NPR had a segment this morning on student loan debt. They interviewed several young adults about the impact that this mountain of debt will have on their futures. It is truly overwhelming when you consider all the ramifications of, say $50 thousand in debt at age 22 - all of which must be repaid with after-tax dollars.
Delayed marriage and children,
Delayed emancipation from parents,
Delayed home ownership or purchase of marginal housing,
Delayed start of savings for retirement,
Inability to make normal middle-class investments likes stocks, real estate.
A couple of the ones interviewed pointed out that at the time they were deciding to take on this debt they did not have the maturity or experience with money to comprehend what the debt would mean to their future lives.
It is not unusual to hear young people talking about having a "significant other" who is so loaded with student loan debt that they just can't see marrying the person and assuming responsibility for that debt - or even a portion of it.
And to remind those who may not be aware, you cannot have student loan debt discharged in bankruptcy, so the most common means of getting out from under massive debt is closed to you.
Much of the problem just comes back to college tuition being totally out of control. The colleges know that there are federal and state grants and loans, and private loans available, and they also know that if they make a good impression on the kids they will choose to go there, even if it is an insane choice financially.
When I started college I was on my own (as a 21 year old veteran), and to me it made no sense to do anything other than start out in the local community college. I knew I would get good grades there, and if I lined up my coursework with the University of Pittsburgh I could transfer all my credits. It worked out as planned. When I went to Pitt, I took 18 credits per semester (because the price was the same for 12 or more credits), and I worked full time, midnight shift, as a security guard. I got some VA money and a small grant from Pennsylvania, but I graduated with no debt. I went to law school at night (while working full time, of course), got my employer to pay a piece of it, and again graduated with no debt.
Even with everything that is being written about crushing student debt, I still see middle class kids heading off to God-awful expensive private colleges when the local state schools are just as good and half as much money. Not to pick on them, but I can't imagine why anyone would go to Duquesne University here in Pittsburgh, when Pitt is just as good and costs half as much. Because they like the feeling better? Are you kidding me?
In indulging these kids the parents are doing them a great disservice.
In my opinion, college tuition should be financed BY THE COLLEGES THEMSELVES. Then if the kids default on the loans, it's the ones at fault who suffer first.
Delayed marriage and children,
Delayed emancipation from parents,
Delayed home ownership or purchase of marginal housing,
Delayed start of savings for retirement,
Inability to make normal middle-class investments likes stocks, real estate.
A couple of the ones interviewed pointed out that at the time they were deciding to take on this debt they did not have the maturity or experience with money to comprehend what the debt would mean to their future lives.
It is not unusual to hear young people talking about having a "significant other" who is so loaded with student loan debt that they just can't see marrying the person and assuming responsibility for that debt - or even a portion of it.
And to remind those who may not be aware, you cannot have student loan debt discharged in bankruptcy, so the most common means of getting out from under massive debt is closed to you.
Much of the problem just comes back to college tuition being totally out of control. The colleges know that there are federal and state grants and loans, and private loans available, and they also know that if they make a good impression on the kids they will choose to go there, even if it is an insane choice financially.
When I started college I was on my own (as a 21 year old veteran), and to me it made no sense to do anything other than start out in the local community college. I knew I would get good grades there, and if I lined up my coursework with the University of Pittsburgh I could transfer all my credits. It worked out as planned. When I went to Pitt, I took 18 credits per semester (because the price was the same for 12 or more credits), and I worked full time, midnight shift, as a security guard. I got some VA money and a small grant from Pennsylvania, but I graduated with no debt. I went to law school at night (while working full time, of course), got my employer to pay a piece of it, and again graduated with no debt.
Even with everything that is being written about crushing student debt, I still see middle class kids heading off to God-awful expensive private colleges when the local state schools are just as good and half as much money. Not to pick on them, but I can't imagine why anyone would go to Duquesne University here in Pittsburgh, when Pitt is just as good and costs half as much. Because they like the feeling better? Are you kidding me?
In indulging these kids the parents are doing them a great disservice.
In my opinion, college tuition should be financed BY THE COLLEGES THEMSELVES. Then if the kids default on the loans, it's the ones at fault who suffer first.
