Growing student debt crisis: Candidates say cancel it, free college, refinance https://www.nbcnews.com/politics/2020-election/massive-student-debt-piling-so-are-candidates-solutions-n987741
Student debt is growing more and more each year high school seniors entering into their first year of college. Existing students in their second, third and fourth year of undergrad. Also college graduates. The student loans crisis is becoming a big problem that millions of students will be faced with. It’s really unfortunate because education is important but having to bare the burden of debt due to borrowing of loans and not being able to afford the payments. Well some students may be faced with this well into their latter years as a adult.
My wife and I both went to college and have earned degrees. While in college we have both discovered that particular loan places like Salley Mae, navient and more are actually adding interest on to loans that a student has taken out or their parents (parent plus loans) from a pre-existing years. So the student may be in his/her junior year of undergrad. Let’s say that the parents of the student decided to take out a $4,000 student loan. Let’s say that the percentage attached to his/her loan is set at 3.7%. The projected pay off amount for this loan when they graduate is $400 or $500 dollars a month. Okay, well this is what those loans are doing while the student is still in school. They are increasing the APR on these loans and therefore increasing the payoff amount. So when the student does graduate he/she is projected to pay about $800 a month. Now what was originally $4000 quickly turned into $16000. Math maybe a little off but hopefully you get the point.
I have pretty much been blessed not to have owed any loans because my dad health wasn’t all that great nearing the end of my college tenure. It’s unfortunate, but the government or loan bureau sent a letter enclosing what they will be doing to help out with these loans that were taken out under my father’s name. I seen the paper and I was looking at least $60000 in debt. However, my mom well she taken out a $12000 loan my freshman year of college. I and one of my advisors told her that she didn’t need that much. However I was able to read the paper that shows the loan and the borrower information. It also had the numbers of what the projected amount for paying off the loan is every month. Also it shows more information on how to call a number and if you can’t pay if off right away you could ask for it to be thrown in deferment for 6months to a years I believe.
Deferment is a bad idea by the way. They will keep adding more money on to the loan by the $600, $700 and $800 dollars. To continue my mom and I both noticed that I haven’t graduated yet and they sent a paper my end of the first semester of my senior year and the loan paper say that the pay back total is $16000 and every month I think it was $617 a month. Well I’m doing my best to help my mom pay back that loan cause I went to college and it sucks that she has to bare the burden of the parent plus loan. I actually called the place and talked to them about switching the loan over to me instead of my mom. They told me and I quote this. I can not make this up y’all. They said, “no we can’t switch the loan over in your name. It’s a parent plus loan. Besides you don’t have to pay a thing since it’s a parent plus loan you parent is fully responsible for paying this off.”
I wish I could make that up but I simply couldn’t. This stuff is serious. Getting a education is good but having to go into such deep debt to do so is CRAPPY! This connects all of us together students and parents/gaurdians who have to place their social security number on FASFA documents so their child can have some financial help toward furthering their education.
What really makes it’s sucky to me is that you go to college being promised that you can earn a piece of paper that will allow to access 100k salary paying career right out of college just like that. Hell, the Thanos finger snap was more promising.
Later in school some if not most students only realize that only a select few degrees actually make the big bucks. Mostly becoming a doctor and business degrees like marketing or engineering. So it places a since of stress on the students. Most of students that entered college wanting to be a school psychologist or could quickly change to business. Then found out after one class that they weren’t all that interest in business or the classes were too hard. Changed to being a teacher. Realized that teachers do a lot but are under paid. Then switched over to law. I witness alot of students change from major to major. Only to realize that the financial aid place was tracking their action and some students would be not funded anymore. This due to having to many credits that they have taken in their college years never really declaring a major and staying with it. Also most of the students went over 4 to 5 years being in college.
Wait one minute, I almost forgot. Let me back track through everything that I said. School is too much. Let me be specific, college is too much. High school unless you went to a private school. Public high school didn’t cost much. Actually you didn’t pay a dime. At the end of four years you got a diploma. However why is college so darn expensive. I understand that a university is made up of smaller colleges like liberal arts and science, business, law, education, etc.
But I really have to spend money to make money?
Now I can continue. It’s not even gauranteed that coming out the degree that earned in the major that I studied for four years that jobs are still being created or is even in existence once I graduate. Yeah, they don’t tell you that. I’m not going to lie y’all. I got my heart broken when I graduated but before I accepted my degree I remember the El Presidentae talking and he said some of you will go off and find wonderful careers in the fields that you majored in. I coughed so loud and said fraternity and sororities. While most of you will be working dead end jobs to stay afloat and provide for your families.
At that moment I realized that I spent four more additional years after college playing a game. Naw, I lied I always knew that this was a joke. I just stayed because I was raised to finish what I start. At that moment I could have taken that robe off and walked out of the stadium. I mean everything that I ever tired to do within school just flashed before my eyes. I was very upset. I tried getting internships nope got turned down. I was told that we are looking for someone with more experience. So I said ain’t that what a internship is supposed to be. Experienced counselors have their LCPC license they aren’t seeking internships trying to build creditability.
You have got to be kidding me so I like many others have played the game and done the world asked for us to do. Now it’s graduation time and all we get is a piece of paper and some will be chosen while others will not but thanks for service anyway. Now don’t let the door knob hit ya on the way out. Next batch of students.
I quickly realized something I’m going to do my own thing and stop letting the system pimp me. If it’s one thing that I learned about college is that it is a business like no other. It chews you up and spits you out, that’s if you allow it to. It is very important that you enter college with a plan and provision for your life. I mean you won’t go to a car dealership and allow them to put you in anything and just take your money right? Hopefully not.
1) plan and provision
What do you hope to gain from the college experience. Most seniors are sold this fantasy of the college experience being parties, sex, making life long friends, joining organizational groups. At the end that stuff don’t mean a thing. It’s a business so it knows how to market itself and be relatable to it’s target audience. You must come in with a already made up mind on what you came for. Why you are there. Also how you will achieve this plan of yours. If not you will be getting caught in everything there losing yourself straying away from your plan and purpose.
2) It’s college not luxury
I remember seeing students pull up in nice expensive cars. They lived in townhouses that costed almost $1500 a month. Yeah they had roommates that chipped in and the rent would be split 4 or 5 ways but still. Everytime Thursday, Friday and Saturday came party, party and more party. Don’t get comfortable college is just a pit stop. Don’t use college as a opportunity to establish comfort. Your situation can change at any moment. I witness students being here today and gone tomorrow and having to pay more money to get out then they paid to get in. Now there is nothing wrong with wanting nice things. Heck we all should be striving for that but you’re in college. This is the time where you prepare long term to have that luxury and comfort. You use college to set up you and your future family that you will have one day. I always hear ” I’m young I want to live my best life.” There’s nothing wrong with taking a break and relaxing, enjoying yourself. Making the best memories, having the time of your life. I just warn you don’t allow “living your best life” to define your future. I am a firm believer in whatever you do short term can have long term affects.
3) College is a business
Colleges/universities are making money off of the head of each student. Yes each one of us that are in college or came through the college system is a tax write-off. Every tax season I would receive a tax refund paper of $1500 to $2000 up until my senior year. So I know. But business have laws, policies, rules and procedures that are in place. You must understand what you are walking yourself into. If your are not going to be serious about going to college and earning that degree. Don’t use your parents/gaurdians social security number to get financial aid. You’re just wasting you and your family time. College is not a place to go and decide what you want to do. College is not a place to go once you turn 18; just to get out of the house because you’re tierd of mom’s and dad’s rules. You can experience the college experience all you want to. At the end of the day the colleges/universities have the wealth not you. They will always and forever be in business, not you. Hundreds of thousands and millions of people have been through the college system. Some have failed and some have never achieved what they wanted while their duration at college. Do you really think that they care about you. They have your money. You have become their property. If you succeed good. If you don’t well it won’t be affecting them. They just bring in another person and hand your student ID number over to them. It’s harsh but welcome to reality. The sooner you know, the better off that you’ll be.
4) You are the future
Yeah, you are the future don’t let anyone tell you different. But you have been the future ever since you came out of your mother’s……. Ummm let’s move on. You don’t have to be apart of a business scheme to be a future asset. Most of us if not all have gifts, talents and abilities and we don’t have to go to a four year University to access them either.
5) It’s okay not to know
We all make mistakes. I understand not all of us know what the heck we get ourselves into alot of the time. We don’t really come to terms until the damage is already done. However don’t worry now that you know moving forward make the proper adjustments. What do I mean by this now that you know that all of these loans and debt that college students are falling victim to. Make a change. If you are in college and have already loans, which side not you do because there are loans attached to the financial aid. Start researching and calling these loans places and making arrangements to pay off some of the money. No one is telling you this. So I will tell you this. You don’t have to wait until graduation because Lord knows they aren’t waiting until you graduate. You can do this now. Set up a payment plan. You can do as little as $50 or $75 dollars. Hey maybe even lower. What I’m telling is you probably working a on campus job or you probably have a job off campus. Well instead of using that money for partying, clothes, going out, buying the latest apple products and going on trips. Set yourself up for financial freedom. You can start off by paying off the interest that way you won’t have to worry about having to pay $600-$800 a month to see a drastic decrease in the pay off amount.
6) Stop opening up credit cards as well.
You want financial freedom. Well, minimize the usage of loans and credit cards usage or else you will always be in debt, finanical restraints. The best credit is no credit. You don’t need to have a credit card to establish credit. Just miss a car note, rent, utility bill, cable bill. Anything that has your social security number attached to it is a mode of credit.
There was a guy who works at the dealership that I got my car from. He told me that my credit was good. Yeah, I don’t want to brag but I’m almost at a 800. He said that I really don’t have much showing up on my credit report. I told him that’s good because I never really allowed myself to get into such debt where it would show. He said well the credit people wants to see how good am I with paying off credit card and things like that. I told him that this high car note is credit enough. If they don’t how good I am from this car note then I don’t know what to tell ya. He said well consider opening up a credit card with khols, tj max, Walmart, Target and purchase a Snickers and then pay it off to establish you credit faster. I looked at him and said that’s foolish. That’s the problem right there everybody is moving too fast and don’t know what for. He asked how is that foolish? I said, I have here in my pocket $5 dollars. A Snickers is what $1.25 just an estimate. Now why would I take out a credit card to pay for something that I have the money for? I asked do you know what is? He looked at me. I said credit is a “I OWE YOU” that’s one of the reason why the United States is in such deep debt. We are printing money with no gold or silver backing how much we print which is inflation. So you want me to take out a credit card and with my credit score they will give me $1000+ dollars worth of credit. But here’s the problem. Dude I don’t even have $1000+ dollars in the bank backing what I have spent. So getting a credit card is pointless.
Next don’t get caught up paying off the minimum balance. All you are doing is paying off the interest. That’s fool’s gold. It’s better to pay off the full amount due. If you can’t and you have to pay it off by doing the minimum. I understand, that’s why you don’t take one out to avoid that headache.
I just wished that they do away with loans or make it so that the money that gets taken out of all of our checks every pay period pays off the college debt that way college students wont be in such deep debt