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How About a Bailout for Debt-Strapped Students?

October 2, 2008 RSS Feed Print

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As details of a massive financial bailout are being hammered out in Washington, D.C., some educators are asking: Hey, what about college students? Senate negotiators raised the prospect of a little help for anyone facing tuition bills by slipping into the new bailout bill an extension of the tuition tax deduction that was set to expire at the end of this year.

But advisers gathered at last week's Seattle conference of the National Association of College Admissions Counselors said they are worried there are lots of students who are in just as much financial trouble as overextended homeowners, as rising student loan default rates indicate. The average college graduate owes almost $20,000. And many leave school owing more than $50,000. With today's economic troubles and growing unemployment, more young graduates may have trouble making their payments. So, if Congress is contemplating bailing out mortgages, college advisers are asking, why not student loans?

Tags:: tuition,; student loans,; students

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First, I don't believe bailing out anyone is the "right" thing to do. As far as GSLs, back in the late 80's I had a GSL to help my first semester at college. I quickly realized that after 4 or 5 years of college, my debt for GSLs were going to be a huge burden to my financial situation at a time (entry level) where my salary would be the lowest. My parents didn't have any money and, as a white male, I didn't qualify for many grants. I chose to go into the USMC Reserves and get the GI Bill. I then went to a community college (where tuition is cheaper) for my first two years and transfered to a 4 year institution for the rest (again, minimizing my cost for college). Being FROOGLE should be part of the process. If you go to a very expensive private, liberal arts college and rack up $35K per year and end up with $140K+ GSL debt, you were screwed to begin with...regardless of job market. You were making bad decisions to begin with. If our country is ever going to get out of the mess we're in, we need to drastcially scale back entitlements, bailouts and the increasing burden to the shrinking taxpayer base. I'm getting tired of hearing how my taxes are going up to take care of others who were less than responsible in their own decision making. Show me someone handicapped...I'm all about helping...show me someone who made the wrong decisions or failed to "think forward"..."good luck" is all they get!

Chris H. of MD 9:39AM October 09, 2011

@ Mike of PA
Cry more dude seriously. You make 37,000.00 roughly each year? How about the people who make less than 10k each year expected to pay almost 1,500 a month on their debt hmmm?
Your situation is nothing more than you not properly budgeting your income, how about, instead of remodeling your home you put that money towards your growing debt.
I went to college a year before the economic deal happened. I was assured by the college that I attended that upon graduating I would be given a job in the field that I studied (Film). Sadly, halfway through my schooling the economy went down and I was still in school. Not a big deal as I was going to a full time college, so it was like having a job and going to school at the same time for 6 days a week.
Now, 8 months after I've graduated, I've yet to find a paying job for my industry in my area, let alone any other job (something about having a 2 year gap between jobs really hurts your ability to get one, even considering you went to college.). I've got at least 200,000 in debt from personal credit cards and student loans just trying to stay afloat while I scour for some sort of paying work in my area, and I've got a $1,500.00 student loan payment (at least) not to mention the money I owe to my credit card companies.
I'm not the only one in this situation either, hundreds of people I went to school with are in the same boat as myself. False promises for jobs combined with the fact that the economy is in the tank and a massive amount of debt with no way to pay it, and growing interest is more of a problem for people than someone with a 37k yearly income and a $500 monthly payment.
Your middle class my friend, why not take a step down and join the lower class or poverty level people and then tell me you're having a hard time making those payments.

Chill of FL 9:45PM October 12, 2010

i am in the same boat. i talked to this guy today about paying back my loans, i borrowed roughly 18,000.00 and now it's up to 28k. he told me i can send in 50% and they can put me in a program. i told him i can move out of my apartment, stay at a homeless shelter and call him back when i have more " disposable income"

rose of FL 9:41AM August 13, 2010

How About a Bailout for Debt-Strapped Students?

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