Graduating Into Debt

CBS News ^ | 9/26/07 | CBS

[DogandPonyShow]

CBS) For accountant Alex Guzzetta, not a day goes by when he doesn't think about these numbers: $90,000 in student loan debt, $20,000 owed to the federal government and $70,000 to a private lender.

[DogandPonyShow]

“A third of every hour I work is basically just going towards just maintaining the interest on my student loans. I'm not getting anywhere, they're not getting any lower. I'm just buying time,” he tells CBS News correspondent Kelly Wallace

[Robert357]

I do believe that some loan companies and some credit card firms prey upon college students, but really.

I think that the comment on the CBS web site says it best with sarcasm.

How hard did you have to look to find an accounting major who did not know how he was borrowing, interest rate, terms. etc.? I would "sure" want this guy doing my taxes, finances, etc.!

[L98Fiero]

Remind me never to hire that guy as an accountant.

My Mom is an accountant and she got out of school in ‘96 with less than 10K in debt. $90K? Idiot.

It would appear by your postings that he isn’t the only one having trouble paying off those loans.

[The Electrician]

A third of every hour I work is basically just going towards just maintaining the interest on my student loans. I'm not getting anywhere, they're not getting any lower. I'm just buying time,” he tells CBS News correspondent Kelly Wallace

Sounds a lot like taxes, doesn't it? (if only the total government tax take were that small)...

[Rennes Templar]

In 1974 I had two jobs and still couldn’t finish out my senior year without help. So I had to take out a student loan. I paid it back - all $400 of it.

I pity these students now. I think it may all crash someday.

[pabianice]

How the %^&* could a new accountant owe $180,000 in student loans??

[willgolfforfood]

Crap. He coulda got a big chuck of that degree at a junior college, and ended owing a 3rd to a 10th of that much.

[muawiyah]

The problem is "out of state" tuition.

Universities and colleges with a full four year undergraduate program actively recruit out of state and foreign students. In many states they get away with establishing caps on in-state or local students further compounding the problem.

Then there are special programs. For example, if you want to become an art instructor at a major university, or even a not-so-major university you quickly discover there is a shortage of top-flight instructors, and that most art programs are caught up in computer aided "design".

You must attend two such schools ~ both as an undergraduate and as a graduate ~ to even be considered suitible as an instructor.

There are a couple of states that have two such schools ~ most have none!

Many Freepers probably think of art as a waste of time. Your son, daughter, nephew or niece might not think so and would like to take a pleasant course learning to paint or draw for pleasure in later life ~ with no professors there who know what they are doing your relatives and descendants will not get that chance and will lead their lives as green eyeshade bean counters with nary a glint of happiness (outside of NFL on Sunday afternoons and plenty of beer and chips).

Anyway, that's not the only specialty field of study that results in some serious time spent paying serious out of state tuition.

Private universities already cost more than the state schools, and the situation is even worse.

[primatreat]

I am 65 and have a student loan for over 120,000. I took it out to get my kids the education my wife and I felt would be necessary for them to take over the family business. Both kids took out their own Stafford Loans and are paying them back presently.
I took it out because of a simple fact. The Govt. loan is in my name and it is out there for 30 years. I will be forgiven at my death!. I put away enough to pay the payment each month. I will not live another 10 years. I win......

[L98Fiero]

I can appreciate that because it is the same way with music programs.

That said, 90K in accounting? C’mon.

[elpadre]

This why school counselors need to push junior colleges, state colleges and universities.

Also, expenses for car, entertainment, liquor and Spring breaks, and PARTIES really add up.

The lack of communication between student-college-parent probably plays a role. What happened to his student adviser. Shame on him/her! There is no supervision for people such as this less than bright college graduate. He would never work for me.

[psjones]

Ah, he borrowed 90,000 dollars and he’s surprised at the amount he has to pay off each month? In some states, that’s the price of a house, hello, and this guy majored in accounting???

[spanalot]

My parents paid for my tuition in return for weekend labor in the family business - but I took out a $2000 loan and bought a used xk-e. It will be worth more than my SS probably.

[elkfersupper]

“A third of every hour I work is basically just going towards just maintaining the interest on my student loans. I'm not getting anywhere, they're not getting any lower. I'm just buying time,” he tells CBS News correspondent Kelly Wallace

Dittoes with my tax load.

[varyouga]

Doing a 4 year degree at an ivy-league is at least a quarter million now.

If you get a loan, it’s like graduating school with a 2nd mortgage.

[raybbr]

I will be forgiven at my death!.

Are you sure they won't go after your estate?

[muawiyah]

I didn't notice the "expires on death" part, but good to know. You win when losing, or lose when winning. One or the other.

Kind of like an insurance policy or something.

[MarkL]

I took it out because of a simple fact. The Govt. loan is in my name and it is out there for 30 years. I will be forgiven at my death!. I put away enough to pay the payment each month. I will not live another 10 years. I win......

Here, let me fix this for you...

The Govt. taxpayers' loan

There, isn't that better. Hopefully the government will be able to take out a lien on your estate and or business to recover your theft...

Mark

[muawiyah]

Out of state tuition is usually 10k to 20k per semester at state schools. Housing is another 5k. There are incidentals ~ add another 1k. You have 26k per semester in some cases. With 8 semesters that would be 208k for 4 years.

Best to focus on getting the first two years completed at a nearby community college.

For private schools plan on being born rich.

[muawiyah]

There’s no “theft”. The risk of death of the borrower is worked into the fees charged at the time of borrowing.