Heard of $100 K debt and survival?

<p>I know that it is really crazy to take out loans amounting to 100 K or more for undergraduate but have you heard of any cases where people actually did this? (and survived through ?)</p>

<p>Nope.......</p>

<p>No.
I’m sorry.</p>

<p>I have heard of some doctors and dentists who had very high undergrad debts, though not as high as that. I think they felt going to a particular school would give them a “leg up” for med school admissions which may or may not be true. They generally regret having that much debt for undergrad, but they survive because they have the ability to repay. Do you want to live, or just survive?</p>

<p>100K debt upon leaving undergraduate school means you really are not free to take out loans for graduate or professional school, or to buy a house, or maybe even a car (at decent interest rates, anyway). The rest of your life will be on hold for a long time. </p>

<p>Your job options may also be limited, as you will be forced to take the job that has better immediate compensation, even if the long-term opportunities are fewer, or you hate the job.</p>

<p>I know middle-aged adults with kids approaching college age who are still paying off their student loans. Of course they are surviving, but they never travel anywhere and seem very stressed about providing for their own kids.</p>

<p>That kind of debt is life-limiting. Consider carefully whether the school you are considering will make you happy enough to live with the future trade-offs and still be happy.</p>

<p>I know a few, but all of them had parents who were ready to pay loans if it would’ve become a problem for child. All choose lucrative major (computer science) and knew they can earn decent income without higher degree. All parents ended up paying loans for the first few years (got repaid later).
Dare7to7Dream, to repay 100K at 8.5% (parents plus loan rate) in 10 years you will have about 1250 monthly. For 10 years. Every month. At current mortgage rate it equal to NOT buying 250K house. More than good starter home for the most of the country.</p>

<p>And with student debt loads of such levels, it’s virtually ensured that the enhanced loan fees and etc allowed to the lenders will kick in…that 100k of debt could easily go well beyond even that appalling level. </p>

<p>It’s been a phenomenon which has trapped those with more ‘reasonable’ student debt in the 30-40 range. All it takes is a few deferments, some missed payments due to job loss or etc and the cycle begins. And unlike mortgages, auto and etc there are very few basic consumer rights attached to student loan debt. </p>

<p>At a 100k dealing with the situation would be nigh onto impossible as it drags down quite a few who took out more reasonable student debt. </p>

<p>Now whether the whole American student debt system is reasonable in any way is the real question…arguably with all the desperate people out there, the current controversy in the USDOE and etc. It isn’t reasonable…</p>

<p>“I have heard of some doctors and dentists who had very high undergrad debts, though not as high as that.” </p>

<p>And the AMA recently begged the government to reestablish meaningful deferments and loan forgiveness for their crew…although for their members the situation was largely driven by the costs of the MD rather than undergrad degrees.</p>

<p>There are families who take out that debt level and more but do all right, if they are able to comfortably repay the money. THat is the big issue. For a young person to take out that much in loans for an undergraduate education when his family is not going to be able to help him puts him in a very tough situation. It is highly unlikely that the average undergrad is going to be making enough money to pay back $100K. Do the numbers yourself to see. It’s like taking out a mortgage for that amount. </p>

<p>It often means foregoing car, house and many other things that your peers will be getting. </p>

<p>Young professionals like doctors and attorneys are hurting in paying back these amounts when they are getting pay levels that can handle it. It still puts them behind and in tough financial straits. </p>

<p>We paid off our school loans just about the time we started paying for our oldest’s nursery school. We did not owe any 6 figures, but it still was not an easy go even though it was for professional school which did yield an income increase.</p>

<p>ahh I have the same problem. I just got my information back and I got 0 financial aid at the colleges I applied to… which I don’t understand considering that my parents are both unemployed in this recession. My EFC was 35k, which is higher than I can afford anyways, but I could probably handle that debt. I don’t know where that number went when the college figured out what I need to pay because full tuition is a lot higher than 35k and I got nothing. I know there is no “financial aid fairy” but I just don’t understand how when my parents are liquidating their accounts that they’re supposed to pay $31,000 a year for my education. I know that they can’t do that and I could never ask them to. I know this is a pointless rant I am just frustrated that I can’t seem to get a break.</p>

<p>A long time ago, back in the late 70’s, a Derm resident I knew told me a lot of doctors would blow off their school loans and they were going to get tougher…many had nice homes, etc. but it would be the last thing they paid, if they paid it.
Today, you have the stricter guidelines and they will make sure they get paid. You have to really think of debt, monthly payments and the length of time you want to pay it back. I don’t believe,except in rare cases that 1/2 that much debt is logical for undergrad.</p>

<p>Lots of sad tales are posted here: [Project</a> on Student Debt: Home](<a href=“http://projectonstudentdebt.org/]Project”>http://projectonstudentdebt.org/)</p>

<p>100k is too much.</p>

<p>Find a less expensive way to get an education.</p>

<p>i dont recommend it i am in same situation go to dream school for 100k of debt or go to an ok school for 30k debt… theres always transfer?</p>

<p>We have several relatives that took out student loans 8-12 years ago for undergrad and grad. They graduated with debt around $70k (it varied) and are still struggling to make ends meet. Their lives are on hold while they pay off their loans. It limits what they can do and where they live. My thoughts are that a 18 year old has no business taking on that kind of debt as they haven’t learned enough about money. I’m not sure a 22 year old that hasn’t worked full time and self supported through work does either. I understand that we want our children to attend the school of their choice and we want to do what we can (and sometimes more) for them. Unfortunately this can get them into situations that have long reaching consequences that they can’t comprehend. It’s not easy telling a child that a particular school is not affordable. My son is scrambling to figure out how he can go to his first choice. It’s a process and we’ll see when we get the final offer.</p>

<p>Don’t forget also that a lot of people get married to a person that also has debt to repay. That affects everything even more, since then it is nearly impossible to lose one income to having kids, whatever. Talk about feeling trapped! I agree with virtually everyone on here, that while it is hard to admit you cannot go to the school of your dreams, it is the mature and practical thing to do if it means tying a ball and chain of heavy debt to your life for years to come.</p>

<p>Go to the ASmherst College site. There are families doing it.</p>

<p>“A long time ago, back in the late 70’s, a Derm resident I knew told me a lot of doctors would blow off their school loans and they were going to get tougher…many had nice homes, etc. but it would be the last thing they paid, if they paid it.” </p>

<p>Actually that was very much a red herring/propaganda campaign. It benefited the loan industry because it was one of the PR points used to move into our current privatized and subsidized system. </p>

<p>Ironically after a generation of that supposedly more efficient system default rates are much higher than these were back before the shift. And that despite the appalling powers and fee structures given to these companies.
And one of the little tricks in recent years has been to recalculate default stats to make them look lower, but these are increasing substantially to the extent that no amount of stat doctoring can cover it anymore. </p>

<p>One of the ironies is that at the upper echelons (such as the AMA example already mentioned) the situation is becoming problematic. And at the lower levels (such as trade schools, CC’s and etc) the situation has become close to dangerous levels insofar as the economic effect on graduates. Much less money is involved, but given their lesser potential income and lessened ability to legally negotiate for better terms the proportional effect is much worse than with high debt professionals. </p>

<p>Although both situations are now becoming economically deleterious to the entire country. And certainly for higher ed, some of us minions therein are beginning to advise people to limit their educations. Concerning educational finance issues in this country we’re well past the diminishing returns point insofar as debt and educational costs…</p>

<p>Ya know what’s troubling-- we get this question here, repeatedly, from students who are seriously considering taking on 100K or more debt for undergrad education. Not their fault-- but they clearly don’t have a clue about finances, debt, interest rates, budgeting, and the cost of things in general. We (Parents and schools) aren’t doing a good job of educating kids about finances.</p>

<p>And what’s equally troubling is how did our higher education system become so predatory upon the people who it is supposed to serve? </p>

<p>Students and families are caught in a quandary, in the recent past a decent education was the stabilizing factor to get into the middle class, or to remain in it. Now education costs are rapidly becoming the major influence on keeping a growing number of people economically marginalized. Increasingly going to college, or going to college beyond a certain level will be a incredible mistake. And no amount of postmodern Horatio Alger(ism) is going to change that realization. So this goes well beyond our 100,000 debt which began this discussion in potential effects. </p>

<p>And yes schools and parents do a poor job about educating for finances. But student debt is also an incredibly rigged system-in that consumers are not given essential protections, and that academe has yet to drive the reforms needed to make higher ed a ticket up and out and not a ticket to a possible form of lifetime servitude. </p>

<p>Those who benefited from setting up this mess, have made billions but prostituted the soul of the American Dream to attain those profits. And that’s the core question why in Gods name did we allow such a travesty and why do we as a people allow it to continue?</p>

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<p>BG, you need to contact the FA offices and let them know this. You may qualify for an adjustment in your EFC.</p>

<p>I’m not advocating more debt, but I think it’s an unavoidable consequence of the “sky’s the limit” tuition (and R&B) increases and unrealistic FA models. The middle class is definitely being squeezed, especially at the lower end, and very little is being done about it. If not for merit aid and the very few schools that meet need without loans, there would be no choice but to take on debt, even at an “affordable” public school. Even among the regular savers, most parents had no idea 18 years ago that college costs would rise so rapidly and many have not had the income in that time period that would allow them to save for it. It’s like trying to hit a moving target! I’m willing to bet that many EFC’s would drop like a stone if a 3 or 5-year “look back” period were applied to income, even after adjusting for COL increases. </p>

<p>Perhaps it’s time for everyone to get over the “dream school” mentality and to exercise the ultimate vote with their dollars when it comes to education. It’s also time for them to send their messages to Congress and colleges to let them know that viable alternatives to the current system must be found now. In the meantime, a massive public information campaign is needed to make parents of pre-high schoolers aware of the college search/selection/financing process well before they are on the brink of it. It’s astonishing how late in the game most people start to consider finances!</p>