The Great College Hoax

Forbes ^ | 2009-02-02

[rabscuttle385]

Higher education can be a financial disaster. Especially with the return on degrees down and student loan sharks on the prowl.

BY KATHY KRISTOF

As steadily as ivy creeps up the walls of its well-groomed campuses, the education industrial complex has cultivated the image of college as a sure-fire path to a life of social and economic privilege.

Joel Kellum says he's living proof that the claim is a lie. A 40-year-old Los Angeles resident, Kellum did everything he was supposed to do to get ahead in life. He worked hard as a high schooler, got into the University of Virginia and graduated with a bachelor's degree in history.

Accepted into the California Western School of Law, a private San Diego institution, Kellum couldn't swing the $36,000 in annual tuition with financial aid and part-time work. So he did what friends and professors said was the smart move and took out $60,000 in student loans.

Kellum's law school sweetheart, Jennifer Coultas, did much the same. By the time they graduated in 1995, the couple was $194,000 in debt. They eventually married and each landed a six-figure job. Yet even with Kellum moonlighting, they had to scrounge to come up with $145,000 in loan payments. With interest accruing at up to 12% a year, that whittled away only $21,000 in principal. Their remaining bill: $173,000 and counting.

Kellum and Coultas divorced last year. Each cites their struggle with law school debt as a major source of stress on their marriage. "Two people with this much debt just shouldn't be together," Kellum says.

[count-your-change]

But getting that “good” education and a degree will help them understand the issues when they're sitting in their parents’ garage using castoff furniture.

Plus, plus they'll be able to write quietly bitter articles
explaining how, in middle age, they have just begun their real education.

[Chickensoup]

I’ll take these folks over their counterparts with expensive Ivy League educations any day.

Years ago when I headhunted. Spoke to an attorney with a blooming practice who waa looking for just the right kind of lawyer, a working class guy who went to night law school. He knew that someone with that background would work hard and work well.

[SamAdams76]

A 40-year-old Los Angeles resident, Kellum did everything he was supposed to do to get ahead in life. He worked hard as a high schooler, got into the University of Virginia and graduated with a bachelor's degree in history.

I love history and have read hundreds of books on it since graduation. However, unless you are planning to be a high-school history teacher, chances are that nobody is going to pay you for knowing a lot about history.

That's why I took electronics as a major and kept history as a hobby.

[tbw2]

Suze Orman’s response to those debt levels: “Whose the doctor and whose the lawyer?”

[tbw2]

Given all the bad judicial rulings this decade, that might be a good requirement for the next decade. If you have a law degree, you can’t render a judgment. A lot less legislating from the bench if you’re not a lawyer.

[CottonBall]

I have to publicly apologize to y’all for my flippant remark about liberal arts degrees. I should’ve phrased my intention better.

And this goes for all others that have a BA in a field they enjoy and a job they love related to it. I was speaking generally about the ‘usefulness’ of degrees - and of course, the exceptions are numerous.

Thanks for very politely pointing out my mistake.

[TChris]

By the time they graduated in 1995, the couple was $194,000 in debt. They eventually married and each landed a six-figure job. Yet even with Kellum moonlighting, they had to scrounge to come up with $145,000 in loan payments. With interest accruing at up to 12% a year, that whittled away only $21,000 in principal. Their remaining bill: $173,000 and counting.

???

Each landed a "six-figure job", and yet they can't manage to make their payment on just $194,000?

At 12% APR and 10 years to repay, the payment is less than $3,000 a month. With a $200,000 annual income (at least), that shouldn't present much of a burden at all.

Wow. Maybe the kids should have taken some basic money management courses along the way.

[Palmetto]

Plus since they cited debt as a big reason for their divorce,,that doesn’t erase the debt. They each are going to have to pull their share of it. How did the divorce accomplish anything related to debt relief?

Without looking closely at their finances, I can't be certain - but these two may have been nailed by the AMT.

I suspect, given their occupations and locale, that they are flaming liberals. They don't have the courage to rail against what is truly working against them, which is a withering tax burden, and they also lack the self-discipline to do make the sacrifices necessary to erase their debt.

In other words, that got exactly what they asked for.

[Citizen Blade]

Years ago when I headhunted. Spoke to an attorney with a blooming practice who waa looking for just the right kind of lawyer, a working class guy who went to night law school. He knew that someone with that background would work hard and work well.

That might work for a solo practitioner, but when you start getting up into the higher tier of law firms, your resume gets thrown into the trash if you don't have a good law school listed at the top.

[Tijeras_Slim]

Why apologize? I knew philosophy was worthless when I took it!

I was just there for the parties and chicks.

[Txngal]

No worries. Everyone has their own perceptions of whats a useful degree and what isn’t. I won’t lie and say “every degree is useful” but I understand where you’re coming from. :)

[jer33 3]

***I think people should study what they like, first and foremost. And not go into something just for the money.***

Agreed. I’m not money motivated but love a challenging project and meeting people. Originally I started with a Pol.Sci degree, but enjoyed the International arena and chose to focus on Central Europe and CIS. My academic advisor gave me the best advice in that he strongly encouraged me to take some business and technology classes as electives. So, I have actually worked in the corporate and non-profit environments but still use my area of study. Love it.

[Chickensoup]

International Affairs degree.

I didn’t know I needed a degree.

[Chickensoup]

I’ll explain it all in my book “The Tao of Slim”.

or Slim-Jim?

[Chickensoup]

I can’t wait for the way overvalued college-bubble to burst.

I cant afford another bailoout.

[jer33 3]

: -) Well, it helps but American is best.

[Tijeras_Slim]

Nah, Slim Fast.

[McGruff]

If congress wants to investigate something they should find out why college costs so much. By the time my son is old enough for college I won’t be able to afford it.

[monday]

“They eventually married and each landed a six-figure job.”

With two six figure incomes they could have paid the debt off in two or three years. Just cause you make 200,000 a year doesn’t mean you have to live like you do.

[RaceBannon]

remember, they lived in California, their house was over $500,000 for a 20,000 sq ft house on a 1/4 acre lot

most likely

then, due to their job position and appearance to make it work, they needed a nice car

nice clothes

jewelry

if they didn’t, they would have looked like vagabonds in their field and not gotten work

vicious cycle, one they aren’t innocent in, but one they had to play the game to fit in

I’m guessing, but that’s what I imagine they did to “be” lawyers in California and most likely they didn’t get the big cases or contracts and never got the income they counted on