Students Borrowing Dramatically More To Pay For College

The Wall Street Journal:

Students are borrowing dramatically more to pay for college, accelerating a trend that has wide-ranging implications for a generation of young people.

New numbers from the U.S. Education Department show that federal student-loan disbursements--the total amount borrowed by students and received by schools--in the 2008-09 academic year grew about 25% over the previous year, to $75.1 billion.

Read the whole story: The Wall Street Journal

Comments

[SpookyTwo]

Has Krugman ever had a REAL job where he manufactured something and made a payroll? Or has he always just spewed from his perch at Princeton?

[Cryn]

If you've already seen this once, I apologize for re-posting. However, I want to encourage people who support Robert Applebaum's movement to learn more about what I do for the cause and where we're at . . .

REPOST

Join the cause! Which one? The one that MATTERS: Robert Applebaum's Forgive Student Loan Debt Movement.

Follow my blog - Education Matters - too. I update on a daily basis and keep people informed about the student loan crisis.

Thanks!

In peace,

Ms. C. Cryn Johannsen, Promotional Writer and Marketer, Robert Applebaum's Forgive Student Loan Debt Movement

Robert Applebaum's site: http://www.forgivestudentloandebt.com/
My blog: http://alleducationmatters.blogspot.com/

[tuberider]

The Deputy Undersecretary of Education says: "...We're in an economic situation nobody predicted.­" Actually, plenty did. It's important to PAY ATTENTION in school. Another case of the blind leading the broke.

[ramal]

Poor suckers. There will be no jobs and if there are jobs they will be very low paying. These young people will be in servitude for the rest of their lifes.

[Absolon]

"suckers?"
What did they do so wrong? (Besides lacking the almighty trump card that reads "I am Boomer! Watch me (fill in the blank)!!!"
The better question is what kind of world did their parents leave them to go out into?

[condor101]

Universities and Banks are scamming every young person in this country.

I graduated from a Private College and afterwards, I only had less than $10,000 in loans to repay. I used various techniques to receive 90% of my education covered by scholarships and other financial aide.
Today, I'm debt free from student loans.

But without that financial aide, there was no way I was going to take out student loans for such a high amount. It's only worth it if you go to a Top 5 school, Harvard, Princeton, Yale, Stanford, and Columbia. Those are the schools that will open doors for you through their alumni network. They really are closed networks and for the most part, jobs are offered only to their alumni.

With that in mind, if you don't want to put all of your hopes on your child getting into those Top 5 Universities, I would suggest that if you are lucky enough to have relatives abroad, that you try to get your children a second citizenship in that country when they are young. And if they have to learn another language, then get them started learning that language as soon as possible.

This past year I met two american girls attending college in a south american capital. They are in their second year and going to the best university in that country and their tuition is only $3,000 for the entire year. They are proficient in spanish, of course and are studying Law.

(continued below)

[condor101]

They will finish their entire undergradu­ate/gradua­te studies in a total of 5 years. With their law degree , they will have spent only $15,000 for the education plus another $20,000 for living expenses. That's $35,000 in total, which is far cheaper than the $300,000 in education and living expenses they would have had to pay here in the U.S. for 7 years of study for a Law degree.

(continued below)

[Ivan B Good]

No surprise here, inflationary distortions have to go somewhere.

[condor101]

So, with their Law degree, as U.S. citizens they can come back here and go to a Law masters program (an LLM) for 1 year, to be educated on U.S. Law and they can then take the Bar Exam and become a Licensed Attorney here in the good ol' U.S.A.

The most unbelievable thing and rip-off is that the LLM costs $25,000. It's such a high payment, but since they will pay little for their education in the other country, it's still worth the extra expense. Because overall, they will have very little debt compared to their counterparts that studied for 7 years at a university here in the U.S.

Anyway, this is what I am planning to do with my children. There is no way that we will be victims of the over charging by American Universities. The Universities are run by a bunch of crooks.It'­s buyer beware in higher education in the U.S.

[mazaza]

Do you support health care with a public option ?

[wadda]

Party on; pay later.

If you're going to have a monkey on your back. . .make it a BIG monkey, and try to keep it there for as long as possible.

[monicaangela]

Enjoy your day!! Errands to run, hope to see you all later.

[TheDiceMan]

See ya monicaangela!

[BitterClinger15301]

Take it from someone who has been through the debt ringer, paying for my 4 years of undergrad and 3 years of grad school at private institutions primarily with student loans - GO TO A PUBLIC SCHOOL IN YOUR STATE OF RESIDENCE. Don't worry about the cache' attached to your diploma from a fancy private school - get the same degree at a public university (where you would be more likely to be at the top of your class in any event), build up a nice resume of internships and activities and, once you land a job, work your butt off. You'll end up in just as good (if not a better) place.

[monicaangela]

Excellent advice....­.Private institutions are only good for networking after you have gotten an excellent education. If you are wise and have a personality that will get your foot in the door of those same places without over paying for your education, your wisdom, has saved you money, and gotten you to where you wanted to go...somet­hing institutionalized education could do, but at a much higher price.

[nkhogan]

I totally take your points and this is generally very good advice.

There are advantages in terms of networking in going to places with cachet and having name professors as well as well-connected classmates­....

E.g. Harvard isn't just about the degree, it's about who you know. But few actually get to move in that rarified environment anyway, so your advice holds for most people

[BitterClinger15301]

I suppose that you're right - if you can get into Harvard, Yale, MIT, etc., my suggestion is probably no good for you. But if you're considering one of the "not quite" Ivys, you'd probably be better off going to the University of [Your State] and taking the academic scholorship that they'd probably offer you.

[The Albany Kid]

Co-sign!

[ddDinah]

OT: this is about students but not college students and I must say I've regained some of my trust in O after he decided to correct or CHANGE his own policy regarding the following. My trust in his ability to listen and correct his mistakes..­..

WH withdraws call for students to ‘help’ Obama

The Obama administration late Wednesday withdrew a recommendation that school children who watch a video featuring President Obama next week write about how they might “help the president” as part of a classroom assignment
http://www.washingtontimes.com/news/2009/sep/02/wh-withdraws-call-students-help-obama/

However, I'm left the question as to why the Obama Administration tried it in the first place. WHY?

[marshhen]

It's called "Cu_lt of Personalit­y...

[shotgunblast]

AAA, who do you listen to?

[AsianAfricanAMERICAN]

I listen to more R&B than rap music now. I don't like the rap music now.

but my favorite is the stuff from the West Coast...

[LastOfTheMohicans]

2pac aka Makaveli is the GOAT

[LastOfTheMohicans]

ME!

[TheDiceMan]

You only said that because I told you to.

[AsianAfricanAMERICAN]

Still haven't recoverd from the hangover, huh?

[lilalove]

I'm looking into moving to Norway if Obama can't change the direction of things enough in the next few years.
I have children.. and the education system is far better in Norway than anything I could afford here for them. Like Germany, Norway's extraordinary higher education is near free. About $500.00 a semester. UT is running $8.000 these days. I have two boys. By the time they are ready it will be easily $100.000 for 4 years. Norway also has a superior free market and social service government system. By a land slide. My self preservation has kicked in. My husband is working 100 hours a week and the moment his job can't work him that hard they will drop him. I'm watching my husband being worked to death. And he is thankful for the job! As a wife, as a mother, How can I allow this.. when other countries offer so much better?

[thatsitfortheotherwon]

Not to be a naysayer, but ya might want to check into their immigration laws.

And give up drinking. A beer in a bar will cost you $10.00.

[TheDiceMan]

Yep. in the Czech Republic $10.00 buys you dinner and drinks.... for two.

[lilalove]

A beer in a bar already cost me $10.00. At the W I paid $21.00 for two regular coffees and 1 bran muffin. I mean, America is cheap in places with lots of dry yellow flat land grass. America cost more in places where people are better off. that hold true to Norway as well. It's just that most the people are 'better off'. They have 2% unemployment in this economy... and that's hard times. There immigration laws are like our own. Only difference is that they do not allow children to become citizens just because they were born there.

[wilray]

I can get a cup of coffee here for $5.00

[AtomicSplash]

salaried has become synonymous with slave in some companies

[Dynamohum]

Norway's banks are BROKE. The country is in bankruptcy right now.

[dutchman]

No. What silliness. Norway is one of the wealthiest countries on earth, and it really the only country to sit on a lot of oil and be a fully functional democracy.

But TITFTOTW is right on about the beer. You can buy a six pack of Grolsch in Holland for less money than one beer costs in Norway.

[TheDiceMan]

You might be thinking of Iceland
http://en.wikipedia.org/wiki/Iceland#2008.E2.80.932009_economic_crisis

[condor101]

Yeah, It's Iceland that's Broke.
Norway is a very rich country. They are the 6th producer of oil in the world and their pension system is fully funded.
Norway is doing very very well......­and they have Free healthcare for all of their citizens.

[lilalove]

No they are not. lol Following the ongoing financial crisis of 2007-2009, bankers have deemed the Norwegian krone to be one of the most solid currencies in the world.

[monicaangela]

Your story is heartbreaking, but your solution to your problems appear to be that of someone who is defeated..­.if it is as easy to defeat you here without a fight, your next fight in Norway or any other country you turn to will be even harder seeing as though you will be an immigrant. My advice is to educated yourself as to how you can lowere the cost through grants, scholarships, etc., you should also encourage your boys to participate in their education by becoming intellectually viable during their time in high school so that any college are university will see them as a plus, and extend some of the money they have just waiting for students who will improve their educational delivery. Don't give up so easily, this is your country, the education system is what you help to make it fight back against the corporate giants, and the greedy bankers, this is your country...­.don't allow the rich to drive you out the way the wealthy in the banana republics make it impossible for their citizens to survive in their countries.

[nowpolitics]

You are not just 'Angela', you are ANGEL. Very nice post, I wish we can all put this in practice both at hoem and at work.

[condor101]

She can keep fighting, but she doesn't have to suffer financially for her family.
The education and banking systems are so corrupt here. Education will never be Free in a million years in the U.S.
I think it's Perfect that she immigrates to Norway, especially if she can do it; It's not that easy.
Anyway, once her children are ready to apply to colleges, they can still apply as U.S. citizens to universities here. At least they will have a choice whether to go to college here in the U.S. , where the tuition are so high, or to a college in Norway with Free Tuition.

I think she wants to offer her children choice as well as access to Free healthcare.
It's not a bad thing for her to immigrate to another country for a better standard of living. Not everyone in the U.S. is rich and can afford the best things here.
Heck, even Angelina Jolie immigrated to France with her children. She lives over there and she's a very wealthy woman. She's a very smart woman.

[condor101]

keep dreaming monicaangela.
The U.S. has become a 3rd world nation.

[lilalove]

Thank you. I guess I'm allowing fear to seep in. We are lucky to still have a job. I'm thankful for what we have now. My fear is for the future. I guess I'm letting some people drain my hope. I feel like the walls are closing in on me. I'm in a red state. The ignorance is staggering in these parts. My oldest son is in 5th grade honors. He knows that to have a good higher education he will need to earn a scholarships. He is so young to worry the way he does about his own future. And worry he does.
I don't know why so many of America's children have to worry so young when other free market industry countries do so much better for their people. And because they do their people are more educated and provide better for their country.

[mtwashingtonmike]

Norway is a country of 4 million people sitting on an ocean of oil. Please do not make them out to be great social engineers. A few decades back they were amongst the poorest countries in Western Europe eeking out a living in fishing tourism and small farms. It is easy to make everything "free" when you have money pouring out of the ground.

And like another poster said check their immigration laws. They may have no interest in letting you reside there.

[mazaza]

But they are a genuine social democracy, which means they redistribute the revenues from oil rather than give them away to private corps for gambling on Wall Street ! That is the difference between unregulated capitalism where corporations own and squander national ressources and regulated social democracies which redistribute under the form of health care, education, etc.

[lilalove]

You are wrong on all fronts. Norway's middle class boomed the same time the USA's did. Unlike the USA they recognized their oil as a national resource who's profits benefited the country and its peoples, making it a wealthy nation with a population who have the best living standard in the world. Right now they are putting the money they make from oil in a savings account. The country and the people are not living off it. The people have voted to invest the money into new energy. Which, when the oil runs out, will make Norway one of the worlds leaders in energy. That's what having a population who almost all have a higher education gets you. They are smarter.
As for immigration, they have the same rules as the USA. Only difference is that they do not allow babies born on their land, by immigrants, instant citizenship.

[thatsitfortheotherwon]

The third string tro//z and the little high school b!g0t are all late today. Must be a circlejerk over at Freeperville.

[AsianAfricanAMERICAN]

The Big0t will be by soon...tha­t might be my cue to leave.

[TheDiceMan]

They'll probably head straight for the main which is of course fully moderated