School debt and personal responsibility

[Sapphire]

Had this debate on this very subject with several friends who of course with their backgrounds of being supported by family and never having to work had the opinion of "it's borrowed money therefore you have to pay it back" argument. I kindly reminded them that a loan is just that, a loan. Monies that are conditionally distributed to students upon condition of graduation and financial return. However the truth of that is not always that simple, given the circumstances that play in part of the current financial crisis.

Some say "students should pick good majors instead of trying to study pottery." As satire would have it, most college students in debt are students that have non-science majors. So for some people with no clue, students in debt are those of the liberal arts and other non-science majors. Some people with this argument do not understand a few things:

1) Either you live in a state with a high downturn of employment

2) Picked a major (e.g psychology) that requires you to continue schooling therefore acquiring more debt before you reap the benefits of financial gain.

3) Picked a degree in which it is highly competitive in the job market (e.g business).

Jobs like engineering, chemistry, medicine, are not always the most popular majors in college. In actuality business is perhaps the most popular major in many of the universities across the United States and having worked in the professional world, I've met few engineer majors and/or chemist. I think a lot of criticism coming from people who blame students on their condition are those who are outside looking in.

I have a theory to hopefully solve this:

As a graduate student I think theoretically universities and other private institutions ought to at least go into a contract with students giving them the option to either become career college students with no goal to pursue a career in the desired major of their choosing, or students who do have an idea of what career they want to choose. Students who desire majors such as cultural studies, liberal arts, get financial help however this help is contingent upon completion of undergraduate work with the intent of pursuing an occupation thereafter to help pay off the loan. The student can defer the payment if (and only if) they encounter the following:

1) Unexpected life misfortune

2) Unable to find a work

3) Incapacitated (or is suddenly disabled which prevents the person from working or able to pay it off--this would not effect married couples unless both are severely disabled)

4) Laid off from work

Students that pursue degrees even in the liberal arts such as social work, psychology etc still have the same contingent upon completion of desired major along with the pursuit of an advanced degree. No interest rate, nor would the student be obligated to pay back the loan unless the student pursues a doctoral degree.

Now of course I'm sure there are flaws with this idea but what say you?

 

[Politico]

If you take out the loan you pay it back period.

 

[Spiderman]

What's wrong with working while you're in school and taking a little longer to get a degree?

 

[DGS49]

It should go without saying that financing a college education should be done with as much prudence as any other major financial undertaking. The educational plan should be as cost-effective as possible (community college? Part-time studies while working full time?). All means of financing should be explored (personal loan from family members, employer-paid tuition, GI Bill), and marketplace loans should be LAST on the list.

In deciding the educational programme, the student must seriously confront the choice of "must have" versus "nice to have." It is "nice" (but not necessary) to live in a dorm or a frat house. It is "nice" (but not necessary) to take five years to graduate. It is "nice" (but not necessary) to go to the private college where your high school friends are going. And so forth.

An ADULT should be involved in the decision-making process, as 18-year-olds - and especially boys - are, if you will pardon my candor, usually idiots. There are serious decisions that make perfect sense to an 18-year-old, but are obviously stupid to an adult. There are not 50,000 jobs emerging every year for "Sports Management" grads. Someone has to provide a Reality Check.

This is not because 18-year-olds are stupid or foolish; they simply don't have enough life-experience to project into the future and anticipate the ultimate results of these decisions during college.

Before taking out any loan, there should be a SERIOUS discussion about exactly how it will be paid off, and how long it will take. The borrowing student must be made to understand that the loan(s) will have to be paid off with after-tax dollars that would otherwise be spent on rent, cars, and/or socializing. Therefore, the student must be made to understand that THESE LOANS will have a significant effect on their lifestyle after college - possibly for many years. It may be that the CHILD will have to figure on living with parents for 5 years after graduation.

But having said all that, a contract is a contract, and the borrowing student has to pay it off, even if it is more difficult than originally thought.

One of the best things to come out of bankruptcy reform was to prevent discharge of student loans. Before the reforms, it was one of the most outrageous scams ever, with doctors and lawyers being the worst offenders. Now we all have to live with it. As we should.

Although I graduated back in the Stone Age, my college was financed by a combination of: personal savings/earnings, small loan from grandmother ($300), GI bill, employer tuition assistance, state grant, state loan, and one small scholarship. I graduated from law school with no debt, although I realize that that would not be possible today under the same circumstances.

 

[Casjah]

What's wrong with working while you're in school and taking a little longer to get a degree?

^ding, ding we have a winner. I work semi full time, and will graduate with an associate's degree that will take me four years. But I graduate debt free. I also get grants and scholarships. There are options out there, and it can be done. If I can do it, anyone can.

And that's just it: it takes a can-do attitude. People need to believe in themselves and get it done. No excuses.

 

[DGS49]

A little-known fact is that in many colleges it is possible to take more than one course in a single evening, so it is more than possible to be a full-time (i.e., 12 credit) student while also employed full time.

And being a security guard is the optimum job for this, as it normally provides a lot of time when you can study.

The voice of experience.