The $555,000 Student-Loan Burden

[Maikeru-sama]

From what I understand, death won't get it out of the way. Your life insurance disbursement gets hit for anything you owe, in addition to anything bequeathed in your last will and testament. If there is property involved and your student loan isn't paid off, they can go after the beneficiaries in your estate.

For the idiot doctor involved, her student loan will outlive her by years.

I had a small one that was taken out for me by my mother while at Tech. When you consolidate, this one didn't end up with the rest which total about $52K last time I looked. When I went to get my real estate license, I couldn't. That one little loan for $4k was in default. I swear on all that is holy that I don't remember signing for that one.

All it took was $900 and I was caught up and able to get my real estate license a few weeks later. I cannot imagine what the doctor in this story did. Use the mail with "Sallie Mae" as the deliverer for her fireplace???

Saltwater, did you mean "5K" or "52K"?

I just think she didn't pay attention and if you think about it, in her defense, I would say that most people in their late teens and early twenties aren't as savvy when it comes to money as they will be later in their life.

I don't think the article ever mentioned what school she attended but it would be interesting to find out which one it was.

 

[burmafrd]

There is no way that $250,000 should become $550,000 no matter what happens. That is insane. Though clearly this doctor is a financial ditz.

 

[rantanamo]

The question is still, what is up with the price of education rising so fast vs everything else + wha is the deal with how student loans are administrated while other types of loans have such extensive instruments. A real problem happening right now is the decline of REAL salaries in the last couple of decades, while these things rise. This is why you're starting to see all of these small online colleges pop as Universities are getting ridiculous. A true capitalist will say the online schools are the answer and competition that will make the Us trim down, but that comes at a cost of a declining quality of education right now. If this country is really serious about getting back on track, this is a problem that really needs to be addressed. Add that and a possible brain drain coming up if no one starts hiring and its a recipe for never coming back as an economy.

 

[Ren]

And here I thought my ~20.000$ student loan was bad

 

[burmafrd]

Online is not all that bad since many schools have you sitting in front of a computer anyway.

The costs of tuition, etc are getting ridiculous. All these schools with all these expensive famous PHD's and huge research programs-and the prices of tuition keep going up.

 

[SaltwaterServr]

Saltwater, did you mean "5K" or "52K"?

I just think she didn't pay attention and if you think about it, in her defense, I would say that most people in their late teens and early twenties aren't as savvy when it comes to money as they will be later in their life.

I don't think the article ever mentioned what school she attended but it would be interesting to find out which one it was.

That $52K is what I owe personally for my entire collegiate career. All those loans are consolidated. I just checked it as a matter of fact. The one loan I didn't know about was the one for $4K that I got in trouble for, but it's paid off now. I'm still working on the big 'un.

 

[Longboysfan]

I've got student loans out the ***, but no way does my situation come close to that womans.

That's ridiculous. They give people all kinds of chances to pay their student loans. She doesn't need help with paying student loans, she needs a class in money management.

B I N G O........

Even when Mom and Dad explained about the costs to repay - some people do not get it.

Dear old Dad was paying the loan interest as it went along because that would have crippled my kiddie from go.

Remember your taking the loans at a time when your starry eyed kid, in most cases, and have no clue about compount interest, capatalized interest and whatever fees they sock it to you with.

Some things the government should step in and forgive but others - No.
This is a No.....

 

[CoCo]

Government bailout for education?

Please... Just please...

I have sympathy for those truly without the means to get a college education. But that is not what we're talking about here.

 

[Thatkidbob]

Blame her, or Blame the CC companies. Either way, the price to get an education in this country is absolutely ridiculous. And its the same reason more and more people aren't going to college anymore.

It will be a contributing factor to the fall of this country. I mean, how could it not?

The economy is falling due to the housing bubble, insurance companies not maintaining the proper reserves & the trade imbalance, which are all due to the federal reserve (for inflating the currency, using poor monetary policy, etc) and Fannie/Freddie (for creating/buying/holding toxic assets in their MBS's and for creating mortgages like the pay option and payment advantage ARMs with neg am as a "feature" and high nominal interest rates, loans that essentially count on house prices continuing to increase into perpetuity).

---

Our educational system does suck though.

They need to focus more on the basics (reading, writing, and arithmetic, because everything else you can pick up as you go), get rid of the 11th and 12th grades (by dropping unnecessary classes), and at graduation offer students the choice of going to trade school or testing into college (with a grant consisting of the money that would have paid for their last two years of public school), or going into the workforce.

Problem solved.

 

[SaltwaterServr]

The economy is falling due to the housing bubble, insurance companies not maintaining the proper reserves & the trade imbalance, which are all due to the federal reserve (for inflating the currency, using poor monetary policy, etc) and Fannie/Freddie (for creating/buying/holding toxic assets in their MBS's and for creating mortgages like the pay option and payment advantage ARMs with neg am as a "feature" and high nominal interest rates, loans that essentially count on house prices continuing to increase into perpetuity).

---

Our educational system does suck though.

They need to focus more on the basics (reading, writing, and arithmetic, because everything else you can pick up as you go), get rid of the 11th and 12th grades (by dropping unnecessary classes), and at graduation offer students the choice of going to trade school or testing into college (with a grant consisting of the money that would have paid for their last two years of public school), or going into the workforce.

Problem solved.

It's really sad when some of the folks I work with under the age of 23 are only functionally literate. They've grown up behind a keyboard that underlines every error they make and corrects their grammar while they wait. It's almost sad to get emails from iToys and BlackBerries that are barely legible.