How About a Bailout for Debt-Strapped 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

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debt help of NY 9:10PM February 01, 2010

I graduated in 1995 from college in pennsylvania. I had a 21,000 debt when I got out thinking I will get a public school job in a few years. As years went by we established a small home in which I remodeled and was allowed to defer payments or met the economic hardship rules. PHEAA the holder of my loans but since tried consuladating them to a lower interest rate was no help. They declined a $100 payment back in 1997 and tried garnishing my wages but then returned that money. As time continued my loan grew and I now owe 680000 and only make 37000 a year. My payment would be over 500 a month. My mortgage is almost that everything else continues to increase but the workin peoples luck. I know how you feel this country has given itself to many problems it can't fix.

mike of PA 10:45PM August 21, 2009

I graduated from college in 1988 with about $20K in student loan debt. I paid over the years, but through those years I also fell into hard times. Job loss, other debt, etc.
My loans have been deferred, forebearanced, defaulted, and have changed hands many times over the last 20+ years. One agency that handled the payments demanded over $600 a month always to be sent via Western Union but when my spouse lost his job, I requested to be able to send the $600 a month in 2 payments a month to relieve some of the pressure. I was told "no". So we stopped paying.
I now am fighting a garnishment of my wages to which they are asking 15% of my disposable income or a lump sum payment of over $95K...yes for real...$95K! I hired an attorney to dispute all the extra interest and fees over the last 20 years. I had to send a financial disclosure, all our bills, childcare payment receipts, tax returns...which I did in January.
Yesterday, I received a letter from the US Department of Education saying they did not receive any of my information and I have been denied for relief from garnishment...unless of course I make voluntary arrangements with the collection agency that is now handling my loan.
Keep in mind, this is the same agency that has called all our relatives, my child's school, and my employer harrassing SOMEONE to pay this $95K! I did file a grievance with the Attorney General's office to which they sent the agency a letter threatening fines because of the Consumer's Rights Act.
I have volunteered to pay $450 per month to avoid the garnishment which as the date of this writing, will have me paying it every month for the next 17 years! And did I say in the beginning, this is for an Associate's Degree, not a Bachelor's, not a Master's, not a Doctorate!
And our government is bailing out banks and car manufacturers??? What about us American Citizens who have FEDERAL Student Loans and have done their very best to pay?

mb of KS 11:03AM April 06, 2009

As a nurse I can prove I did my time in school and I am now working in my field so where's my bailout??? I didn't waste my loan money on a career that is pointless and there are tons that are.. I have $60,000 in loans and struggling.. thank GOD I didn't buy a home. I was dumb enough to get more loan than I needed just like home owner got more loan than they needed.. so BAIL US student loan debters out. Better to have educated americans than homeowners who live above their means

Marie of AZ 12:09PM March 30, 2009

I'm a school teacher making about 50,000 a year and felt I could not afford to go into debt to send my children to collage. I just found out that my wife signed for their first loan to get them started. This now has my wife and I on the hook for about $32,000. Both my children are at the University of South Carolina. My children then extended themselves by borrowing from Fannie Mae and since we didn't sign my children are being charged 11.75 % interest on loans that they keep getting forebearences on. The interest is running. This is nothing more than leagalized shylocking. They each owe approximately $60,000 and are not finished yet. My sons loan has already incurred 6,000 in interest and I don't know off hand how much interest my daughter has incurred. I'm taking out a 32,000 home equity loan to pay mine aand my wifes end but have no idea how the kids will manage their end especially with the job prospects out there.In the mean time while fannie is receiving bailouts our children are getting buried with debt. We called to try and consolidate the kids loans at a lower rate and were just about laughed at.What do we do???????????????
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Michael Aiello of NJ 9:41AM March 23, 2009

I would like to find out how much it is to bailout college students? 100 million dollars? 735 million dollars? 735 billion dollars? I do not understand why college students are getting the bare minimum from the federal government? I think investing in college students is a much more profitable investment and makes a great deal more sense than bailing out companies who failed to manage their funds appropriately. Investing in college student is the greatest investment and I would have to say by far has the most potential. College students do not take on debt because they are careless instead they decide to incur hundreds of thousands of dollars in debt to get a good job in the future. How does the government expect to the United States to succeed when they are neglecting the core factors of a successful future? If you are reading this and do not agree with what I am saying I really do not think you have any clue of what is happening.

Gary of DC 5:04PM March 06, 2009

My daughter has $140k student loan debt and makes a low salary as an attorney for Legal Aid. Kim Clark, please let us know more details on Obama's Income-based repayment plan for student loans. You mentioned 2/25/09 on the Diane Rehm Show, NPR, students would pay no more than 15% of annual salary, make payments for 10 yrs, and the rest would be forgiven. This new federal program is due to start in July, you stated. Keep us informed!

Pat Gottlieb of MI 2:32PM March 02, 2009