<p>"He also announced a program to improve communication between the federal government and schools to allow administrators to better track who hasn't filled out the Free Application for Federal Student Aid, or FAFSA." …</p>
<p>What people don’t understand it while the application might be free, the loans are not. I don’t think it is a good idea to encourage 18 year olds to take out all the loans they can especially if they haven’t even thought about college, about the responsibilities of paying for an education, about how much work it is to go to college and have a job and support yourself.</p>
<p>Twoin…I wish college were less expensive. That being said, the $27,000 direct Loan amount for undergrads nets a payment of about $300 a month for 10 years. I personally think THAT loan for education purposes is more valuable in the long term than getting a car loan.</p>
<p>The percentage of those in the group he is encouraging to fill out the FAFSA and take of those loans, graduated in 4 years, get a job and start paying back $300/mo is very very low. It is just the beginning of a life of debt for people who have no idea how to pay it back. There isn’t even any evidence that these students have applied to a college, never mind been accepted. He just wants everyone to apply to have ‘100% participation.’ What’s the point of that?</p>
<p>It is important that students who think they cannot afford college realize that there might be aid available to them that will make college possible. For example, there are students who could attend community college for free with a Pell grant. If no one points this out to them, they will never know. Counselors in urban schools are far too busy handling discipline issues to meet one-on-one with students to assess their understanding of the college process. Community colleges appeal to all sorts of students, including those who might not be interested in or ready for a 4-year school. CC’s in our area offer really great career prep for a very affordable cost. Couple this with a Pell grant, and a low income student could receive a degree that prepares him for a career. Any effort to help students realize what might be available them them is a good effort.</p>
<p>I think there are very few who will take the pell grant only when offered the $5500 loan too. And then another loan the next year. If there aren’t guidance counselors helping them, then maybe someone from the cc should. They shouldn’t be just applying for the loans without a plan. Paying back $300/mo may not be that hard for a college grad with a BA and his mother’s basement to live in, but for the kids Obama was talking to, it will just be the start of a life of debt. Many here on CC claim a $300 payment is not that much, but I think it is. My second professional job paid $35k/yr, which is about what everyone here thinks the average college grad (except maybe an engineer) will start at (I don’t, but I’ll use that). I think I paid about $120 in student loans and it was killing me. I didn’t have much parental help, so I needed a car ($220), apartment ($600) and all the regular expenses of life, long before the days of cell phones, home internet, or cable bills. Gas was cheaper, food cheaper, living cheaper because this was 30 years ago.</p>
<p>I think $300 is a lot to just pay out every month on a starting salary, and I don’t think this group Obama was encouraging to just apply for loans will be, on average, earning as much as those who go to a 4 year college and use loans to supplement their college costs. I think loans should be the last piece of the puzzle, not the first.</p>
<p>I guess I must have missed the part where the President was telling students to borrow a ton … (still didn’t see it when I re-read the article).</p>
<p>It looks to me like the President was telling students that there may be assistance available to them, and the only way to know how much is available is to complete a FAFSA. It is certainly a good start.</p>
<p>And without loans, MANY students would never go to college. Fortunately, the income-driven repayment plans make repayment manageable for those who do not land jobs that pay well right out of college.</p>
<p>I don’t know what kind of CCs are around you, twoin, but the CC by me only costs ~$1550 per semester if you’re taking 15 credits. The budget for the CC doesn’t even allow you to take out full Pell plus full loans (my ex tried and they said they couldn’t award loans over the COA). Edit: actually it looks like they’ve changed their budget and now it would be possible. However, I still don’t think “most” students would. Most students who are eventually pursuing their bachelor’s are going to CCs to keep costs as low as possible.</p>
<p>I don’t think most CC students are ending up 10k+ in debt for the 2-3 years they’re in CC. I’d say they’re probably a small minority. </p>
<p>+1 to everything kels said, too. (I didn’t see anything about loans either in the article)</p>
<p>I work on the other side of student loans from kels, the collection side. The ugly stories aren’t the med students with $150k in loans, it is the thousands of students with $15k and no way to pay because they didn’t graduate, or have an AA degree in criminal justice, or are struggling on a public school teacher’s salary.</p>
<p>I’m not unsympathetic but I don’t think it is the right choice to just have everyone to file a fafsa without a plan. I went to undergrad without loans not because I didn’t need them but because I couldn’t qualify. I worked, I ate mac and cheese from a box, I was poor. I came out of grad school with about $12k in loans, and they were a burden. I wished I had just gone to a cheaper school and worked and been poor but by then guaranteed student loans had been invented, dangled in front of me, and I took them.</p>
<p>Everyone SHOULD fill out a FAFSA- ESPECIALLY low income people. Filling out a FAFSA is not an automatic debt sentence.
I’m not sure why anyone would NOT fill out a FASFA (provided they aren’t capable of 100% covering any costs). </p>
<p>I wouldn’t have been able to go to school if not for loans. All of mine are government and are reasonably manageable (though grad school is adding on a few more than I would’ve liked). I <em>am</em> the majority of those who take out loans. Those who take out way too many are the fringe. </p>
<p>There are very manageable payment plans for those who do not graduate, or who end up in low-paying jobs. The enrollment form is online … it couldn’t be easier to get into these income-driven programs. Yes, it can extend repayment … but it still makes repayment manageable. There is no excuse to fall behind on repayment, given the available options for repayment. Private loans are another matter, of course.</p>
<p>There is no excuse - and yet thousands are in default and more go into default every day. Why is that?</p>
<p>Predatory for profit schools? Private loans that have nothing to do with the FAFSA? Lack of self-advocacy to look for options?</p>
<p>I have seen people in their 40’s go into default. It’s not just a young-kid thing. I agree with romani … it’s a combination. In addition, there is a head-in-the-sand mentality - but this doesn’t go away. It’s not like a house that goes into foreclosure. Being aware is something necessary, and it takes a sense of personal responsibility. “I didn’t open my letters from my servicer” is something I have unfortunately heard more than once. </p>
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<p>There are a LOT of families in this country that run businesses with different sets of books…</p>
<p>Perhaps a small percentage nationwide, but a not uncommon practice in our area are people who register for community college with no intention of pursuing their education, receive federal and state grants for housing, dependent assistance, etc., then never attend class after they receive the money. Although they are obligated to pay back the funds if they stop attending or withdraw prior to the 60% completion point, they simply don’t pay the money back. </p>
<p>Unfortunately, this does happen. There are new verification tracking groups as a result … ability to benefit/identity and unusual enrollment history. These are intended to try to catch this sort of thing (to the extent it can be caught).</p>