MarkT Posted March 6, 2016 Share Posted March 6, 2016 <http://www.npr.org/2016/03/01/468272843/strategies-for-when-youre-starting-out-saddled-with-student-debt?utm_source=npr_newsletter&utm_medium=email&utm_content=20160306&utm_campaign=bestofnpr&utm_term=nprnews> FYI Quote Link to comment Share on other sites More sharing options...
JanetC Posted March 6, 2016 Share Posted March 6, 2016 120K in student debt? To become a teacher? Ouch! I do like to remind people that the Federal Direct Loan program now has income-based repayments for everyone: If your income is low, so is your payment (they stretch out the number of years you pay). Stories that profile people in their late 20's don't always remind readers that current borrowers have new options. 2 Quote Link to comment Share on other sites More sharing options...
FaithManor Posted March 7, 2016 Share Posted March 7, 2016 Wow, given that the maximum amount of federal loans for undergraduate work is in the vicinity of $30,000.00, that means $90,000 of that was private and with it, the rather steep interest rates and mafia like repayment schedules and tactics of the private student loan industry. Ouch, ouch, ouch, ouch, ouch.... This is where students and parents need to be more savvy. They need to stop and consider that $30,000 at the federal rates is really very doable for new college grads, but private loans are a killer, a real killer. Our kids take out the federal which helps them have "skin in the game" so to speak, but we move heaven and earth to make good choices so that private loans are not needed. This usually means for us, unless merit aid at a private is really generous, a reasonably priced state university that is willing to meet the difference between our EFC and any balance that might be due after merit aid, campus job, and federal loans are deducted or better yet, offers enough merit that we won't have to meet our full EFC after all of that...such is the case with eldest ds. The private loans are the real problem! 4 Quote Link to comment Share on other sites More sharing options...
teachermom2834 Posted March 7, 2016 Share Posted March 7, 2016 Federal loans for undergrad should not bury someone. Now, also taking them for grad school can get to be alot. We are comfortable with the federal loans but we will not be co-signing for any private loans and if somehow ds could get them without a co-signer we would very strongly discourage that. 1 Quote Link to comment Share on other sites More sharing options...
MarkT Posted March 12, 2016 Author Share Posted March 12, 2016 120K in student debt? To become a teacher? Ouch! I do like to remind people that the Federal Direct Loan program now has income-based repayments for everyone: If your income is low, so is your payment (they stretch out the number of years you pay). Stories that profile people in their late 20's don't always remind readers that current borrowers have new options. "There are two ways to earn student loan forgiveness: work in public service, or make payments though an income-contingent payment plan for a long time." see Investopedia Quote Link to comment Share on other sites More sharing options...
G5052 Posted March 12, 2016 Share Posted March 12, 2016 "There are two ways to earn student loan forgiveness: work in public service, or make payments though an income-contingent payment plan for a long time." see Investopedia I don't know current availability, but there have been programs for teachers and medical personnel for years with loan forgiveness if you go to an underserved area. Not for private loans, but you can also earn forgiveness through the National Guard. Quote Link to comment Share on other sites More sharing options...
FaithManor Posted March 13, 2016 Share Posted March 13, 2016 Forgiveness programs only apply to federal loans so the first $28,000-30,000. For the teacher who went $120,000 in debt, the $90,000 in private loans is the real killer. Quote Link to comment Share on other sites More sharing options...
Guest2 Posted March 19, 2016 Share Posted March 19, 2016 Why would anyone take out $120,000-190,000 in loans? There is something seriously lacking in in kids' education/maturity if they attend a college they can't afford to have all of this increased stress, ect. I don't get it. Cost for benefits should be considered. I feel for these kids, but what were they thinking? There are so many lower cost options. Somehow there is a disconnect between the idea of loans being real money and how that will impact their life when working. Stupid and just very sad. Quote Link to comment Share on other sites More sharing options...
teachermom2834 Posted March 19, 2016 Share Posted March 19, 2016 Why would anyone take out $120,000-190,000 in loans? There is something seriously lacking in in kids' education/maturity if they attend a college they can't afford to have all of this increased stress, ect. I don't get it. Cost for benefits should be considered. I feel for these kids, but what were they thinking? There are so many lower cost options. Somehow there is a disconnect between the idea of loans being real money and how that will impact their life when working. Stupid and just very sad. But doesn't someone have to co-sign these large loans for undergrad? I can see a young person who is immature falling into this but didn't an adult have to co-sign? Surely someone who is old enough to have a college age child should have a bit of life experience to bring to the situation. I think a lot of it is all the marketing and push for kids to find their dream college and perfect fit. Then they get in and the parents can't say "no". I have a friend in this situation now. Her daughter is high stats and very accomplished and has gotten into elite schools with elite price tags. State flagship seems beneath her accomplishments and stature. Parents having a hard time saying "no" to elite schools. I think as parents we need to start this conversation early. Hard to all of a sudden embrace a state university when you were always destined to something more prestigious. Or so you thought :( Quote Link to comment Share on other sites More sharing options...
Guest2 Posted March 19, 2016 Share Posted March 19, 2016 I did a very quick and not- so- through- search for these plus loans. It does seem like they need to be co-signed at the undergraduate level. The choice of college does seem to be the end goal for some parents and their students. It seems weird to me that they wouldn't be planning further than the degree. What kind of life do you want to live? What kind of career do you want? How will you get it and what will it pay? We have always lived in communities full of practical engineers and have heard, " I am not sending my kid to an Ivy for a degree in social work. There needs to be some sort of rationale for spending that kind of money" and "Have you run the numbers? You might be able to get the same job from a good state school, or get into a more elite school for graduate work where it is free ( assuming a science type degree)." Some of these I hadn't heard often, but certainly remembered them when the time came for college applications. 1 Quote Link to comment Share on other sites More sharing options...
FaithManor Posted March 19, 2016 Share Posted March 19, 2016 I did a very quick and not- so- through- search for these plus loans. It does seem like they need to be co-signed at the undergraduate level. The choice of college does seem to be the end goal for some parents and their students. It seems weird to me that they wouldn't be planning further than the degree. What kind of life do you want to live? What kind of career do you want? How will you get it and what will it pay? We have always lived in communities full of practical engineers and have heard, " I am not sending my kid to an Ivy for a degree in social work. There needs to be some sort of rationale for spending that kind of money" and "Have you run the numbers? You might be able to get the same job from a good state school, or get into a more elite school for graduate work where it is free ( assuming a science type degree)." Some of these I hadn't heard often, but certainly remembered them when the time came for college applications. I think that if we do not see some action taken to lower the college bill for the middle class parents who are drowning because they don't make enough to save gobs of money, don't receive state aid, and rely heavily on dwindling merit aid while their kids are relegated to schools that aren't helping them earn that piddly merit aid with robust college prep opportunities, we are going to see a big growth in the number of parents who figure their student can still get a decent job after graduating from a good regional school while commuting from home. Practicality is going to drive this. I don't know what it takes to get the university system to wake up. I really don't. The top earners send their kids to the top 20 or so elite universities and LAC's. The number of low income, need based aid students attending university is lower than that of the middle class so if the middle class drops out of the other top 150 schools and send their kids to the second tier public institutions, where will MSU, OSU, Purdue, U of A.....fill their freshman classes? I was looking at some stats last year just for U of Michigan, and of the acceptances the number who actually enrolled was paltry. I've talked with my relative that works down there in administration and she said, Yup....their yield fell short of what they wanted. I suggested they start offering something besides endless debt to the middle class. Then again, it wouldn't hurt the state legislature to actually care about education here and give a little money to U of MI and MSU. The amount they get for supposedly being tax payer funded institutions is so low it is practically negligible which makes them defacto private colleges. I'd like to get something for my taxes. 1 Quote Link to comment Share on other sites More sharing options...
Guest2 Posted March 20, 2016 Share Posted March 20, 2016 (edited) I think that if we do not see some action taken to lower the college bill for the middle class parents who are drowning because they don't make enough to save gobs of money, don't receive state aid, and rely heavily on dwindling merit aid while their kids are relegated to schools that aren't helping them earn that piddly merit aid with robust college prep opportunities, we are going to see a big growth in the number of parents who figure their student can still get a decent job after graduating from a good regional school while commuting from home. Practicality is going to drive this. I don't know what it takes to get the university system to wake up. I really don't. The top earners send their kids to the top 20 or so elite universities and LAC's. The number of low income, need based aid students attending university is lower than that of the middle class so if the middle class drops out of the other top 150 schools and send their kids to the second tier public institutions, where will MSU, OSU, Purdue, U of A.....fill their freshman classes? I was looking at some stats last year just for U of Michigan, and of the acceptances the number who actually enrolled was paltry. I've talked with my relative that works down there in administration and she said, Yup....their yield fell short of what they wanted. I suggested they start offering something besides endless debt to the middle class. Then again, it wouldn't hurt the state legislature to actually care about education here and give a little money to U of MI and MSU. The amount they get for supposedly being tax payer funded institutions is so low it is practically negligible which makes them defacto private colleges. I'd like to get something for my taxes. I agree with you mostly. I am not sure if the public universities are all over charging. U of MI liberal arts degree tuition is around $6,000, though, and that seems doable with a part time job ( if available) or loan. It looks like the housing is pretty expensive per semester, it is double what we pay( and my DS doesn't have to use a meal plan. Sandwiches and crockpot meals are super cheap,) If the subsidized govt loans cap at $5,500 freshman year, books and living costs are going to be a problem in areas where employment is a challenge.Edited: nm . The $6,000 is per semester. I am estimating $32,000 per year for dorm, dining and tuition? Crazy. Edited March 20, 2016 by Silver Brook Quote Link to comment Share on other sites More sharing options...
FaithManor Posted March 20, 2016 Share Posted March 20, 2016 Yes it runs 28,000 to 32,000 at U of Mi depending on major/fees, dorm, and meal plan. Not cheap. I really believe that state flagships should be much less than that. But Michigan is an economic disaster so apparently I ask far too much, at least acccording to my state rep. Quote Link to comment Share on other sites More sharing options...
Janice in NJ Posted March 22, 2016 Share Posted March 22, 2016 Student debt is a big news story in March. It always is. There is a huge crop of kids who just received their financial aid packages and are trying to decide how much debt they are going to shoulder. Few will take on the $100K. Few. Most will just take on the $5500 the Federal Government is offering them for freshman year. Then $6500 the next year, then $7500, $7500. That's how they end up with the $27K in debt. I do find it odd that little is said about the amounts the parents are shouldering. I had no idea parents could just fill out a simple form, borrow up to their cost from the Fed, and kick the can down the road till after graduation. I honestly think these stories hit the news cycle every March because they get so many clicks. They make the folks who are taking on smaller amounts of debt (most of the population) feel better about what they are doing. Which of course reduces the amount of chatter/upset regarding the cost of the whole thing in general. News outlets produce stories that generate clicks; this one is a sure-win in March. (They pop up again in August when folks are signing forms.) Peace, Janice Enjoy your little people Enjoy your journey 1 Quote Link to comment Share on other sites More sharing options...
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