Posted on 06/01/2010 4:44:02 PM PDT by jerry557
Like many middle-class families, Cortney Munna and her mother began the college selection process with a grim determination. They would do whatever they could to get Cortney into the best possible college, and they maintained a blind faith that the investment would be worth it.
Today, however, Ms. Munna, a 26-year-old graduate of New York University, has nearly $100,000 in student loan debt from her four years in college, and affording the full monthly payments would be a struggle. For much of the time since her 2005 graduation, she's been enrolled in night school, which allows her to defer loan payments.
This is not a long-term solution, because the interest on the loans continues to pile up. So in an eerie echo of the mortgage crisis, tens of thousands of people like Ms. Munna are facing a reckoning. They and their families made borrowing decisions based more on emotion than reason, much as subprime borrowers assumed the value of their houses would always go up.
Meanwhile, universities like N.Y.U. enrolled students without asking many questions about whether they could afford a $50,000 annual tuition bill. Then the colleges introduced the students to lenders who underwrote big loans without any idea of what the students might earn someday — just like the mortgage lenders who didn't ask borrowers to verify their incomes.
Ms. Munna does not want to walk away from her loans in the same way many mortgage holders are. It would be difficult in any event because federal bankruptcy law makes it nearly impossible to discharge student loan debts. But unless she manages to improve her income quickly, she doesn't have a lot of good options for digging out.
(Excerpt) Read more at finance.yahoo.com ...
Girlie takes out a loan with no guarantee of career that would provide means for repayment.
Well, let's get this straight too: bank pays out unsecured loans to kids with lousy credit in order to finance worthless degrees. Why would that happen in a capitalist society? Because banks and government collude to run these worthless paper mills to keep each other employed with the taxpayer left to back the loans.
Government funding and mandates devalued higher ed, made it a "right," and hence made it worthless - well, expensive and worthless.
They can just go to work for the government and The Undocumented Worker In-Chief will reslease them from any obligation to pay off student loan debts.
Bingo! And when these millenials start walking away from these oppressive student loans.... BOHICA!
Toooo funny!!!!!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.