http://finance.yahoo.com/college-education/article/111460/is-the-college-debt-bubble-ready-to-explode
Is the College Debt Bubble Ready to Explode?
1) There is a girl named Kelli Space who after graduating from Northeastern University racked up a total of $200,000 dollars in student loan debt. Due to this debt she currently must live with her parents and work a full-time job in order to help pay back the massive amount that she owes. To help her out she tried creating a website in order to help take any donations people will be willing to give. Since her website began she had recieved over $6,000 in donations only help take a tiny bite at her mountain of debt.
2) The major cause of stories just like Kelli's are due in part to easy credit, declining grants, and tuition prices risings. More than 2/3 of students graduating from college graduate in debt. This rose from the 45% that were graduating in debt with an average amount being $24,000. Space says the best advice for a student looking for colleges is to look at which one will not hurt you the most financially. She said listening to "student loans are considered "good" debt, just go to the best school you can" led her to the position she is currently in.
3) Spokesmembers for Sallie Mae, a private loan lender, refused to talk about Space's situation but did say that occations such as Space's are very "rare" and that they do not let anyone borrow more then they need to. They say they contact the financial aid members and find out how much you need and will give no more than that. There was another case that was able to prove this wrong when a student his first year in college got a $50,000 dollar loan which is pretty excessive for a first year student. To add icing on the cake he went back the next year and got another $50,000 just adding on too his debt. By the time he graduated he owed so much that he now works 3 jobs while in the process of finding a fourth.
A) Why would kids allow themselves to accrud massive amounts of debt instead of changing to a college that is cheaper to afford will almost the same education?
B) What are colleges doing to help students avoid staggering debt totals? What offers do colleges give to help students not have to resort to loans ?
http://www.washingtonpost.com/wp-dyn/content/article/2010/09/04/AR2010090400077.html
The article talks about how there are ways to avoid having to go to student loans. They include saving up from an early time until it is time to send the kids away, pick you colleges stratigically by telling your kids about what schools they can afford. Try and think outside the box if it means attending a community college for a short term and then transferring to a four-year college. This allows you to save a lot of money by not going straight to a four-year school but earning credits at a cheaper cost. The author says the best option is to pick a major that has very good paying jobs, this will help you in the future for when it comes time to pay back some college debts.
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