America's Student Debt Now!

[marmar]

from OurFuture.org:



America's Student Debt Now!
By Armand Biroonak

June 11, 2009 - 4:42pm ET


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Attending the “Degrees of College Debt” panel at the America’s Future Now! conference last week, it was astonishing to hear dozens of graduates describe the mountains of debt they are climbing; $10,000! $50,000! $120,000 of debt! attendees shouted, when asked by the panel how much debt they had. The experiences shared in the session are not unusual. They are faced by graduates across America. Sadly, a diploma has become a financial albatross, rather than a ticket to a better financial future.

Certainly, young people today are facing an unprecedented challenge to pay for schooling — a result of skyrocketing tuition and the boom in private lending. As Tamara Draut of Demos noted, “graduates are entering today’s battered job market with an average student loan debt of close to $20,000 — but that’s only an average.” One-fourth of all students borrow $25,000 or more.

The nation’s “student debt clock” is over $580 billion and ticks higher as I write. Those billions in debt threaten the economic mobility and security of an entire generation. Carmen Berkley of the U.S. Students Association described jarringly how one in five students dropout of college — never completing a degree and leaving with the debt accumulated while in school. Add to that, the estimated 1.7 to 3.2 million qualified students that will skip college over the next decade because of the cost.

Delinquency on repayments is on the rise too, with graduates defaulting at a rate not seen in more than a decade — only accelerated by recession. That’s no shock however, when most private student loans carry a crushing interest rate of 10 to 14 percent. As Rev. Jesse Jackson of the Rainbow Push Coalition explained, attending college today is “guaranteed debt without a guaranteed job.”

Beyond jeopardizing a graduate’s future, college affordability threatens America's future. American global competitiveness has dropped. Older generations of Americans ranked number one in the world in college achievement, today the U.S. ranks nearly last among OECD countries. .........(more)

The complete piece is at: http://www.ourfuture.org/blog-entry/2009062410/americas-student-debt-now

[Th1onein]

1. K&R

n/t

[Stargazer09]

2. K & R

Unfortunately, I have a large amount of student loan debt and no diploma, thus far. I'm a military spouse, and it's been difficult to stay in one place long enough to finish college.

I'm in a distance learning program now and hope to finish soon, but that debt is NO fun!

[bulloney]

3. At Ohio public colleges, if a student doesn't have grants, scholarships, jobs

or some other creative means of funding their education like co-ops or becoming a Resident Advisor, they're looking at $80-100,000 in student loans over four years. I can only imagine what the amount would be for students attending private colleges.

Tuition and room-and-board at Ohio universities and colleges have typically increased 3-4 times the rate of inflation each year since I was in college. It's no wonder that the cost of a college education has become out of whack with many occupations' wage scales.

[Stargazer09]

4. That's horrible!

How can anyone afford to pay for that as a new college graduate???

Even half that is a horrendous amount of debt for anyone, regardless of occupation.

What a sick world we live in. I bet those college deans are bringing in big bucks, and I'm sure the athletic departments are sucking up a huge amount of money, too.

[izzybeans]

5. I quit my graduate program because the debt became too large

for me to bear any more of it. I'm going to be an indentured servant the rest of my life.

I discovered the Ph.D. is now for kids with trust funds.

Ah to be young and dumb again the phrase, "just get a student loan for your childcare expenses" would still make sense to me.

Besides I make more money now with the Master's than if i would have finished the dissertation. it's a good thing, "completed the coursework and research credits for Ph.D." doesn't fit on a resume, otherwise my company might have offered me less money. :)

[kath]

6. Yet another way in which Murka ranks far behind the rest of the developed world...

pathetic.

[Wednesdays]

7. K&R

:kick:

[Deja Q]

8. Well said, Reverend Jackson, “guaranteed debt without a guaranteed job.”

:thumbsup:

Especially those with the highest of grades...

And thank you, marmar, for posting this article. There needs to be real change in this area. Costs are out of control and wages are not keeping up.