Student loans > credit card debt

[Lamplighter]

As our 3 daughters grew up, one of the last themes in our parent-child
conversations was the dangers of credit-card-debt.
We were tyrannical about them paying off the entire balance each month,
and for the most part we were successful.
As they started their own families my wife and I were aware
their credit card usage was in reasonably good control.

But little did we know about what they were doing with their "student aid" debt.
We knew they were getting it, but we thought (errrr, told ourselves)
they were getting "grants" so it was OK.
Then after one PhD, one MS, and one BA we found out how much
was their total student loan debt. It blew us away.

This morning, the TV news had a story about it, and I found this article here

Student loan debt exceeds credit card debt
by Lisa Edge

According to a new report, the amount Americans owe on student loans now exceeds credit card debt by 3 billion dollars.
Experts say one reason for the increase is the rising cost of higher education.
Also, more loans are available now than they were years ago.

Unlike credit card debt - where filing for bankruptcy can clean the slate - student loan debt must be repaid.
Oftentimes people don't realize how much they owe until they go to make a large purchase such as a house.

So now, I am putting pressure on my G-kids who are in college to pay attention,
and to only accept the kind of student-aid that comes as a grant (doesn't have to be re-paid),
and instead to work part time so they don't have to get involved with the "student loans".

My wife and I are helping out as much as we can...
but it's a lot harder now than when we were starting out.

[xoxoxoBruce]

It's gotten worse with the shrinking job market, as more kids choose to go to, or stay in, collage, for lack of options.

[glatt]

As a parent of an elementary school kid and a middle school kid, this terrifies me. We're trying to save for college, but it's hard to scrape much together, and it's growing at a fraction of the rate that college costs are rising.

The state university is currently around $23K/year for residents. So that's roughly $100K to make it through undergrad. That's today. I expect it to be about $300K by the time my kids are in college, based on the rates of increase. I've got two kids, so that's $600K. Over half a million dollars. How the fuck is anyone supposed to come up with that kind of money?

A part time job will chip away at that, but it's like using a chisel and hammer to chip away at the Washington Monument.

[xoxoxoBruce]

Homeschool.

[Lamplighter]

But home-schooling defeats the real reason for college...
the first great adventure in living away from parental control.

ipso facto student loan debt...
so take advantage of community college and living with relatives

Ummmm. OK, there's some circular reasoning going on here.
But maybe there are other reasons for college.

[footfootfoot]

I went to college when I was 32. I tell every college age kid who asks my opinion, not to bother with college, especially if they want to be a photographer. Take the $ you'd spend for a crap education (it will be a crap education having taught at a number of colleges and with family and friends who teach--this is another topic for another thread) and use it to buy used photo gear, make lots of pictures and show them to as many pros who will look, go to galleries and show them your pictures, practice, and read books on technique. Go to shows and ask questions, the dumber the better. Get a job in a photo studio, then get a job in another studio, keep learnign from as many people as you can. One month of OTJ in a studio will equal two years in the best photo program (maybe not RIT)

I imagine the same would hold true for nearly any profession. The exception is probably if you are wealthy enough to not consider the cost of college, then college is a must because that is where you will join the right fraternity and forge important political ties and marry the right sort of person.

Just my .02, but an undergrad degree is the new high school diploma and the master's is the new undergrad degree.

[Pete Zicato]

Originally Posted by Lamplighter

So now, I am putting pressure on my G-kids who are in college to pay attention,
and to only accept the kind of student-aid that comes as a grant (doesn't have to be re-paid),
and instead to work part time so they don't have to get involved with the "student loans".

I don't think this is possible anymore. State colleges are ~ $22-28k (in most states). The University of Illinois/Champaign is $32k for tuition/book/r&b.

I don't think your average college-student job will pay that in a year.

[Lamplighter]

Pete, I agree completely with what you say.

I graduated h.s. in '52 when tuition at UCLA was only $35 a semester,
Quelle difference !

But being aware of debt, community college for the first 2 years,
living with relatives, and working part-time each take a bite out of the total.

[wolf]

My undergrad degree was paid for with grants and student loans. It took me 10 years to pay off those loans, more probably, because I took the year off from paying option when I was in some dire financial straights. The grad degree was paid by a combination of paying for classes outright and credit cards. I went to a "cheap" school ... around $500/class instead of $500 (or more) per credit from most of the schools nearby.

It was harder to pay off the credit card.

[classicman]

I got 2 in now. Its nothing short of ridiculous. They tack on all the normal things like a meal plan and books, but there are more things getting added which brings that base tuition up significantly. Books are out of control as well. I'm in for $250-$400 a semester per student.

Maybe we need to reform the....

[Happy Monkey]

When a textbook wanted to use one of my Flickr pictures, I only charged them a copy of the book.

Given current prices, I probably did pretty good for an amateur photographer.

[Lamplighter]

When you charge for it, you're no longer an amateur