"Colleges will keep doing this as long as the loans are available and as long as people keep applying," said Laura J. Clark, director of college counseling at Fieldston, a private high school in New York. "If there's a drop-off in the number of applications in the middle-income group, that's when colleges may moderate prices or come up with new strategies for helping people pay."It bears repeating: You cannot escape student loan debt. The federal government will hound you until the day you die if you don't pay off those loans. They will even garnish your social security check.
We all like to make fun of seemingly stupid and greedy people who did cash-out refi's during the housing bubble. Sure, billions of dollars were spent on Escalade's, granite counter tops and expensive vacations. But how much of that money was spent to inflate the higher ed bubble? I bet a lot of it.
5 comments:
I got a son who will be college age in a couple of years, and I have two more right behind him. I think the education bubble may have priced all of them out of a higher education.
When I went to school, I worked my way through without any loans. Not sure if that is even possible to do today.
^ that should have been "I have a son..." - that's what I get when I try to comment on a post while having a conversation with my wife.
Yep, me too. I think it is possible still (2 years community college, then 2 years state college for major). But it will be tight.
There is an escape on student loan debt, if you are patient:
"The new Pay As You Earn proposal will allow about 1.6 million students the ability to cap their loan payments at 10 percent starting next year, and the plan will forgive the balance of their debt after 20 years of payments."
That's from our Fearless Leader, by dictatori..., er, I mean, executive in October, I believe.
So if you can handle the harassment of dunning notices and debt collector calls for two decades, along with garnishment, etc., then you can escape. Early death, on the other hand, is also an escape, and one that might be preferable to the aggro of Method 1.
...executive ORDER... that is.
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