right arrow
Examples: Monday, today, last week, Mar 26, 3/26/04

Shocking college debt figures. Not for students but for parents!Please be careful with your advice.

2456717

Replies to: Shocking college debt figures. Not for students but for parents!Please be careful with your advice.

  • cptofthehousecptofthehouse 29422 replies58 threadsRegistered User Senior Member
    Some of the kids are defaulting as they hit bumps and needs in their lives.
    · Reply · Share
  • privatebankerprivatebanker 5273 replies77 threadsRegistered User Senior Member
    edited May 20
    Oh yes. Parents as well @twoinanddone

    The article i read held the premise that there so many endangered retirements out there.

    And whatever the relationship. I find it so sad that over 35 percent of these loans to those over 65 are in default. They can’t pay the bills. This can impact insurance rates and personal finances. Plus the stress. And these cannot be relieved by bankruptcy. The calls and letters will never stop after a lifetime of work for so many.
    edited May 20
    · Reply · Share
  • ucbalumnusucbalumnus 78229 replies690 threadsRegistered User Senior Member
    There are likely several categories of people who find themselves in this predicament. Some are likely people who went for professional degrees in their 30s and 40s who did not get the income boost they expected from the degree

    Hmmm, perhaps those who went into huge debt for law school but could not find a law job or pass the bar exam, or those who went into huge debt for medical school but could not get a residency afterward?
    · Reply · Share
  • cptofthehousecptofthehouse 29422 replies58 threadsRegistered User Senior Member
    It’s 10 years per loan. We took PLUS loans starting back in 2001. We started paying go each loan as we took them. But starting with the first to the last loan, it was 14 years of payments.

    You don’t have to pay till 6 months after kid graduated, and many start then. Calculate, the interest on them by then! They were painful for us even the way we did it. We stretched 4 years of payments into 14 years
    · Reply · Share
  • twoinanddonetwoinanddone 22964 replies17 threadsRegistered User Senior Member
    After going through the process we as a family have decided for undergrad that the normal $27K is tops for loans with the caveat of going up to $40-70K for certain schools with certain majors. That would be the advice I would give to anyone.

    This, IMO, is how people get into trouble. They justify borrowing more to go to MIT or Harvard because the student is going to make so much more with that degree. It doesn't always work that way. They could have borrowed less and gone to State U.

    Also IMO, student loans should be limited and the PLUS loans should have debt ratio qualifications. No one, the student or parent, should be able to borrow $100k on a $20k salary. Sorry, but your grandmother who lives on $15k in Social Security should not get a PLUS loan for $50k per year, every year, as long as she doesn't default. A parent can take a COA loan for multiple children, no limit, as long as that parent/grandparent meets the very minimal requirement of having not defaulted on any government loan, not filing bankruptcy in the prior 5 years, and being current on major debts. Mike Pence borrowed for 3 kids and so did Martin O'Malley, both employed as governors (probably making about $100k per year).

    I think some families have the grandparents borrow instead of the parents, either because the parents can't qualify or because the odds are that the grandparent will die before the parent and then the debt will be forgiven. The parents might agree to pay the loans, but then don't or can't, and the senior citizen grandparent goes into default. No proof of that, just my opinion.
    · Reply · Share
  • cptofthehousecptofthehouse 29422 replies58 threadsRegistered User Senior Member
    I think we are a tough crowd on this board. Sometimes too tough where it seems like the auto response is to go with the money.

    But it’s important to try to get the message that it’s not doing anyone any favors to take on all that debt for a preferred school when you cannot afford it.

    And that’s where the issue is. Kids who come from households where parents, family are financially struggling don’t get it that asking the parent to co-sign that loan is putting a stranglehold in the parent as well as on themselves. And the parent co-signs with no clue, now both of them shackled to that loan for even longer than “death do us part” since each party now responsible for the loan.

    If your family can afford it, that’s a whole other issue. When you go to these pricey schools, many classmates come from such families. This is not a level playing field once you graduate, and you have the debts along with new need of funds to get started on the job and a new life.

    My kids have no loans and we’ve subsidized them after school, and they still often feel poor when with free wheeling friends who can live higher, a lot higher in very nice places, vacation, great car, designer clothes, etc etc. They do feel the squeeze of a budget.

    Then they have friends with the loans , some back home because of finances. My one is dating someone who is living paycheck to paycheck with loans, and a family that has needs. It can get very difficult.

    · Reply · Share
  • ccprofandmomof2ccprofandmomof2 486 replies8 threadsRegistered User Member
    Are there any good stats on how much of the American student loan burden comes from students who attended elite private colleges vs how much is from students who went to public state schools? I don't disagree that the student loan debt issue is a major one; I'm just not convinced that a big percentage of student loan dollars goes to elite, $70K per year kinds of schools. Would really love to see some good stats on that.
    · Reply · Share
  • MadcityParentMadcityParent 60 replies0 threadsRegistered User Junior Member
    The undergraduate students who rack up the biggest student debt are not going to the state school or even a private non-profit, but going to for-profit schools. Average student loan debt for state schools is $25,500. Average debt private non-profit is $32,300. Average debt for for-profit schools is $39,800.
    · Reply · Share
  • privatebankerprivatebanker 5273 replies77 threadsRegistered User Senior Member
    edited May 20
    @MadcityParent The numbers going to the for profit schools are incredibly small in scope and scale compared to the college student universe. Many of the for profit schools also cater to mid career people as well.

    But if we are going to look at the private versus public numbers. We have to also look at instate flagship or top directionals vs ooS public u.

    My position is debt for school, if a nearly comparable school (in the big picture not usnwr) and no or low debt is an option that is available, that’s the conversation to have in an open and honest way.

    But kids and parents just seem to not love the instate flagship unless it’s a last resort.
    edited May 20
    · Reply · Share
  • ucbalumnusucbalumnus 78229 replies690 threadsRegistered User Senior Member
    blossom wrote:
    While we're on the "please be careful with your advice" kick- the "oh for sure your kid can get attractive merit" crowd needs to also be a bit more circumspect.

    Yes, the FA/scholarships angle needs to be considered when assessing "reach", "match", "likely", "safety". Most posters seem to assess these on admission only, ignoring whether getting to affordability falls into a more difficult category. Since admission but too expensive is effectively like rejection, the assessment must consider likelihood of affordability.

    In general, if a merit scholarship is necessary for affordability, then:

    * If the scholarship is competitive, it and the college should be considered "reach".
    * If the scholarship is automatic for stats or NM status that the student has, the scholarship can be considered "safety". If the college will automatically admit the student, then the college overall can be considered "safety". If not, then the college overall can be assessed based on admission likelihood.
    · Reply · Share
  • ucbalumnusucbalumnus 78229 replies690 threadsRegistered User Senior Member
    Are there any good stats on how much of the American student loan burden comes from students who attended elite private colleges vs how much is from students who went to public state schools?

    https://ticas.org/posd/map-state-data may be of interest. Click on a state to see debt levels at the public and private colleges in the state where data is available. Compare Utah versus Pennsylvania to get a contrast.
    · Reply · Share
Sign In or Register to comment.

Recent Activity