Black Education / Schools : How The $1.2 Trillion College Debt Crisis Is Crippling Students, Parents And The Economy

RAPTOR

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Sep 12, 2009
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Total Student Loan Debt: $1 Trillion

Two-thirds, that’s right, two-thirds of students graduating from American colleges and universities are
graduating with some level of debt.

How much? According to The Institute for College Access and Success (TICAS) Project on Student
Debt, the average borrower will graduate $26,600 in the red. While we’ve all heard the screaming
headlines of graduates with crippling debt of $100,000 or more, this is the case for only about 1% of
graduates. That said, one in 10 graduates accumulate more than $40,000.

It’s a negative sum game for both student-borrowers and the economy. According to the Consumer
Financial Protection Bureau
, student loan debt has reached a new milestone, crossing the $1.2
trillion mark — $1 trillion of that in federal student loan debt.

This pushes student loan debts to dizzying new heights, as they now account for the second highest
form of consumer debt behind mortgages. With the federal debt at $16.7 trillion, student loan debts
measure at 6% of the overall national debt. This is no small figure, and national debt carries many
consequences including slowing economic growth (translating into fewer jobs being created) and
rising interest rates. Capital will not be as easy to access.

The majority of student loans are backed by the U.S. government through banks like Sallie Mae, or
since 2010, by the Department of Education. Translation: the creditor in this scenario is the U.S. tax
payer, who if students default on these loans will be subject to carry the burden of these loans.

Read more: http://www.forbes.com/sites/special...s-crippling-students-parents-and-the-economy/
 
Total Student Loan Debt: $1 Trillion

Two-thirds, that’s right, two-thirds of students graduating from American colleges and universities are
graduating with some level of debt.

How much? According to The Institute for College Access and Success (TICAS) Project on Student
Debt
, the average borrower will graduate $26,600 in the red. While we’ve all heard the screaming
headlines of graduates with crippling debt of $100,000 or more, this is the case for only about 1% of
graduates. That said, one in 10 graduates accumulate more than $40,000.

It’s a negative sum game for both student-borrowers and the economy. According to the Consumer
Financial Protection Bureau
, student loan debt has reached a new milestone, crossing the $1.2
trillion mark — $1 trillion of that in federal student loan debt.

This pushes student loan debts to dizzying new heights, as they now account for the second highest
form of consumer debt behind mortgages. With the federal debt at $16.7 trillion, student loan debts
measure at 6% of the overall national debt. This is no small figure, and national debt carries many
consequences including slowing economic growth (translating into fewer jobs being created) and
rising interest rates. Capital will not be as easy to access.

The majority of student loans are backed by the U.S. government through banks like Sallie Mae, or
since 2010, by the Department of Education. Translation: the creditor in this scenario is the U.S. tax
payer, who if students default on these loans will be subject to carry the burden of these loans.

Read more: http://www.forbes.com/sites/special...s-crippling-students-parents-and-the-economy/

College is step one into the professional world. I went toa school where the tuition was $39,000 per semester...five or six years later it was up to $56,000. That is for out of state residents...in State residents get a significant discount. It is however a Great School for entry into pro life from one of it's prominent schools...there is no doubt there.

...The issue is preparedness. Young people enter college for many reasons. Guilt, peer pressure, parental pressure and prestige can be among the worst reasons to go into that kind of debt. You are guaranteed a High School education and pretty much a two year college education. Going to a High level private institution is for the academically initiated. Even a state College. You need to be prepared for independent research and make all of the organizational moves necessary to get internships and visit Grad schools for your final schooling . You work your resume in your senior year to secure school related professional work. Many have no idea how to accomplish that. So we have this money crisis because people are going for these extravagant educations and then having not a clue how to pull the big bucks to pay a $200,000 + college loan. Don't even look at a Law Degree or Medical...those are Doctoral programs.

...there are ways to lower your bill. it takes time and you have to do the work and research because Sallie Mae wants to get paid. They and their counterpart Navient are arms of the U.S. D.O.E. So you have to let then know your predicament and they will show you your options. These doable options will not just drop out of the sky and they are actually not advertised. The reason is that you are expected to pay the system...that's what it is!

...you need to understand fully why you are going to college because depending on your vocation or lack of a sense of one, you may not need College. There are many B.O.S.C.E.S. Adult education school graduates who are driving tractor trailers or working in the wide medical support fields who paid $4,000 - $5,000 for their educations and are doing quite well. A BFA is generally a practitioners Degree for those who work, There are less opportunities today for a BFA. A Masters Degree is now the Standard for work and for prestige positions.

For instance, you can't teach without Masters Degree in your field or a BFA and a two year general Education teaching certificate. A two year general Teaching certificate, which qualifies you for a techers aide or a substitute teacher costs $100,000. That certificate is valiable for getting work, but it won't necessarily get you your chosen field. you have to teach what is available!
 

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