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 ...
The bigger stupidity is the bank that lended her the money for that degree.
Just like banks giving out adjustable-rate $500,000 mortgages to people making $30,000 a year and then expecting those people to pay when the rate resets.
That should be criminal right there...
“The bigger stupidity is the bank that lended her the money for that degree.”
Nope, there is no risk for the bank so why should they care.
>>You are one callous son of a b!tch. May your words rise to greet you heartily.<<
Which part is callous? The idea that responsibility is something people need to embrace or the fact I have no sympathy for people who make extremely bad decisions and then cry over them? “Religion and Womyn’s Studies” — think about it.
I paid my debts — and it wasn’t easy and took 10 years (which was my agreement). I guess it IS callous to think others should do the same.
I suppose it is callous of me to think that paying your mortgage should be done as well.
Dang, this must be my DU account and I wasn’t paying attention...
With the Feds now taking over student loans, their probably is a "bridge" for her, i.e. she works for uncle sugar in a new green jobs capacity and her debt will be expunged!
And we will help pay for it! ( Sarc/ off)............
>>Thats why nobody promised you anything. ;)<<
Back then we didn’t have all them newfangled concentrations and what have you. Of course, my degree is written in Cuneiform...
She's making above-average wages and she's whining?
” graduating with an interdisciplinary degree in religious and women’s studies.”
What?????????????
Is that a career???
Let’s get this straight.
Girlie takes out a loan with no guarantee of career that would provide means for repayment.
Girlie can’t afford the payments.
And it’s someone’s fault who’s not Girlie?
For the love of God, someone, be a grown-up, please. STAND UP AND TAKE RESPONSIBILITY FOR YOUR ACTIONS. No one held a gun to her head and forced her to take out the loans.
If the students are adults, it is indeed their fault. As I said above, no one forced them into a loan.
And anyone who’s stupid enough to believe that a degree in women’s studies will inevitably lead to a six-figure job deserves a LOT of financial pain.
It’s called being smart..
When I graduated with my B.A. I only had about $15,000 total debt. I went to community college for the first few years and then finished at a university. Also worked at least part-time and my parents let me live at home for periods of time. Sure I took some grief socially. But this all saved me a BOATLOAD of cash. 10s of thousands of dollars. Now the loan im paying back today is cheaper than a car payment while most of my former classmates are drowning in debt.
Heartless for thinking that someone should be held to the terms of a contract she freely entered into?
I’m a mean bitch too, then.
A bigger part of the blame belongs to the dolt who borrows $100K to earn a meaningless diploma with zero value.
No sheot. $22 an hour is $44,000 a year. Not very shabby ... my best friend is a 20-year teacher, and has just topped that. (Of course, she lives in Houston, where $1500 a month gets you a three-bedroom house.)
The financial situation that colleges put student in these days is a ****en racket ! I went to a private college and the tuition was high but yet, the college paid for the less advantaged kids out of their pocket. Basically the college had an artificially high price so those of us who can afford to pay will pay dearly and help subsidize those who cannot afford the school. What they should have is a “real price” where there are less loans for students but then again, the administrators probably get some money from the banking institutions to set this complex system up.
One thing I remembered is those who were on aid from the school had better keep their mouth shut when criticizing administrative decisions. I known some students who protested some administrative decision and through bureaucratic “screw-ups”, their aid suddenly disappeared the next school year, therefore had to drop out.
“I really dont think the type of degree is the issue...
I know a History major who now owns his own company. And I also know an Engineering major who is working as a bartender and can’t find any other work.
Which one was smarter?”
I betcha that in most cases the guy or gal with an engineering degrees comes out far ahead in salary wise than does the history major over one’s work career.
I don't know which is more stupid.....
.....The fact that this degree exists.
.....OR.....
.....That she took on large debt to get this "degree" without thinking how she was going to pay for it later.
Why is he being callous?
The 'older' generation took plush jobs, tenure, pensions, benefits, sabbaticals, in universities en masse -- like fat slobbering over-fed house cats, not worried at all for the student life experience -- which is amoral chaos at best and tragically immoral indoctrination at worst. Layers and layers of edcu-crats added to the cost burden, the bills for colleges are through the roof. Almost nothing rose faster in cost than a college degree.
Can you pay back a $100,000 plus loan making less than #35K a year?
That 35K a year is high today except in some fields. There just aren't many jobs.
You paid your debt because you were damn lucky, in timing and in many things.
The kids trusted the older generation, their teachers, parents, society. We f**ked them over. We are f**king them over. That's the truth of it.
But you aren’t a son of a b!tch.
Personal responsibility is SOOOOO hardcore evil. Meanie!
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