Someone explain the student loan bailout program, please. A college education is something that should be considered an investment. Due diligence must be done and it isn’t rocket science.
Average in-state cost, including room and board for a four-year degree, is about $80,000. So your kid went to school and borrowed $80,000 total and was able to make $1,100-a-month loan payments the day they graduated. Do you realize that they will pay $55,000 in interest for a 10-year loan? This means they need to gross $17,000 a year just to make the loan payments. Unless they land a $40,000-plus job right away, they are going to struggle. These calculations took five minutes to do.
So where is a student with a philosophy or journalism major going to get a job to be able to satisfy their debt and living expenses? A minimum wage job won’t even make the loan payments.
None of this is hard to figure out. But how many people actually do this? This is an investment and needs to be treated as such. So here is my problem. You did not do the math or get proper guidance (don’t even get me started on some of the high school counselors) and your kid has collection agencies breathing down his or her neck. Why is this my problem and why should there even be discussion about me paying for it? Please explain.
Andy Krishak, Spring Mills