'Dream School' Left Her Drowning in Debt

[Chardo]

<p>

We don’t hear about the stories of people taking out 200,000 and then paying it off without a problem. We only hear about the people who are struggling. And we’re all so quick to call her stupid and dumb.

</p>

<p>Because the ones who paid it off went into high paying careers that made it possible to do so.</p>

[GTalum]

<p>

She is living rent-free at her parents…she needs to get a second job and accelerate the rate of repayment.

</p>

<p>I agree with this.</p>

[annasdad]

<p>

State universities offer an inferior education.

</p>

<p>Your evidence for that? </p>

<p>

Graduates are not going to make the same amount every year for the next 30 years. In just a few years, she will be making more than she is now. Incomes rise in terms of years of experience and the economy. 10K a year was amazing in the 60s. Look at it now - beyond poor. What does that say about her income now and in 5 years? 10 years? 15 years?

</p>

<p>I’m hoping you were/are not an econ major. Incomes rose because of unprecedented inflation. In hindsight, you could argue that taking out loans in the 70s and paying them back largely in inflated dollars of the 80s was a good idea. That is not likely to be the case now, and anyone who borrows money on the assumption that it will be might as well spend his/her whole paycheck at the lottery window.</p>

<p>

It’s a tough economy now, but it will be improve in years to come. It is inevitable.

</p>

<p>Why am I hearing the strains of “Candide” going through my head?</p>

[ucbalumnus]

<p>

@Monoclide

State universities offer an inferior education. There is a huge difference between SUNY and NYU - both in terms of student intelligence, mentality, competitiveness, and success.

</p>

<p>Lots of people in the US live in states where the state universities are a lot better than SUNY (and some are better than NYU). And there are private universities that are better than NYU that cost less because they are more generous with financial aid.</p>

[drax12]

<p>No, Monoclide, I hope no one here calls her stupid or dumb. I’m rooting very ardently for her; I hope she makes it in whatever field she desires. I’m just wondering if she shouldn’t have stuck in NYC to take advantage of NYU’s great connections in there, with say, maybe one of her wealthy friend’s parents helping her with rent-free living conditions, etc. If she had the time of her life in Manhattan, and I’m sure when she pays the loan off, she’ll remember her time at NYU with great fondness.</p>

[Monoclide]

<p>

I’m hoping you were/are not an econ major. Incomes rose because of unprecedented inflation. In hindsight, you could argue that taking out loans in the 70s and paying them back largely in inflated dollars of the 80s was a good idea. That is not likely to be the case now, and anyone who borrows money on the assumption that it will be might as well spend his/her whole paycheck at the lottery window.

</p>

<p>It was based on the average rate of inflation from year to year. It doesn’t take an econ major to understand that the actual number of dollars today will be a fraction of the number of dollars in twenty years. </p>

<p>

No, Monoclide, I hope no one here calls her stupid or dumb. I’m rooting very ardently for her; I hope she makes it in whatever field she desires. I’m just wondering if she shouldn’t have stuck in NYC to take advantage of NYU’s great connections in there, with say, maybe one of her wealthy friend’s parents helping her with rent-free living conditions, etc. If she had the time of her life in Manhattan, and I’m sure when she pays the loan off, she’ll remember her time at NYU with great fondness.

</p>

<p>So true! I am hoping for the best for her. Grads that have domicile within commuting distance to major metropolitan areas have the greatest job opportunities. Too often are the default stories on graduates who live in a small rural town. I am scared of my loans, but I also live within commuting distance of the city, so I do feel better about them. </p>

<p>I think the government needs to stop with loans for for-profit schools, which hold the highest default rate and highest debt, and then subsidize all student loans. If the college wants to charge $40,000, and the student is willing to borrow $40,000, then fine. Let them. It just becomes cumbersome and tightening when the interest capitalizes over time and that $40,000 turns into $120,000. It is not fair to profit off of the betterment of someone. And the ban on bankruptcy discharges really just shows that the industry is out to trap students in ridiculous amounts of debt. I think it is time for the government to take over that sector.</p>

[ucbalumnus]

<p>

@Monoclide

It was based on the average rate of inflation from year to year. It doesn’t take an econ major to understand that the actual number of dollars today will be a fraction of the number of dollars in twenty years.

</p>

<p>You don’t know what the inflation rate will be in the future.</p>

<p>

@Monoclide

I think the government needs to stop with loans for for-profit schools, which hold the highest default rate and highest debt, and then subsidize all student loans.

</p>

<p>Probably it should have more restrictions on subsidized loans to students at schools with high default rates (for-profit or non-profit). But otherwise unlimited subsidy of student loans will just encourage more students to take recklessly large amounts of loans in pursuit of their dreams, even when there is low probability of being able to pay them back in a reasonable time, while universities can continue to increase prices more rapidly than if students had to be more price-sensitive due to less subsidized student loans.</p>

[annasdad]

<p>Still waiting for evidence for your assertion that state universities offer an inferior education. </p>

<p>Sent from my SAMSUNG-SGH-I897 using CC App</p>

[JohnBlack]

<p>Very depressing but unsurprising. </p>

<p>@Monoclide: what an ignorant position to take…</p>

[admitone]

<p>Why would someone go to NYU with UCLA in state?</p>

[ucbalumnus]

<p>

@Chardo

Why was this girl not advised about the lifetime ramifications of taking on major college debt for a film career? Why do people continue racking up six figure debt for low paying majors?

</p>

<p>Perhaps because many students do not realize how low paying some majors are. Many students apparently do not think to look at the career surveys that some universities publish, and many universities do not publish the information at all.</p>

<p>To its credit, NYU does have some useful career survey information available:
[Wasserman</a> Center for Career Development - Center for Career Development](<a href=“http://www.nyu.edu/careerdevelopment/survey/stu_placement_survey.php]Wasserman”>http://www.nyu.edu/careerdevelopment/survey/stu_placement_survey.php)</p>

[polarscribe]

<p>

@Monoclide

It’s a tough economy now, but it will be improve in years to come. It is inevitable.

</p>

<p>You know this because…?</p>

<p>There is no guarantee that the employment outlook for graduates (which has been terrible for most of the century) will significantly improve anytime soon - if ever.</p>

[Erin_s_Dad]

<p>^ General unemployment rates don’t seem to be much different this century than any other time over the last 60 years. [Notice:</a> Data not available: U.S. Bureau of Labor Statistics](<a href=“http://data.bls.gov/pdq/SurveyOutputServlet]Notice:”>Notice: Data not available: U.S. Bureau of Labor Statistics)</p>