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Monday, July 3, 2006

Better Switch Your Major to Business

Posted by on July 3 at 15:37 PM

Got a student loan? Planning to get a student loan? First, the bad news:

Students across the nation will have to pay thousands more in college loans beginning Saturday, according to a series of reports released today by the research arm of the Campaign for America’s Future. College students and graduates will be pushed deeper into debt as interest rates on Stafford loans — the basic student loan — rise from 5.3 percent to 7.14 percent on old loans and to 6.8 percent on new loans at the end of this week.

Second, some more bad news:

Tuition at the average four-year public university has increased by 40 percent since 2001, and nearly two-thirds of all four-year college graduates now have student loans. Students and their parents are going further and further into debt, creating a burden that is often unsustainable. Student loan debt already causes 14 percent of young graduates to delay marriage; 30 percent to hold off on buying a car; 21 percent to postpone having children; and 38 percent to delay buying a home.

And finally, a little finger-pointing:

Campaign for America’s Future co-director Robert Borosage explained how Congress has carried out a raid on student aid through acts of commission and omission.

“The failure of the current administration and Congress to make college affordable for all qualified students is a disservice to the country,” said Borosage. “The Republican leadership has allowed interest rates on student loans to rise, increased the interest rate on loans that parents take out to help pay for their children’s education and refused to allow a vote on a bill that would cut interest rates in half on new loans.”

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That's because the republicans don't want an educated citizenry that might vote them out of office when it's so much more useful to have a base of poor, uneducated citizens who are left with no choice but to indenture themselves to the military where they can become fodder for empire building.

Education? Pfft. Come on - that's only for the king and lords, not for us lowly vassals.

Supply. Demand. This is terrible, as I'm about a year from a bachelor's, and likely will be fiscally frozen out of finishing it, but it was bound to happen. More kids are going to college than ever before and nearly all of them apply for or need financial aid. Meanwhile, colleges, seeing this simple supply and demand curve, jack tuition accordingly.

In the end, a lot fewer people will head to college, and the working class will once again be largely a HS educated working class. The present status quo is an anomaly caused by our presently strong economy.

grads already paying loans at the 5ish percent rates had until the first of this month to consolidate and lock in the low rates (which adds up to savings of hundreds or more over the course of the loan depending on how much you have). a little too late, but if you missed out at least now you'll know why your shit is going to become more expensive. i got mine locked in at 5.3%

This is so pathetic. There was a time in this country when grants were easy to get, college was affordable to everyone (hell, in California, it was practically free), and people made good money.

Then greed, in the form of a grade B actor (I'm alluding to Ronald Reagan, may he burn in hell), reared its ugly head, and the whole thing went to hell.

I think it's sad that young people think this is just "the way things are".

...and before anyone starts going on about the 70's, let me just say this: They weren't that bad. We had high interest rates, and things started costing more, and plants started closing, but it wasn't as dark a period as the GOP likes to make out. Life went on. Rent was affordable, and so was tuition. There was still new shiny stuff every year to distract people. Pretty much like today.

A big difference was that women started working because they could and (mostly) because they wanted to. Not because both incomes were needed to keep your head above water.

OK. I got that off my chest. My crankiness is gone. Still hope Reagan's in hell though.

But the banks will be rolling in it. Guess who is a good friend of the banking business? That's right, just follow the money...

Okay, so the conservatives bitch and moan about the poor being poor and being a drain on our country and yet a poor person is royally fucked if they go and try and improve their lot by going to college. They are then are forced into greater debt -thanks in part to the GOP and they come out really really poor.
Wow what an awesome deal. YAY higher education!

I have a friend who came out of college 8 years ago and she is still dirt poor paying off her student loan and she is a teacher. And they wonder why people don't go into the profession of teaching.

I remember when Jayson Williams, the basketball player (who later would accidentally gun down his limo driver and get himself in serious hot water for covering it up), remarked what a shame it was that teachers got paid jack while ballplayers made millions. Of course, I didn't see him forking over or donating any of his money in response.

I grew up a welfare child, determined to break the friggen cycle. I graduated law school last May, 150k in debt, but sure that I'd made a good investment. A year later I'm still looking for a legal job, making $10/hour, juggling bills, on foodstamps, trying to keep my head above water and feeling like a sucker.

My private loan holder-payment=$500/month-won't grant me a forebearance and I can't ever get rid of this debt through bankruptcy. Buy a house? Have a child? You gotta friggen be kidding me. Right now, I can't even buy myself a drink to dull the pain of my stupidity.

Thanks, motherfuckers.

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