Many college students are not earning enough to pay back their
student loans, because they choose majors that pay too little upon
graduation, and 15 percent of college grads are still paying back
student loans at age 50, Peter Morici, University of Maryland Economics
Professor, said Thursday.
College graduates owe on average $25,000 when they finish school,
Morici said, and in some cases, graduates can rack up debt close to six
figures.
“You know, if you go to a liberal arts college, and your family has
reasonably decent means, but not enough to qualify for really
substantial financial aid, you can get up close to six figures if you
work at it, though it’s unusual. The bottom line is though is that
graduates are not earning enough money to reasonably service their loans
in many majors,” he said.
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11 comments:
When too many people go to college the demand increases. When demand increases the cost increases. The cost has finally exceeded he benefit obtained. Most students would benefit more from a technical or trade education but no, that's beneath them. Too many want to be philosophers, historians, journalists or other occupations of limited value to society.
5:07 is correct, not enough common application of knowledge is learned or taught. I cannot get a debt consolidation loan to cover my student loans and I graduated in 1990. I see the payback as endless but I am doing it. Ironically I can get approval for a car that cost more than my loans or more than I make in two years and that process only takes two hours. The world has drastically changed so have employment habits, work standards and job quality. I am very confused when I think about it,
Colleges & universities need to get back to teaching instead of being a community completely separate from the city they are located in. The additional cost of trying to supply everything to every student instead of letting, or making, them learn to live and make decisions about their life has driven the cost thru the roof. They need to go back to being centers of education instead of baby sitters for immature young adults who never have to really live on their own until they are finished with college.
Don't take a school loan to get a job making 40 K a year.
Going to college is just a waste of time. My daughter got a job in her study after 4 years of putting herself through it on scholarships and works in her graduating trade @$12 stupid dollars an hour. Case closed.
Take Vo Yech in high school and get a job quicker @ probebly more than $12 an hour!
Another problem some graduates face is they graduate with a not-too-exciting GPA. My older brother has a degree in buisness admin. but he had like a 2.8 average and no one would hire him. He works selling used cars.
@May 6, 2012 5:46 PM basically is correct. Unfortunately, Government is mostly responsible.
First, Universities should receive federal aid only for educational programs tied to job demand. Secondly, youth should not have these loans pushed in their face without regard to a field of study where there are no jobs. If you want to go to Maui for 4 year years for a degree in surfing, pay for it yourself.
I got my engineering degree because I was willing to pay for it myself and attend classes in the evening. Kids today simply see "free money" to go have a good time at college and their parents don't even have to sign for their loan.
but when did they take out the loan. nowadays many people are going back to college later in their lives. whats the problem here ? go to school, pay the loan.
For profit fly by night online colleges like Columbia Southern University, Capella and Kaplan are ruining higher education.
It all depends on the person. I have an an advanced degree (liberal arts) and worked my way into a 6 figure income job. I invested my earnings and retired in my 40's. One of my friends didn't go to college, worked hard, and retired at the same time. Other friends of our both with and without college degrees are struggling to survive in the obama era of hope and change. College didn't make me any smarter than my friends but it did open my mind to be able to develop connections with people I would have never be otherwise. The truth is that you either have the drive to succeed or you don't. Are you willing to not own a new car until you can buy it for cash, can you live without cable TV, work a day job and then put in 20-30 hours a week on the side and shop at thrift stores? Not every ticket is a winner. Life is what you make of it!
Why do people still act like its not 2012 and there are jobs that pay decent wages? Do you think that the college graduates want to default on the loans? People are very, very dumb at times. If it was as easy as go to school and pay the loans back do you not think this country woul dbe in a little better shape? No, they want to get maximum profit from everything IE- milk, oil, now education. Everything is going through the roof but no one wants to compromise and give raises due to cost of living but yet that falls again on the economy being in the dump. But yes please college students in debt figure out how to please do what other grown established people do any never make a late payment.
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