Just curious.I was just thinking about the money wasted if I were to drop out of school. Not that im thinking about it. Luckily my scholarships covers most of my tuition and there was no need to take out a loan. I only had to pay $500 for the leftover tuition and worry about my rent which im covering with my part time job. In most universities nearly half, or more, of the students don’t even graduate. Most of those drop outs took out loans to pay for certain semesters. Any one know an article for this. Usually there is tons of article about student dealing with student debts after graduating, but never about those who drop out and having debts.
Why do you want to know this?
If you don’t have college loans, you won’t have college debt. But if you don’t have a college education, you income may be lower (lots of articles on line about the salaries of people with/without college degrees). If you can live within your means, you won’t have debt. If not, you will.
more importantly…why are you dropping out while you have a scholarship that pays for your tuition. You’ll lose that forever if you drop out.
Instead, see if you can take a year of absence and keep that award if you come back next year.
The OP says he is not considering dropping out. He just is wondering about debt for those who do.
I don’t think that ANY education-- whether a degree is finished or not-- translates to “money wasted.”
But beyond my own personal point of view, I have no idea where you would find that info, beyond starting with Google and seeing where it takes you.
Thanks, I misread that.
I doubt this is accurate.
http://www.reuters.com/article/2012/03/27/us-attn-andrea-education-dropouts-idUSBRE82Q0Y120120327
It seems financial issue is one of the main reasons for drop out. Others include wrong career path, not ready or college. etc. Most of them are not Bill Gates or Steve Jobs.
In today’s New York TImes: Why Students With Smallest Debts Have the Larger Problem
^ That was eye opening. Thanks for posting @rosered55 .
I suspect that many in default were those who borrowed the typical Stafford loans for 1-3 years, and then dropped out of school for some reason.
We’ve seen here kids who can’t continue at their schools because they owe a debt from the previous semester and they’ve already borrowed max Staffords, so guessing many drop out. Without a degree, but owing $5k-20k in debt, I imagine that many of them default. Their debts aren’t large, but w/o a degree, their earning potential is often low.
I really disagree with the lady featured in one of those articles, she should have finished up those last few classes and get her degree. Someday, she may need on for a promotion or to secure financing for her own ventures. Getting a bachelor’s is a lot of work, a lot of years, and she had $50K invested. Why not pursue part-time finishing her degree? Getting some free-lance work that pays your bills at 20 does not really equate with a degree and Loyola Chicago is probably a good school.
Seems like these articles are mixing up various categories of students. I don’t think the average college dropout ever considered graduate school.
Basically, the sane plan would seem to stick with a path you can afford, either a low cost option like CC-> 4 years school and commuting or pursuing merit opportunities or trying to find appropriate financial aid. The CC is cheap and gives you the opportunity to see if college is for you, and I might add, is for you at this time. Many people go back to school in their 30s once they realize they are not advancing or getting much salary and become more focused on achievement and supporting a family rather than partying with their friends the night before an exam. It’s a harder road, but many people do take it.
The expensive poor quality for-profit schools also are a factor here. The CCs can provide low-cost options from remedial education useful in the workplace even without a degree, fine arts programs to see if you can follow that muse, technology programs with some good job prospects (IT, health care, etc) or the 4 year college transfer path.
Similarly, no one should go into debt just to live in a crappy dorm if there is a reasonable quality school nearby and they have a reasonable home environment, unless someone else is paying for it, either parents who can afford it or some scholarship money.
Defaulting on student loans is not much different than defaulting on credit cards, bankruptcy, car repossession, etc. Also seems like if we serious about getting these loans repaid, we would make it easier for people to qualify for various programs and get them paid off over time or maybe allow some people to have loans forgiven if they do public service jobs or whatever (blanket forgiveness just makes the whole loan program a joke, seems better to have better FA now and demand some responsibility from folks for their debts).
The recession is likely also an issue … as are the exorbitant cost of many colleges.
There may be students who went to college assuming affordability if everything goes according to plan, but unanticipated (at the time of matriculation) problems derailed the plan. For example, a student and parents may plan for 8 semesters, but the student needs a 9th semester for some reason (e.g. failed some course and needs to repeat it, could not handle a high workload semester, was initially placed in remedial courses, changed major late or otherwise made course selections that did not stay on track with prerequisite sequences). That 9th semester could be an unplanned expense that they cannot afford, especially if scholarships end and financial aid is reduced compared to the previous semesters.
Students who entered state universities before the recession may have faced rapidly rising tuition charges as state budgets were cut due to declining tax revenue during the recession.
Many times I read in this forum students going to schools without a full financial plan for upcoming years. There may be grant or scholarship(s) that cover the first year, then they suddenly realize the school is actually not affordable to next year.
^
True…often there is “tunnel vision”. They do the math for one year, based on various scholarship awards, without thinking that some are one time only awards…
Another issue is one detailed in a recent thread. Student borrowed every year, and then changed majors. She’s running out of “borrowing power” before she’ll graduate…and her new major won’t likely support all this debt.
^ Yeah. I read that too. It is a very bad idea to double major and then change school and major after 4 years and is still 60 credits aways from graduation.