Student loan documentary

[mrs.b]

Education is important. We are all here, in the Off-Topic section of an education-oriented web forum, because we are seeking the same benefits of education these people did. Education and obtaining a degree has a noted benefit; we have all cited the statistical analyses that show the reduction in unemployment, increased advancement opportunities, and all the rest that come with having that "stupid," expensive degree. Should they have waited, and put off their education until they had the financial means to pay for it without taking on debt? How would they manage that financial feat without a degree to obtain a job to make enough to support themselves as adults plus put that nest egg away? Not everyone was fortunate enough to obtain employment without a degree that made enough to finance it without debt. Should they have gone to a different, less-expensive school? Maybe, but one of the hurdles most of us have run into at this point is that society still places a significant appeal to the name of the school people come from, and not everyone has the ability to talk their way around it and sell the benefits and equality of a degree from a less-known (and less-expensive) school, or the awareness that accreditation is the balancing factor and school name means little in actual qualification. Not everyone finds alternative means of getting degrees - like building degree plans of primarily CLEP or DSST - to get the degree inexpensively (how did each of us find this forum? Judging by the previous polls here, most of us stumbled across it accidentally when researching something else and were shocked to hear about these alternative degree options, so if they did not search the specific questions we did, they were not so fortunate).

Big ticket loans are a simple fact of the American way of life. Unless we bought our houses in cash, without signing a mortgage, I find it somewhat hypocritical to berate others for taking out substantial loans to finance equally important purchases. Do each of us "need" these houses without the ability to pay 100% of the price on the day of closing? We need shelter, but we could rent or live with family until we could afford it. It isn't really a "need," then, but I'm willing to bet most of us have mortgages we pay each month. Are there alternatives to taking out sizable student loans to get an education? Certainly - most of us are following those options in varying ways - but the education community, as well as the student loan industry, seem to go to great lengths to keep these alternatives quiet. The student loan industry is a loanshark racket and needs to be addressed. Some students are stupid in the way they use loans. My husband, love him to pieces as I do, has $40,000 in student loan debt for an Associates degree (it must be the most expensive AA in the history of history) and it makes me ill every time I write out a payment for it. When he originally went into it, he insists that he researched, but available information is deceptive and contradictory depending on the source; he ended up listening to and believing his school's financial aid department and we now make a minimum of $600 / month payments (I try for $900 to try to chip it down). Was it stupid? Um...he's my husband, so I cannot answer that. Did he do it without concern of how it would be paid? No, he made enough at the time to afford what he was told the estimated payments would be...which is roughly $500/month lower than the actual. It is a dishonest system that needs to be corrected so borrowers know exactly what they are getting into.

The point is, some people make stupid decisions, often out of lack of information or naivety. Few of us, now matter how "wise" and "omnipotent" we may be now, had those same benefits when we were young, dumb kids fresh out of high school. Once they realize the stupidity of their situation, though, virtually every other industry has a way of making a correction to learn and grow from the mistake. Student loan is the exception; there are no legislation protections or alternatives. We will never be able to eradicate naivety, but we can change these systems to protect the system (ensure repayment so the government or these lenders do not get stuck with the bills) while offering protections and incentives to borrowers so they can fund an education they probably could not get through any other means but not kill their financial futures for years to come once they have that expensive piece of paper.