Friday, March 4, 2011

Student Loans

I promised an informative post about student loans a while ago, but you're getting a bit of a rant about them for now.

I was on campus today and there was a big student initiated campaign against the cost of tuition/student loans. They claimed that student loans from the ~650 people who participated with them totaled a bit over $16.8 million. They claimed the average loan per student in our province is $26,680, up from $20,500 10 years ago.

They are complaining about this increase, which I look at and think it isn't very much given that its over 10 years. So I calculate it out, and it turns out to be an average increase of 2.67% per year. Seems about in line with inflation... what are they complaining about?

Moreover, no one is being forced to get student loans. If you don't want to be in debt, but you want a degree then you had better stretch it out over a couple more years so that you can work at the same time. I'm graduating this semester and guess how much student debt I have? ZERO. Now these people who got interest free (while in school) money from the government want their debt loads to be decreased? I'm starting to feel like the US home owner who was responsible with their mortgage/home only to see their irresponsible neighbour crying for help from the government because of their own stupidity/mistakes when the real estate market tanked in 2008.

15 comments:

  1. Ughh, I just spent the last five years paying off student loans. Let us never discuss them again.

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  2. I have about $27,000 in student loans. I don't complain about them, I knew full well what I was getting into, $300 a month for 7.5 years. But I feel it was worth it. If you don't think it's worth it, of course there are other options. And I worked during my undergraduate years, but that was mostly for paying for the luxuries of booze and entertainment. However, I have the confidence that I will land a job that is able to pay it off even if I have to defer it. The kids who fear this stuff have no idea where they are going in life, and seek to blame the system that they are opting into. That said, some college expenses are extreme (books and housing) and could probably use better oversight.

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  3. Student loans suck, but sometimes they're a necessary evil if you just want to hurry up and graduate. Which is why if you're gonna get one, consider getting into a career that's worthwhile.

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  4. Hey, great stuff to know, going to Uni next year. In fact, your whole blog is great to read, something I'll be able to relate to. Keep it up, cheers (:

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  5. Spot on, people are very naive/stupid and when shit hits the fan then is suddenly everybody's problem.

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  6. Young people don't stand much of a chance if they can't even afford basic Education.

    If they can't get a basic Education it means they are most likely to work minimum wage jobs, and in essence, they will be stuck in a limbo. Because they have to pay rent, bills, food, health care and everything else and very little to go towards College.

    Americans do not have the best deal for gaining Education when compared to other developed countries in the world. So they do the only thing they can, take out a loan and take a gamble, which is not good for a already shot enconomy.

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  7. I think there should be more subsidies to the colleges directly so tuition is just defacto lower.

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  8. Yeah thats crazy, it will be like 6000 a semester now.

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  9. I'm really glad I went the G.I. bill route...

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  10. Im so happy I dont have to take out loans

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  11. More and more, I believe getting an education is becoming more of a scam.

    Following your very thoughtful blog for sure.

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  12. didn't you hear? some people predicting a huge crash for student loans

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  13. I couldn't agree more with you. For the rough timees that they are, I don't like the increase, but it is how it should be for right now. It is definitely rough the people who graduate school and come out with a bunch of $$ in student loans, but with the job shortage can't find a job.

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  14. Indeed, the cost does seem to be reasonable all things considered. In my country (UK), recently, the 'ceiling' on tuition fees was removed, and it has caused a massive outcry, as fees will almost triple in 2013 when it comes in to force!

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