The Incredible, Rage-Inducing Inside Story of America’s Student Debt Machine (1 Viewer)

[SigFreudianSlip]

I agree with retro there. In my personal experience teenagers seem to like to go in exactly the opposite direction than a parent may nudge them in.

 

[Surviving Saint]

Whatever you want to call it - they are likely going to lean the exact opposite direction of your influence. LOL. That's also just reality, I wasn't attempting to place a "right" or "wrong" on it.

Oh Im not disagreeing with you there. I know they will think they will know better. I only want them to look at the big picture. They can decide what they want afterwards.

A family member was a straight A student in HS, and decided she didnt want to go to college. She is managing a movie theater. I thought it was a stupid decision but teens will do what they want. I know her parents were a little upset but what are you going to do?

 

[RetroMcBananaFace]

As far as the "money making racket" goes, yeah, that's true in many ways but it also depends on kids making dumb financial choices, which kids that age inevitably will.

 

[guidomerkinsrules]

A family member was a straight A student in HS, and decided she didnt want to go to college. She is managing a movie theater. I thought it was a stupid decision but teens will do what they want. I know her parents were a little upset but what are you going to do?

maybe it would have mattered, maybe not
one of the big surprises i've had as a HS teacher is seeing that success or struggle in HS was not predictive of college success/struggle
some great HS students sometime succeed but some struggle mightily
and vice versa

 

[FullMonte]

I've said numerous times...

There is a simple fix to the student loan crisis AND the rising cost of tuition.

If the government stops guaranteeing student loans, both of the problems disappear.

 

[Surviving Saint]

one of the big surprises i've had as a HS teacher is seeing that success or struggle in HS was not predictive of college success/struggle

No its not, but she was never really a go getter. Made the grades but no work ethic at all. I mean it didnt shock me, but I still didnt think it made any sense.

When I graduated HS, I had no idea what I wanted to do. I knew college wasnt in the cards. I had enough of high school even though my grades were decent. My buddy said lets go to trade school. So I went and it worked out OK. I should have picked a different trade. I look back on it now and wish I would have joined the military or figured things out a little better. I have a job interview to make a career change soon and if I get it, which Im pretty sure I will, Im going in with no regrets.

 

[BigFrosty]

When I joined my industry 10 years ago, most of the senior employees were 60's babies without college degrees. I always joked that my industry licenses were worth more than my 4 year degree. However, in the past 5 years or so, more and more brokerages are now requiring 4 year degrees. I'm a big fan of the Trades, but there are industries where degrees are appropriate.

Further, it's very easy to fall into college debt, especially with the American Dream painted behind it. The loans basically throw themselves at you and young people can be very naive as to what decisions can mean in the long-term.

I have the college savings thing going for my toddler, but I've always been of the opinion that we'll discuss it all when the time comes. I imagine the work world will be a much different place in 15 years.

 

[MLU]

What if he doesnt want to go to college? I know Im not encouraging my son to go. I will encourage him to get a skilled trade as a plumber, HVAC, or electrician etc. and open his own business.

I am encouraging my daughter to do the same, just as soon as she's done with college.

 

[Clarkey]

American "educational institutions" fascinate me to no end: some produce professional athletes, others must make a lot of money - where does it leave the other 99%? In debt for decades without a guaranteed good income/job?

Consider going elsewhere (e.g. outside of the country) to learn more about yourself, the rest of the world, and get a decent education at a reduced rate!

 

[SigFreudianSlip]

American "educational institutions" fascinate me to no end: some produce professional athletes, others must make a lot of money - where does it leave the other 99%? In debt for decades without a guaranteed good income/job?

Consider going elsewhere (e.g. outside of the country) to learn more about yourself, the rest of the world, and get a decent education at a reduced rate!

Clarkey every time I see your avatar I am so jealous of where you live. Tried to convince my wife to move there and she quickly vetoed that idea. I think it’s beautiful where you are.

 

[bclemms]

This, like insurance, banking and medical sectors are no less than a giant Ponzi scheme saturated with fraud. Until we change the increasing price of tuition and change the mindset that everyone needs to go to 4 year university college then we are simply treating the symptoms.

Until that changes, you have to play the game.

#1- If you are racking up massive debt to get a degree that has average to below average salaries, you are doing it wrong.
#2- Skilled trade and technical colleges offer many courses that are cheap and lead to average to above average wages. We as a country have to stop looking down on blue collar jobs and encouraging our youth to get behind a desk.
#3- Most 4 year degrees can be obtained very easily in 3 years reducing costs drastically and for those that want to be a full time student without a job then there is no reason not to be able to finish in 3 years.
#4- Community College offer plenty of classes for the first two years, sometimes at a 90% discount. Those credits transfer and nobody cares where you started.
#5- Most states offer scholarships that are pretty easy to obtain. If you don't meet those standards then there is a good chance you shouldn't be at a 4 year college.
#6- Most states offer some type of college investment fund that make it much easier. Most people never invest in them. Even if students in High School get a summer job to make the payments it would cut student debt in half. Parlay that with the first two years at community college and the final bill becomes pennies on the dollar.

Everyone wants to make Government, schools and banks the scapegoat which I get. It's a sheetty system but the rules to the game are pretty clear. Play the game or don't. Yes, the system needs to be changed but until it is, their are options.

I have so many friends that are Meteorologists with huge student debt looking for jobs in the field that aren't there and the ones that are don't pay enough to earn a living. That hasn't changed the last 20 years yet every year a full class of students make the same mistake. Worst part is, they all want jobs that they think involve getting up close to mother nature when in reality the jobs that are available consist of cubicles and low wages.

I've made it quite clear to my kids if they can't get the 3.5 GPA and mid 20's on the ACT then they don't need to be at a major university. I've also invested in state programs that will have community college for two years and two more years covered. It's not fun making those payments but it's not much more than a new iphone. They'll have a clear understanding that student loans are quicksand for life.

I honestly think that if people can avoid a few things in life that it all goes so much easier.
#1- No student loans.
#2- Never finance a car unless you can put 50% down and pay it off fast. It's ok to drive an old reliable junker.
#3- Avoid a big expensive wedding.
#4- buy a house young and pay it off quickly.

If we taught our kids that in grade school we'd be a much better country. Then again, if we were smart enough to do that we would be smart enough to vote outside the fraud box.

 

[SigFreudianSlip]

This, like insurance, banking and medical sectors are no less than a giant Ponzi scheme saturated with fraud. Until we change the increasing price of tuition and change the mindset that everyone needs to go to 4 year university college then we are simply treating the symptoms.

Until that changes, you have to play the game.

#1- If you are racking up massive debt to get a degree that has average to below average salaries, you are doing it wrong.
#2- Skilled trade and technical colleges offer many courses that are cheap and lead to average to above average wages. We as a country have to stop looking down on blue collar jobs and encouraging our youth to get behind a desk.
#3- Most 4 year degrees can be obtained very easily in 3 years reducing costs drastically and for those that want to be a full time student without a job then there is no reason not to be able to finish in 3 years.
#4- Community College offer plenty of classes for the first two years, sometimes at a 90% discount. Those credits transfer and nobody cares where you started.
#5- Most states offer scholarships that are pretty easy to obtain. If you don't meet those standards then there is a good chance you shouldn't be at a 4 year college.
#6- Most states offer some type of college investment fund that make it much easier. Most people never invest in them. Even if students in High School get a summer job to make the payments it would cut student debt in half. Parlay that with the first two years at community college and the final bill becomes pennies on the dollar.

Everyone wants to make Government, schools and banks the scapegoat which I get. It's a shirtty system but the rules to the game are pretty clear. Play the game or don't. Yes, the system needs to be changed but until it is, their are options.

I have so many friends that are Meteorologists with huge student debt looking for jobs in the field that aren't there and the ones that are don't pay enough to earn a living. That hasn't changed the last 20 years yet every year a full class of students make the same mistake. Worst part is, they all want jobs that they think involve getting up close to mother nature when in reality the jobs that are available consist of cubicles and low wages.

I've made it quite clear to my kids if they can't get the 3.5 GPA and mid 20's on the ACT then they don't need to be at a major university. I've also invested in state programs that will have community college for two years and two more years covered. It's not fun making those payments but it's not much more than a new iphone. They'll have a clear understanding that student loans are quicksand for life.

I honestly think that if people can avoid a few things in life that it all goes so much easier.
#1- No student loans.
#2- Never finance a car unless you can put 50% down and pay it off fast. It's ok to drive an old reliable junker.
#3- Avoid a big expensive wedding.
#4- buy a house young and pay it off quickly.

If we taught our kids that in grade school we'd be a much better country. Then again, if we were smart enough to do that we would be smart enough to vote outside the fraud box.

Outstanding post.

 

[RetroMcBananaFace]

If we taught our kids that in grade school we'd be a much better country.

Or even high school.

I've talked to several financial advisors who all say the same thing. We don't teach our kids the basics of personal finance at any level in school. And sure, that is something that parents should be teaching their own kids, in an ideal world, but those parents most of the time are where the kids get their bad habits in the first place, so it's not like they know any better either.

 

[DCSaints_Fan]

Yeah its getting ridiculous. Even in-state now averages almost $25k/year for tuition, room and board. Even with working during summers/work-study, and scholarships if you're smart/lucky, you can knock off, maybe what $5k-$10k/year? So you're still looking at a $60k-$80k debt, just for undergrad, by the time they graduate. I think I was about $20k when i graduated 17 years ago ... and salaries are not 3 times higher now.

 

[DCSaints_Fan]

I honestly think that if people can avoid a few things in life that it all goes so much easier.
#1- No student loans.
#2- Never finance a car unless you can put 50% down and pay it off fast. It's ok to drive an old reliable junker.
#3- Avoid a big expensive wedding.
#4- buy a house young and pay it off quickly.

If we taught our kids that in grade school we'd be a much better country. Then again, if we were smart enough to do that we would be smart enough to vote outside the fraud box.

No student loans? That's a high bar. Almost no one would be able to go to medical school .... yet if you get in, its pretty much a no-brainer (assuming you do really want to be a doctor) ... Education can be a tremendous investment, though I agree though coasting by a some lame liberal arts degree, probably not the best idea.

On the house buying, unfortunately out of reach for alot of young people, many of whom live to high-cost of living urban centers because thats where all the jobs are.