn’t qualify for grants. I went to a state university and used the money to pay for tuition, books, and rent – which I paid 3 to 6 months at a time so I could be flexible with my full-time job if needed.

I agree that the student loan situation is very similar to the mortgage crisis. The exception would be that we did not exaggerate the value of our college education. We were students with little or no debt at the time with bright shining futures seeking financial aid assistance. Call us naive. Blind to grown-up financial reality yet fully aware that a degree would be necessary for our career paths. Thanks to our guidance counselors. Stuck between a roock and a hard place.

Fannie and Freddie and the others on the other hand gave loans to people whose income and/or debt should have excluded them from buying too much house. If you can’t afford the McMansion, then you get the starter home. If it was good enough for most of our parents, I think it is certainly good enough for the rest of us. Fannie & Freddie and the others took advantage of our societal need for instant gratification. To the point of writing loans for MORE than the value of the home. And the kicker is that the buyers weren’t naive. They knew their debts. They knew what they were capable of paying monthly. They just wanted more than they could handle.

So when do we get our reform???

I will graduate from law school 2010 with approximately $180,000 in student loans. I’m not sure how many of you follow the legal market, but it’s going up in flames. I’m in my second year, and wasn’t able to get a job at a big law firm next summer (firms cut back in their hiring by about 35% this year), which would have led to job offer after graduation, and would have allowed me to pay off my loans. I have no idea what I’m going to do if I don’t get a well-paying job. Well-paying jobs in the legal field have become really, really difficult to get over the past year (unless you’re a top student at one of the top-ten schools, which unfortunately, I am not). I don’t want a well-paying job to be able to “live like a lawyer,” I need one to be able to pay my bills – I’m expecting them to be ~$1500/month.

All of the people on this thread who are saying “take responsibility for yourself,” and comparing student debt to credit card debt or mortgages, really need to wake up. College degrees aren’t a luxury anymore, and grad school degrees are becoming increasingly necessary. Students have been told all along that student debt is “good debt,” you’re increasing your earning potential for the rest of your life, and bettering yourself. Like a poster mentioned before, do we really want to live in a society where only the rich can afford higher education? That sounds like a huge step backwards.

Sure, a lot of you suggested talking with kids before they enroll in school and take out loans, when they’re 18 years old, and explain to them that they really can’t afford school.

So you’re really suggesting that we want less of our population to attend college? You would prefer fewer and fewer high school graduates to enroll in college? Those students who aren’t from wealthy backgrounds shouldn’t even try?

Don’t you understand that if our population is more educated, our country is better off?? Wake up.

This issue isn’t about pulling yourself up and paying off 10K because your roommate stole some money or you just don’t feel like paying. Anyone who went to school over 12 years ago has NO idea what its like to owe the money the average college student owes when they graduate now. This isn’t like other debt. This is Married for life debt. This is debt were the only way out is dying.
When you Graduate now you owe the equivalent of a mortgage before you even can even land a job Not everyone who goes to school gets to borrow from Mommy and Daddy. NO some of us don’t have the luxury of being self righteous! We have to take out loans just to stand on the same playing field as everyone else. WE WORKED our way through school and we work 2-3 jobs now to pay it back. But we can’t live off of 1800.00 a month and pay back 100k worth of loans. OH yeah we still have to pay for a used economy compact, a crappy dive of an apartment, utilities and food, health care, etc.
AS for Going to expensive privet schools. Hah!… I went to community College and state schools. Before you open your ignorant mouths on that one why don’t you look at the average cost of a state school these days!
When we signed up for the loans we were headed to an exciting career field that held high paying jobs. After 4 years of school the economy is in the crapper and we are working for sub standard wages because the generation before us will not retire and the market is collapsing.
Should only rich kids go into the arts? My generation was told “When you grow up you can be anyone you want to be” by our parents, teachers, government leaders and even celebrities. We were told college was the new High school Diploma if you want a decent job. We were told we could land great jobs that we could be proud of and pay our bills when we got out.. We were lied to!
Every time I see how much i owe from college I feel betrayed. I’m 29. I have a masters. I Can not find a job in my field. I can not afford to buy a house. I can not afford to buy an new car. I can not afford to responsibly have a child. I’m going to be paying this debt off for the rest of my life. I pay what I can and Try to be positive but I need Help. And all I hear anyone talk about is making it easier for the next generation to go to school. Well whippie dooo! How about my generation. The Generation that has all of this bloated debt from our “greed” to have a decent job and life. Who is going to help us.

I am fortunate to be from a country where you can defer student loans (almost indefinitely) interest free. All you need to prove is that the amount you make and your basic living needs, such as rent (based on the city you live), food, clothing and transportation is below a certain percentage of your income. This keeps my prinicpal at $40,000 and I project to be able to begin payments in about 5 – 7 years. I do not have a fancy car, I don’t have cable and I read books I get from the library.

I find it interesting that my family, who have not attended college, deride me for my accomplishment. Yet, when we discuss the topic in more detain it always comes out that at my age the cost of a home was only 3x what my mother made in a year! Rent alone and I am not talking about anything fancy, $800 in one of the largest cities in America. Yes, I should have considered the salary of my profession and interest on my loans, but where is the pressure on companies to keep salaries afloat with inflation?

I accumulated little debt as an undergrad (because I worked full time and lived at home – this was the best my parents could and I was thankful) and then I went to grad and law school form which I accumulated almost $250,000 in debt. This was primarily due to having a family and small children. My graduate program kept me about 2 years longer than necessary. I worked through law school and when I graduated, I could not find employment adequate to keep up with all my loans. Eventually I was receiving 5-10 calls per day and they would not honor requests to not call me at work. My spouse was working and I was working 3 jobs. Today I am in a position to make good progress on them and they will not let me out of the spiral. I pay approximately $2000 month and am still not reducing the burden.

I have been treated very badly by some of the loan servicing companies, lost documents, not returning calls, ignoring certified letters, and, most despicable, speaking with my children. They would tell me I qualified for deferments or forbearances over the phone and then deny them by mail after I provided forms with the exact information I provided by phone.

The Ombudsman’s office is a good place to start. I have found them to very sympathetic and I am sure they can help on some small matters. Unfortunately, the laws to do not give them the authority to really intervene like you would expect.

Students and former students should unite and demand better – more reasonable terms and conditions. Schools should do more to help students keep costs down. We have many excellent institutions of higher education in the US and these are the main pathway for people to improve their lives and our country. We should not let the loan companies to be unfettered in this area.

It’s no wonder so many college grads end up in debt they can’t control. First, we need to educate high schoolers on basic money management early on – credit cards, loans, and so forth. It’s pretty obvious from this financial crisis we can’t just leave this up to parents, who are often irresponsible as well. Second, we need to find a way to get the costs of college under control for the average student who wants to attend their local, public college.

I found this article super interesting, as I’m now out of my default. Funny thing is, hat I work with a private college and I see on first hand people that really want to get a better education, and better themselves, but paying out of pocket is too much.
They have to rely on student loans, and they are soo afraid of the aftermath that they will have in their plates.

I had to make a lot of changes for me to rehabilitate my student loan. But I also was in a position that I could NOT afford my student loan payments before. With my projected budget and cuts, I ave made my 9 consecutive payments, and now I’m out of default. It is possible!! just have your priorities set!!
AGM

I loved seeing the ad on students loans, for I have 2 and they were both in 1980’s both totals of 2000.00 but due to not being able to keep up payments all these years I now owe 7000.00 due to interest, they have attached my tax refunds twice those amounting to over 4000.00 but still I owe touble of what I got. I have called them to try and make payment of what I can afford but they say no and tell me I have to pay what they say,well I can not do it, I am now 60 years old and get only soc. sec.which is not much.I can not for the life of me understand why they charged such high interest to the loan that by the time I have paid it ,it is 3 times the amount I got in the first place. Chargeing that high interest seems stupid to me for us folks who already owe so much, I can not get credit for any thing a car, a home, nothing So I will try the web sites you listed in hopes of getting help..

Oh Weah! Weah! What a bunch of Entitlement Babies! All the hard working Americans owe you everything. Let’s run away from our responsibilities and hang out over seas and leave the remainder of us holding the bag. Thanks Carl, you looser. Did you ever hear of a community college? Ever think of living within your means? You know something you whining losers. I had to do it too. Worked my way through 4 years of school. Took out loans and paid them back in full and early. Why you ask? Because I am a Real American who wouldn’t sit around wallowing in his own self pity begging for a Government handout. You on the other hand would rather tell me that I some how owe you an education twice as good as mine. No wonder you can’t get a job that will pay your bills. You have a $70,000 education, learned no responsibility and have no marketable skills. Since the school failed you maybe you can get your money back.

My husband and I graduated from college with two teaching degrees (his high school education, mine elementary education)and $100,000.00 in student loan debts combined. Kevin and I also have a 2 1/2 year old daughter and worry that in the future she will live “without” because Mommy and Daddy work in a job where we will never be able to make enough to pay off our student loans and live a comfortable life at the same time. We have not defaulted and have faithfully paid our minimum balances, but it is getting more scary each month and soon we will not be able to make our basic bill payments each month, let alone buy groceries and gasoline. We are the teachers who give 110% to our community in raising their children and in return we are slapped with a lifelong pile of debt. It hurts deeply.

I have about $150,000 in student loans. I have my dream job so I don’t regret my choices. What I do regret is that I didn’t educate myself on borrowing from the government. I did not realize that you can’t reconsolidate your federal student loans. Once you’ve consolidated you are stuck with that rate. Yes, I’m paying 8.25% on my $150,000. If anyone sees any way to help -Please post. I’ve been paying off my loans since 2000 and am scheduled to pay until 2024. There has got to be a better way. I rarely spend frivolously and don’t contribute to the economy the way I could, if I had a lower percentage. I want to pay my loans but being stuck at 8.25% is overwhelming. Can anyone help?

Thank you CNN for running this story. I’ve tried contacting state representatives about how the student loan system is crushing us, but I’m just ignored and the threatening phone calls keep coming..

Here’s my story:

My family didn’t have money for me to go to school, so my only option was to take out the maximum students loans, both from my state and the government. I also had to pile on credit card debt just to pay for books.

Like most optimistic teens, I assumed the nine month post-grad leeway would be enough time for me to secure a job that paid a resonable wage.

Instead, post-college, I found myself in a job market I was ill-prepared to navigate. My nine month leeway was spent trying to find work and once repayment time came, I was back living with my parents and my student loans were in deferement.

I finally got things under control, was making payments, but was in no capactiy working in my chosen career field (and the reason for the huge debt). So I made the decision to move back to where I could get a foothold on my career.

Once again, finding economically-resonable pay was difficult. I struggled through temp jobs, freelance positions and paying insane amounts for gas a month just to do three jobs that let me barely get by. My student loans all had to go into forebarence and deferment again.

I found a steady job, but was drowning in my other financial obligations (car payments, gas, credit cards, etc). I tried to get my feet under me, but then my student loans came after me.

In the three years since I moved, I’ve paid off my car and all my credit cards (thanks to a debt management program). I’ve landed a full time job that pays pretty well, but the bane of my existence keeps hounding me everyday: $600/month in student loans.

Since part is state and part is federal, I cannot consolidate them. Since I already faced difficulties, I’ve used all my deferments and forebarences. In fact, I’ve had the companies tell me straight out there’s nothing thet can do to help. I’m getting harrassing phone calls 8-10 times a day. I had one collection agency threaten wage garnishment (which would possibly lose me my job, and then where would they get their money?). I can’t declare bancruptcy because I was good and didn’t rack of consumer debt.

I can pay the monthly amount, but it leaves me no wiggle room to do repairs on my car; it’s killed my credit so I can’t move closer to work, which is causing hardship on my car and gas bill; and worst of all: I can’t move forward in my career because I don’t have the money or credit to buy the equipment and training I need.

Also, I don’t understand why, when I’m still up-and-coming, I should be throwing away $600/month on the intrest of the loans, making no actual impact, when I could be putting that money to better use in getting me employment with significantly better pay that would allow me to meet my debt obligation?

My parents, grandparents and brother are all getting phone calls. I explain the situation to these collection agencies and they don’t care. I offer smaller, more afforable amounts, and they tell me to borrow from rich relatives.

It’s made me very depressed (but I can’t go to a doctor, I have to pay my student loans) and there’s no way out. I have contemplated suicide over this, but I’m afraid the debt will just move to my parents.

I just wanted an education and the opportunity to work in my chosen career field. (Which actually is a field that pays very well, if only I could get a foothold. And honestly, it’s my student loans completely blocking my way from getting anywhere).

I’ve even apologized to these companies for not being a rich kid who’s parents just paid for it all.

And it’s hard for me to understand, how in an economic climate like this one, why the governemnt would want to continue strangling the core consumers post-college looking to buy homes and start families or spend frivolously in their youth..

This is a serious problem and needs to be fixed. Now I know living abroad may help with this, it’s something for me to consider.

Student loan debt should have been addressed at the beginning of this economic crisis. These students are the ones who are new to the job market, and newcomers are often told no to jobs especially when the economy is bad. Oh, I remember the early 70’s. I noticed a hole in my income in those days when I was looking back at my social security benefits the other day. We were waiting at the pump, and educators were talking about environomental education only to be laughed at and dismissed for such liberal thinking. Now we would think those people would be conservative.
My son is trying to repay some school loan that he took after his father’s lingering illness and death, for as a parent with family illnes, I did not have the income to pay additional school bills during that time. The creditors lie and refuse to give what they offer to the students. When every one in our town lost their job, my son notified the lendor that he was out of work, but the creditors did they stop, actually, they got worse. Now they are screaming default, garishnment, (that is stupid when you do not have a job) they even want to stack on an additional $8000.00 for collection and attorney purposes which is a third of the loan amount. All that forebearance and deferred payment, and interest bearing payments only stuff will be up to the will of the creditor. You can not get all of these benefits even if you were promised such things as a grace period. We were told that it is up to us, the creditor, if you get what? What? Also, grace periods may become a fairy tale with some lenders.
As a parent I have spoken with the creditors, and they threaten, harass, and refuse to do what they promised. What are these elected officials doing “who are so nice and everyone likes”? Oh I see the officals warm the church pew and tell mean jokes which makes them liked by all and then they get elected forever. Please vote them all out, so citizens may have decent choices when selecting our leaders.
Good luck to all students who are smart enough to get into higher education. You will be disliked by all those who can not or do not want to get in, and these people want you to suffer in this country which should offer free higher education to our citizens. If your school does not offer you career options and meaningful ones, then, that school should not have students who are studying under loans. At that point we get back to just giving a good education to those who can pay. We must have people making educational decisions who are “educated” educators or even an educational statesperson who has been in the process and understands in order to take appropriate action for all our children.
Babs

I took out a small student loan in 1983 with the understanding that I had a fixed payment rate that would begin approximately 6 months after I finished college. WRONG! The payments began the week I finished and were THREE TIMES the amount I was told they would be! Something needs to be done to regulate those that issue student loans. They are worse than the payday loan places. At least there, you know upfront exactly what you have to repay. I know many people who took out student loans and not a single one of them is paying back the amount they were told they would be! They flat out lie to you, anything, to get you to take that loan. The payments were so high and I was not yet working in my chosen field that I had to default and they took the payments from my income tax refunds. That was fine with me, at least they were off my back and the debt was gone, but for a while there, it was horrible. I received calls all hours of the day and night and my employer had to threaten them with a lawsuit to get them to stop calling my office when they told her she was “stupid” when she quoted State statutes that said that when a bill collector is instructed not to telephone you anymore at a specific place, they have to stop or be liable for damages. And you know what – I wound up going into a completely different field!

I graduated with an MBA and $72,000 school loan debt last year. I now have a 60K job, a part time teaching position which pays $6000/year and my husband has a 50k job. Yes, we make over $100,000 – but the bills match the income even though we continue to live frugally. We’ve already made nearly 10k in school loan payments over the past year could have made more had we not had to spend $600/month in gas to commute to work. Now it looks like significant layoffs will be happening because of the credit crunch, which could easily affect my full time position. My health has taken a beating with the long hours, stress and severe environmental allergies , so significant health care costs are really starting to kick in. I am not in much better shape – in the realm of finances available on a month to month basis after the most basic, required bills – as when I made $8/hour as a large animal veterinary assistant. And now I am sicker, more stressed and concerned about the student loan debt with the job market dwindling. Provided I continue to be employed at my current income, we should be okay. If not, what then?

I keep hearing about plans for people with bad credit who took out huge mortgages getting bailed out by the government. I have perfect credit, I live in a modest home (which may now be worth less than the mortgage), I went to a modestly-priced school, worked while in school and have done everything I can to be a responsible, hard working person. Why is it that those of us who have worked hard and made the responsible decisions are suffering because of people who made greedy decisions in the stock market, and yet are not in the plans for any kind of relief as is Wall Street, or those who made irresponsible decisions in taking out mortgages well above their ability to pay? I am really quite frustrated that hard working, middle class people are being unduly burdened on all fronts – bailing out the greed on Wall Street, bailing out bad mortgages and continuing to pay for generations of people to not work. What happens when the middle class decides that it can no longer carry this unwieldy burden alone? Societal collapse?

Both parties commenting in this section have answers that are right and wrong. If you take out student loans in an industry or field, like mine for instance is theology, you will need to realize that a house is out of the question. When I look at my statements, I say to myself, “This is the house I chose to live in.”

My wife, my two children, and me live in rented housing and know how to get by on less. Even the Americans commenting above who think they know more than the next guy, could use some lessons themselves on living a better and satisfying life. This brings me to my final point. Stop being so ANGRY, America. It leads to mindless discussions that lead nowhere.

Just to provide for fyi, my field is Theology. This is one of the lowest paid teaching fields in higher education, usually starting around $35,000 a year with a PhD. I have over $130,000 in student loan debt. It’s my problem. My school raised it’s prices 18% over four years while I was there. I wear no new clothes and buy only the necessities for my growing children.

What makes it had for students now is not just increasing tuition, but also the skyrocketing cost of health care. When you go to school, you need insurance and it is usually not good and very expensive. I found out I have MS while in school. Big deal right.

I’ll make it, but it won’t be easy. So, for the mean people in this column, lay off; you may not know the entire story. For the people who are making more excuses, learn and live and communicate to those loan companies. They have to adjust their payments to hardships.

Unfortunately the costliness of our education system which has as it target market recent high school graduates really burdens them for the rest of their lives. While private schools may cost more than state schools, most anyone in the middle class needs loans to cover the cost of either. Later graduates, who successfully make their payments often have to choose jobs they hate, move to places they don’t want to live (because pay—and costs, may be better) and become anchored for years for a debt incurred during 4 (or less with graduate students). It requires a level of awareness of the system that many people simply do not have and with one misstep, one’s financial situation can suddenly become very precarious.

I have gone through undergraduate and graduate school and worked at a university. The system where universities expand endowments and upgrade facilities only so the next marketing brochure looks pretty while increasing tuition at rates that consistently outpaces inflation is morally bankrupt. Meanwhile federal loans cover a decreasing percentage of financial aid packages. Federal loans are a challenge to pay in themselves, but the private loans are really terrible (interest rates). I had one myself and beat my head against the wall until I finally paid it off.

Student loan debt is not dischargeable—at least not since the early 1990s (apparently enough people found that an attractive alternative before which is why that road was closed). Private loans, because of their education-related character, are not dischargeable even though there are fewer protections for the borrower than a federal loan.

I have seen students and their parents confused by how to finance their child’s education, knowing it will affect them a long time. I have also seen graduate students stay in school to avoid going back into repayment because they see no alternative (the cost of being a part time student is less than the interest that would otherwise accrue on subsidized loans). It is not an efficient system nor does it allocate the future efforts of graduates well.

The system is broken. Those of you who have paid your loans or never took one out, consider yourselves blessed. If you want to round up those who haven’t been so lucky and prosecute them as criminals, you do a disservice to the potential they have to make social contributions—and you’ll probably end up with more people than you can imagine. At some point, reform will have to happen.

Until then, I think going abroad is a completely reasonable alternative for some people. The idea that one could be nearing retirement and still dealing with student loans taken nearly forty years before in which they have made good faith payments is ridiculous.

Those of us who worked several jobs while going to school fulltime and are still going to school have absolutely no sympathy for the people in this situation. Some of us, never got to go to a big university fulltime, public or private, party on the weekends and live the life of Reilly. Live up to your obligations like a man and pay us taypayers back.

Is CNN trying to make us feel sorry for the guy who lived for free off of someone else’s money, got a college education, then skipped out on the bills by leaving the country???? Whatever happened to personal accountability. When someone else loans you money, you need to pay them back.

Personally, I am glad people like this are leaving the country. Hopefully, they will never come back.

What a pathetic story. “Poor me, I can’t rip my lenders off by declaring bankruptcy.” The system might be broken, but the lack of honesty in business dealings by too many Americans is the real problem.

Be a man of your word and repay your loans. I am tired of people blaming the lenders for predatory practices. 90%+ of these people knew exactly what they were getting into and chose the easy money.

Nearly 30 years ago, I was the first of 5 children to attend a 4-year college. My hardworking blue-collar parents were incredibly proud of me for gaining admission– my dad, for the first time in my life.

Then my dad died.

Even though the aid package for junior and senior years was nowhere as attractive as for the first two, my mom insisted I stay because my dad would have wanted it that way. And I loved the school, and was doing well.

I graduated into a recession. I worked minimum-wage jobs– it was the best I could do. We didn’t live in an urban area, and I couldn’t afford to move to one for a better opportunity, not right then.

The monthly payments were NOT what I was told they would be. I payed partially, every month, but that simply triggered special hostility from the collection agencies, which began their relentless assault within 6 months of graduation. I was making payments!

I did not know my rights at all, didn’t know creditors had rights. They called neighbors. They called employers. They laughed (seriously, laughed out loud) at my jobs and income, and called me names, and threatened me and my mom with losing “everything we had.”

That was almost 30 years ago. It’d be dramatic to say that it ruined my life, but the whole incident had a lot to do with limiting my future, and dictating my present meager circumstances.

Obligation is obligation, but there should be a way to work out a better way!

As a teacher in Las Vegas I need to continue my education in order to advance up along the pay scale. I currently hold a master’s degree which will top me out at 50,000 after 9 years. I will be stuck at that level until I get three more years of schooling that will get me to 67,000 after 14 years. By the time I am finished I will have spent 9 years in school and over 80,000 without the interest. Finacially it is not making sense anymore to continue being a teacher when I can make a substantial amount more in other fields with less education. I can’t afford to do what I truly love.

I think the posters who criticize Chris don’t realize the extent of the problem. Although I agree an MFA is not a ticket to riches, the fact remains that even in sectors with a high income potential students are saddled with tremendous debt.
I am a lawyer. I went to college and worked very hard to get grants, scholarships and fellowships and in the end although I went to an expensive private college I left with less than $10,000 in debt. Not a bad deal. The problem came when I decided to go to law school.
Anyone who looks at the Bureau of Labor Statistics (or even reads a newspaper) would be inclined to think law is a profession where you can earn a lot of money. In Manhattan the starting salary for associates at top firms is $165,000 per year, not counting the signing bonuses. That’s the only thing that makes the $100,000 of tuition (financed with loans) worth the risk. What nobody tells you is that to get those jobs you have to have graduated at the top of the class from one of the top 15 law schools in the United States. For everybody else you are lucky to find a job paying $65,000 per year to start. More common are the starting salaries at small law firms that pay around $30,000 per year…and people are taking those jobs because there’s nothing else. Law is a profession of haves and have-nots, but everyone pays the same tuition and has the same burden at the end. I personally spent the past 5 years fighting to stay one step ahead of my creditors. For a year I was unemployed because I graduated at a time when all law jobs were hard to find. There was no legal work in Connecticut except work as a Temporary Assistant Clerk at the courthouse making $15.50 per hour. The janitor at the same courthouse makes $15.00 per hour. I moved to Maryland to try my luck there on the promise of a robust legal market in the Baltimore/DC corridor. No luck there either. Even if there were jobs to be had, they don’t extend them to people who aren’t from there. (In fact I met a lawyer in DC who quit law to become a plumber.) I had to move to New York City to become a Temporary Attorney just to pay my bills, and that’s where I’ve been ever since. As long as I stay a temp I will never have clients, I will never go to court, I will never do legal research, and I will never do what I was trained to do in law school. I will live in constant fear that my job will be outsourced to India. (No, that is not a joke. Corporations and law firms are hiring agencies who send vast amount of American documents to India for relevance review by Indian attorneys with quality control being done by supervisors trained in American law.)

I will make just enough money to pay my creditors but not enough to save to buy a house, and I will die in debt. Sadly, I am still one of the lucky ones.

Before you start thinking that being a Temp Attorney is a cushy job that still lets you be a lawyer, read the blog temporaryattorney.blogspot.com. I can vouch for the truth of at least the Hughes Hubbard / Dechert project because I was there.

$160,000.00 for a Masters degree in MUSIC? You have got to be kidding me? What job did “Chris” expect to get after college that would EVER have allowed him to be able to afford a $2,400.00/ month loan bill? What degree did “Carl” receive? Art History? Life Science?

“These are people new to borrowing and they didn’t understand what they were getting into,” says Mark Kantrowitz of Finaid.org,
Does this sound familiar to any of you? We are now punishing those who work hard. READ THEIR LOAN documents so as to know what they “are getting into” and will now be asked to pay higher taxes to “spread the wealth around” to those who didn’t bother. Or obtain a degree which would have allowed them gain employment and pay back their loans. Any poster to this story who feels sorry for these 2, and thousands more, must be voting for a democrat for president. Good luck with that. I hope you are all happy when it is YOU have to do more with less in order to help out “poor, poor Chris and Carl.” They have no one to blame but themselves.

My private loans from NYU are 8.9% and 9.5%-more than a mortgage! And yes, Salliemae was giving them kickbacks, too!

While I don’t agree with running away from your student loans, I can understand, I have over $50k in loans. For the first few years out of school I was irresponsible and did not pay them, put them in forbarrence and deferment and avoided them as much as possible. then I finally got what I thought was a good paying job, and started paying them. But know I live paycheck to paycheck. The problem I have is in dealing with the loan companies. I have federal loans and private loans, the federal loans I make my payment once a month online and there is no problem , its like clockwork, the private loans are the problem, it went into default and I have been in the default recover program for what seems like forever.these people treat horribly, I tried to set up a way to pay online but was told that I could only mail my payment or call over the phone. I was told When I made a 6 payments in a row on time I would be moved out of the default recovery program, only to find out Wen I did do this, that they didn’t do it and when I asked about it, they said I was a few days late on my last payment. I have had multiple different account reps seems like a different person every two months, telling me a million different ways how I need to repay my loans and most recently haven’t been able to get a hold of the of the company at all. the still sends me letters but they have the wrong due date. the due date is from 5 yrs ago. I call and leave a voice message, and no results. I am trying to repay my loans but what can you do when you can’t get a hold of them? its just really frustrating. I wish there would be something done about this. If the government can bail out wall street, then I think its only fair they bail out these people who are drowning in student loans. If I knew 12 yrs ago what I know now, I would have never gone to collage and saved myself from dealing with this headache.

I know how it feels to be in private student loan debt. I am $99,000 in debt! Currently, I am not paying my debt because my payments have reached $1500 per month. I am expected to pay this amount plus the cost of living so I pay rent instead. Now you can all say that if you can’t afford to go to school just simply do not go and live within your means, but when I left for college I went with a dream for a better life. There were other options but I wanted to go to the best school and make the most of my education. I am not sorry that I made this decision. I too have thought of running away to some other place and every other way to get out from under this debt. I go through this kind of despair every day.

There is certainly a need to reform the way student loans are handled in this country, both public and private and I am a true example of this. I know there is a financial crisis in this country but most people do not realize that college grads are just getting the worst end of this right now. What are we going to do here in the next few years or so when every college grad is going out into the world with massive amounts of student loan debt and just cannot seem to get by. I fear that the incentive to get a higher education will dwindle away and America will slip even further behind the rest of the world.

I really wish that the presidential candidates would address this issue because this is part of the financial crisis. Financially, I am in worse shape today than I was before I left for college and to me that says a lot about the state of this nation today. Thank you CNN for posting this article because its about time someone is listening.

Don’t want to be insensitive but stop WHINING and take individual responsibility. We have forgotten about the ability to endure and persevere. People forget that anything worth having often takes time. I had to repay my loans, and it took several years, but when I looked back if I had managed my lifestyle better and lived more within my means I could have paid my debts off sooner. For many with the limited ability to look beyond the next day, next week or next month, I am sure looking at years has to be daunting. It probably seems unfair that you have to work years or decades to pay off what was spent in a few years of fun and hard work so early in life, but I fear the mentality shared in their offspring if individual accountability is not learned and proven through experience. There is life after 30 and more life after 40…for most of us God willing 30-70 more year’s worth. Pay off your debts, enjoy life day to day and look forward to the many years you have down the line instead of constantly worrying about tomorrow.

I have always been a believer of fiscal responsibility. I remember when I came into this country 10 years ago, my wife and I lived on 15000/year for 2 years in on of the most expensive places, New York city. In the end, we not only did not owe any new debt, we managed to pay back the $3000 debt we borrowed before we came here and actually have more than $3000 in our bank account. How did we do that? We did not buy any new clothing, any new furniture and never eat out for 2 whole years. I look down on people who earn more than what I did and complain that they cannot pay back several thousand dollars’ worth of debt. They are just not willing to do it.

What all of you have failed to realize is that the US Government has given most of you an opportunity to clear your debt. The only problem is that none of you want to do this. What am I talking about, Serving in the U.S. Army for a minimum of 3 years and 60K of your student loans will be wiped away. Now let me get this straight you paid 160K for a degree in music? Stop and think about what you did for a moment. As for the woman living in a trailer in AZ. nobody can take your SS check away from you and if you went to college and listened you would learn that in a simple government class. I am so tired of listening to all of you complain about how nobody taught you what kind of debt you would be taking on, it was not like the loan officer put a gun to your head and told you to sign. All it took was a simple calculator to figure it all out. As far as the people who left the country and refuse to come back, thank you and please stay away. With more of you leaving it will be less competition in the work force.

Bull! The thought of college graduates with no sense of responsibility is both absurd and obscene. If one takes the debt and the opportunity to be educated within the system, one should HONOR his debts. What about all of us sixties products who struggled for years paying back loans? No sense of responsibility, no honor, and even less good sense. What are we teaching these “freeloaders?”

Whatever happened to personal responsibility?

For both Bachelor’s and Master’s degree I was so paranoid about getting into student debt, I completely avoided student loans.

While I had to stretch out my degrees into longer periods of time, I was able to work my way through both degrees not taking on debt (my undergraduate was at a state school, my masters at a fairly expensive private school).

I find people as “not responsible” taking on so much debt without going into a career that pays like law or medicine.

It took me 15 years to pay off $80,000 in student loans. I feel for these people as it sucked paying most of my income to pay the debt off. I rent and refuse to go into debt again, it was a horrible experience. Don’t take out student loans.

I don’t get why it is such a well-kept secret that pretty much ANYONE who is having trouble repaying student loans can re-consolidate with the Direct Loans program and qualify for an income-sensitive payment plan…It is horrible to imagine that some graduates go so far as to expatriate and default on their loans when a little paperwork could make their lives much more manageable and allow them to put those expensive skills to work here in America until they’re making enough to pay off the investment in their education.

I understand what the people in this situation are saying, but it was a choice they made when they agreed to these loans. This is the housing “crisis” all over again. If you can not afford to pay the loan, don’t take it out.

There should be a limit on the amount of loans available to a student based on the future earning potential of the career track indicated by the degree they are seeking. Taking out $160k in student loans to get a music degree is insane, based on average salaries in this profession that person will have to spend a good majority of their career paying these loans back.

Also, the loan programs should look at a students grades before continuing to make loans. If reasonable progress towards a degree is not being made no further loans should be given to that student until they prove they are making reasonable progress towards a degree.

If I get $50,000 loan that’s what I am going to repay. Interest should not be more than 1% otherwise this is thievery nothing else.
I see so many churches around me but in daily lives there are so many crooks who don’t want to work only live from somebody else paying high interest loans.
Go back to your Christians roots again people and stop with this greedy mentality.

I went to a school I could afford. My parents, who were divorced, graciously offered to pay some of my expenses. Even WITH their help, I needed to work and I did so, working 3 jobs. I still have student loans. What jobs can people get at 18 and 19 that pay well enough to pay the ridiculous cost of education? When I graduated, I took a job in my field, at $9.00 an hour. My loan payments were $260 a month, couple with my rent for a one bedroom apt. in a seedy part of town, a car payment for an extremely used car, and the rest of the living expenses that go with life. I ate mac and cheese and tuna and pbj for many months. I had my car break down, people break into it, a gas line burst in my apt., etc., etc. And yet I still had to scrape enough money together to pay my loan. There was no relief whatsoever. I am still paying off my loan and will until I am 68 years old because I had to put it into forbearance twice. Why? Because my daughter was born with a medical condition that has had her have 4 surgeries so far. Her condition requires me to care for her and not work outside the home. Because of the forbearance, my payments are even higher than what they were before. And my field? It caps out at about $14.00 an hour (that’s the government pay) and deals mostly with people who are suicidal and stressed over the economy. It makes me sick to my stomach to pay what I pay and the loan agencies really don’t care. Plus, when you DO try to talk to them, you speak to someone in India which is where my loans have been outsourced who has even less compassion and, sorry to say, is hard to understand. And yes, I have friends from India. So for those who want to throw the first rock at those of us who actually have lives and all the warts that go along with it, go ahead. I wish I had your perfect life. And I won’t throw a stone at you when it all comes tumbling down. My colleagues will probably talk to you when you call our crisis line.

Living overseas is not a good option, I am doing the reverse… I am 31 & have a student loan in another country and live in the States. After a few years of real poverty I have begun to repay my loan so I may return “one day”, even as a retiree.

I honestly feel anyone my generation or younger has been essentially bullied into going to college, by the education system itself. We are told we will be nothing, losers, unemployable if we don’t go on to tertiary education, and as a 17yo the decision is made, with promises from high school and college counsellors that payments will be low and making money with a college degree is easy.

Statistics have shown most high school grads think they can make $100,000 a year after graduating, but the reality is closer to $45-$50K.

I believe in personal responsibility but saddling a 17 year old with this choice is irresponsible and has resulted in ridiculous student loan burdens worldwide.

These people took the money to get an education. They need to pay. What is the difference between the CEO’s who took advantage of their own companies and ran them into the ground and these “students”. Get a job and start paying your bills!

I am sick and tired of hearing that they cant pay back their loans and thats its not their problem. They took out the loan, they have the education, sorry folks but you have to pay your way. I did, I worked full-time instead of taking out loans, I made it. You made your choices now live up to your obligations.

With 60 billion in default, maybe student loan collectors should work like other third-party collectors: negotiate. They might get more back. Settling for less is better than getting nothing. With their ridiculous fees, a defaulter is better off having extra money withheld at their job. The large tax refund will be kept for the loans, but will only be applied to principal and interest.

Can we as Americans please be accountable for something. People buy way more house than they need and at the first signs of trouble, they are asking for the govt. to bail them out. These knuckleheads get a master’s degree in music at a cost of over $150,000 and then bail on the loan companies. Now they are whining because they don’t have the government to bail them out. Have some responsibility and don’t over obligate yourself. We, as Americans, need to become accountable for our actions. (Or they could join the military…they will pay off your student loans.)

The mentality of younger people leaves me staggered! This is exactly why the bailouts should have NEVER HAPPENED. Everyone needs to grasp the concept of living within your means (banks, consumers, everyone) Those of us that had parents who lived thru a depression were taught the value of living within our means. These kids lived high on the hog on borrowed money(rather than working your way thru college like alot of us did), now that it’s time to pay the piper, they’re crying that it’s too expensive for them to do so. These kids have to realize that they are stiffing others who in good faith lend them money to get an education. This is so pathetic. Go out a and get a job and pay your loans! This is the generation that we’re expecting to pay into the systems of Social Security, etc.???? Sad, sad, sad.

Question…Did Carl have health insurance? Wouldn’t that have allowed him to continue to make his loan payments? No one can predict the future, so health insurance is a must. I’d like to hear more details about Carl’s lifestyle and spending habits.

My wife and I have taken out $300,000 in student loans (as a lawyer and psychologist), and we have yet to see how difficult it will be to pay off in our lifetime. I anticipate minimum monthly payments will be $3,000 for 30 years. We will probably be renters for the next decade. I am trying to find a job and am collecting just enough unemployment to continue eating food. We drive old beater cars, and live a pauper’s lifestyle. Yay for education!

They gave these loans to kids before they were mature enough to realize what they were doing. Forget parents permission, they just hand you checks and don’t even ask what you plan to do with them. No counselor to talk to you, no nothing.

For me personally, I was REALLY immature at 18 (early 90’s) and took loan checks to pay for pizza and for my friends to have a good time. I never bought one book with that money. A few grand turned into tens of thousands of dollars of debt and you know what…F-em’. I feel that I was taken advantage of by a system structured to manipulate children (much like the Visa sign up tables you often find in college) and now they want a mafioso like return on it. I paid my CC debt and pay every one of my bills, but I will never, EVER pay a dime to those awful institutions.

If they want the money I spent back… sure why not. But they will never, ever get triple. Also, they have all these rules you need to follow if you want to consolidate and a million different lenders have your loans… just to make it tough. I’m forced to have everything in someone else’s name. That being the case… I’m willing to live forever like this if I have to.

I feel bad for the people that need to flee for 60,000 worth of extortion money…. I’d LOVE to be part of a class action.

“You can get into $150,000 worth of credit card debt and you can declare bankruptcy and you can go on with your life. But with student loans, you’re being punished for being a better person.”

How insulting

I am in the exact same sitation and I live overseas in the Russian Federation. Have lived here for a year now. It’s not my student loans (yet) because they are in forbearance but the other creditors. I’m hoping to ride out the statute of limitations and go back and start a new life.

People need to take responsibilities for themselves. It is ridiculous that we are in this credit situation and have to bail out the irresponsible.

I have over $70k in student loans, just bought my first place a year ago and have a new car, nothing fancy in either case. I don’t make a ton of money, under $50k a year. My mortgage is only $400 a month because I was able to cash in on someone else’s mistake and buy their forclosure. It is all my responsibility and I don’t expect handouts from anyone. Yeah things are gonna be tight for a couple years for me but the rest of these kids in this instant gratification generation racking up all this debt is affecting all of us.

Most kids these days have to have their computers, i-pods, etc. and then can’t afford to pay the real bills. Start prioritizing and shopping around for better rates. Nobody should be paying 7% on a student loan, or a car or even a house, that is crazy.

I graduated with 65,000 worth for just undergrad. I want to go to law school where I will incur even more debt. Will I be able to defer payments from my undergrad debt while in law school?

I stopped paying loans of two years attending an over priced art university about 10 years ago, I got out realizing the burden I was getting into after a crushing mental breakdown at the age of 20, I realized a lot of the starry naive hopes of beig a rich artist was not going to be aided by continuing classes, or have a steady art related job soon enough to pay this crushing debt. I had attempted to pay back these loans for the next three yars then began having my wages garnished. Then began being harrassed when I had lost my job due to issues beyond my control. I left the country with I don’t know how much more debt, my family is below the poverty line, and so am I, but I am happy painting pictures under a palm tree in a sunny place far from the overbearing arrogant, soul stealing beasts of consumerism that treat you like you are less than human if you can’t afford a car. Rule of thumb for all artists (with talent or none) art school is a rip off. Get out while you still can !!! Save your soul from the parking lot landscapes of fear and ego maniacal arrogant naysayers who believe in nothing but the power of their pocketbooks and look down on you because you are too sensetive to live in their “real” world of mundane, monotonous, monetary monstrosities. Don’t believe the hype! Create your way out of it! trade, barter, join communities, your home is your heart. Don’t let the sleeping masses pull you into their conformity, these debts are imaginary and paid for something equally imaginary. Stay hidden, stay away from people without souls… Pay back your debt to yourself and learn from the immensely beautiful world they keep from reaching you.

Both my wife and I just finished paying off our student loans. During the years after we earned our degrees we sacrificed buying the new car, house, plasma screen, etc. Many of our friends that are complaining that they can’t afford their student loans while they are keeping up with the Jones at a young age.

We took these loanes. Lets get real folks, this is a higher education that we have earned. Not understanding how the repayment works or underestimating our monthly payments is pathetic and a poor excuse.

Taking out $150k in loans for some degrees is a losing proposition from the start. When you pick your major you should be very aware of what the pay scale at the end of the day for that discipline. It is great to chase your passion, if you are ready to sacrifice in other areas.

These loans are the lowest interest rate debt that you can have. When we had issues getting payments made or had an interuption in income we picked up the phone and acted like adults. The lenders will work with you.

I remember sitting in a room for 2 hours to become eligible for my first loan. There with another 100 students we listen to the lenders talk about every aspect of borrowing money and the resposibility that we were taking on.

While I will acknowledge that there are some cases of repayment that are unfortunate and pull at your heart strings, the majority of people in default should have listened better…

This story is a joke. These grads are just lazy and unwilling to work hard to pay for the benefits received. I had over $60k in debt coming out of school in 2000, and my wife has over $80k in student loan debt now. Sallie, Nelnet, etc are willing to work out payment terms with just about anyone. For example, my wife makes a small monthly payment. However, the payment term is over 50 years at a 3% interest rate. I personally believe that anyone that would duck out on their personal obligations this easily is not someone that I want living next door to me. Thus, it is best they stay overseas.

Tricky issue. I think reform is needed. First, people who are signing on the dotted line here are so young; second, many don’t have any other options. If you think someone paying so much for a music degree is ridiculous, then what are the 95 percent of people who don’t go into I-banking and law supposed to do? I mean, in my estimation, that is the way things are going–those and medicine are the only careers where you are guaranteed to make a ton of money these days.

I am as capitalist as they come but putting 90 pages of fine print on a loan in front of a 20 year old who just wants to go to college is obviously morally bankrupt policy.

I really believe the government should provide zero interest loans to people seeking education, especially in light of all of the money we spend overseas, bailing out all those “responsible” i-bankers and mortgage lenders now and everything else.

I owed $24,000 in student loans when I graduated, now up to $32,000. I pay 300-400 a month, but sometimes miss a payment…not complaining but it does suck.

If i had it to do over I probably would have gone to University of Michigan rather than Northwestern.

“To get your student loans discharged, you must file an undue hardship petition….In about half of cases of people who do file for this hardship petition, debt will be partially or totally discharged, says Kantrowitz.”

What a crock. I do not say this in a broad generalization, I say it from reading the opinions of the Courts in rejecting applicants “undue hardship” arguments time and time again. “Undue hardship” means in this day in age that you have had a major car accident and are disabled, or one of your organs failed, etc., serious life changes only.

I carry about $115,000 in law school debt which I pay timely, every month. Sallie Mae offers forbearances, deferments, etc., but the interest almost always keeps computing. Good luck making an “undue hardship” argument; it really is not a viable option and you will most likely have to litigate the issue.

Of course, to get a $50,000 plus student loan on art history, music, anthropology you must be a fool given your average starting salary.

Just my 2 cents (or $850/month payment)

Given Carl’s choices and behavior – he not only hurts himself, he hurts the University – and the other RESPONSIBLE students who want to earn a degree and live RESPONSIBLE lives – either here in the US or abroad. Shame on you Carl. CNN should turn this guy in – in the end, we all lose. Very sad.

I like the heading at the comment section: “Are you saddled with huge student loan payments you can’t afford? Have you defaulted on your loans and evaded creditors? Post a comment and tell us your story.”

Shouldn’t it be, “Did you have a loan that you paid off by making sacrifices day after day, year after year? Did you make responsible decisions and live within your means (missing out on a big house, or a fancy education)? And now are you just a tiny bit miffed that you are being asked to pay more in interest rates and taxes in order to bail out those that choose to skip town? Post a comment and tell us your story.

Fat chance

Some students borrowed because they really need, to, that is my daughter, the loan is paid off, thank God. Some students (mostly foreigner with student visa only, student loan application screening hopefully has improved)borrowed then left the country. It is not true that these students get these loans “naively” as the reporter says. Higher education should be made affordable and student loans should be regulated as to abusive collection fees and interest rates. Release of student loans should be in increment to ensure that the loan is used to acquire a degree or a certificate to prepare for work.

This system is called “debt for diploma” and it is simply wrong. Even state schools’ tuition is high enough that most students will require loans. Student loans were deregulated in the early 90s and this allowed for more lending but also helped colleges raise tuitions unchecked. This is not “living outside your means” if you are trying to get an education that is necessary in this economy. I see student loans crippling my generation. Our parents didn’t need loans for college at all. Read the book “Strapped” to find out more. I will forbid my kids from getting student loans, I would honestly rather they didn’t go to college than live their lives in debt.

For some it sounds like you were well aware of what you got into before hand and ignorance isn’t an excuse to get out of your obligations. However, my son’s experience was an eye opener to how many schools, trade and universities now have their own financing and loan departments that are suppose to be of benefit to students but are really just there to rake in the monies for the schools at whatever cost to the students. Again deregulations and the fact that government entities that once were put in place to help students obtain higher educations without extreme burden such as Sallie Mae are now “for profit” businesses. If our children and future generations are unable to obtain an education and stay here and pay for it then what does that do for our country. This is everyone’s problem not just those with loans, or children with loans, the unpaid debt hurts us all and our future is bleak with out futher education.

Did “Carl” get his student loans from the mafia? Because I can’t think of another reason he and his family would be in danger. Private banks get judgements against you for defaulted loans, they don’t come to your house and put a bullet in your head.

What this generation is learning:
1. I don’t have to make sacrifices or take a second job to pay back my debts
2. Someone else should pay for my education so my lifestyle isn’t effected
3. If I can’t make my housepayment and pay for my new cars that I have borrowed for, oh well. I can walk away.

You have been given opportunities more than any generation before you and you don’t appreciate it.

This is our future leadership?

This is an interesting story and I can see both signs of the coin. Truth be told, if you’re 18 and signing papers for a loan you had better do the research. Know what you’re getting into. I went got my bachelor’s and master’s degree depending highly on student loans. Once finished, I consolidate, took advantage of the grace period, and selected payment plan that fit my financial status at that time. I have my loan almost half paid off. Don’t be naive, loans companies are out to make money, check your rates and options available if you can’t find work.

Guess these folks that wanted the good paying job, but wanted someone else to pay to get them it should move out of the US. America is not a free ride people, pay the money back, it s what you agreed to do when you gladly took it. I never had the privlidge of finishing college sadly, but I did pay back all the money owed with interest on my student loans. Why? Cause I agreed to do so. I didnt get the good paying job since I didnt graduate, but I did keep my word. Something more and more Americans seem to think doesn’t mean anything. To these fellow Americans overseas, come home, is the message I send. Your hurting your country, you know where your family and friends live. Your loans aside, we miss you and we miss your tax dollars. But when you get here, start paying those loans off. Call them set up a plans, tell them to garnish your wages, keep your federal income tax returns. Basically, be honorable to your word, and do everythig you can to pay the money you borrow back. TRY atleast, when did Americans start giving up and running away for their problems. I want to be proud of my fellow countryfolk, thing lie this make it hard to do so.

This is silly. Nobody made Mr. Private University go to school there. 2 years at a community college and 2 years at a local university worked out just fine for me. I worked while I was in school to pay for my housing and necessities and took out about $30k in loans. They will be paid off in a few years and I’ll be free and clear. The point of this is: just because you can get the money doesn’t mean you should get the money. Just like with the housing debacle….

Unfortunately many young folks entering college have little or no sense of money management. This, I believe, is the fault of parents and a banking/business industry that keeps telling us “Yes, you can afford it”! It should be us telling them what we can or cannot afford. Unfortunately we allow ourselves to be lulled into thinking “buy now, pay later” is an acceptable standard of living. It is not!

Unfortunately an education is not a right. Nothing in our Constitution indicates that. And certainly nothing says we have to go to the most expensive schools that we cannot afford. Work hard, study hard and some sacrifice will net great dividends in your middle/elder age. Running away to another country to avoid your civic responsiblity is just plain wrong and un-American.

$160K for a degree in music? Are you nuts? What were you thinking? Sounds like you had a great time in school… welcome to the real world now.
I just finished paying off my schools loans 2 weeks ago. I did this almost 2 years earlier than my repayment plan required. How? I bought the Ford instead of the BMW, the small less than $100K house instead of the $300K house… I think you get the picture.
I understand that the school loan system is not perfect. However, if you don’t abuse it, you can still make it work for you. I had $49K in loans from getting both a BBA and MS degree in business. My payments were $482/month. I did survive while also starting a family. It is possible. Just use some common sense
I agree, it should be required for students to go through some type of debt/credit counseling when taking out student loans – at least someone could paint them a picture of the real world before they get too deep. However, going to expensive schools to get degrees with no earning potential is not very smart unless you are either rich or on scholarship.
As for the arguements about other countries doing it better than the US, just look at where students go to school these days. We still have a large population of foreign students attending US schools. We must be doing something right. So, don’t blame the schools!

I am surprised by how much money people think they need to go to school. I went to a state school in my home state where my tuition was around $2,500 a quarter. Now I am enrolled in a larger state school for a masters degree where tuition is around $4,000 a semester. Thanks to my grades and hardwork in school I am able to receive 100% financial support with assistanceships and scholarship. Education is not a right it is for the people who are willing to work hard and pay their dues to get a head.
I am shocked that some comments say education is only possible for the rich. My parents made around $70,000 a year when I was in high school before my dad was injuried in a car accident and nleft them living on my moms $30,000 a year job. To no fault of their own I have had to find ways to pay for college all on my own and have to date $11,000 in student loan debt with a BS degree and 1 year towards my masters. Education is a privilage NOT a right.

Finally, I was waiting for an article like this one because I have been talking about this subject for some time now. It has never been a matter of not affording school or whining about what it takes to pay the school debt back, it is the fact that to make it financially it takes a college education. I worked a full time job through four years of a private college and had a partial scholarship to go there because of my grades. I lived at home, was frugal and went to GRADUATE SCHOOL while doing the same thing (working and living at home). I graduated with a Bachelor’s in Psychology and a minor in Criminal Justice. I was in the Honors Program Curriculum with only four people. I presented at Honors Conferences, graduated Summa Cum Laude, which means with a GPA of 3.9. I graduated with my undergrad degree in the top of my class. That is how I had the merit to go to graduate school. I knew to be qualified and taken seriously I would have to go to graduate school. I have student loan debt total of a little over 100,000. I took on that burden with every intention of paying it back through hard work and a new job with my degrees, qualifications, and skills.

I graduated from graduate school with a MASTERS IN ORGANIZATIONAL LEADERSHIP. As of now, there are only two schools that offer this degree and it can be applicable in virtually any environment. It was more important to go to graduate school while I was young, had the time, and was without any marriage or children. I knew it would be that much more difficult to go back to school later in life. That was my decision and no one should have it held against them to make that decision. It was the best one for me and everyone has to make decisions as to what is best for them. If an opportunity is provided someone such as a talent, expensive school, career, to not take up on the chance is ludicrous. Simply because individuals of the population are born into one particular social and financial status does not mean they should have a limited amount of options concerning life decisions such as where they go to school. There is having a balanced budget at home and a balanced budget on the national and international scale. IT IS NOT ABOUT THE MIDDLE CLASS BUYING THINGS THEY COULD NOT AFFORD
Now, I cannot find employment in this depressed economy ( regardless of the fact that no one will even admit recession) and my grace period will be over by next summer. I WENT TO SCHOOL FOR EIGHT YEARS FULL TIME WHILE WORKING FULL TIME. It was not fun and games for sure and I TAKE MY RESPONSIBILILTIES SERIOUSLY, but what am I supposed to do??? There are millions of us without jobs available here or jobs being created here so as per usual people have had to make some important life decisions. We have families and friends. Leaving the nation is a difficult decision, not an easy one, and has less to do with affordability than survivability. People are committing suicide over their student debt and that is the ultimate sign of the broken system we have here today, AND A PITIFUL SIGHT IT IS.

I NEVER THOUGHT THERE WOULD BE A MIGRATION OUT OF THIS COUNTRY, but with the choices the government and the large corporations knowingly and willfully made, the young, skilled and talented have to leave their nation in order to make a living.

The folks interviewed in this article are idiots. I agree with those of you promoting individual responsibility and living within your means. There are a few respondants posting that education is our right and that Costa Rica has education for free. Nothing is free bone head; someone has to pay for everything. I’d like to point out that goes the same for tax rebate/welfare checks. I’m a K-12 educator and I knew what my earning threshold would be, and this was all my choice. You shouldn’t have to pay the $50K I paid for my BA and Masters. However, you can bet I’ll be teaching your kids how unfair it is to demand from others while producing nothing. Giddyup!

While I’m not quite ready to leave the country, I am being crushed by my student loans. I went to law school, and now my loan repayments are more than every other living cost that I have combined. Frankly, I don’t make enough to pay it. I’m particularly upset by the fact that when I went to law school I was approved for loans until the last semester of my program at which time they told me I needed a co-signer. And then I was refused a loan for the prep-time for the bar exam. Had I know I would have need a co-signer or would be refused for a bar exam loan, I never would have gone into the program at that time. I feel like I was deceived into assuming this debt. The other reality is that there will be 40,000 new law school graduates this year, and there aren’t 40,000 new $100,000 a year jobs being created for those graduates. The value of an educational program should be weighed comparative to its value in the job market, and there’s nobody or organization defending students in regards to the cost of education. Additionally, schools are very disingenuous in its ways of luring students into their programs with promises of how value the degree is in the workforce while simultaneously stating that they are only providing an education and not job stability. I think it’s ridiculous that I would be given such a huge loan for education when I wouldn’t be deemed qualified for such a loan if I applied for one to start my own business or buy a home, which doing so may have provided me with more long-term security. Educational loans as they stand are largely sub-prime in nature themselves. Finally, I think this just goes to show that education isn’t a value in this country, but feeding the economy, creating a wealthier tax base and running higher education like a lending business are the real goals.

I payed off my student loan. Did I like it? NO, but I did it. I lived pay check to pay check for many years. Some months I would run out of money befor my next pay check. I would do without. I lived in a crappy little apartment. I left my car parked and road the bus to work. I learned to do without. So to all you free loaders out their, get off your fat ass, and pay your own way.

Keep it green

What a bunch of garbage. This story reflects the ridicules times we are in where everyone feels sorry for themselves and it’s someone else’s fault for the debt they are in. Tough beans if this person has high college loan costs, at least they have an education, now go use it. People today talk as though they are the only ones who ever had to struggle. 25 years ago I was poor, paid my own way through college, started out $30k in debt (which is equal to $70k today), I worked hard, did not overspend, paid off my loan over 10 years, and today I’m doing well, have a nice 401k and making good money because of my degree. So, stop whining and go to work…

Higher education is one of the few commodities where the quality of the “product,” i.e. the degree, changes very little from year to year, while the cost continues to go up. My entire life I dreamed of becoming a college professor. I worked three jobs throughout my undergraduate education, AND borrowed money to get through. I eventually earned a Ph.D. in biochemistry (a supposed lucrative area) and I now I’m in the equivalent of extended training. I’m paying off my debt as our country’s national labs are slashing jobs, big pharma is shipping jobs to India and China, and the National Institutes of Health budget is stagnating. I’m at the start of my career at a time when the number of available jobs is diminishing.

My point in sharing my story is that no one can predict the future. Even getting an advanced degree in science (which our leaders seem to want citizens to do) does not guarantee finding work. My heart goes out to those struggling with student loan debt just as I am.

Maybe the part the “system” that’s “broken” is Chris’s brain, the part that thought it was a good idea to borrow $160,000 to get a degree in music. And he’s surprised he doesn’t earn enough playing the violin or whatever to pay it off? Duh.

Why didn’t he invest that time and money getting a degree in something that is actualy useful, like engineering? You don’t see many engineering students fleeing the country to avoid their debts?

The only people who should be taking out $150,000 in loans are those who know they can pay it back, like doctors, lawyers, and maybe some other high earning professions. $150,000 for a music degree is a bit high – actually a no-brainer for default. If the bank (or govt.) doesn’t properly screen student load recipients for risks, then it’s doing the same job it did with mortgage loans – handing off the debt to the taxpayers.

Letter to my Son,

When I was your age, I decided I wanted to go to college. I was not smart enough to realize that this would cost money so I went to the place I wanted to go rather than the place I could afford. When the bill came due, I hid like a child because all that schooling didn’t help my irresponsible brain. Then, from a safe refuge in a foreign country, I complained about how someone else was responsible for the outcomes of the decisions I made. I was hoping someone would let me declare bankruptcy so that I could get a free pass. What a greta country you might get to live in some day.

PS: No it didn’t occur to me that maybe I could serve my country and repay my debts through public service… I was too busy making music so I could get on MTV.

I would’ve defaulted on my student loan but Sallie Mae has a pretty good program. Two years ago, I had an unfortunate accident and suffered form a broken back. Out of work, for a few months and with medical bils, I stressed about paying my rent, car, and student loan payments. My job helped with eveyrthing and I got paid while I rehabilitated, but th emedical expenses cut into my ability to pay my sutdnet loan. I called Sallie Mae and they gave me a deferrment for a year. Their program allows for up to 5 years deferrment, no questions asked. Interests accrues during this period, but you don’t have to pay the loan during the time as long as you ask and are granted the deferrement. Without that option, things would’ve spiralled. If you’re in trouble or can’t afford your loan, look into consolidation, ask about deferring your loan for a short period, and, most importantly, talk to someone who holds your loan. they should be willing to work something out because, otherwise, they lose money, too.

Just another example of the lack of personal responsibility. The loan companies are required to give a letter of “disclosure” to every loan recipient. No one can claim to be surprised by the repayment amounts. They signed a form that said that they understood this. Most likely, they didn’t read the form. Everybody is in such a hurry for instant gratification that they don’t even worry about delayed consequences.

The other issue at play here is people’s choice of education. I’m sorry, but even with a Master’s degree in music, you are not going to make $150,000-$200,000/year. The only way to make that kind of money in music is to have incredible talent and be “discovered” neither of which requires an education. If you want a degree in the arts, that’s great. The world needs people like that. But understand that you will not make a ton of money doing so.

I have over $150,000 in student loan debt. However, I incurred this debt financing a career that I knew would allow me to afford to repay it. By the way, I also incurred this debt while raising a family of 4 children. My wife stayed at home and did not have any significant income during this time. It was very difficult and I wouldn’t want to do it again. However, with the goal in mind, we would make the sacrifices again if we had to.

To those that complain about the “relief” that those with consumer debt can get though bakruptcy and how it’s not fair, I agree with them. However, what is not fair is that the system is set up to allow people to escape their responsibilities. I feel that debt should not go away with bankruptcy, but should be restructured to make repaying easier. But you should still repay the money you borrowed, even if it takes you the rest of your life. That is the responsibility that you took on when you signed the loan.

The world, and primarily the U.S., has become a place of victims. Nobody is willing to accept consequences for their actions. Things happen to people rather than as a result of their own choices. What a pack of lies! The world does not owe me anything. Nor is the world against me. I live in a place where I have the opportunity to make choices of my own free will. However, I should be willing to accept the consequences of those choices. And if I don’t know what the consequences are, then I should wait until I do. I support our government and pay taxes because a great country like this requires some way to finance itself. However, my taxes should not be used to take care of someone refuses to take responsibility for themselves.

I am relieved after reading this story to find I am not the only one in such a frantic state (though i would never leave the country). I am from Cleveland, Ohio- grew up in a family with not a lot of means- if I wanted to go to college it was up to me- Not going to college was not an option- so I had little choices- Most of the money I had made at my job in high school had been used to help my family pay for living expenses, and while my grades in school were decent- I only received 1 scholarship for $1000. So when I went to a local public college- my only choice was to take out loans- I worked all through college, to pay for my apartment and living expenses- I splurged one year and went to spain for the summer to study and take classes as i was a spanish minor (Social Work major)- but I managed to graduate from my undergraduate school in 3 years, with a 3.8 GPA- Having a Social Work degree I knew that if I had any chance of making a decent living I should go on to Graduate School- I decided to go to the school of my dreams- Case Western Reserve University- which has a prestigious social work program- I loved my time there, and because of my good grades I was able to join the accelerated program where I finished a two year degree in One year. I thought I had done pretty well- I managed to get a substantial amount of scholarships from Case- but being a private school you can imagine the costs.

Now that I am out of school- I am working in a job that is not the job of my dreams but I knew with all the loans I have I had to have a job immediately- I make 33,300 a year (with a masters degree mind you) – and while it is not the job of my dreams, I love social work and I am passionate about my clients and the work I do.

However, I recently found that with all my loans, I owe 90,000 dollars- and I am expected to pay somewhere in the neighborhood of 1000 a month- I think this is just absurd -and do not see how i can afford that- I am getting on an income contingent plan- but next year I am getting married and the amount I pay will be based on two incomes- with both of our incomes, car payments for two people, insurance for two people, rent, utilities, groceries, etc. We make just enough to pay all of our bills and go out once a week. I wouldn’t say we are struggling – but we are just making it. I do not know how things will be when my grace period ends.

While there is a new bill out to assist civil service persons with loan forgiveness- it is still shaky – and the terms are that your loans (ONLY FEDERAL MIND you ) – are forgiven after 10 years of repayment (without any screw ups) -which means you would definetely have to get off of the standard repayment plan to even have anything left over after 10 years. I do not trust this flimsy bill and fully depend on myself to figure this all out.

I think the main problem is that kids coming out of highschool need to be better educated about what they are getting themselves into- but also there has to be more assistance- for kids put in the situation I was- with no help from any family or any savings -etc- there needs to be something there to help them- I believe it is the right of every child to attend college in our country- especially in this day and age- where college is no longer an option but a necessity.
I do not deny that it is my responsibility to pay back these loans, but I do wish that there had been more help out there- and considering the work I do, and my salary- there should be some assistance or forgiveness- Now-
But in our economic times I really do not expect much to change or improve no matter who becomes president.

I’m begining to think student loads should be backed up or co-signed. Also, would some performance quarantee such as a base SAT or ACT be out of the question? I think this fellow with the $160,00 loan has to be at least a crimal for de-frauding multiple lenders with his sad story.

I don’t dismiss the idea of educating students more about taking on debt and what it means for their future, and I recognize that people may face unforeseen challenges like medical problems. But the idea that people can run away from their debts is just another sign of the times–like our recent bailout. People need to take responsibility for their actions. It may not be easy, but that’s life! The rest of us end up footing the bill.

I can relate to the folks in this story. I also left the US. One I lost my house to foreclosure and found a better paying job overseas. I paid my student loans every month until I could afford it no longer. Cost of living and taxation is so high here, there was nothing left over. I too am petrified of returning home only to be hounded by debt collectors day and night. How is anyone supposed to make it in this climate?

I was in a car accident one quarter before graduation. I filed for a deferment (as I lost my job due to the accident), but in the confusion following the accident (I suffered a traumatic brain injury), I must have done something wrong. Student Aid began pursuing me doggedly, telling me that I hadn’t correctly filed the deferment request and was, as a result, in default. Bye-bye BS degree, bye-bye credit rating. I moved to another state, but they followed me, having me served with papers in my new California apartment. I made payment arrangements, but was so poor at the time that my payments ($150 a month) weren’t enough to cover the monthly fees and interest. In other words, my balance was increasing even though I was making regular payments. Student Aid finally drove my spouse and I into bankruptcy. No, my debt wasn’t discharged, but it got them off our backs for five years, which gave us the chance to get on our feet, make some gains in the workplace, and get other debts paid off. I’m now paying over $300 a month, and will be for another ten years. If I could offer just ONE piece of advice to new students, it would be this–DON’T do it! Find some other way to pay for school, be it jobs, work-study employment, grants, scholarships, pan-handling, exotic dancing, whatever. Just steer clear of the loans–Student Aid may not have kneecapped me, but my heart tells me they wanted to.

i have four college degrees! two are masters degree!! i make 50 thousand a year, own two cars and a home by the beach!! i am still paying my loans from 1986!! if i can’t pay i have either consolidated my loans or ask for in school deferment or i would just apply for a forebearance. i have never defaulted and i owe about 80k. i am proud of my education and also proud that the government was able to finance my schooling. thanks american tax payers!! i am pursuing a PHD next year and that will cost another 40k and I do not care. I love to learn and i am ashamed that people run away from their debts. they are educated now thanks to the taxpayers and they ran away and are living on the fruits of what their education have earn them. this makes it harder for future students to get aid!! i am disgusted that people run away from their obligation! come on!! did you not read “this is a loan and must be paid back”?? you are all dead beats and should be ashamed of yourself!! i am glad i am not your mother!!!!

I was hoping Uncle Sam would come along and bail us out… no wait, we’re not the elite. The 60-year-old CEO’s who have already made millions are more valuable than the people who’ll be hanging around for longer – people who are the real backbone of the US.

Just yesterday, in one of my classes, we came up with a regression model: how many CEO’s get paid [the millions] based on their companies’ profits? It was appalling to see that only 1.5% do. This was based on the data we collected for about 150 companies.

I can understand how quickly someone can rack up student loan debt, but when you are in college you are no longer a child but an adult. I an a graduate student and so far I have only 11,000 in student loan debt because I work hard in class so I can receive tuition waivers and scholarships for my grades and I work a job after class. I am able to support myself, my wife, and son on around 24,000 dollars a year. The problem with student loans is a lot of students see them as a way to pay for school, rent, and everything else so they do not have to work. I do not see why anyone should be $160,000 in debt with student loans esspecially if they are a music major. You have to remember not eveyone will leave college making $250,000 a year and plan for your future.

Finding oneself in a financial crisis can happen to anyone. That’s when the rubber hits the road.

I was living paycheck to paycheck for 9 years out of college. I had a modest $17,000 in student loans and paid my minimum monthly payment. Then 5 years ago, I got sick and was hospitalized for a week. Fortunately, I had plenty of sick leave built up and was able to take some time off to recuperate. Unfortunately, I had started using credit cards and had maybe $10,000 in car loans and credit card debt. When I got sick and couldn’t work….I didn’t work for a full year….I wasn’t very smart about my debt and stopped making payments when my money started to run out. I did take a job overseas. And less than a year later, the creditors found me. At first I was overwhelmed by the amount that my debt had grown to….$70,000. But I worked it out with each creditor and began making regular payments. It was terribly difficult and I had never lived on so little in my life. But I sent home 80% of my income every month and have for the past 4 years. And now I’ve nearly paid off all my debt. I have paid off $55,000 so far and feel fantastic about what I’ve accomplished. One creditor allowed me to pay them a 60% pay-off. They were happy to get that amount than nothing at all.

I never gave up and made my goal to be debt free. I’m nearly there! I don’t care how bad your debt is. We all think its insurmountable. You have to learn how to live, often times, below your means until your debt is paid off. All my money still goes to pay off my debt and that’s just the way it is. I got myself into this mess. It’s up to me to get myself out. No one plans to end up in deep debt. But sh*t happens and you have to deal with it.

Probably the two things I did that got me into worse trouble was to not call my creditors when I knew that I couldn’t afford my payments. And then waiting a year before I sat down and faced the reality of my debt. Not facing the truth won’t make it go away. But even after I defaulted on all my debt payments, all was not hopeless even though it might have seemed that way to me at the time. Never give up!

If you borrow money and don’t pay it back, you are a thief and are guilty of fraud. And, if you leave the country to avoid paying you loan , then you are guilty of flight to avoid prosicution. You should just stay where you are, because we do not want you back! Good riddence.

One way to fix this is to only loan enough money to go to school for 6 months at a time. Once that gets paid back than you get to borrow enough for 6 more months. If this happened than maybe people would use the money they borrow for school and only school.

Ditto –living overseas too – mine’s about 100K due have no idea how to pay it off – single with no resources nor assets

What don’t people get? When you take out a loan you are expected to repay it. If you don’t understand the terms of the loan you should not sign the papers. If you haven’t figured it out yet, the financial institute is in business to make money not give it away. They really don’t care about you, just that you will pay them back.
I understand that higher education is expensive. If you go to a state\community college than government has some control as to how much of our tax payer money is used to off set tuition costs. If you chose to go to a private school than my tax money should not fund your education. If it does than I as a tax payer expect you to repay me. It is quite evident over the years, that the Liberal Political Correct agenda has lead to the Right of Entitlement.
I realize that there are extenuating circumstances that place undue hardships on people. When your choices contribute to the hardship, you need to take responsibility for your actions.
When we bought our home we set the price range we new we could afford. When we qualified we did not include unreliable income such as overtime money. Over the years my employer, an International computer\service provider, has restructured our pension plan from a tradition plan to a Cash Balance plan and now to a 401k based plan. With these changes my retirement income keeps changing and not necessarily for the better. Each year I have to contribute more and more to company provided benefits. My employer also regularly utilizes “resource actions aka layoffs” to consolidate the business. Consolidations include off-shoreing jobs to foreign countries to reduce expenses, while at the same time receiving government tax breaks. Although though my employer posted record profits last year, and announced 3rd qtr profits, pay increases have been minimal at the “worker level, while execs have received exceptional compensation.
We still pay our bills because we chose to live with-in our means. Economic situations under the current Administration have led us to cut back on our spending. We still chose to be responsible for our financial commitments.

Many of these replies are despicable. Entitlement, blame, blah, blah, blah.

this country economics are in the crapper because a great majority think that freedom = entitlement. Get a clue. If you think you can go to the best private school and end up as a social worker or teacher and afford your school loans, you’re nuts. The problem comes before and during high school. Kids choose to go into these ridiclously low paying yet admirable professions, but they need to think through the financial aspect of their decision and adjust things. You aren’t going to afford to pay off your $150,000 school loan on your own. Plain stupitdity. Not enough common sense or realism in this country.
Stop blaming the government for your problems. Start looking in the mirror. Personal responsibility. My parents both graduated with music degrees. Both teachers with one eventually getting a MBA and the other masters in education. They lived on what they could afford. They didn’t gripe to the government or flee the country. If you can’t afford something don’t buy it. If you can’t afford LA, SF, or NYC then move to somewhere where you can. Their are ALWAYS options.

Yeah i have $170,000 in school loans out of med school and will be able to pay it off. Chose to go to a state school because i couldn’t afford the out-of-state tution or private school tuition. I have no empathy for someone with that much (or more) in undergraduate loans. Use your brain. There aren’t very many jobs that pay well enough to afford payments on a loan like this (with a Bachelor’s). I liken it to the kids who think they are gonna be professional athletes. It’s possible, but not realistic.

I agree with some of the comments. QUit whinning you big babies. You had to have a degree in MUSIC. What good is that…..unless you are planning to run your own label….which isn’t going to happen over night. My wife and I are maxed out but we are staying and fighting to make ends meet. $60 billion in unpaid student loans is putting a lot of pressure on banks too. Atleast they can recoup some of the mortgage money thru selling a home. There is nothing to get back except maybe the kids diploma with a student loan, and that is as worthless as the paper it is written. I have a degree in business and almost 20 years of experience and since I lost my job due to the company going out of business it hasn’t helped me get a new job at all. Now I am either over qualified or lack a certain experience to get what I want. Allowing these student loans to go into default shows a total lack of responsibility on the persons part. Although, that is the American way when it comes to paying bills…..lately.

Maybe a fed. work program would give these students another option, or millitary service. No more bail-outs.

I apologize now if there is bad grammar and punctuation. This is a heavy issue for me and it works it’s way into every facit of my life.

I was always told while signing my private loans that i would be able to consolidate and it will all be fine. I was given estimators to figure out what my payments would be, and what my wage out of school should be around. I never borrowed beyond what i believed i could pay post graduation. When i graduated sallie mae and most other lenders got rid of the consolidation option all together and the lenders that didn’t either had terrible scam-like terms, or they said my coborrower and i didn’t make enough money. I put my loans into forbearance (which you are allowed 24 months of through the duration of the loan) and will have to again this upcoming January. I went to a expensive private design school as well… which every semester raised its fees and cost per credit hour. Now, with the economy the way it is i work 4 jobs and 7 days a week. One of them keeps on cutting back hours because of slow business and i’m at risk of losing that job. Luckily for the time being i can pick up extra shifts at my other jobs to compensate. No firms are hiring people with little experience, and i’m looking at a $1400 a month payment for the next 30 years of my life. Before i graduated it was $500 with consolidation and i could pay that and live. This is not right. i dont think that in this case it’s as simple as everyone must have borrowed beyond their means. I did everything i was supposed to do, and went by the information provided to me by my financial aid advisor, the gov’t, and sallie mae. I wasn’t allowed an option for loans through the gov’t beyond stafford loans (which are still allowed consolidation), and I was told that i was guaranteed consolidation after graduation. My roommate only had Gov’t loans, and defaulted, adn was able to consolidate and have payments based on her income. I wonder to myself how does that work? I haven’t defaulted and i’m not allowed any such option. Something needs to change with both the lenders and the schools. I’m 27 years old and dont want anyone to bail me out. My parents can not afford to help me out and shouldn’t have to. Everyone should be allowed a higher education not just the super wealthy. Every time i talk to sallie mae someone suggests that i ask my parents for money which i find insulting and not a solution. The system is flawed. I look at myself and wonder when i wont be so stressed out, when i will be able to sleep a full night, If i can afford to request days off here and there, if i’m goign to lose a job because of the economy, if i’m going to be able to pay my gas bill this winter if i do, and weither something is going to give so that i can consolidate my loans because my forbearances are running out. I tried to make a better and more fulfilling life for myself, i did very well in school, love doing the work, and now i’m starting to envy those i know that never went to college and just work whatever job pays the bills. I find it impossible to go a single day with out almost getting sick to my stomach thinking about this and i wonder if this is how it’s going to be for the rest of my life.

Hmm…being of poor, Midwestern, working class stock, I couldn’t even begin to consider going to an expensive school even with my excellent HS grades, so I worked, got grants, and took out loans to a relatively small amount, and went to state schools. I also went to grad school by working at the school full-time and taking half-cost grad classes at night. I have a pretty decent career now, and, as I write this, I’m not on the lam in a foreign country; in fact, I’m sitting in a nice bed and breakfast looking at the water and planning my bike trip today. So all I have to say is: Too bad for these dolts who are in debt. That’s what comes of having to “keep up with the Joneses.”

My student loan debt: $35,000 in private loans and $50,000+ in federal student loans.

Right now, I have 3 loan lenders; 2 private (Sallie Mae & ACS) and 1 federal. I’m making payments at one of my smaller lenders for a private company (ACS) of $72/mo. I had Sallie Mae and the other federal loan on deferment/forbearance. But now, Sallie Mae wants me to pay over $380/mo even though I’m making my other smaller payment. When I spoke w/ Sallie Mae CSR, they said that its another lender so they don’t care if I’m already making payments elsewhere since I’m not paying them.

I really don’t know what to do. I’m a wife, mother of two small children and the major debt that we have is our mortgage, daycare ($95/wk x 2 = $760/mo + $110/mo for preschool), and a small car loan ($165/mo) that we needed to get since our 96′ car was breaking down all the time. So either way you look at it, we were probably spending $165/mo anyways.

My husband and I work full time and even if I quit my job to stay home, we would still be in the same boat that we are. I’ve been doing some research on filing Chapter 7 and according to the Means Test that they request for you to take, we would qualify for it since we’re under the Median in South Dakota ($66,000) for undue hardship.

This would be our only way out even though we know its hard to discharge student loans but we have to try before my student loans make my family sink further and I wouldn’t let that happen to burden my family b/c of these corrupted loans.

Unfortunately schools aren’t forced to use their tax free endowments to help students

But you bought it you financed it now pay for it. It isn’t much different that a house. You got value (education) in exchange for money.

The Bankruptcy Code has never sanctioned discharging student loans unless one is literally parked on a ventilator, and even then, the Code has overwhelming requirements that must be established before student loans are discharged. Basically, one has to die or promise to do so, to get student loan debt discharged, a rather high hurdle.

I am a bankruptcy attorney, and I have never heard of a financial hardship application that was granted. This is wishful thinking. Medical yes, financial, no.

The Code needs to be amended and soon.

Consider this: homes are being foreclosed at record rates by fraudulent lenders. If the house cost $300K and is now only worth $100K, the homeowner has no equity in the house. The house is foreclosed, the homeowner moves out and the bank sells the house for $100K, the balance of the deficiency is discharged in bankruptcy. All that changes is the occupant in the home and the original buyer is punished. However, they do not have to pay back the deficiency.

Student loans, on the other hand, are sacrosanct to Congress. For some reason, young people, incapable very often of comprehending the financial consequences of their student loans, are burdened to their graves with collection activity, including garnishment on bank acccounts, wage garnishees, no credit (obviously,)interception of tax refunds, and and inability to get married or have a family. At a certain point, repayment converts from a reasonable expectation for receiving an education to a lifetime of indentured slavery.

Whatever happened to the Thirteenth Amendment?

There has to be a better way to resolve the issue of defaulted loans. The aggressive and relentless forms of collecting bounty on these borrowers’ heads is not a successful or humane strategy for either the borrower or the lender. This country did away with debtors prisons centuries ago, but they still do exist, as the comments here indicate.

The comments of those who arrogantly proclaim their moral superiority for not having fallen into the trap or having health or family problems which contribute to their financial downfall, have no fear, their day will come.

Amend the Bankruptcy Code and make significant changes in the lending underwriting guidelines, and for goodness sakes, put a cap on the amount of loans!!!

STOP LENDING SO MUCH MONEY TO psychology, sociology and other social work Ph.D. candidates, who clearly will never, ever be able to pay back their loans.

Establish a forgiveness program for majors where the expertise is needed to strengthen this country, the hard sciences, medicine, technology and teaching, in particular.

Congress can do anything it wants, and has chosen to be the handmaiden to the banking industry. It found $700B to bail out the banks, but not a penny for student loan debt. A disgrace.

70% of our economy is based on small business. Student loan debt is destroying small businesses at an astounding rate and leaving families and individuals destitute, for life. This must be addressed by Congress, just as debt by homeowners, on credit card debt and other unsecured debt concerns have had legislation either passed or pending. Until student loan debt is dealt with in a realistic and practical way, this country will continue to circle the drain.

WAKE UP CONGRESS!

For all the whiners who threaten to jump ship to another country where “education is free” – please do so.

If you prefer the government of another country, then by all means: move there.

If you prefer to vote and change this country, then by all means: do so.

Until then, be responsible for yourself and your choices. Don’t undertake financial obligations without being genuinely committed to fulfilling them.

You poor things, I feel so sorry for you all. You see, I worked my through without help from Mom and Dad and without foolishly borrowing money that I knew that I would have to pay back. Stop bad mouthing your creditors, you signed the contract and spent the money. Not paying back a loan, weather it is for education or a car, is just plain wrong!!

Your article is very misleading. It is true that some leanders making private student loans used predatory practices and play fast and loose with disclosure. But most loan programs – and all of them that take feredal subsidies – offer hardship deferement options and under-employment (i.e. your load payment is too large a fraction of your gross family income) is one of them. So is undexected medical expsenses. All that is required is to apply for deferement and re-certify eligibility anually. I know several prople who have had their loans on hold for years. Also, if a private load is not government subsidized, it can be discharged in bankrupcy, just like any other form of consumer credit.

When I was in college, I had to take student loans. I didn’t take all that was offered, because I knew that paying them back would be too burdensome. So I took only what I needed for tuition and books and worked to earn money for rent, food, etc. Yeah, it was hard, but I only incurred $15K in loans. It was not too big of a struggle to pay them back. Many of my peers took over $100K in loans and used the bulk of the money to live the big life in college. Now they can’t earn enough to pay them back and are in trouble. So let’s not attempt to place all the blame for this mess on the big, bad loan companies. Most people are in trouble due to irresponsibility and unrealistic expectations of their future earning power.

It is my observation that people with college educations tend to have their common sense degraded in proportion to the amount of time they spend in the academic enviornment. The comments from the degreed thiefs here is some proof I am correct. Unless I miss my guess you experienced a “free ride” environment at the university and now you are hoping to perpetuate this life style on the backs of the taxpayer and folks who WORK, save and invest. Hiding in another country will put you among people that will hold your activity in very low regard. Think your are so smart? Then prove it, take any job and start paying off the individuals who thought you were good enough to invest in. Or were they wrong?

The student loan officers at some colleges are quite simply unqualified and are just giving money away with a “sign here” attitude that can get many a young student in trouble. When I was in graduate school they would literally try to argue with me to take out more money for “living expenses”. Now when you are in your early twenties this doesn’t sound like a bad idea. Also, they NEVER spoke about what your repayment amounts would be – literally, just sign here…. Now, I was smart enough and only borrowed what I knew I could pay back. I was also fortunate enough to have my parents help, but that certainly is not the case for everyone. It is very easy to see how many people get in over their heads. Also, when you do graduate and try to call the loan company you often get the dumbest person in the world (who is probably getting paid minimum wage to answer the phone) and they are of no help. One of my staff members who called gave the “loan officer” her monthly mortgage (very modest home), here monthly expenses (no plasma tv’s here – basics like food, gas, gas/electric) and showed them there was no way she could repay $600/month. Her advice? The loan agent seriously said “You will figure it out, honey. People do it all the time.” Okay, seriously? This poor girl already works 2 jobs. The student loan system is seriously broken. Perhaps the people who are giving out the loan advice both before and after the borrower’s signature are the ones who should spend a little more time being educated.

It’s a shot to the heart and a slap in the face when you realize you can barely afford paying back your student loans. I attended one of the best state schools on the east coast, graduated with a B.A., and now owe over $120,000. I knew at the time I was borrowing alot of money but I felt I was making a worthy investment into my education. To this day, I hold the deepest regret of attending an out-of-state school. I can barely make monthly payments and I’m struggling to land a career. After reading this article, I feel the only way out is declaring bankruptcy. This decision will ruin my future. I dug my own financial grave.

I think this article is a bit misleading as anyone with defaulted student loans know. Filing for bankruptcy on student loans is near impossible. The collectors call nonstop. If people put their college loans all on credit cards they could easily have it all discharged. As for going to a cheaper school.. wow.. how ignorant of a statement is that! Either you’re really rich and can afford a ‘good’ school, or you’re really in poverty and get all sorts of aid, Pell, Tap, etc. Middle class America is once again screwed.

Left the country so they would not have to pay their bills. Good! Dont nedd them here anyway.

This is what’s wrong with this country. Everyone thinks that someone else is to blame for their misfortune. If you couldn’t have paid for your school of choice, then you shouldn’t have attended it. Why should the rest of us have to pay higher rates because of those who chose to shirk their responsibility. I have to wonder what kind of lifestyle these fugitives are living. They probably don’t want to give up their luxurious lifestyles. Americans need to take more responsibility for the things they get themselves into.

I’m disgusted that he said he is “being punished for being a better person.” Actually, like the rest of us, he is just being asked to return they money that was loaned to him for school, to the rightful owner.

The person in this article acts as if he has the right to borrow all that money and not pay it back; this attitude just infuriates me. He feels that he should have paid for his college education with credit cards so then he wouldn’t have had to worry about paying it back. Well, if you can’t afford college, maybe you should not have gone. College is a privilege, not a right! WHATEVER HAPPENED TO PERSONAL RESPONSIBILITY INSTEAD OF BLAMING ANYTHING AND EVERYONE ELSE FOR YOUR PROBLEMS??!!!

I’m going to a public University. My cumulative GPA is currently 3.896. I owe around $42K so far, with one semester left to a double BA. Knowing full well I will have to incur even more debt and next get a Master’s to even be employable.
It’s absolutely disgusting- the system is beyond broken.
I have decided that in political protest, I shall not pay back any of my student loans until Lehman Brothers, AIG, Fannie, Freddie, and so on, have paid back their debts in full.
If America is to move on to this new Socialist paradigm, hey, I’m all for it, but I want to reap some of the benefits too.
I still may have to worry that my Mom is eating cat food this month because she can’t afford her meds, but at least I should be able to better our family’s future through education, right?

You have got to be kidding! You were loaned the money to go to school and agreed to pay it back. Now, step up to the plate and figure out how to pay the loan. Get two jobs, stop getting Starbucks, CUT down and try to remember that you owe this debt. That is part of being a mature individual.
You took money from someone that would have put it to better use. Like being part of the U.S. workforce, paying taxes and making this country a great free one.

The most pathetic part about this whole story is the students actually thinking that it isn’t FAIR that they should have to pay off a loan.

What kind of generation am I growing up in? When you agree to the terms of a loan, receive and spend the money, and then decide you “can’t” pay it back so you move out of the country? How about a little personal responsibility? Find a cheaper school. Find a cheaper loan. Find a grant or scholarship. Find a job during college.

The enormous distortion of “wants” vs. “needs” is going to bankrupt my generation, both morally and financially. Even if a college education is considered a necessity, Starbucks in your Hybrid on the way to private school most definitely IS NOT.

Grow up, pay your loans back, and make better decisions next time around.

I have a student loan and was co-signer on my daughters, who is still unable to find a good paying job to cover her living expencies and tuition loan. Well my husband passed away last year, taking us from a two family income with two income bills, to a one family income with two income bills. I called SallieMae and tried to make payment arrangements, the lady was extremelly rude and refused to assist me unless I disclosed a lot confidential, personal info that had nothing to do with the loan. Then for the past year I have been trying to get me financies settled and brought up-to-date… I filled out a form for direct debit for my monthly payment, because I am $300 in arreas they refuse to take my monthly payment that way!!! Do you believe it…they hound me day and night, I try to make payments and they refuse to take it. That’s our banking and government system…refuse to take a monthly payment plan FOR THE AMOUNT THEY WANT and they refuse to take it. WHOSE AT FAULT????

The sad part of the story is that young men and women are starting their lives in the hole already. My wife and I are saddled with about $130,000 worth of student loan debt. I look at it as a blessing and a curse. Without the debt, I would not have the job I have (I’m a teacher) or the benefits that go along with it. On the other hand, however, my quality of living is greatly changed. I have many friends who are burdened by their students loans, but luckily most are in stable professions. My fear is that, with the market being the way it is, young men and women will be accumulating these loans and graduating into a hostile job market. Without prospect for employment, how will they ever be able to repay their loans.

I came from a working class family in Philadelphia PA. We witnessed the government and other bleeding hearts hand out scholarships to people from other continents. I had to bust my hump at 2 different jobs to make ends meet. My entire family never missed a days work. When I saw the tuition rates at major technical schools, I had to turn and walk away. Why? Because Mom and Dad had taught me that if you can’t afford it, don’t sign on the line! Our public school system is a miserable failure beyond all belief. We paid billions to lawyers on the bussing issue. They taught us French, which we never uttered a word of it after the class was over. We never had more than a casual discussion on personal finances and responsible money decisions in public school. Our moron antique teacher told us that we could learn such things as personal finances in college. That is like putting someone behind the wheel in a new car at rush hour on I-95, and telling them they can learn how to drive in the future. I’ve said it before and I’ll say it again….The wrong people are in charge!

There are several aspects of the student loan program that disturb me – the most disturbing is that there is zero risk to the lender and they are still allowed to charge market rates for the loans. The other is that the record keeping of the department of education is dismal at best and when coupled with the enforcement arm of the US Government extorts unreliable balance amounts and also lumps any collection fees for third parties into the same pool of nonredeemable debt.

My debt began at $21,000. Unable to keep track of the frequent transfers of my loan holders I attempted to consolidate the loans. Only two loans made it into the consolidation and only one of the two loans were paid in full. A second attempt at consolidation successfully consolidated the consolidation loan and added more fees, leaving all of the original loans intact and in default. The third consolidation attempt added $9,000 to my consolidated loan balance and – you guessed it – none of the other loans were affected or paid off begging the question who got the $9,000 I just borrowed and how many times has this happened before to me and others. Now I sit with $85,000 in student loan debt, 30,000 of which the government says is in default, and I cannot get a straight answer from anyone.

This is not a question of living within means, as so arrogantly posted by Mike from Syracuse, it is that despite attempts (and yes, I do make my payments on the gargantuan consolidation loan) the defaulted amounts remain in dispute and I do not have the confidence that the government’s records are accurate. I make my payments and my tax refunds are taken because of the disputed defaults (funny that they do not seem to be credited since the loan amounts never change).

I love my country but I fear my government. Too big – too powerful – too stupid.

You know I still have $30,000 left on my student loans. I have been paying for 17 years and have 13 to go. I will have my house paid for before my student loans. This was for a BS and an MBA. It was a good investment and I don’t regret it, however, I would do things a bit differently now. First for undergrad, I would go to a community college for the first two years and take all the fundamental courses. No need paying a top school $2000/class when I can pay $200. Second, I would go to a state college for the rest of it. I did go to a state coolege for my undergrad and a private college for grad school. Private school is what put my student loans into a 30 year repayment. Folks no one cares where I got my degree from, they only care that I got my degree. I work for a major company and they only care about that. Don’t go for the name, go for the education! Finally my advice to the 18-22 year olds out there who are in school, get a job, work while you are in school and take 50% of your work money and put it away into a CD or something like that, then take the money at the end of school and put it directly into the principal of your loans. It’s simple money management.

Not surprised at all. I thought about leaving the country also, I graduated with close to $300k in debt from student loans (private schools) worth every penny but unfortunately my career path is not that lucrative. It stings to be penalized for seeking higher education. I see my friends who graduated with a b.s. making $70k/yr living a better life than me who opted to go to graduate school and make only slightly more. At the end of the month I am left with barely $300 or $400 to spend on food and other necessities. Life in London would be great, I would have no loans, amazing food and possibly regain my enthusiasm about my studies. I feel the U.S. education model sucks creativity out of its students and is aimed at making robots. Why are we always studying what other creative people did…we are never encouraged in a meaningful way to be creative ourselves.

I owe $145,000 to Sallie Mae and my income is not nearly what had been expected. My payment is “only” $770 per month, but with a low income that is a huge amount. My wife is from a foreign country, so we are making plans to move overseas where we can buy a house cheaply and I can teach English. It wasn’t what I had planned on when I enrolled in college, but since studen loans are not covered by bankruptcy, I have no choice other than live in poverty in the USA, or have a modest life overseas. We have chosen the latter.

my loan went into a defauly status through citi and they sent it to an outside collection agency- EDFUNDS, they put me on a loan rehab program that got my loan out of default and placed my loan back with suntrust now at a 4.5%, its a lil higher than before but i DID DEFAULT. additionally they took the default status off my credit report and make it appear as if the loan was never in default.

in the end there are options and alternatives, we just have to stop being scared of asking for the help, i feel so much better now…now i wish my american express did that!!!!! lol

My husband and I have paid back well over $100,000 in student loans over the past 8 years. What enrages us right now is the fact that these major banks and companies are getting “bailed out” by literally being handed BILLIONS of dollars from the Federal Government. WEll, I want to know who I can write to. I have paid my dues, literally. How about a bail out for the honest citizens of the US who have paid dearly for their education (which should never have cost so much in the first place if we would like an educated society)? Seriously, I would like to say, you know what, I am done my Fed. student loan payments, big government. Certainly, if you can excuse billions of dollars of mismanaged funds, what is a measly $30,000 going to hurt? That would be another $1000/month added to our home budget that I may be able to actually put back into our dire economy. Seriously, the honest, middle class citizen is getting screwed. We can afford the payback, but why should we anymore? If ex-Ceo’s are getting millions of dollars for a few weeks of work, their companies are being handed billions and they are still going to go under, what is my incentive anymore?

Regret to see a respectable news media endorsing an alarmist article. I have 2 children that have gone through college on students loans. They are in debt and did not have to escape their commitment. They are paying their loans; even though, it means having to sacrifice their entertainment time. They work more the 40 hrs. a week because the loans were made by people that trusted them. We all knew the financial rules of the USA system before entering into contractual agreements. Your article is an endorsement to the “loosers”, “cuddlers”, “savvy”. The brave work or negotiate their commitments. Are you endorsing a country with laws that run our life’s?

Join the United States Military and your bills will be paid in full.

PLEASE STOP! I am really tired of hearing of the “sad case” people who took out loans they couldn’t repay. First the people with the ridiculous triple mortgages on McMansions they thought they would make a killing on in a year or two. Poor sad people. Now they can’t pay the loan. Now students who can’t repay their loans. What did they think when they signed for the loan? Did they think it would go away? Perhaps they could have gone to a junior college for a couple of years first to mitigate the costs? Noooo…they had to stay on campus at full universities. I would wager that very few of these students did without the the plasma tv or stereos or other amenities as I did when I went to school. LIVE WITHIN YOUR MEANS PEOPLE!!!! I am tired and frustrated at doing it the “right way” and then paying for the deadbeats who want to cheat to the front of the line!!!!!!!

In response to everyone complaining that they can not refinance at a lower interest rate, if you want to constantly refinance to get a lower rate if interest rate drops would you also be okay with your bank refinancing it to a higher rate if the prime rate goes up?

As for those talking about “free education” there is no such thing as free, just be honest and say that you feel someone else should pay for your to go to school to increase your earning potential (but then you’d likely complain about the crushing tax rates you would be forced to pay. LOL!)

I have 102k in privates student loans. I took about 65K in actual loans during my time in school but they gained interest during my 5 years in college and added about another 40k to my total. The payments were 845.19 a month and i have never missed a month, However i was just laid off and now get 760 dollars every two weeks to pay my car payment, rent, medical bills, insurance, buy food and pay my student loan. Thank god i knew i could never afford a credit card.

I called the student loan provider and the best they could do was only allow me to pay my interest 625 a month, huge break huh. My savings are dwindling fast and Iam afraid what will happen when I run out of money. The student loan should be the first thing i let slide but they are relentless and I fear they will take the little bit i have in this world or punish my loved ones. When I think about all this all I can do is shed a tear because for the next 28 years i will be stuck under this student loan, I’ll probably never be able to have a family or own a home no matter how frugal I am with my money. The system needs to change WE NEED HELP BADLY

I’m horrified at the cost of education these days–particularly at private colleges and universities. I went to a private university for law school in the 1990s. I thought it was expensive at the time, but its nothing compared to now. One thing I do recall from the time is that I had class mates who lived in much nicer apartments than I did, some of whom were doing so on loans. I never borrowed money for living expenses. I shared a cheap apartment (that included heat) with a young working woman. I remember her being a bit apologetic about it when I first went to see it–apparently others had seen it and found it wanting–but it was a perfectly adequate little place. Wood floors, 2 bedroom, 1 bath, living room and tiny kitchen. I paid $200/mo for my half. One interesting part, in retrospect, is its the only time I ever lived in a truly integrated neighborhood. I once saw a little line of boys in almost every possible hue–black, white, Asian and Hispanic–holding hands and waiting for the bus to take them off to kindergarten or first grade or whatever year they were. It was really beautiful and I’m sure they didn’t have that where most of my classmates were living. I drove a 10 year old Dodge Colt and managed to get out of school with only the $22,500 of loans that are backed by the government. This hasn’t really been burdensome, though combined with the much smaller sum I had incurred in undergrad, it was a bit of a pinch the first few years.

In recent years the press have run a lot of stories about posh accommodations that universities are building for college students. No one ever seems to ask how many of the students living in the posh accommodations are doing so on borrowed money. Does it really get much more anti-intellectual than encouraging borrowing for a decadent lifestyle while in school? I have never seen an investigation of this and would love to.

The Federal Government is to blame here. Backing student loans was supposed to help economically disadvantaged kids receive a college education. But like everything else the government touches, it did not work as expected. Now, we have people with Ph D’s in Creative Writing in debt to $150,000, which unless they get that publishing contract (long shot), they will never, ever get out of debt.

Time was, that only those seeking degrees that have higher pay scales would be allowed so much debt. The private loan companies had a scale that capped how much certain degree types could pay and the amounts would be different for Engineering, Law, Medicine, History, Music and Social Science, etc. The companies would know an engineer would have a better chance of paying higher debt that a historian.

Now with Federal backing the companies can loan to even the most whimsical study programs because they know that if the student defaults, the government (and your taxes) with pick up the bill. Now we have 21 year old kids in $200,000 debt in career paths that will never allow them to pay it. And the bad debt to the fed will not go away in 7 years like a bankruptcy. They are ruining these kids lives.

Another example of feel-good legislation gone horribly wrong. When are we going to stop them from trying to make our lives better? Meddlesome politicians couldn’t solve their way out of a wet paper bag.

If you are in the field of computers, engineering, or medicine and you have student loans, you have a financial burden you can’t pay and it isn’t your fault.

What no one is telling Americans is that high school students from the Middle East and China are recruited to attend American Colleges and Universities, and that if they will sign a contract with our Federal Government to work in the US for 5-years after they graduate college with their degree, that they don’t have to repay any part of their student loans. Thus, they get a free college. To ensure they get jobs, corporations are giving tax breaks to hire these foreign students over American students. Yet, this same Government won’t pay for higher education of those who serve in our military.

If you are an American with a college degree and want a good job, then you have to go overseas. Our government leaves you no choice. They will gladly see you get student loans you can’t repay for American jobs are no longer for Americans, but for foreigners.

Perhaps you ran into some hard economic times, couldn’t find a job and then couldn’t pay your loans because you were trying to pay rent and eat. Through no fault of your own, you really tried to get work.

The lenders hear you and talk all nice and friendly but in the end the payments they demand you just can’t afford and still live.

If you are in this unjust and unfair situation, and have exhausted all other options (discussed in this article) the only real option is to file bankruptcy and try and get an undue hardship discharge while you are still single. This is so IMPORTANT. If you do it after you are married then they will count (to calculate any income contingent payments or hardship discharge) your spouse’s income-even though you took out the loans 10 years before you even met him or her! No one co-signed the loan and your spouse certainty had nothing to do with the loan. If he/she makes any money you will be asked to pay more per month than if you were single and you may not get a discharge.

The whole situation (this scenario) and all others in this article is a living tragedy that has destroyed and continues to destroy families.

The only thing i feel for “CHRIS” is that he should have known better. The man got a masters degree in music from one of the most expensive colleges in AMERICA. With that kind of dedication he payed to his education he should have thought ahead…im sure they taught him to read..as in the fine print..and use math skills..as in to calculate how much he would have to pay back….he has no one to blame but himself…
I like countless AMERICANS am college and would like to attend the best butI understand that I have to live within in my means… I am PAYING my own way and have been since the day I graduated high school…I have had a full time job for over 10 years & I am supporting my family w ongoing medical issues and financial problems…just like COUNTLESS MILLIONS of everyday AMERICANS and I am receiving…absolutely NO HELP from anybody. I have been told countless times that I do not qualify for financial AIDE because I quote/unquote “earn too much”…trust me we’re struggling everyday. It can be done….trust me…IM DOING IT…
“CHRIS”..you have only yourself to blame…they call it fine print for a reason…you should have read it and known what you were signing. Your story does not make me feel for you one iota…the only thing this story does is tell other people who dont think…that the answer to their problems is to run up enormous debt and move away…you sir are an inspiration…to NOT BE LIKE YOU.

Wait a minute, you borrow money (that’s called a loan) and then try to evade paying it back? Maybe a person should investigate or study and plan for how the loan will be repaid. There are plenty of former students that have done the honest thing and paid back their loans. Yes, the economy stinks and times are hard but defaulting students or former students can work out a payment plan. Suck it up and play fair.

I havn’t been able to repay any of my student loans and neither have any of the friends I went to school with. I live in a area that has hit on hard times with a high unemployment I make $9 an hour which is a good salary here but not enough to pay student loans. I am plagued with calls every day. My mom co-signed for some of my loans and she gets calls too. There is no way out for me. The next call I answer from the collectors the answer is going to be take what I owe out of the $700 billion bail out. I will be an indentured servant to student loans for the rest of my life.

Deferral and income-adjusted options are worthless. When the interest continues to build up at 8-9%, paying less only compounds the problem. Interest continues to build the overall loan amount. The only relieve would be lower interest unless there is governmental relief on the actual amounts owed. It’s not like the grads used this money on senseless expenditures.

This article made me ask a question that I really didn’t see answered.

If you have a lot of student loan debt and you are living overseas, what is the likelihood that the collection agency WILL decide to come after you?

I personally live in Europe right now and owe $50K in student loans. If I decided to abandon paying them, how likely would it be that Sallie Mae would come after me?

The title says it all about what we have become and expect. “The only way out” are you kidding. We then really ask why the country and our credit situation is in such bad shape. We put together stories like this allowing our kids a “way out”. It is simple, much like when my parents told me(which is half the problem, bad parenting)you go to school, you buy things, you pay. If you can’t afford it…..don’t buy it. You getting a “way out” means the banks fold, they then need help form the Govt. and then our taxes raise. Then you have the &%@) to complain about how it’s all happening, amazing. Think about it next time you think of a way for you and your kids to find a “way out”.

I graduated from college in 1992. It was about $975.00 per semester in state(WVU. What has changed or improved to make costs of college so high? I really don’t get it. Professors are not getting huge raises since 1993. As usual someone is making a huge.

I am in repayment to my defaulted federally guaranteed university debt to some lawyer group in NY and have been making $500 payments on time for nearly a year, but each statement I get from them shows no reduction of the debt or the interest. They are charging me 10% interest, yet the payment I make never changes anything. I get the feeling they aren’t applying it to my account. I wish I knew which regulator to take this to, I suspect they are commiting a violation and owe me some sort of accounting of what they are doing with my money. I also doubt they are informing any credit bureaus. I’d like to correct this.

As a graduate who is struggling to pay back loans, I am angered at people like Carl and other borrowers who are skipping out on their obligations to lenders. Their defaults indirectly exacerbate the burden on the rest of us.

Ha. I remember all through high school being told by counselors that the college I choose shouldn’t be based on price, but “the college that is right for me.” And then I saw stories like these.

Unfortunately, the major I’m in right now isn’t my dream major, but it’s okay. If I took my dream major it would have cost 10x more, and my biggest goal right now is to graduate college without any debt. I wish we were like some countries where free university is a guaranteed right like in Sweden/Norway/Finland etc.

I do not have much sympathy for those who took loans and now trying to avoid paying it. Don’t they know that what they are doing unethical and also they are spoiling the students of next generation?

I have sympathy for these people. I’ve been saying all along – I’m not in favor of anyone else being bailed out until the government bails me out of my student loan debt.

I went to a state school as an undergrad and came out free of debt. However, I then went to law school and had to take out nearly $90k in student loans. I’m telling you, even with a job as an attorney – if you aren’t in the top 5% earning bracket for your profession, these loans are a significant burden.

I pay them, but it has prevented me from owning a home, owning a car, etc. I regret taking out student loans, but had I not, I never would have been able to enter the profession that I love today.

Let me preface by saying that I blame myself. I was a 22 year old college grad with moderate debt who decided to attend law school in a large city and incur immense debt. The legal market is not what it once was, and now the reality that not all lawyers get paid millions has hit home hard. My payments are approximately $2000 a month for my undergrad, and law school combined. I unfortunately did not fully understand interest rates and the like at 22. Maybe I should have, but I did not. In any event, I’m teetering every month on the verge of defaulting, and the personal reprecussions of this are enormous. My advice to anyone, considering any type of education – do it the cheapest way possible! If this means, working full time and going at night – do it. It’s worth it in the long run. The school will “advise” you not to work so as to increase your time for studying. But your interests are not there’s. They need higer scores, to get higher rankings. Your debt is not their problem. Best of luck to others, and I hope you do not make the mistakes that I did.

$160,000.00 in student loans for a music major?

Both the lender and the debtor are irresponsible. Of course, the lender probably didn’t have a choice….they can’t legally exercise reasonable judgment about whether a student can pay back the loan – otherwise, they wouldn’t give loans to liberal arts majors at all.

I paid back my loans. I didn’t enjoy it; but it is a matter of honesty. Those who take out loans for majors that provide little prospect of paying back the loan should not be able to get out of them.

Our current financial crisis resulted from people taking on more debt than they should and then expecting others to bail them out. This socialistic mindset is the root of fiscal insanity. It is the bane of civilization. Society is based on integrity…without integrity, commerce, social structures, and civilization will fail.

I just think its all business, why do i have to pay close to $400 for a book for onlu one semester, and that is one book not even including the others. they say they want us to be educated, and their is no help especially if you are a middle class. they need to stop with those high interest.

An 80,000 student loan and I’m a teacher who can’t get a teaching job in a public school in New Jersey. Yes, I am working as a teacher. And, yes, i should have known better when I went to school. Now my loans are in default and the government wants almost 700 a month! That’s almost the cost of my rent. So, I didn’t pay it. Its affected my credit score, which makes it difficult to do anything. They even started taking my income tax refunds. Its like going to school was a trap. There should be better counseling for students who apply for financial assistance. There are a ton of other ways to get money for college. But, you don’t really hear about your alternatives. They just hand you a sheet of paper and say, “sign here.” So, if you are in college or looking to begin college, educate yourself on loans and grants. Look into scholarships. Do not rely on that financial aide adviser to look out for you. In the end they want their college to get paid. In the future you may want to buy a car or a house. Credit is everything right now. Don’t sign up for loans until you have exhausted every single possible grant or scholarship. Even if you have to work through college, do it! It’s worth it in the long run.

I graduated from High School with a 3.8 GPA and could have attended college if I wanted. I could have attended community college or taken out student loans and attended a “good” college. But I had obligations and decided to join the Navy because I needed a paycheck and training. I attended nuclear power training and now make over $85,000 per year after 6 years in the power industry. My decision was based on cold hard facts.
Some people who attend college shouldn’t and some people who should attend college can’t! THAT’S LIFE! If you choose to take out huge loans to attend than it falls to you. I PAY MY BILLS BECAUSE IT’S MY RESPONSIBILITY AS A MAN!!! Two of my favorite sayings are as follows:
“Some people are just meant to dig ditches.” My Mother
“Not everyone gets to be an astronaut when they grow up.” Despair.com
I do agree that when you can’t pay that you just CAN’T pay. I was handed over $40,000 in debt my ex-wife ran up while we were separated WHEN we divorced and I was earning $27,000 a year. It infuriated me to no end that my balance kept going up even while I was trying to pay. Guess what, I paid it all off. That’s what I was obligated to do by society and the courts.
For everyone on commenting on here that they got “stuck” with a bad job because of one reason or another, I do have sympathy but life is supposed to be a struggle. If it isn’t you take it for granted. Suck it up and move forward.
One major underlying principle I found in the article that I think explains how someone run up $160K in loans for a music degree and thinks it is an option to run away to Europe is this Chris’s mindset. I’ll bet he’s never had to “WORK” for anything ever. Does anyone else have a problem with the statement, “You can get into $150,000 worth of credit card debt and you can declare bankruptcy and you can go on with your life. But with student loans, you’re being punished for being a better person.”? A better person? So what am I, a piece of **** because I didn’t attend college?
I’m sorry to say that I don’t think Chris is “a better person” because he’s hiding in Europe from his duty, he lied about living in Arizona, and he actually had the gall to bring his family into it and say “I won’t put my family in a situation where they are afraid”. If he’s concerned about his “family” than set an example!

70k in student loans??? Get your BA, work a little, then go back for more (Masters, etc..) Racking up all those school loans is ridiculous. If you can’t afford a car you don’t but it, if you can’t afford a house, you don’t buy it. The same should apply for student loans.

C’mon everyone stop giving excuses and take a look in the mirror. Stop blaming others and take responsibility. You borrowed and now you must pay. Why don’t you refi your school loans and get a lower monthly payment?

Part of onus is on the schools who push loans on students to make sure that the school gets its money. If a student can’t pay tuition, the school loses revenue and then is on this hook for all loans EVEN without the degree that the admissions/financial aid departments have promised to help them through.

The only alternative to filling the tuition gap are the expensive private loans–states and government do little to help middle and lower income students and the fine print of financial aid forms is baffling even to those who are in the business.

If you are having trouble, call the loan companies and they will work with you, pay interest-only for a while, take a hardship deferment, a forbearance, or reduce payments–if you have defaulted, call the holder and rehabilitate–when you rehab, your credit rating can be improved and the options for consolidation and other programs will be easier to find.

I have been paying on my student loan for 13 yrs now. The principal balance has never went down. My fault? No. The payment is all I can afford and the interest rate is high enough that the balance never goes down. Today, the US Dept of ED will give 4% interest rate loans. But, they will not lower my rate to 4%. Why? Makes me want to default. Why pay? It will NEVER be paid.

It’s disgusting that some people exploit a system that is intended to help students but requires a sense of responsibility and ethics to make it work long term. When enough people walk from their loans, loan costs will go up or will not be available to future students.
If a student cant understand that they have to pay back loans, that is too bad. They need to pay them back and lenders need to work with them so that they can. I went to college and graduate school by working my way through and with the help of loans, that I paid back.
Perhaps making parents or siblings cosigners would give people a sense of responsibility that they dont have when it is the American people or banks that are on the hook for the loan. Perhaps loans shouldn’t be given to academic majors that dont earn much money or have a good possibility of employment when students graduate?
Student loans are too important to let the system fail.

I have 65k in Student Loan Debt, I got my bachelor’s in Computer Science, I am stuck working a small job at a local Wal-mart barely making bills and couldn’t pay my loan and defaulted on it. I have no money to give them and they won’t stop. I am right along the line of giving up and moving away cause I can’t handle this. I can barely sleep at night wondering what is going to happen next. I am stuck with almost no way out, job market is so full of competition I have no option. Only hope I get is in the one in some million of chance to win the lottery. I didn’t live beyond my means at college and worked all through college. I didn’t go to a expensive university at all. When I go to work to see people from my class who stayed and worked after high school and have a house and I have nothing makes me depressed in thinking my american dream I sought by going to college is dead and I made the biggest mistake of my life.

My student loans came at me unexpectedly. I went to film school with the expectation that my parents would help with the payments. Well, after they refused I was left with the choice of either dropping out my first year or paying for it myself. I choose to get private student loans to pay for it.

I owe over $100,000 and my payments are based on the Prime Rate. When I graduated in 2003, I wasn’t as worried because the Prime Rate was low at the time. But a year ago when it hit almost 9%, my payments were unbearable.

All of you people screaming “live within your means” or “take responsibility” have no idea what it’s like to take on a burden like student loans in this era. Some of you were lucky to have parents or family to put you through school, others were lucky enough to find a career path they wanted to do that they could go to a local or state school for.

I refused to let my parent’s past mistakes and ignorance hold me down any longer, I wanted to go to a good school and do what I dreamed of doing. They have six kids and didn’t save a dime for any of our educations.

Are some of you really saying that I am not allowed to want better for myself? I GRADUATED with damn good grades. I HAVE A JOB that pays decent.
But I live in a tiny apartment and I drive a moderate car. I never buy myself anything outside of things I need for my job.

What more do you want out of me? I pay my taxes, I vote, and I also send more than a third of my paycheck to student loans. Put that into perspective… what would you do, no matter how much you make, if ONE THIRD OF WHAT YOU MAKE DISAPPEARS EVERY MONTH? It makes it really hard to live.

I’m one of the lucky ones… and they’re still killing me. I can’t go on vacation. I can’t afford to fix my car if something happens.

I buy Powerball tickets every week. Sounds stupid? Well get this: I have a better chance of winning $200,000 in Powerball than being able to pay off my student loans in 15 years. I did the math.
To all of you people hating on us who have to deal with this… must be nice. I wish my life was that comfortable. Really.

I worked my way through college and still ended up with $60,000 in student loans. I only earned $23,000 annually when I graduated. Still, I did not miss a payment and worked my way out over the years, partly by moving home with parents and partly by increasing my job skills and earning a higher wage. It took years of budget sacrifice and determination.

But, I’m no hero. I was merely living up to my promise to pay back the loans. If I can do it, anyone can. Moving out of the country to avoid making payments on student loans is irresponsible … and criminal.

Undergrad at UW-Madison, plus two grad degrees means my student loan debt is ominously huge. Ask me why the second grad degree, and you’ll discover my desperate attempts at eliminating a debt I cannot afford as a teacher and a single mother of two: as long as I remain in school, racking up more debt, my loans are postponed.

It’s such a messed up system, and I know I’m only making things worse for myself in the long run, but I don’t really have the luxury of thinking about the long term if I want to provide for my family today.

I’ve exhausted my deferments and forebearances, and I cannot afford the nearly $1000/month payment GLHEC asks for. Heck, I can’t even afford the graduated payments that begin at over $500. When I have spare money (ha!), it goes to clothes for the kids, parts for the car.

So for now…I just take more classes, and drag the babies in there with me ’cause I sure as heck can’t afford a sitter.

It’s messed up, I know, but all attempts at getting my payments down to where I can afford them have been rejected as “not enough.”

$200/month? Not enough. It sure feels like a lot from where I’m standing.

My kids and I survived on those loans after the divorce. It was a good alternative to have Mom in school rather than on welfare I thought. At least after my education I expected to be able to give back to society. And I did. I worked in management jobs for the nonprofit sector. Often low paying jobs in rural areas. But I had big debt and big expenses trying to raise two kids on my own. I did well and managed payments while fully employed. Now unemployed I have defaulted and the calls are endless. I’d still be willing to do a public service job to work off payments with some sort of living expense stipend. There has to be a way to come up with alternatives for the people who default. They have a college education and are capable workers. Looking back, my kids are raised and good adults, I’d do it all the same again because it sure beat crawling into the welfare system and stigmas attached.

As a medical student this debt is all too real. I will graduate around 250,000 in debt. To make the situation worse occasionally my school will raise tuition halfway through the year so I’l have to take out private loans also.

I had about $40,000 in debt when I finished my Ph.D. I got a modest job, worked hard and paid the monthly premium. I’m almost done paying it off. How did I do it? I didn’t live a lifestyle beyond my means. I have little empathy for people who default on any loan. I even refinanced into a lower interest loan which would have allowed me to pay the remaining $13,000 over ten years at $134.00 per month. I was offered this because I paid my loan on time, every month. I pay far more than the minimum balance and should have it paid off within a year. I think many people do not have basic money management skills. Be responsible.

Am I the only one left in the country who is tired of the excuse, “I did’t know what I was getting into”. Maybe someone should explain that when you spend more then you earn, you incure debt and that debt is YOUR responsability.I worked all through college and when money got really tight I worked full time and attended classes part time. Now I have a job, a degree, and no debt. Start taking some personal responsability!

I am in a similar situation as Joan, in AZ. I went back to college as an adult; received my degree at age 43. My dreams of using my BA to climb that ladder were quickly slashed primarily because of my age. And, now, at 60, I am disabled and almost immediately after I started collecting benefits, my SS was garnished. I’m told my only hope is to have a physician certify that I likely will never work again, which is what I’m currently trying to accomplish. In addition to living well below poverty level, I’ve had to deal with some very, very hardcore collection agencies who have zilch sympathy. This story and the comments validate my position. Thank you.

Music, liberal arts, graphic arts and ironically criminal justice. You wanted to go to school and party. Why didn’t any of you take math ? Then you would have known the financial short comings of your chosen path. I for one will not let you off the hook and let you default on those financial institution who have to eat your stupid choices.
They were forced to give you loans on careers you could have done on your own time. Time to pay up.

If you don’t pay up; give back your ridiculous diploma; just like the repossessed car or house.

Sound fair ? I paid off my loan. But I actually got a degree in something that pays a salary. Math & Physics.

But that sounds like to much work for you losers. I remember you guys when I went to school. You just sat around all night smoking pot, drawing pictures, and missing class.

No pity.

No one in this country owes anyone a college education. Taxpayers pay for kinder thru 12th. You want college , get good grades, grants, scholarships, go to the cheaper public junior colleges and colleges and get a job. You will be a better citizen for it. If your example has a $70,000 that is his fault and he owes the debt and he makes no comment of any efforts to send any money…he’s just blowing it off. Well in Texas junior college cost, full load of courses with books is less than a $1000 times 8 semesters..you do the math. What happens is they get this money and spend it on garbage instead of budgeting themselves. You sign a contract you owe the debt… we have not yet gone to socialism in education.

All I can say is DUH! I have been saying this all along. I too live abroad (in Germany) but have been making my payments all along by working at a bar and teaching English. You mention federal loans in your article but I have both federal and private. I have the AES loan which is actually not too bad (total is $11,000 and monthly payment is $107) and a private one from CitiBank. Here are the details (just so you can see how broken the system actually is): The initial amount was around $44,000). After a year and a half of repayment,
my principle is now $43,405.66. That may seem as though I paid peanuts
every month for the past year and a half, but that is not the case. At
a 9.950% rate of interest, I now pay $29.26 per month towards my
principle and $351.42 towards interest. That is actually an
improvement over my initial figures since I have been in repayment
mode for over a year. You are 100% right about the system being broken. I can actually pay my loans back month per month but it’s is not easy. I also got a 50% scholarship for the first three years of school and my last year was free. School is just that expensive. I have even sent Senator Obama and Oprah this info in an attempt to bring awarness to this issue. This is just one of the many financial issues that plague our nation. One thing they all have in common, however, is the fact that they are all based in greed.

The US government is a short sighted institution.They should learn from the successful education institutions of China and India.
Education is knowledge for a human being.That should not be denied with high interest rates and tution fees.It should be made affordable for all the people.This is the main reason why US sees large number of college dropouts.The Government should spend the war dollars in education fund.

why have student loans in the first place? to try to get ahead, only to be taxed higher. until our politicians stop defining wealth by last years tax returns and including ones debt and total assets, we are discouraging higher learning and higher wages. go for government jobs with fat pensions i say.

Maybe not everyone needs a college education.
I never attended college nor did my three children.
We all make a decent living doing work we enjoy and excel at. Each of my childen make over 70K a year. I make half that but they work harder than I do.
They knew they could not afford to attend college and made life plans accordingly. No one felt entitled to a higher education and no one was inclined to go deeply into debt on a whim and a hope.
If they decide to go back to school at a later date they can do so – and they’ll be able to afford to do so.
Work first, learn later. It’s cheaper that way and the education is appreciated.

My husband and I both had student loans in default. We didnt even go to an expensive school! We haven’t gotten a single income tax refund for years, and for about 5 years they garnished my husbands wages. They took 10% of his gross pay every month and it killed us. No one we ever called would listen to us and realize that 10% was too much. At one point he quit a good job just because with the 10% cut we couldn’t make ends meet. Noone we ever spoke with cared or tried to help us get out of the situation. Every ‘payment plan’ begins with a giant lump sum. We finally borrowed $1000 from a family member to get onto a payment plan that was lower than 10%. They no longer garnish his wages. However, my student loans are still in default so we will never see the nice income tax refunds, or the checks to help boost the economy. I am pregnant with twins and unable to work for the foreseeable future. The only payment plan I could get to get out of default was for $500 per month. So I hope they enjoy my tax refunds, because if we were to pay that we would literally starve. I’m just glad they can’t garnish my husbands wages for my debt.

When I graduated high school, I wanted to study physics. But, I couldn’t afford the colleges where I was accepted. So, I’ve worked in a factory and joined the Army to earn my college education through their programs.

Our global credit problems are caused by all defaulting loans, and $60 billion in defaulting college loans seems like a significant piece of the problem. Now, every worker in our country is going to suffer to repay all of the bad debt. Maybe it’s time to make “Financial Management 101″ the very first pre-req for any other college courses.

There must be consequences for defaulting on loans. Otherwise, why should anyone else honor their loans.

My student loan story is simple, yet, unfolded into a complex series of problems. I took a loan about 6 years ago for the University of Phoenix online program in an attmept to get a BA. The loan total is only $10,000 and I am currently 62 years old.

Through a sries of medical crises – Type 1 diabetes and the utilization of an insulin pump, leg amputation & subsequent prosthesis, and cardiac bypass. I missed a year of work. When returning I took a substantial decrease in income and have to work a fulltime job and a part time job. My ability to repay this student loan with monthly payments has tremendously faltered – I have yet to default but have taken advantage of all alternatives offered – I still am unable to make monthly payments, among other fiancial problems – and I cannot consider retirement because of the need for income, to pay monthly bills, to maintain my medical health coverage and to attempt recovery from the economic disasters and diminished 401k.

At this point, I cannot keep up with my monthly bills and alternatives have diminished to near zero.

And I certainly realize that there are probably millions out there in similar situations if not much worse than mine.

Alternatives anyone?

I think the thing that is most frustrating about these private student loans is that they approve people for large amounts of money, up to $30,000 per school year I believe. Many times these loans are a lot like getting a credit card and the payment is sent to the student directly and not the school. These loans are considered in the same category when it comes to default as government-backed student loans which doesn’t make a whole lost of sense here. With regular student loans the school must receive the funds and are involved in the maximum amounts they will allow you to receive. This keeps people from over-borrowing. These private loans are great for the banks since it is just like giving someone a $30k credit line with very little review if they can actually repay the loan and then trapping people under the bankruptcy student loan clauses for this debt. Congress really needs to get involved here and call private student loans what they are. They are just big credit cards and do not receive government guarantees, less flexible at repayment with very few options if you find yourself in trouble. Since these are not government guaranteed loans with higher underwriting practices, how can they be treated the same way as government loans in bankruptcy law? We have given banks a product that basically allows them to lend irresponsibly while protecting them under laws that were not really meant for them. Often this is hidden in a one-page promissory note. Students must fill-out a FAFSA and have their finances looked at in an aggressive way to get a government student loan, why is it that banks can lend without this depth on private loans? This is just another example of predatory lending, yet again. Students need help here.

I paid mine back – it took 16 years but I did it. No excuse not to do it or at least try. That is what is wrong with this country and the economy. Everybody thinks they should get something for free.

Are the poor victims or bank robbers? The only thing missing in these cases is the mask and gun. Come on! You didn’t know what you were getting into? I’ve got news for you: loans are meat to be repaid on time. Perhaps it’s our government largesse that rains everyone from birth that everything is free and committments don’t need to be honored. Shame on these deadbeats.

I am proud to see some of you actually putting the blame where it belongs, on the people who borrowed the money. I have student loan debt and my son will almost be ready for college when I get it all paid off. I am currently pursuing my MBA, but I waited until I found a job and after 8 years there I decided to continue my education at night. My company is paying for my MBA, and now my student loans are deffered while I am in school, but guess what I’m still paying on them, I am taking this opportunity to get ahead and hopefully shave a few years off of the loans.

But really if you can’t afford to go to school, and must take out over $25,000 to attend, then you need to find other alternatives. I worked before colleged, during college, and I’m still working. Masters in Music? C’mon people!!! You have to realize that you are not going to change to world with your $160,000 education.

It’s time for people to take responsibility for their own actions, quit blaming the loan companies, the school system, the United States, we created this mess, it’s our responsibility to get us out, not the government’s responsibility.

I took out loans for my graduate work, expecting employment on the other end to be able repay those loans. Then life kicked in with a disabled child who needs therapies not covered by insurance or offered by the school (who would have guessed speech therapy wouldn’t be covered?). I can’t work a “regular” job because someone has to take this child to therapy (and even provide therapy). To hire someone to care for my child? $40 an hour (that was the CHEAPEST place I found!)

I’ve been lucky. I’ve taken on a tapestry of contract work and home business to put together enough money each month to pay my loans and my child’s therapy. My husband landed a better job last year (with better insurance) that has really improved our situation.

But what if we hadn’t been so lucky? Do you choose between the health and future of your child or your student loans for an education you’ll now not be able to really use?

You knew the rules going in, deal with it. Grow up! Who spends $160m on a masters in music with the hopes of a career the pays $50M/year. You need to understand cost-benefit analysis, i.e return on investment. I would love to be doing something else for a living, but my life style and talents don’t allow for it.

Education is the foundation of a prosperous society. It is what has allowed the US and other industrialized countries to remain competitive in the face of abundant low cost labour in other developing countries. Yet the prohibitive costs of higher education are preventing bright young minds from getting the higher education that society needs to maintain its competitiveness and standard of living.

Since society as a whole benefits immensely from a highly educated workforce, society should bear its fair share of the burden. It is downright unfair to expect students to mortgage their careers to the extent that it is done in the US at such an early stage in life.

Most industrialized countries outside the US provide higher education for free or for a nominal fee. For example, McGill University in Canada (one of the Times Worldwide Top 20 universites) is accessible to residents for tuition fees that are about one tenth of the non-subsidized cost that it charges to US and other foreign students. And even with such a low cost, resident students have access to a plethora of scholarship and loan programs to make it even easier to get that education.

In those conditions, it’s hard to see how the US can remain competitive over the long term compared with other industrialized countries.

Sallie Mae owns me.

If you went to college you should be able to figure out how much your monthly payments will be when you graduate. Too many students take out more in loans than they need in order to avoid working while they are in school and still be able to live the good life.

The part of the federal student loan program that bothers me is the monopoly of Sallie Mae. I pay an interest rate of around 6% on my student loans. A few years ago the rates on loans were as low as 1.9%. In spite of having excellent credit I was unable to refinance the student loans because of the unique set of rules Sallie Mae gets to play by.

I have no sympathy for people who whine about the amount of their monthly payments. They signed the promissory note every semester and if they were like me, blew through a nice chunk of the money within the first week of getting a check on things other than tuition and books. However, it is unfair that people are unable to refinance their loans to a lower interest rate if it becomes available to current students.

I have a defaulted student loan that was through Sallie Mae. Do to medical and economic problems, I was unable to keep up with the payments. I had moved and didn’t received statements. Then I received a letter at my place of employment for garnishing wages. My employer told me to handle it so I talked with the collection agency and started payments. I didn’t realize that the collection agency tacked on $4000.00 to the total. Now I owe more than I started with.

how about you live up to your responsibilities?The article mentions it is difficult to get out of the student loan.IT SHOULD BE DIFFICULT YOU BORROWED THE MONEY,GET YOUR LIFE TOGETHERT AND LIVE UO TO YOUR COMMITMENT.The article makes you out to be the victim!!!

My wife and I just after getting married each went back to school. We say the need for a higher education as necessary to secure our financial future. She got her masters degree in secondary education, me my under grad in aviation.

My wife was told by the student loan counselor that she could have the loan paid for by teaching at schools with at risk children.

I expected that after maybe 4 years as a junior pilot that I’d make enough to make loan payments.

My wifes advice was wrong. She suffered several ruptured neck discs and was disabled for s few years unable work. The pain was excrutiating enough that she had to rely on intense pain medications which pretty much doped her up.

My piloting career did not take of quickly enough. I was lucky to be making 20K a year by the 4th year.

The student loans came due. 54K. Wife out of work., No health insurance. 30K in medical bills from the neck surgeries. Started working tech jobs that paid more. Got laid off several times. At 54K made too much money for income sensitive repayments. Filed for forebearance two years at a time. Maxed out forebearance. Stopped making payments for 2 years.

Eventually, 5 years ago, got a job in AR that pays 77K annually. Plently. But loan balance is 94K. We have one used crappy car and one new car my wife uses to get the kids around. We live in a 1600 sq ft home with a fixed loan rate thank God. We take vacations when the inlaws go somewhere, invite us and pay our way.

The student loan payments are 721 per month. That almost our house payment.

Because my wife and I have a 110K per year income, only 25% of our loan interest is deductable. Because we make so much money, our medical bills are not tax deductable.

I have to stay out of financial trouble or else my security clearance may be revoked. If I loose my seciurity clearance I loose my 77K job. If I loose that job I sure as hell won;t be making student loan payments. Then the balance goes up and all the advances I made in the last 5 years on the balance will be lost. With late fees it will take just 2 years for the balance to go from 94K back to 97K.

I can swing the 721 a month, but I have sometimes nothing for savings. We live from paycheck to paycheck. With two girls at the tween age, they are needing new clothes all the time because they grow it seems overnight.

If I could get Sallie Mae to take a full payment of the original balance of 54K I would take out a loan if I can get an interest rate even if higher would be less than 721 per month and give that to Sallie mae. Then I can get out from under this load payment in less than 25 years. 25 years is how long it will take me to pay off the 94K at 721 per month.

Amazing.

I did the community college thing then transferred to a local university, so I could keep my job and still go to school full-time. I am about to graduate in December and I am really scared about what I will owe. I’ve tried to calculate as careful as possible when taking out the loans.
I live in NJ and every year when I fill out that ridiculous FAFSA form, they tell me I don’t qualify for the state programs. Here’s the funny part: I only make $24,000/yr. The system is definitely broken. It needs to be restructured for those of us who actually work and are trying to get through school. I feel if i would have been jobless throughout my college career I would have received more “free aid”.

My wife and I went to affordable schools and got degrees in fields where we knew we would be in demand no matter where we lived. I am so sick of people getting degrees in fields where the know they are going to have a hard time making it. My wife’s step brother got a degree in theology from the University of Missouri. He had no desire to be a Minister/Priest, so what is he going to do with that to support his family.

Maybe the guy in this story and his family should have done a better job of planning before he went the path of getting a Masters Degree in Music for $160,000. I am glad to hear that he is remorsefully, but most of the rest of us are taking responsibility and paying back our debt.
One more thing about the libs idea of letting everyone go to college for free. I have many friends that went to college for free because of thier parents or sports. I was expected to pay for my college. I worked through college and had loans. I made it and have gone on to be successfull. Most of my friends that didn’t have to pa for it never graduated. Also, look at our highschool graduation rates. Its free but we can’t even get all of our kids to graduate from High Scool.

There are a few commenters on this board that have a pretty high opinion of themselves. They can’t resist saying how they’re “so tired” of hearing other people whine, or how we should just all live within our means. Well, wake up. Debt – particularly student loan debt – is not the simple, given the necessity of education and the unparalleled rise in tuition (even at the cheaper schools). Should we choose our careers, schools, and financial burdens wisely? Yes, of course. Are there those that abuse student loans? Surely. But that’s not the case with everyone, and clearly other factors can influence the availability of jobs and/or salaries. If you doubt this, take a look around at todays economy. Moreover, predicting our future paths isn’t easy for the most experienced of us. Dreams and expectations have a way of shifting over the course of a college career, and sometimes we have to react to lifes demands in a manner that reduces our income. As for me, I have $60,000 worth of student loans, and I pay them faithfully every month. But, it’s not easy because I’ve chosen to put my degree to work in the community service arena, which doesn’t pay very well. This was not the path I pictured when I took on the debt, but it was the right one. Do I have to cut other areas to do this? Without a doubt. But I’m also fortunate because I haven’t hit any snags along the way that would make this path financially unmanageable. So, instead of complaining about how tired you are of hearing other people whine, why don’t say a quick prayer of thanks for your well-managed circumstances, and add another thanks that you haven’t had anything significant get in the way of your payment planning. Becuase no matter how hard you try to convince yourself otherwise, the slip into delinquency can happen quickly and quietly, and you just might be next.

WHat is so disgusting about these student loans is that our government legally permits what amounts to loan sharking by these creditors. As an example, I have a loan consolidated, and am unable to get an interest rate below 8 percent. Even if I have outstanding credit. These lenders are in bed with our politicians to create this mess. And they dont give a damn. It is unconsionable that our government allows this to occur. I give these people credit for working around a system that is flawed, and corrupt to the core. I wrote my Senator and he never wrote me back. This is the same crap that went on with the loan mess we now have. I hope all these politicians and lenders one day are exposed for their illegal actions, which amounts to nothing more than predatory lending supported by the government.

I left the country because of school loans 11 years ago. I was a single parent of 2 and couldn’t find a teaching job. I want so badly to come home, but have since gotten a long term illness that does not allow me to work full time. Isn’t there anything we can do? There’s a lot more of us out there than your aware of. My school wouldn’t release my transcripts so even if I wanted or could teach I couldn’t prove that I had a degree. 5 years of working 2 jobs going to school full time and being a single parent and it’s all wiped out; it’s like I never did a thing.

Scary to think these educated deadbeats are the “future of our country”. Everyone wants something for nothing. Right Chris, spend $160,000 on a music degree….very bright indeed. Stay overseas, or come back and pay up and stop making bad decisions and crying about it

It’s irresponsible to run on debt, seriuosly the creditors paid and now the debtors run off? Idiots that major in retarded stuff like music with huge loan should be shot. These burdens come back to the public eventually, there should be a new law taking away passport of those in debt.

The problem here no one addresses is that a music degree, history degree, or most any other degree is not worth 160K. It does very, very little to enhance your salary, certainly not $2,400 a month, most of which is paid with after tax money. Colleges are a complete rip-off. Don’t get me wrong, I’m a highly educated person, but when I went to UVA in ‘87, tuition was 3K a year. now it’s almost 20K, and I am skeptical that I would encourage my children to spend over 100K on a degree, unless it was a highly specialized one (engineering, commerce, etc.) The cost of college tuition is outrageous!

I am slightly sick that someone actually wrote that if you can’t afford college without loans, you shouldn’t be going. So you’re saying that since I have no way to go to college without taking out Federal loans, I should settle for a community college degree or none at all? I am going to college so that I can have a better life than I did as a kid, so that I can make an okay salary (which, as I have seen, is near impossible without a college degree). I am a freshman now, but when I graduate I will have what I estimate to be about $30,000 in student loan debt. I am well aware of what I am getting myself into and will work hard when i get out of college to pay off my loans, no matter how long it takes. Fortunately my loans are not private…

The students are not victims here. They signed a contract for a loan to help pay their college tuition. They knew what they were getting into. To paint them as victims is ridiculous. The students need to step up and set up a payment plan and stick to it. If that means that they buy a used car or use public transportation, then they need to do it. I lived within my means after college until I paid off my loans and I learned fiscal responsibility and it is a lesson I will not forget.

Well, what do you know, some more people that get what they want and them when it comes down to personal responsibility to hold up their end of the bargan they cry that they were naive, mislead orrrrr its not my fault.
I started out with $60,000 in loans I worked two and three jobs to get it down to about $10,000. Does it suck to work like that, yeah it does, but its my responsibility and that was the agreement I made when I needed help finacially. IF you were too stupid to understand your loan terms and responsibilites than perhaps you should be going to college in the first place. These people just didn’t care. They wanted the money. Got it and now the bill gomes due and they just chew and screw and some how we are suppose to feel bad for them or cut them some slack?! Really? Where was my slack when I was working 20 hours a day 7 days a week for amost a year? These people should be put in jail. Its as smilple as white collar stealing. They can pay something everymonth to show good faith, butinstead they run from their PERSONAL RESPONSIBILITES making it hard for the next guy that needs a loan.

I was in a similar circumstance as many young students of today; I was able to attend a great university but I could never afford tuition! I took as much money from federal loans as I needed; about $4000.00 worth…I would worry about the repayments later…yeah right! It took me 9 years to repay the loans at $50.00 a month; when I began working I upt it to $100.00 a month…the point here is this: You can’t run away from responsible; starting out on a career track with bad credit isn’t the way to go; loans can always be repaid if students contact their creditors in advance and explain to them what the situation is; I’ve never had a problem with repaying a loan of any kind as long as I was willing to do the right thing; you will find you can resolve loan situations on your own terms if you show you are ready to take the responsible…nothing will be solved by running away ( abroad ), believe me, it will be here when you get back!

Am I suppose to feel sorry for you because you have $160k in loans for a degree in music? You people are takers and will always be takers. Stop expecting the rest of us to pay your way. Here is a novel concept…for all of you who owe us taxpaying Americans money…come to my house so you can cut my lawn, clean my eaves, paint my trim, etc. You owe me for carrying you!

10 years ago when I had to file bankrupcy, I discovered that my Health Education Assistance Loans (HEAL) were only dischargable if the Secretary of Education waives their right to the money. Fat chance. So the fact that HMOs and other forms of managed care had sliced my income by %60, I was expected to pay back these loans. Now that I have changed careers, I can afford to make the payments but It will have taken about 30 years (counting from when I graduated) for these loans to be paid. I don’t know how people going into the medical profession do it these days.

I have about 70,000 dollars in school loan debt. I tried to negotiate with one of the debt collectors and they took 300 bucks out of my bank account without my permission. Luckily I got that charge reversed. I went to state schools rather than private schools but the economic situation in Ohio with jobs is really really bad. I work part time at 8 bucks an hour which barely pays living expenses. I have stopped talking to the debt collectors because they can’t be trusted. It’s not like I don’t want to pay the money back, I simply am not able to. Moving isn’t an option for me because I have two parents who are in poor health and need my help. To make matters worse all the debt collection calls and harassment has led to severe depression and now I am on medication for that. I would love to work my debt off through teaching or something similar but I don’t have a teaching license and here in Ohio they are laying off teachers in some areas. I feel like I am stuck in a black hole and can’t get out.

My children have alot of student loan debt as well, as much as $80,000. each. Unfortunately, my husband and I didn’t make enough money to afford to pay for their college education….yet we apparently make too much money for them to get grants. What I think is most sad is that our country allows colleges to offer full scholarships to students coming over from other countries. They do not pay taxes. Their parents do not pay taxes. They are not citizens. Yet they get full scholarships? Our own citizens, meanwhile, are drowning in debt and fleeing the country. Something definitely needs to be done about this. we need to educate our own students and make those from other countries pay if they wish to come here!

When I took out my school debt, I was told that I could defer for 3 years before I would have to pay a payment. I thought that would give me enough time to grow my income. However, first, that was not true. Second, we are in a recession and our economy has never been worse in my lifetime, and that effected my income greatly. The loan company refuses to work with me. If we are going to compete on a global stage, higher education has to be affordable. Only the wealthy don’t graduate into the enormous debt.

I am $70,000 in debt in student loans. I work 60 hours a week and teach in a high poverty school. I have no idea how I will ever pay all of these loans back. What amazes me is that I watch my neighbors, who purchased their homes for $100,000 over value over the last few years, just walk away from their homes with a slap on the wrist. Those of us with student loan debt are the only ones with no hope. We must pay and there is no help, there is no exception. Unfortunately, this article is not accurate because forgiveness on student loans is practically non-existent as one usually has to be disabled or dead to be forgiven.

It is incomprehensible that folks borrow $50K+ while achieving only a degree in the Arts. I cannot stomach listening to people complain about how they got a music or english degree, and cannot find a job to repay their debts. I’ll bet that these folks never consider working in an entry-level position or at a fast-food restaurant as a second job because it would be beneath their abilities.
I think we should prosecute all that rip off our student loan system. In case you disagree, consider this, the interest rate is based on many things; I guarantee that other students’ failures to repay debts (especially the ones that flee overseas) are causing all other (paying) students’ to foot the bill somehow – fees, changes in loan structure, etc…
It is the entitlement nature of this country that has once again caused an issue that is really irrelevant; furthermore, if you cannot afford a Harvard education, then don’t go there. Folks should never make life-long financial commitments with the notion that their salaries will be higher tomorrow than they are today (also a problem in the sub-prime mortgages).

I agree that everyone should live within their means. But as a young student, many people like myself thought we would be making more than we ended up making and be able to pay back our loans. My loans from graduate school are almost $100,000 (initially about $70,000 plus accrued interest). Thinking I’d be making more than $70,000 a year, I incorrectly assumed I could pay the loans off quickly. Now, with two small children, it’s impossible to just “get a second job” like many folks say. We’re barely surviving as it is. Sometimes life throws curveballs at you – all at the same time (cancer, being laid off, etc) – and you end up in a situation you never thought you’d be in. The federal government isn’t nearly as forgiving and understanding and willing to work with folks as people think. Been there, done that. Like someone else said, I wish I’d stopped with my Bachelor’s degree and not gone to graduate school. What a price to pay for trying to get a better education and thus a better job.

Guess what? Music degrees are nice, but maybe a high school math class would have helped you figure out the concept of loans, interest, and repayment. We make choices, and the choices should at least attempt to be responsible. I chose to get a bachelor’s degree, and while a master’s degree would certainly help me now, my daughter is in college. So, I made the choice to defer my gratification to help her. You can’t have it all, especially on someone else’s back.

Do the simple math to see if you can pay for the school long term. I chose a good school I could afford and paid my own way through by hard work. I agree the cost of education is getting way out of hand but it is your fault if you choose to go to a high priced school and then can’t afford it. You are neither noble nor justified if you abandon the obligation YOU agreed to now that you can’t pay off your debts AND live the lifestyle you THINK you deserve.

I have no sympathy for criminals who steal money. That is what these defaulters are doing. People who take loans that they cannot afford are the reason we are in a global credit crunch. EDUCATION SHOULD NOT BE FREE. It is NOT a right it is a privilege. Once people get this simple principle through their hollow heads things will get much better. The 64 year old American psychologist who fled to China to avoid paying bills claimed he could not get a job due to age discrimination. It appears blatantly obvious that he does not have a grasp on the English language and that is why he could not pass his exams. I hope he’s not teaching English in China. We are well rid of this useless citizen in this country.

Wherever the defaulting students are, they should be tracked down, and their earnings and assets should be attached until the debt, with interest and penalties, is repaid in full.

Repaying a debt is serious business. You contracted for it. You pay it off. Especially since the loan was made so the student would have the opportunity to make a decent living.

How about working your way through college like the rest of us???? If you really want it, that’s what you do. Nobody owes you an ivy league education or says you need a high-paying job within 4 years. Most kids party their way through college and don’t make the most of it if someone else is paying the bill. Let them learn the value of their education.

Why does the media continue to do these puff pieces on these LOSERS trying to make them out as heroes or deserving of our pity?

Just once I’d love to see the media do a story about regular people that make the sacrifices to do what is right. Sacrificing day after day, year after year, paying off our debts, living within our means, making sure we are insured, choosing work that provides a living.

Never in my life time. The media despises those that are responsible and do the right thing. They can’t stand us.

And they (the media) wonder why things are so messed up.

I have a friend who had almost $100K in student loans, and he could not get a decent job after graduation, and could not see ever being able to repay the loan. He just stopped paying, and avoided the collection agencies for 7 years and after that his credit was clean again and he started over. Now was that the right thing to do? I don’t know, but a lot of people, not just with student loans are saying forget it, screw my credit up for 7 years, they use girlfriend’s, boyfriend’s addresses, credit, etc. You don’t have to declare bankruptcy if you just stop paying…he said it was hard to avoid the collection agencies, but after a couple of years it slowed down and he wiped out this debt.

All of the Art Institutes lure students into over $80,000 worth of debt and they graduate making about $27,000 (average salary). The students that are lured by the Art Institutes are not at all familiar with the financial aid industry and most drop out. They graduate with so much debt and the Art Institutes don’t try to help them. If you are thinking about attending an Art Institute DON’T DO IT!!! Go to a community college or state college! Don’t dig yourself into debt.

I have about $60,000 in student loans. Like the article says, when I took out the loans I was young and did not understand the consequences.

I went to a private college for liberal arts, not knowing what career I wanted. I had an amazing college experience, but every day I weigh that against the 20 years it will take me to repay my debt and wonder if it was worth it.

As young adult, I was not prepared to weigh my debt future against my earning potential–and I’m surprised even now at the fact that there were no red flags along the way from parents, counselors, loan originators, etc.

Students need to be educated about the consequences of debt, and lenders need to impose limits on how much people can take out. After five years in the workforce, I am finally at a point where I can make my monthly payments–but it’s at the cost of being able to establish any savings, purchase a home, or start a family.

That’s a pretty big price to pay.

I also see a future of financial ruin and am angry that we can bail out Wall Street but cannot deal with this issue. My debt has accumulated to over $200,000.00. After going to law school I decided to get involved and became a teacher. Needless to say I will never be able to repay this debt and what is frustrating is the government is not only charging interest above market rates but will not allow refinancing.

I had over $50,000 in school debt. I moved to S. Korea with my wife to teach English and paid it off in only a year and a half… This responsibility dodging kid can do the same…

I graduated with about $50,000 in debt from my bachelors degree. To avoid the debt and hopefully be able to pay it off a little better I went to law school. Though they gave me a scholarship my first year, they took it away the second year because I wasn’t in the top 10% of my class, which the scholarship required.

So I took out more loans. I graduated from law school with a combined $130,000 in student loans. I’ve had trouble getting any kind of legal job not in the public sector. So basically I make $40,000/yr as a public prosecutor. It would be livable if it weren’t for my nearly $2,000/mo student loan payments.

Really this system is indentured servitude. I’m one of the lucky ones, though. I’m a pretty good looking girl and have been able to find some guys I know who’ll pay me to sleep with them on a regular basis. I actually make more doing that than as a public prosecutor. It sounds bad I know, but most of them are just friends or acquaintances who can’t get laid. They always treat me well. It’s not like I’m out on street corners.

The government needs to forgive student loans for people working in the public sector or in fields in need of more educated workers. The Army sends Soldiers off to war for 12-15 months at a time and won’t forgive student loans? Teachers don’t get their loans forgiven? All the repayment plans currently available just postpone the inevitable …

First I’d like to say that I can feel for these two guys in the article. However, they have a responsibility nonetheless. I too had student loans and it took a long time for me to pay them off. At times it was just plain difficult to handle, but most of the time it was my own doing i.e. I thought, ah, they’re just student loans and it’s not important to make a payment now because I want to go on vacatiion or go out with my buddies, etc. It’s easy to do this. The point is that it was my responsibility PERIOD. Anyone can argue how unfair it is after the fact. Anyone can have a reason, good or not, not to think they have to repay their debt. Anyone can justify why they shouldn’t have to repay their debt. In then end, the bottom line is that it is your responsibility regardless of your current situation.

This article, and the arguments within it, are misleading. Student loans are nonsdischargeable in a bankruptcy case for a reason – that reason is because our federal government backs and guarantees the repayment of such loans. So, if you borrow from Citibank and then default … guess who pays it eventually? The federal government does. So, that’s why they’re nondischargeable. That seems very reasonable to me. (Also, as an aside: there are many types of nondischargeable debt: many types of taxes, back child support, money obtained by fraud.)

Furthermore, it is VERY difficult to get student loans discharged. The ‘hardship’ qualification mentioned applies to people with severe disabilities, people who have zero potential as wage-earners. It doesn’t apply to people who are just poor and/or don’t want to pay their loans back. That area of the article was extremely misleading. Most attorneys (myself included) will not file a ‘undue hardship’ claim without VERY good reason. So, if such a petition is granted – that’s because it was vetted first by the attorney to make sure that it was appropriate to file. This article suggests that anyone can willy-nilly file such a case and his student loans have a 50% chance of being discharged … which is patently not the case.

Please, people – don’t believe this article. It’s very misleading.

I am, for the record, a former bankruptcy attorney. I am now a graduate student, as I have left bankruptcy because the laws passed in 2005 were outrageously unfair to debtors.

How typical. Take the money to get what you want (an expensive education) then flee the country to avoid the responsibility of paying it back. These students are a disgrace and obviously didn’t learn anything about accountability and personal responsibility.

come on cnn. i love how your cover story is a story about the poor kids who owe too much money to come back to the states. come on. then there are those of us who didnt take out loans for undergrad or graduate school because we simply couldnt afford it. guess who ends up paying for these people who are living elsewhere? this is ridiculous. dont borrow what you cant pay back. why would you even write this story in such a manner that it appears as if we should feel sorry for these people. incredible CNN.

Having grown up in Germany, I don’t have any student loans because University education was free there, and living with my parents did keep expenses low. I was able to spend 100% of my time focusing on academics. No need to work in minimum wage type part time jobs in order raise money. Later I came to the US as a graduate student with tuition paid for by teaching assistant jobs.

I feel sorry for my children when I think of them to potentially have to cope with the US education system.

There is much to like about the US, but there is room for improvement when it comes to things like the health care or eduction system.

Just like in the housing bubble, tuition has been inflated by easy student loan credit!

To all the people blaming all the problems on the people who can’t afford their so called “debt”. You are severely mistaken if you actually think it is populations fault for not living within their means. That is utter nonsense. What the media is not telling you, is that these so called “good guy” companies lied to get these poor people loans, and lied about the interest rates. No one mentioned to these people that in two years their interest will go from 5% to 25%. Everyone needs to stop blaming the people , and realize the companies have been doing nothing but lying to them since 2001.

As for thet student loan thing goes, I myself have 42000 and am overseas finishing an internship so I can have a degree myself. However, my family was in dire poverty, and much like these people, I too have had to take on obsene amounts of debt that I worry if I can even pay off. What is funy is the privelaged people see me as a threat to their way of life because they can’t take out more loans to feed their apetites, and all I any many others are doing is trying to better ourselves in a society where if we have no education we are forced to make food or worse, life on the streets.

The US needs to give people living in poverty access to free higher education at the very least. There is no reason why people whos families live with food 3 times a week and no lights have to tell their kids they must take on debt if they can even get any. The US has become greedy and ill-informed by everyone. It is utterly disgusting to see how we attack each other before we even try to contemplate what is happening. I guess I am better off in China after all.

No wonder America is in the trouble. Talk about irresposnbile. You do not just declare bankruptcy to cure away problems you wish you never had. You have to deal with it and should have thought about the price of a school before you decided to attend. I hope the creditors find these people and make them pay every penyy.

What kind of crook is this guy? He couldn’t afford his loan so he left the country? What a shmuck! And what’s with the statement that loan payments are higher than the student expected? Can’t these morons do a simple calculation on the time/use of money? Come on now. I think the money is just way too easy to borrow-students would do well to apply judicious borrowing strategies to finance their education. The guy in this story not only screwed himself and his lender, but those who wish to borrow for their education will have to pay a little more to offset the loss from crook.

It’s been 14 years since I graduated from law school and I’ve only paid a little more than half of what I owe in student loans. I find it completely unfair to saddle students with such a tremendous amount of debt from the outset of their careers. Although you’re advised of the possible loan amounts and the responsibilities that go along with taking out loans, a student who doesn’t have job nor any idea of what his or her salary is going to be is in no position to truly assess the extent of this obligation. I had to forebear paying my loans for the first two years so that resulted in my loans increasing by $10,000. After the first two years, I tried to pay but wasn’t consistent because it was such a huge amount and most of my jobs didn’t pay big law firm money. It’s almost like the loan amounts are based on projected salaries at firms. Well, what happens to the rest of us that don’t have fat salaries? In my case, my family decided to help me with my monthly payments (it was obvious that I was drowning in debt) and that’s what’s helped me get my loans down. I have to say that the fact that my family felt compelled to jump in and help made me feel like a total loser. I went to law school to be able to fend for myself. The irony is that although I make more than any member of my family, I also had more debt and ultimately wasn’t able to fend for myself because i couldn’t pay my loans. I finally make a decent salary (not fat law firm money though) and hope to pay my loans in the next 2-3 years. I don’t regret going to law school but am pretty angry at the student loan system. I feel they don’t disclose enough information and that the amount of student loans students are saddled with are ridiculous for an average individual to have to be burdened with.

I completely agree with those who have said “stop whining,” “get a second job,” etc. Being 19 and taking out loans is no excuse either. If you didn’t know what you were doing, you shouldn’t have been doing it! It’s unfortunate that one can consolidate loans only once, sure. I consolidated my loans when the rates were low, but a year later, the rates were even lower. And they are lower still. So I deal with it! If you can’t afford to pay for higher education (I paid my own way through a BA and an MBA before taking out loans for a PhD), then don’t go. Put it off until you can handle it financially, either with savings or loans. And yes, it’s too bad that one can declare bankruptcy for credit card debt, etc., but not for student loans. But frankly, I don’t think anyone ought to be able to declare bankruptcy for anything. If you can’t afford it, don’t buy it! And that includes your house! Grow up people! No wonder this country is in the financial mess it’s in!

I recieved my Ph.D in June, and moved to Canada for my first academic position in July. Guess what the current exchange rate is doing to me? To make things worse, I can’t really go back on the job market because my newly forming professional reputation is at risk (Academia is a small world..). Oh well…at least I’ve got health insurance.

I have $70K in Student Loans. I went to a worthless Law School, and graduated 8 years ago. I have sent out at least 5 resumes a week since graduation, and HAVE NEVER gotten a reply for interview, the school’s reputation is that bad(U.S. Dept of EDU apporoved!). If I pay off my loans on time, I will be 72 years old. I looked at Australia, they don’t enforce civil judgements against immigrants’ third world debts(U.S. is now 3rd world). I got no economic benefit from the Degree, yet will live in Debt Peonage for the rest of my life. To tell the truth, my motivation to immigrate is not just the loans, they are just the straw that is breaking the camel’s back on staying in the U.S.. What kind of country would do this to their best and brigtest young people?

My sister racked up a big debt to pay for college too, although she put it all on credit cards (to the tune of about $30,000). She also lived in near squalor during school to keep the loans that low. After graduation she moved pretty quickly to another country and is perfectly content to live there the rest of her life. It isn’t really something to feel sorry for her about – she managed to get a free $30k and she gets to live in a country with a much better standard of living (free healthcare, school for the kids, etc.) than the U.S.! Not bad.

One thing to keep in mind is that the ability to discharge a debt or refinance it affects its availability and price.

In other words: have you ever wondered why you got a huge unsecured loan as a 18 year old with little credit history? Because you cannot graduate and get rid of the debt by declaring bankruptcy. And you got decent rate (yes, 8% is a pretty good rate for unsecured debt) because you cannot easily refinance whenever interest rates change.

It it a bit like an airline ticket: it was cheap because it is RESTRICTED.

Can the laws be changed? Can we legislate that “any graduate who cannot find a good job will have his/hers debt forgiven”? Sure. Just do not be surprised when the next generation of 18 year olds cannot get loans at all.

And I am not picking on anyone. When I write “you” it is rather abstract.What I am trying to say is that you cannot outlaw gravitation; you always have to pay for what you get, one way or another.

FOR MORE INFORMATION ABOUT THE NEW LAW GO TO

http://www.ibrinfo.org/

Help is on the way!

Are you interested in more affordable student loan payments, or loan forgiveness for public service?

Register here
to get alerts as more details about two new federal programs become available.

Income-Based Repayment (IBR) is a new way to make your federal student loan payments more manageable starting next year. And if you’re a teacher or work in government or at a nonprofit (501(c)(3)) organization, you might qualify for a new type of public service loan forgiveness after 10 years of eligible payments and employment.

These federal programs will be available to borrowers starting July 1, 2009. The U.S. Department of Education expects to finalize detailed rules for how each program will work by November 1, 2008. Register with your email address and we’ll make sure you get the information you need as soon as it’s available.

What type of a country do you live in where they charge you a fee to better educate yourself. sad sad sad

As a single mother of five, I went to college thinking that a degree would allow me to obtain a good job. But the reality was that no one wanted a woman in her 40s who had been out of the job market. Now I have over $40,000 in student loans which will ensure I remain in the poverty I was trying to escape.

It’s really difficult for me to see people saying that, if I can’t repay my student loans, then I am lazy and feel “entitled.” That I should drive a “Hyundai and not a Benz,” etc. I got my B.A. in psychology and started a Master’s program, but quit after a semester because I couldn’t stomach taking on more student loan debt.

I have about $68,000 in debt at 30 years old. I have repaid about $8,000 on private loans. Luckily (I suppose), the majority of my loans were federal loans and not private loans.

Yes, I did go to a private school. Should I have gone to a local school? Probably. But don’t judge me, or others, when you don’t know our situations. Staying in my home state was a danger to me, so I moved out-of-state and went to private school, as out-of-state public school tuition was about the same. Should I have lived in state for a year to get the cheaper rates? Probably. But I grew up in the middle of nowhere, in an abusive family, and I had no money, no friends or relatives to help me, could not drive, and I was 17 – I was scared and I had no idea what to do. My first priority was moving someplace where I’d be safe.

I agree people shouldn’t take on more debt than they can carry…. but what 17 year-old can comprehend this kind of debt? We shouldn’t borrow that much, but we should also not be allowed to borrow that much. At 17, few if any of us understand the repercussions of student loans. We’re encouraged to go to school and are told that our fields will yield a certain amount of money – sometimes true, sometimes not. Should I have chosen a different field? Yes, I should have. I wanted to help people at the time, and I had a job for many years working with abused children and made $10/hr at a job that required a degree.

I was the first person in my family to go to school. I had no help. I thought I was making a better life for myself. I made a mistake. I never took out more money than I needed for school. I did not buy plasma tv’s, cars, go on vacations, or even have decent food half the time. I DID work while I was in school. And I have worked a lot of overtime, and now have two jobs, ever since I graduated.

I have never defaulted on my loans. I have never missed a payment. I don’t feel like I’m entitled to have all of my loans forgiven.

But $68,000 – that’s just plain ridiculous. It’s ruined my life. I have always budgeted, and I have made a lot of sacrifices. I share a room in a shared house, and I share a 10 year-old car that I bought for $3,000. I got a job that gives me a public transportation pass. And I am miserable. For a while, I did live on my own, and I lived within my means but I couldn’t pay off my loans. Since you can’t consolidate private loans, I have been trying to pay off the private loans and then tackle the federal loans, which have mostly been in deferment. I can’t afford to make both payments. In that time, while I’ve paid off most of the private loans, my federal loans have gathered close to $10,000 in interest.

I don’t have some outrageous story about how I took out $20k and defaulted and now some private loan company wants $100k from me. I just have me, living responsibly, and being saddled with debt from a mistake I made when I was 17 – a mistake that I expect will follow me for the rest of my life. I hope I’m wrong. I’ve already been engaged and dumped because of my student loan debt. I don’t want to get married anymore because I don’t want to saddle anyone with my debt. Even more, I don’t want to get married because if I did, my student loan payments would double because I am on the income-contingent repayment plan (the only one I can afford) and if I get married, they will calculate my spouse’s income along with mine to determine my payments. But he has his own student loans to pay also, so where does that leave us?

Having children? I would have loved to…but it’s not going to happen. My sister had an affair with her married boss , had a kid and livesd on welfare for 5 years …and I went to school and now choose not to have a kid because I know I can’t pay for it. How is that right?

I just want to have hope again. I want to be able to have some weekends off – is that so much to ask? I work so hard – and for what? The rest of my life will be spent paying for the 4 years I was in college. I can understand how people have moved out of the country to escape student loans. I can understand why people kill themselves because they can’t face the debt anymore. I have considered both.

When I went back to finish my undergrad education just a few years ago the economy was in great shape. There were good jobs for those that were just getting out of college with good wages and the ability to have a stable career. That was when I went back.

Now that I have completed my degree I can say that I missed that train. Don’t get me wrong there are still jobs out there but not like there used to be. Many companies are right sizing creating fierce competition for those few jobs.

What happened? I would like to think that my theory of why students that are finishing school (or those that have been paying off their loans until recently) cannot afford such high payments comes down to one item. OIL!! It controls the costs of almost everything in our lives. It impacts us every time we fill out tanks or our bellies. The cost of everything has increased leaving us just short of being able to fulfill our loan obligations.

I am a father with a family of 5 who just wanted to make life a little better. I do not own a fancy home or have large credit card debts because I live outside of my means. When I returned to school I still worked full time, paid all my bills, and just barely got by. I had to take out student loans just go to school. My thought was that I things were going to improve. Was I wrong in thinking that if I just improved my education I could improve the life of my family?

I am not here to complain but I must say that when it comes down to it and I have to decided to either feed my children and keep them warm at night or pay my student loans…well, I am going to take care of my kids. The cost of education has continued to rise (when I returned back to school at the same university I started at the cost of tuition alone was more then double what is was when I left in the 90’s), to the point that we cannot afford to go anymore. It is a broken system and unfortunately I am a product.

Technically lending companies do have options to help student-borrowers keep their loans out of default.

In reality, due to the federal guarantee and congressional deregulation, a defaulted student loan is worth more than one in good standing.

My loan was defaulted in 1997, a year my annual income was $7K.

I jumped through ALL the hoops in the loan contract and qualified for economic hardship.

However, economic hardship ‘was not granted’ and my loans were put into default.

I have written to Don Young, ‘congressman for all Alaska’. He knows this needs legislation but will not act.

Where do I go now?

Who will partner with me to bring the much needed federal legislation?

I took out 35k in student loans for my bachelors degree. I worked hard, took on a full time job, and lived as frugally as possible to get my degree. It was not a good time and the jobs that I got out of college didnt pay enough to satisfy my loans. Now they are over 139k and I cannot pay them. There is no relief, no way out, no negotiations. I am stuck at 9% forever. bummer huh?

http://www.StudentLoanJusticeCA.org
and http://www.StudentLoanJustice.org

If student loans are killing you and your family, find resources and information at Student Loan Justice. We are activists lobbying for bankruptcy legislation and basic consumer rights for student borrowers. We have lots of law suits listed including many class actions going on now, with contact information.

We have thousands of victims stories. You are not alone and there are things you can do as a citizen with rights. You have done nothing wrong.

Welcome to the story of my life. “Get your master’s degree – you’ll make enough money to pay your loan, no worries, sign here.”

I did, and am now 100K in debt and do I make enough to pay these off? HA! Will I ever be able to own a home? Marry my loved on? Escape the constant harassment? My life post-college has become a nightmare for this VERY REASON. We need help.

Do not believe that student loan abuses happen ONLY to young people financing their education loans. People with disabilities who are trying to re-enter the workplace with an education that supports employment possible despite health complications are also the target of harrassment and discrimination.

I incurred a debt of $11,100 in 1990-1992 to get back to work. My health deteriorated because of a chronic progressive disease called rheumatoid arthritis in 1994. I financed my last year in school in 1993/94 with an academic fellowship.

Sally Mae aware that I might have a legitimate claim for deferment and/or discharge of my debt received an insurance claim from USA Group, the guarantor, 11 months after my first loan installment was due. They processed a request for deferment as a request for discharge and then denied that request because it was not yet clear if my disability was permanent or temporary.

They put my loan in default making me ineligible for deferment and ignored repeated requests for deferment. If payment were deferred my Stafford subsidized loans would have stopped accruing interest. No gain there so they bailed. My income was $934/mo, a combination of a long term disability benefit from my former employer, a retirement benefit I paid into while working at the University of Arizona and a disability benefit from Social Security.

USA Group also ignored or failed to process applications for discharge of my loan. At no time could I get USA to tell me why (in writing) I did not qualify for a discharge of my debt based on what had become a total and permanent disability.

Finally I agreed to consolidate my loans in 2001 and the Dept. of Education became the lender and guarantor. My original loans had, in 5 years, increased by 46% for a total of $20,641. USA had tacked on interest, collection costs, and an additional 6% fee for what I am not sure.

Until March 2007 no one would give me a written response documenting why I was repeatedly denied. ED finally responded only because I appealed to Congresswoman Gabrielle Giffords’ office for assistance.

I am currently reapplying under new fed guidelines released July 2008. I refuse to speak to anyone over the phone because I cannot prove what Dept of Education and their subcontracted collection agents say to me over the phone.

My point is this: I do NOT live beyond my means. My combined pensions are less than $20,000 and barely over 2008 poverty guidelines. I have moved numerous times to conserve money, I gave my car back to my credit union when I could no longer afford the payments & insurance, I currently live with my son , his wife, & 4 daughters and share a room with my 7 yr old granddaughter.

Aside from the almost $42,000 the Dept. of Education says I now owe them & my medical insurance (an Arizona Retirement System HMO that I pay for monthly) & medical costs (I am on a medication that costs my insurance $4320/every 3 months)I have an outstanding debt of approx. $500.

My old car recently died and I do not own a home. I kept my student loans down by working at the state university I attended & receiving tuition allowances and academic schlarships until I could no longer work. This occurred while I was raising 2 boys on my own. My husband died in 1982.

For 2 years of loans and a big desire to get back to work, I have been rewarded with harrassment and a ruined credit history that makes it impossible for me to purchase even the most modest transportation. Not an easy thing in Tucson, Az, a place with record heat & a just okay public transportation system.

I have had 6 surgeries to my hands and feet since being forced to drop out of school. The medications I take to stand and actually live have high risks because they suppress my immune system. I take them to function, to take care of myself, and to have some modicum of quality of life.

Do NOT assume you know even a tiny portion of the sacrifices people make on a daily basis to live and work OR the systematic harrassment and discrimination that goes on in govt sponsored student loans!!!

I simply see NO reason why re-financing of student loans should not be available. Student loans basically do not die (even after bankruptcy), so it’s not like offering the capability of refinancing would somehow increase the risks for lenders. Refinancing would of course be based on credit score and credit-worthiness — again, you could only refinance if you had the financial means and you were financially responsible. And it would help borrowers during economic downturns (when their ability to pay might be endangered, but at the same time interest rates fall making the possibility of refinancing more attractive) without damaging lenders (it would ensure the safety of more loans, and they’d still be getting a prime rate above the bottom interest rates).

Simply put, there is NO reason to NOT offer student loan refinancing. I would never be in favor of a plan that just forgave these loans…but I would be in favor of the option to refinance your loans to make monthly payments more affordable to those of us who are responsible, credit-worthy, but may need relief due to changes in work/life occasionally.

Those making trite comments about those with the inability to be responsible should control their lack of full knowledge of each and every situation. I am now 44. My prior boss decided he wanted to send me to law school full schollarship. I graduated in 2006. He wanted to help further my goals because I have two disabilities. It took me longer and I had to take some classes twice after withdrawing. I attended school being sick everyday, it wasn ot easy. I went, he began to pay and then stopped. I now owe $180, after only borrowing $140, the rest is interest. At between 6-10% or so there is absolutley no way I will ever pay or even make a dent in this debt before I retire. I will never save fore retirement, and with my typical health costs, I can barely buy gas to get to work. As for the old boss. Yes I took him to court and won, but he skipped town and even owes the IRS who can’t get money out of him. So now my health is failing due to the stress (stress is a huge problem with my condition), I am losing my home, and can’t even pay 200 towards my student loans. You can see it goes no where. Bottom line, student loans should never have an interest rate higher than 2.9%, schools need to lower their costs and stop growing into small cities, and adversarial bankruptcy should not be a nightmare to achieve. The programs the loan management companies offer are unrealistic and are never based on real life math.

If these kids think they are smart enough to get a higher education then they should be smart enough to understand the loan they are taking.

I have about 30K in student loans, and even this isn’t easy to manage. I just graduated this past May, and my payments are going to start being due this December. I really wasn’t expecting them to be nearly $400/month, but this is what they’re going to end up being. I didn’t go into a field with limited options like arts, English, philosophy, or history. I went into Web and graphic design. Things were looking not too badly before our financial crisis. However, more companies are having difficulty paying for things like Web work and advertising, which translates to very little work in my field.

I’m better off than I would’ve been had I decided not to go to college. I was making minimum wage delivering pizzas, and took other low-wage positions. Though I worked hard, I remember my electricity being shut off more than once due to energy costs and my wage just not being enough to get by. But, the improvement in my quality of life will be only marginal once I start making my loan payments. If our economy doesn’t repair itself in the near future, I fear I may end up in trouble. Worst case scenario would involve me taking the minimum number of extra classes each semester to just defer my loans for a while until our economy gets back on track.

I’m glad that Obama has some plans in the works to make college more affordable in the future, but what about those of us who are already in a pickle?

These are scary times, indeed.

No one held a gun to their head. They made the loan. Isn’t running, stealing?

Some of you antagonists toward people who had to default are living in Fantasyland. With all your self righteous blabbing about “responsibility” and “defaulters should be considered criminals”, etc. it makes me wonder if you work for lenders or have never had any bad situations in your charmed little lives, Mr. Live-in-trunk included. WE make YOU sick? It’s sickening to see the level of ignorance of some of the posters on this site. You think it’s cut and dry or black and white, don’t you? Did you bother to do ANY research at all before you posted your drivel? Have you looked at the history behind the student loan abomination and the implications along the way, such as college costs going up disproportionately to the rate of inflation? Na, don’t bother doing any reading, just mosey on up to a board where people are in real distress and kick them down more. Big shots saying “I can pay MY loans” and “they are running away from their responsibilities”, “they should be treated like criminals”. You people are sick, stupid, or work for a lender. Enjoy your little debt-free lives and don’t bother us with your snide remarks.

I have gone through my own financial difficulties, some self-induced, some not. I understand that I need to pay back my loans, my issue is wouldn’t it be better for the country to invest in educating ourselves through lower costs in education or assistance in re-paying loans than giving handouts to banks that took on risky investments with eyes wide open and to people that knew that they couldn’t afford the house they were buying? Where is my handout for investing in myself and thus being able to better support my family and re-invest in the country through purchases and educating my children?

Are you kidding me?
Sallie Mae has been in trouble for fraudulently placing people in forbearance, because the longer you are in forbearance, the higher the amount you have to pay, and the more likely you will default, at which time, they tack on another 25% of accumulated interest and fees.
To ‘rehabilitate’ your loan, once you go into default, it will cost 1% of your current balance for 12 months. For me, that means 1750/month- more than half my income.
DO NOT ENCOURAGE forbearance.
DO NOT ENCOURAGE rehabilitating the loans. These lenders are SHARKS.

http://www.studentloanjustice.org

Unbelievable….This is the first time I have commented on a story. I read this article while eating my lunch at my desk. I have to concur with a few people on this comment board – what are you going to do with a masters in music, why take on debt of over $100K for (I’m sorry) a useless degree you can’t afford or can’t get a job that pays enough to pay it back?

Another poster mentioned common sense, and another mentioned a second job….

Why not work while you are in college to help with living expenses? What about a JC for the first two years and on to a state school? That option probably caps you at $25K for a college education. Just a thought.

Going to a 4-year university, joining a frat, PETA, or whatever you choose is not a right. Face the facts some people can not afford it, but there are other ways to go to school and get the education you need to get ahead.

I know many people who worked while in school took on little debt and were able to pay it off. Part of going to college is learning how to work, how to live, and how to make sound decisions. Some people who commented on the board did not their money’s worth for their education.

I feel bad for the person with cancer and is living on social security. Something needs to be done to help.

I agree there is work that has to be done to make education more affordable. However, I believe anyone can go to school and get a quality education for an amount that is affordable. The school you want to attend and the school you can afford to attend may be two different things. Many people feel going to JC for a couple years is beneath them, or they won’t get the “college” experience, what a load. It is what you make of it.

Going to college can be affordable if you plan for it.

Some good advice on the board regarding the forgiveness of loans for public service. Great Idea and one that more people should support.

There are always circumstances that are outside our control and yes some people do get screwed. Making a bad decision is not getting screwed over, but just a bad decision. Deal with the consequences of the bad decision. Where were your parents?

I am tired of the “It’s not my fault”, “lets not keep score-just participate”, and the “I deserve it’s”…You need to get a clue.

I am 35, married with two kids. My wife an I own our home in cooperation with the bank(bought it 10 years ago), have paid off our student loans and put money away. The bottom line is YOU need to know what you can realistically afford, and what debt you can reasonably service. You have to realize you can not afford Cristal on a Coors Light budget.

I’m done ranting and feel better now.

It isn’t surprising that student loans are becoming an issue now that wages have stagnated, and education expenses have increased at such an alarming rate. It seems like it would be good to take some time out of the senior year of high school to teach students how to compute loan payments on the debt they will incur. It might also help to inform them at the same time of the earnings potential of the careers they would like to go into.

Furthermore, I must agree with many of you that think consolidation should not be a single occurrence. I was very surprised when I called up this year and was told that I couldn’t consolidate since I already had several years ago. The ability to consolidate again may prevent many people from defaulting.

Although I manage to pay my loans, the amount that I had to assume to finish school still does bother me. I felt that it was a necessary evil, and my choice, to assume so much debt. Part of my debt was related to my father in-laws death from cancer in Europe while my wife and I were both students (3 months in Europe has never been less fun). So when I think about my situation I must remember that about 20% of my loan was from an unexpected expense.

With this in mind, there should also be options for people who do fall into a situation where they are rendered unable to pay their loans, such as disability, or death of close family. Currently it seems so hard to work with these companies that many people just give up. Any modifications should definitely be for people who were not victims of their own poor planning though.

I hope that there will be legislation soon to modify laws regarding student loan repayment. The economic conditions may warrant actions sooner rather than later.

Simple answer: LIVE WITHIN YOUR MEANS! If you can’t afford the expensive school, dont go. There are community colleges and state schools for a reason. If you can’t afford the loan payments, maybe you should trade in the benz for a Hyundai. Maybe refrain from buying the 60 in plasma and read a book. These people who run from their financial obligations disgust me. The same goes for idiots who buy huge homes on $20k a year then cry when they get evicted. The sense of entitlement in this country is disturbing at best. I struggle to pay my school loan payments but yet I manage to do it every month by cutting back in other areas. After a few years of living paycheck to paycheck I will earn more and be more financially stable. Its a process that you have to accept if you want to go to a better school. It’s the “I want it now” attitude that creates these messes. Its sad to see the government contemplating helping people who are defaulting on mortgages they couldn’t afford in the first place when its a result of poor planning and fiscal irresponsibility. People like this who run from their obligations need to face the consequences.

I don’t see why higher education should be a luxury. So the rich kids get to learn what they want, and us poor kids don’t have the option to seek a personally fulfilling career, and people call that freedom? Obama is right, education is our right as Americans. If only the rich can be educated then we are no longer living in a democracy. There is a great distinction between material excess and the desire for education, so stop acting like they are the same thing! My family wouldn’t co-sign on my unnecessarily expensive school loans, so I had to drop out of school, leave my home state of Colorado and move to California where with the help of gracious tax payers, I am able to work myself through the rest of my AA. Now the BA is a whole different challenge. My friend from Costa Rica told me I should come to school there, where it’s free for them and cheap for everyone else. This is Costa Rica, not France, it’s pathetic that they have a better education system than we do, and thats why they’re taking all our IT jobs from us, because THEIR country pays for their education, so they can in return bring better jobs into their country. It’s perfectly logical, but our government just doesn’t seem to get it. I think one I do get my degree it’s time to learn Spanish and skip down to South America, the NEW land of opportunity. We should all be ashamed with our country. Education is a right!

I was in some trouble with my laons right out of college. It took me 18 months just to find a job that paid enough to pay bills and cover students loans. While there was a grace period of 6 months after gradutation, it wasn’t enough with the job market. However menacing it may seem, a phone call to the loan company can help. Nine times out fo ten they were willing to work with me.

While my student loan is not a huge amount ($30,000), at 8.5% interest my payments just barely cover the interest with little to no principal applied each month. There are much lower rates available, but since I have already consolidated the loans that I have I am not eligible to refinance without borrowing more money. You have to have more than one loan to refinance. How dumb is that? I think that when the interest rates go down everyone should have the opportunity to refinance. It would make it so that we, as students, can afford to pay off the loans, and it also makes it so that the banks get their money back in a more timely manner. The fact of the matter is that the Federal Government is subsidizing education, but it is trying to make a huge profit at the same time. The student loan program is no different than the mortgage industry, it’s all about profit. What a shame that some people will die still owing money on student loans.

While I agree that students need to take responsibility for the loans they incur, I don’t agree with those who claim these issues only stem from the fact that our generation is lazy and self-entitled. This issue is much more complicated than that. The fact of the matter is, the cost of higher education has skyrocketed, and it’s making it harder and harder for everyday Americans to attend college. At the same time, college has become more of a necessity than a privilege. My boyfriend and I both attended a state school, had excellent grades, and yet received very little in the form of scholarships or grants. While in school, my boyfriend worked 40 hours a week, and still graduated with over $25,000 in student loan debt. His debt is manageable, and he is making his payments on time each month, but if anything were to happen (which is a worry in this current economic climate of ours), that debt could quickly spiral out of control.

That being said, I do agree that there are those who take out massive debts without thinking of the implications after they graduate. I saw some friends take out extra loans in order to have extra spending money each year (fancy clothes, vacations, etc.). In addition, people really need to think about what they will REALISTICALLY make in their desired field. Working on a music degree? Do you really need to take out $140,000 in loans? Perhaps music is your passion, but part of being an adult is also realizing that some things simply may have to wait. One can’t honestly expect to be able to pay back such massive loans with a music degree!

Student loans are not 8% once defaulted; with penaties and fees cappriciously assigned, it is more like 21%.
I borrowed $104,000 for a Ph.D. in Clinical Psychology and envisioned my sunset years helping others. This was before HMO’s cut psychologist pay by 60%. Additionally, I’m dumb or when to a bum school because I couldn’t pass the psychologists exam and they only give you two trys..that’s it. Maybe I didn’t pass because the test was high on the statistics and I’m not good at that, just counseling.
I couldn’t get a job at 55 years old that would make the payment..many turned me down for work based on age, though they wouldn’t say so. Three years went by and my loans had doubled to $256,000. Everytime a collection company sells the loan(s) to another company, the new company doubles it with their penalties and fees. The last time I added them up was several years ago and it was half a million. Yes, I talked to the extremely rude and vulgar loan collectors without resolution. I’m happy where I am now, treated with respect and wish I had stopped at a BA and become a teacher. Hindsight, huh?
I’m 64 now, I don’t know what my loans are and I’m afraid to find out. Meanwhile, life in China is much better than I ever thought it would be. Until standard rights are restored to student loan borrowers, I will remain offshore except for brief visits.
Some price to pay for believe dear old dad, “Get a good education son and you’ll be on top of the world.”

I went to Design school and got my BS in Graphic Design. I knew it wasn’t going to be cheap. I have federal and private loans. My federal loans have been consolidated. However, my private loans they won’t let me consolidate without a co-borrower. They let me borrow it but won’t let me consolidate. I don’t have a co-borrower and what friend is going to sign on to 50,000.00 worth of private student loan debt. So while I make my federal payments, I have been reduced to constantly applying for partial payment forbearance on the private loans because I can’t afford the 900.00 a month payment along with the 300.00 a month payment in the federal loans. I always thought I’d be able to consolidate, but that doesn’t seem to be the case. I don’t want to default, or move to another country. I’d just like it to be a little easier to pay ti back. I take it seriously. Being able to refinance would be great…consolidating would be great as well. It’s frustrating. I agree with someone else who said we’re being punished for wanting to better ourselves….I just find it ridiculous.

STOP WHINING!!!!! The main reason we are in our current economic state is because people took out loans (be it house, auto or school) that they COULD NOT AFFORD. I am so tired of the lack of responsibility that people in this country want to take. I am 26 years old and attended a $40k a year private college. I have considerable student loan debt, but choose a career that will allow me to pay it off. More importantly, I worked while I was in college. And when I graduated and started working, the first thing I did was make a BUDGET for myself. I bought a used car and rented a tiny apartment. I received offers for credit cards almost every day in the mail – but I didn’t take advantage of them because I knew I couldn’t afford to do so. I agree that the cost of education is high, but I guarantee that 95% of the people who commented on this question and are complaining that they cannot afford their student loans are the same people I see everyday walking around with i-phones, brand new cars, designer bags, etc. Oh, and here’s an idea – if you can’t afford to pay your bills, GET A SECOND JOB.

I borrowed 80,000 to go to film school. In the time I was there, most film jobs went to Candada so when I graduated there was no work. I was unable to make $500 a month payments when I graduated…I was working as a teacher in a low income district of Los Angeles and making 2,000 a month. In this city that’s barely enough to live on. My loans were not eligible for forgiveness due to me working in an area where teachers were desperately needed because they were taken out after 1992. I called repeatedly to try to work something out but they would not help me, demanding $500 or nothing. I was being clinically treated for depression at the time and was overwhelmed by all the paperwork requirements for forbearance or deferral. I consolidated my loans at 7.5% (Down from 9.5%) and then was ineligible for further consolidation, even though the interest rate went down to 2%. Now, 10 years later, I have improved my earning ability to the point where I could pay $500 a month…but at this point the loans have grown to $190,000.00 and Direct Loans wants $1350.00 a month for 9 months in order to rehabilitate the loan. Unfortunately, I don’t make enough to pay that so the loan continues to grow. Borrowing $80,000, I expected to repay about $120,000 – I think that would be fair. The situation I am in is ridiculous considering that with any other kind of debt, I would be able to declare bankruptcy and have a clean record in 10 years. Because I wanted to improve myself – rather than because I bought material goods I can’t afford – I am ineligible for any kind of relief. I don’t really want to declare bankruptcy – I just want to renegotiate this loan so I can repay it without being a pauper for the rest of my life. I think this situation is absolutely unfair considering that in most other countries higher education is free. If I cannot work this out, I am planning to move to another country which is more civilized and which treats its citizens better than this.

Something needs to get done…and fast! I was 18 and enrolled at a local college. Both parents are retired and living on fixed incoms and wouldn’t co-sign for my loans. Not having much or any credit, I got horrible interest rates…some as high as 19%. I thought I would make more money and needed a degree to get in the field of Criminal Justice. I graduated with my B.S. and $105,000 later completely screwed. I filed bankruptcy @ 24 and it didn’t do anything for my student loans! I make 39,000 a year. My loan payments are 1,600 a month. I will never be able to own my home or live comfortably. I was taken advantage of. If someone said hey….19% is super high…it will be almost 1,600 a month….I would have never signed…and never gone to school. I would be better off make $6 an hour.

The borrower of $160,000 to go to medical school will probably be able to pay it back. But seriously, with a masters degree in music? Student loan amounts should be scaled according to the money the student is likely to earn. Steer students into the high demand/high compensation careers instead of just the fun or easy ones.
Let the borrower declare bankruptcy, the private loan company loses, then next time they won’t loan out so much money for a career that can’t pay it back.

take out a loan, then unable to repay. So solution is to run away to another country or face your loans and try to re-do the loan amount? Of course you should work out a payment schedule. collectors only earn money if you continue to pay. running solves nothing

I’d also add that if student loans truly CANNOT be excused due to bankruptcy (or “forgiven” thru foreclosure like a mortgage), it is all the MORE reason you should be able to refinance them regularly….

It’s not narcissism to say that student loans, like home mortgage loans, should be capable of refinancing, etc. to make monthly payments more affordable.

I pay over $1100 a month in loans ($350 in publicly subsidized loans, $750 in private loans). I’ve kept up with my payments, can afford them (thankfully), and don’t believe they should be “forgiven” or anything.

But I do think I should be able to, in times when interest rates are low, refinance or renegotiate the interest rates on these consolidated loans to avoid paying inflated rates. My private loan is at 10.8% — I have EXCELLENT credit and have lower rates than that on all my CREDIT cards. Why shouldn’t I be able to refinance or renegotiate that loan’s interest rate with the lender? Saying “you get to consolidate once at a low interest rate” is all well and good, but if rates plummet later on, you’re stuck paying far more than you should need to due to high monthly interest rates.

Allow student loans (private or public, consolidated or otherwise) to be refinanced, and a lot of these problems go away (i.e. when economic times get tough is when it is hard to pay back loans, but if you could refinance you could reduce the interest rate during those tough times since interest rates fall in tough times and make the payments more affordable, reducing the likelihood of default).

When I chose to take out $47k in student loan debt at the age of 19, I had no idea what I was taking on. I had never taken on debt before and had never experienced living in “the real world.” Five years later, I have some $34k left to pay and at one point was facing an interest rate of 8%.

I work hard and will continue to do so as long as I can, but if I was facing the same decision again I would have found another way.

I can’t blame the people who default because they are unable to pay. Taking on debt for an eduction is a gamble on your ability to succeed in your chosen field and judging from my classmates, that simply is not a safe bet.

I have come to believe that the Europeans do education correctly, we Americans continue to dig our own graves.

I have zero sympathy for these people. While I do believe the United States needs to do something to make college more affordable, especially in this increasingly complex and competitive global economy. If America is to remain a player on the global stage we need to be something more than fat consumers.

That said, running from your debts is abhorrent and I would fully back efforts to treat these people as criminals and pursue extradition to the US to face fines and imprisonment on top of their debts.

I defaulted on a student loan myself. I had a roommate situation where they stole my cash, and what little savings I had was quickly depleted. I was evicted from my home and lived out of a car trunk for months.

I brought myself back from homelessness to a functional, contributing member of society and I paid off my debts.

This present generation is so completely lacking, it seems, in anything but self indulgence and narcissim.

Here we go again yet another story of people who aren’t smart enough to understand that when you take out a loan your expected to pay it back. I am tired of everyone looking for a handout when times get rough. This is part of the reason this country is in the situation we are in. From people buying way more house than they can afford. Assume all the credit card debt they possibly can and then complain when the creditors come calling. It is time for those people to hit rock bottom be held accoutable for their own actions and learn a valuable lesson from all this. The sooner we quit bailing everyone out the better off we will be.

I defaulted on a $14,000.00 student loan several years ago. I had paid $9,800.00 on the loan, when I got sick with breast cancer. Now I live off of social security disability of $462.00 a month, and my student loan is back up to $15,000.00 with the interest and penalties. Now the debt collector is attempting to take my monthly social security check, 50% of it. I have lost my home, I do not own an automobile, I live in the middle of the desert, in a tiny mobile home, where I must haul water each day because I don’t have the money to put in a water well. I do not collect any type of welfare whatsoever. I live within my means and am grateful I have the $462.00 a month coming in. If they take half of that, I will be forced to live off of $231.00 a month. So much for the american dream. I’m glad you could afford to flee this country. These money hungry greedy people, if they feel it right to force me to live off of 1/2 of what I have right now, well be my guest, go ahead. I will now be forced to go stand in line for food stamps, medicaid, etc etc etc. The government wants to take $231.00 a month from me, making me eligible for $400.00 a month in government handout, does this really make sense?????

I actually have a question regarding private loans. I consolidated my private loans (around $75,000 thanks to college and law school) with my lender because everyone said it was the right thing to do. Now, however, I’m stuck with the loans at a 10.8% interest rate — I don’t even have an interest rate that high on my CREDIT cards. I’ve called about lowering the rate, but they claim I’m locked in.

Look, I’m not looking to get out of paying them, and I’m up-to-date so far with all my payments — I just think that my interest rate is absurd and I’d like to have it lowered. In this economy, frankly, a rate around 6% on student loans seems silly….

OBVIOUSLY, WHOEVER WROTE THIS STORY IS UNFAMILIAR WITH THE NEW STUDENT LOAN LEGISLATION THAT WAS SIGNED INTO LAW LAST NOVEMBER. AFTER JULY 1, 2009 NO ONE WILL EVER GO INTO DEFAULT AGAIN AS THE NEW INCOME “BASED” REPAYMENT PLAN WILL ALLOW FOR TRUE INCOME CONTINGENT PAYMENTS OF AS LOW AS $0.00 A MONTH.

The knitting mill I worked at closed. I went back to school as recommended. I graduated as one of the top students. I owed around $20,000. This was in 1993. No one told me, that being an older, fat woman, no one would want be no matter the brains. I saw kids that did not even know the difference between common stock and perferred stock get good paying jobs, they did not want me, even with a 3.8 GPA, I found a job way below my education level, $28,000 a year, but we eat. I just can not afford to pay the loan back. The US can forgive foreign countries for bad debt, I think they should forgive some of us also.

I defaulted on my student loan back in the 80’s
but I did not leave the country. I eventually found a job and paid back what I owed. It tarnished my credit record for several years but I did eventually recover. It is not the end of the world. Don’t give up!

Again, the American sense of Entitlement prevails.

Just how much income did Chris expect to earn with a Masters in music? Did he not realize it would take over 22 years to repay just the principal on $160,000 at $600/month? There’s a cute e-mail floating around about the death of Common Sense. So much truth in that little e-mail.

Since, as a society, we’re so passionate about not holding those accountable who signed on the dotted line promising to repay their (student/mortgage) loans, I guess it’s too much to ask for some accountability to be expected of the loan “counselors” (student/mortgage) who promoted/supported these loans in the first place.

Coming from more humble resources which required self-funding most of my secondary education – and which, apparently, taught me the rare and important mantras, “Live within your means” and “Don’t owe more to others than you have a reasonable chance of being able to repay,” I truly hope that this student loan example is an extreme and uncommon…but, considering the Numbers gullible enough to go for ARM and interest-only mortgage financing…probably not.

{Now, for some soapbox finger-pointing and grousing about these corporate buyouts: It’s a shame we can’t hold the ‘higher-ups’ accountable. You know, the Suits, who head the banks, etc., who reap tremendous salaries as figureheads and the managers beneath them who promote and celebrate the successes of the lower level ‘advisors’ who convinced and approved too many borrowers for predatory mortgage loans… loans that make no sense for Joe the Plumber, unless Joe happens to be a corporation that relocates upper management personnel for short-term assignments frequently. Ugghhhh…}

No wonder we’re going to Hell in a handbasket – it’s been a bit overdue.

But, Everything is cyclic – things will (and should) suck for a while. Problem is to make prudent decisions, have realistic expectations, and don’t forget to breathe. It’ll all come back up again… {:D

However, when 50K turns to 100K after three years of forbearance and an 8% interest rate which the Department of Education refuses to alter, then who is being responsible here, who is being realistic, this poor poor country, too much greed, not enough morality.

Hm…maybe not too much greed, maybe not enough basic math being taught in schools?

50k at 8% for 3 years (assuming it compounds monthly) will bump you up to ~64k (try it our yourself):

http://www.moneychimp.com/calculator/compound_interest_calculator.htm

I think you misplaced 36K somewhere….

An 8% interest rate is greed? Sounds pretty decent too me…and why should the Department of Education modify the terms of a loan that YOU AGREED TO?!?!

And to David from Concord, NC…Amen, brother!

Half way through doctoral studies my father suddenly passed away and my wife, children and I made the decision to leave our business and jobs to help my mother who was taking care of my ailing grandfather. Moving from Manhattan to Rochester, NY proved to be a big mistake because the market for the field we specialized in was almost non-existent.
Even though we both had Master Degree we could not find much more than part-time/near minimum wage employment. We suspended our Doctoral studies and in no time defaulted on several loans. I am full-time employed now but at my meager salary there is no possible way to pay back the several hundred thousand dollars we owe AND support our family.
Our children and we suffer every day under the stress of this burden. Will we be able to buy a house? We we have to keep moving to avoid the phone calls? The letters? Will we have to leave the country?
I keep asking these questions to myself. Is this the America that I was taught about in school? Is this how we educate our population? Is this how we strive to be a great economic and democratic force in the world?
By burdening our educated people with debt is suicidal for this county. I hope our policies can be turned around to work FOR the people and NOT against them as our current policy towards loan forgiveness has done…

I am a divorec single mom and school teacher who has recently returned to grad school. I am half way through, but my credit is such that I am unable to get enough funding to complete my masters. I make too much (hahahaha) to get the funding I need, yet live paycheck to paycheck and can’t save up the necessary thousands to pay tuition. Now I’m saddled with debt (again) and don’t have a degree to show for it. Hardworking people should be able to better themselves through higher education without having to flee their own country to avoid the crushing debt one must take on to get that education. So sad.

I’m responsible for the debt, I accept that. However, when 50K turns to 100K after three years of forbearance and an 8% interest rate which the Department of Education refuses to alter, then who is being responsible here, who is being realistic, this poor poor country, too much greed, not enough morality.

“You can get into $150,000 worth of credit card debt and you can declare bankruptcy and you can go on with your life. But with student loans, you’re being punished for being a better person.”

Really? REALLY??? It’s so unfortunate that in this day and age, that we are forcing our young people to enroll in private universities and take out large sums of money to pay for it, in hopes of achieving that American dream…a degree in MUSIC?!?!

The only question is friend, for 160k did they teach you how to say: “And did you want fries with that, sir?”

Oh please…the same two words need to be told to the people in this story as those in large amounts of credit card debt, as the people making 25K a year who are defaulting on a 400k house, and to the investors who’ve lost everything by investing in companies who built up huge gains with Credit Default Swaps…

“TOO BAD!”

We didn’t hear them complaining during the 4 good years of lush life in private university, or during the huge bubble while collecting great dividends, or the past few years while living in that mansion…

Whatever happened to personal responsibility in this country?

what is wrong with you people?! The “entitlement” attitude is what has gotten our entire civilization into this financial crisis, and here is yet another example of people not owning up to their responsibilities!

I’m sorry, but there aren’t enough free schools, free houses, and free cars to go around!

When I started college, I thought by the time I would graduate a job of 65k will be waiting for me (Accounting Major), but now I am graduating with over 100k student loan both pvt and fed and cant see that happenning. Now I have started thinking that after all that time I spent working on my degree has been lost in the woods and I am now end up with a student loan of over 100k. I know that I will default coz I dont think because of economy I wont be able to find a job more than 35k and that would only end up going to freakin student loan. Although I do not want to default or file bankcruptcy or flee the country for middleast (Dubai) but I dont stand a chance. I wish I could have been working the same job and probably by this time would have had my own business of reatil. Everybody plz pray for me. THANKS!!!!!!!

I am a recent B.Mus/B.Ed graduate from McGill University. As a U.S. citizen, my tuition per year (over five years) was approximately $20,000 including room and board. Not bad, considering how expensive most post-secondary schools have become. My only options were in-state or out of country, because I am paying for my education by myself. What I didn’t count on was the lack of money available to me. There are not many programs sponsoring Americans studying in Canada, or your average students with parents who manage their money poorly. Now my student loan payments are $965.46 a month, with $540.89 going to Sallie Mae and $424.37 to ACS. When you go to school you expect your education will pay the bills. Not only are my bills suffering, but I cannot afford to be a teacher.

This story reminds me of the current problems with housing and credit along with so many other issues this country faces. All the comments made in this artical (and so many others) support how not to live up to responsibilities rather than how to pay what is owed. It seems that too many Americans are looking for ways to get out of thier responsibilities rather than making good decisions and taking responsiblity for those decisions. So many articals such as this seem to support this kind of behavior and actually feed the frenzy on how to shirk responsibility. Its no wonder that our presidential candidates’ campaigns are based on what the government can give to the people rather than the people doing for themselves and minimizing the governmental beast, which is eating our resources in order to build a welfare state. This must stop or this county will fail. I can go on and on but will stop here.

This article fails to mention the tighter federal laws passed in 2005 by a congress and president beholden to Sallie Mae.
It’s a just another corrupt financial system that is ruining the lives of average Americans. We need responsible lending, reasonable repayment terms and consumer protection. Simple. We don’t have that because Sallie Mae’s execs and stockholders can’t make as much money that way. And our federal gov’t is their partner in crime. With that said, good job on bringing some of these issues to light and trying to find some solutions for people who are in big trouble.

170K in law school debt I can’t have afford to have a savings account, and question if I should cancel my 401K. I’m at the point in my life to start a family, I can’t afford it. France is starting to sound quite nice.

I haven’t defaulted on my loans yet,but I soon will be. I was on an economic hardship plan but now that has ended and my payments have tripled. I am a single mother who has a good job and works overtime but I just get by, especially with the increased costs in fuel,groceries and energy costs. I called to see what I can do since I will not be able to make the increased payments per month and I was told there was nothing I can do since I only have a few years left to pay off my loan. I was told to either pay what I can pay and fall behind and never pay off my loans or to make less money. The person I talked to actually told me I would be better off making less money, or not working and collecting. He then proceeded to tell me that it is my personal choice to have a mortgage or not to make enough money or to make too much money. Unbelievable.

Students and families should know that the federal college loan program does have an existing support network for borrowers facing repayment problems. Student loan guarantors (full disclosure – I work for a guarantor) are nonprofit, public purpose, federally funded organizations that are part of the Federal Family Education Loan Program (Stafford, PLUS and Consolidation Loans provided by private lenders). Guarantors can help explain the different repayment options to borrowers before they fall behind and ruin their credit with default. We can assist with filling out paperwork, help with budgeting, and more. Even borrowers who do default can still work with the guarantor to rehabilitate their loan and mend their credit. All of our services are free of charge. Borrowers who are unsure of who their guarantor is should refer to their original student loan paperwork, or they can ask their loan holder or the college financial aid office. Another good resource for locating your student loan information is http://www.nslds.ed.gov. Especially in these tough economic times, more student loan borrowers need to take advantage of guarantors’ valuable counseling services – before they take drastic measures like the one described in this article.

It is horrible that the govenrment cant help out with people with student loans, they are the ones trying to better themselves and get out in the workforce, but when college costs more than people make in a year its hard to pay it back. They got to realize that people have other expenses, they have a life to live. I’ve been in school 6 years due to switching my major because my previous major wouldn’t be able to pay the bills. Now I have 80K worth of student loans. And once I have to start paying them I will not have the money to. The government should look into helping out people who try to help themselves instead of bailing out these people who don’t care because they know there will always be help out there!

I am living outside the U.S. primarily due to defaulted student loans. When I graduated it was with 50,000 in loans, straight into the recession of the early 90’s. As a single parent I took any job possible but usually minimum wage, and was constantly terrified of not making the next month’s rent; there was no question of trying to add paying loans. I had to declare bankrupty but I was told by an attorney that the student loans could not be considered, so did not know about the possibility. I am still so traumatized by the debt collectors techniques, and the added fines and fees, that I don’t dare try to find out how to start paying – which I’d like to do – because I don’t want them to start again.

Students saddled with this debt are in a tough situation. Often these individuals are first generation college students with little family experience to coach them on loans. While tuition hikes continue, financial aid rarely rises at the same rate. It is not abnormal for students in this situation to pay $600/month in tuition repayments. If one makes $30,000/year, which is more realistic than the $50,000 colleges often brag their graduates receive, that payment is often a third of their monthly expenses. Add in rent and basics like food, transportation, and utilities, the entire monthly salary is consumed immediately. When they realize they cannot get engaged or start a family because of their finances, hopelessness quickly sets in.

While the government is coming to the rescue of those irresponsible people who bought too much home they couldn’t afford, it is leaving those who made good investments out in the cold.

There is no relief, I had my $16000 in Texas Guaranteed Student loans discharged through bankruptcy due to economic distress (no job, no home, no prospects), but 15 years later my wages were garnished and now I am paying back over 36K. The “nice” people at Greenville, TX (the collection center for Texas Student Loans)with which I communicated told me they really did not care that the debt had been discharged. I may not have to move out of the country at this point but will have to when I retire since what would be going into my 401k now goes to those “nice” people.

I paid back my student loans, but it took a long time. After I got out of school and started working, I realized the loan balance and payments were high relative to the salary paid by my job (my job was directly related to my degree). Maybe there should be some mandatory counselling involved when you apply for loans, to get students to think about how much they will owe versus how much they are likely to get paid in various jobs related to their major. Also, more info on the consequences of not paying. More students may opt to work while studying, even if that takes much longer, or they may choose a different school or major. The emphasis when I applied for my loans was on how little I’d have to pay while in school, not how much I’d have to pay after graduating. You’re pretty young and idealistic when you apply for these loans. Hindsight, especially once you start working, is 20-20.

What a bunch of losers. Whether it’s default on your school loans or claim bankruptcy to get out of the credit card debt you rack up…it’s people like this that make it tough on the rest of us. I didnt go to a big University but make ~6 figures now due to hard work. Try that for a change and pay your bills jerks!

2 years ago, my spouse and I both lost our jobs and got rid of our house to cut expenses–we had to borrow to cover the several tens of thousands of dollars loss on the house and it was on the market for a year. We ended up with much lower paying jobs in another city (we are both professionals), and unable to pay off the mounting debt. As of a year ago, we are now living abroad, able to live on one salary and save the rest, and only make purchases in cash. We will never again be so overly optomistic about an economy or our professional futures.

I do work for a student loan company that handles federal loans and most people when they fall behind are too afraid to call thinking there is no hope. With federal student loans there are options like the article says, and most times we can help.

I am not sure that i really feel sorry for someone who borrows 160k to receive a masters degree and is surprised that the payments would be so high. Apparently basic math was not part of that course study ? These are mostly government guaranteed (tax payer -you and i) student loans and i feel they should not be completely dischargeable. I could see a program to require repayment of the principle and forgive the interest in hardship cases.

The Art Institute of Colorado (which is owned by Goldman Sachs) uses a call center to lure students then keeps making credit card interest loans to them to pay for tuition on a bachelor’s degree that costs over 6 figures. Many or most students have little experience with this type of operation and graduate with crushing debt.

Not surprised at this article. It is a decision we all make as a person $95K in student loan debt and repaying it off working a job I can’t stand. When I first graduated from school I thought of faking my own debt or moving abroad. Such high debt alters your life style forever, and comes with some mental highs and lows. And yes unlike credit card debt there are few options out.