Results 1 to 3 of 3

Thread: Student loans: large burden on young people, the economy

  1. #1

    Join Date
    Aug 2008
    Location
    Dekalb County
    Posts
    6,778

    Default Student loans: large burden on young people, the economy

    I am concerned about the raising cost of college education at all of our US colleges. In my opinion, it is vitally important that our citizens not be priced out of the opportunity to pursue their higher education. Jennifer Decker wrote a very nice article on this topic in today's KPC.

    Beginning to wonder if it may become cheaper to send our students to Canada, England, Germany, France, etc for their college educations? Any thoughts on this?


    Student loans: large burden on young people, the economy

    Itís a given how outrageously expensive a college education is and it wonít get any better, according to published reports.

    The Smart Student Guide to Financial Aid said college costs are increasing at more than twice the inflation rate. That means current increases have averaged 5-8 percent.

    Doing the math on all of that means the average annual cost (including tuition, fees, room and board) is $17,131 for students attending four-year public colleges.

    To further illustrate that, my niece, Maya, is 3 1/2. If she enters a college classroom 14 years from now, that means her first-year cost will be around $44,000 and a four-year degree will cost around $195,000. I think she better start saving up her money from the Tooth Fairy and anywhere else she gets money as a gift.

    http://www.kpcnews.com/index.php?opt...ticle&id=32747
    "It is the power of thought that gives man power over nature."
    Hans Christian Anderson

  2. #2

    Join Date
    Sep 2008
    Posts
    205

    Default Re: Student loans: large burden on young people, the economy

    I agree the rising cost of tuition for secondary education is amazing to say the least. Yet to put it into perspective….(from Wikipedia statistics)

    HS graduate unemployment rate 9.7%
    Bachelor Degree unemployment rate 5.2%
    Average income HS graduate $626 weekly$32,552 annually
    Average income bachelor degree $1025 weekly $53,300 annually

    Using the $68,524 bill for a 4 year degree as presented in the example, in 3.3 years that education has paid for itself. IMHO this should be looked at as an investment of finances and hard work.

    Through past experience of my own (not speaking for others) I found that low income families are eligible for several types of grants that do not have to be repaid to help offset the cost whereas a middle to upper income family has little or no options other than student loans. I also learned that the cost of tuition can be negotiated just like buying a car, at times even pitting one institution against another.

    I have to question, why would you pay a $22,000 loan into your 80’s as stated by the writer of the article presented? You do not have to take years to pay it off. I certainly wouldn’t buy a car and take decades to pay it off.
    Last edited by TLC528; 04-27-2012 at 05:46 AM.

  3. #3

    Join Date
    May 2008
    Posts
    1,435

    Default Re: Student loans: large burden on young people, the economy

    Quote Originally Posted by TLC528 View Post

    I have to question why would you want to pay a $22,000 loan into your 80ís as stated by the writer of the article presented. You do not have to take years to pay it off. I certainly wouldnít buy a car and take decades to pay it off.
    Per my experience, unless the rules have changed, a person can't get a FHA or VA backed mortgage until it's paid off either, which is to say, if you're a young person with minimal credit history who wants to own a home, it's imperitive to pay it off ASAP. Also, ....Never wonder if they won't hunt you down if it's time to pay the loan, or you're behind on it, lol.
    For my part, whatever anguish of spirit it may cost, I am willing to know the whole truth; to know the worst and provide for it. - Patrick Henry

    Rightful liberty is unobstructed action according to our will within limits drawn around us by the equal rights of others. I do not add 'within the limits of the law' because law is often but the tyrant's will, and always so when it violates the rights of the individual.
    ~ Thomas Jefferson

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •