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College Debt: $100,000 Deep (VIDEO)

Posted: 02/22/10 01:43 AM ET

The current value of my childhood home is probably less than amount of money I have borrowed in student loans. The fact that I am $100,000 in debt is so humiliating that I almost did not write this, and I feel like the size of my debt spiraled out of control before I realized how dramatic it was. Originally I chose to come to Tulane University because it was far from home, prestigious enough, and offered me a better financial aid package than my first choice (though not quite as good as my local state school, UNLV, which would have basically paid me to go there.) Freshman year went as planned, and between my scholarship, Stafford loan, and savings, my parents and I paid everything without trouble. Then the university raised tuition, and my mother took out a Sallie Mae Parent PLUS loan to help me pay it.


We have needed to take out alternative loans every year since. My junior year I studied abroad at the University of Durham in the United Kingdom, which is an experience I wouldn't have traded for anything, but is also what really got me into trouble. I was still paying Tulane tuition (which had been raised again, of course) and had the high cost of living in the U.K. on top of that. The ironic thing is that if I had paid what regular international students pay for tuition at Durham, it would have been cheaper than my Tulane tuition. Now for my senior year, the cost of attending Tulane has increased by $10,000, to $50,000 a year. Has my scholarship increased accordingly? Nope. My parents also split up the summer before I went abroad, and I no longer receive financial support from my father. The only increase I received in financial aid was a Perkins loan -- yes, another loan, just what I needed.

People ask me why I didn't just transfer to a cheaper school, why I studied abroad, and why I have taken on this massive debt to stay at a school that I have come to hate because of the apathetic administrative bureaucracy, particularly the financial aid office. I have met professors and friends at Tulane and Durham who changed my life and they are worth it. I also didn't want to suffer the shame of facing all my friends at home after being so proud that I was going someplace better than UNLV, and I didn't want to have given Tulane all that money and then not end up with a Tulane diploma. I'm not stupid, but I'm still not sure what I've gotten myself into and all those zeros are overwhelming. Hopefully if my mom keeps working her second job and I keep driving my jalopy Toyota around for the rest of my life, we can pay it off before I'm 80.

 
 
 
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HUFFPOST SUPER USER
tnlcallen
02:28 AM on 02/28/2010
Nothing to be embarrassed about. Just keep plugging away, and you'll get it paid off. I know what you mean though, my daughter is a Freshman this year, and we are paying a ton of money for her. Before she is all done, I think she'll have over $100,000 in loans as well, and that's on top of all the money I'm paying for her already.

The system is broken I think. You shouldn't have to go into debt for the rest of your life to be able to go to the college of your choice.
12:21 PM on 02/26/2010
You know, a lot of college-age people who want out of Las Vegas simply come north to Reno and UNR...

Anyway, it's the real world now...mom shouldn't be paying off YOUR debts. It's time to step up and let her have her own life for a change!
09:24 PM on 02/25/2010
Why would one spend that money when you just need to purchase a one-way ticket to Europe, where university is for free, or for very little money (except UK). You just need to buy the food and find some couch to sleep on. Well you will also need to learn another language.
10:23 AM on 02/24/2010
To be fair, the part of the frontal lobe that allows people to reasonably evaluate the long-term impact of their decisions doesn't actually finish developing until people are in their mid-20s (although I'm sure the rate is different for different people). Until then, natural optimism, a lifetime full of adults telling you do "do what you love if you want to succeed" and that "college is your ticket to a successful life", and an inability to conceptualize what $40,000 per year actually means in the long-term will create an environment where many, many young people will make difficult and ultimately painful decisions that will haunt them for the rest of their lives. This is not fair. No financial decision you make as a young person should condemn you to a life of poverty. Even people who make far worse decisions with, for instance, credit card debt, are able to declare bankruptcy and eventually put their lives back together. It may take a while, but our society offers them that opportunity. Students, on the other hand, whose debt is arguably far more justifiable (even if they optimistically go for Harvard's "underwater basket weaving" program), have no such option.
05:44 PM on 02/23/2010
oh honey, you made bad decision after bad decision and now expect sympathy for you and outrage at the system when you tell your story. its not gonna happen
12:27 PM on 02/23/2010
Hi Sara, I really appreciate this article. I also am an American student who went to Durham. I was there from 2001-2005. I got my PhD. from there in anthropology. What a great little city, eh? Did you ever go to the Dun Cow pub? Anyway, in my case, I did get that international student tuition rate, and I too was totally amazed at how cheap it was compared to my previous US school tuition. I went to two state universities for my BA and MA, so it wasn't as expensive as Tulane I suspect. And my parents' generously paid for my BA degree. So we didn't have too much loan debt going abroad, and we figured that since the tuition was so cheap in the UK, we wouldn't end up with a massive loan to pay off. What got us was the living costs, as you found out too. We burned through three years of loans pretty fast, even though we were working to supplement our income as well (my wife worked pretty much full time - me off and on). Like you, though, I would do it all again. No question. It was totally worth it, but I will be paying for it for years and years to come!
09:49 AM on 02/24/2010
I'm currently attending Durham, and love the town. I also love the tuition, which is considerably lower than at U.S. schools for an equivalent program with an excellent reputation. Happily, I'm taking it via distance education, so although I get to spend less time in beautiful Durham, I also don't have to pay for the cost of living there.

I feel badly for Sara. Sure, she made some expensive choices - but no one who hasn't purposefully killed or maimed another person should have to spend the entire rest of her life paying for a few miscalculations she made as a teenager. That's just crazy.

Especially in this economy, students should be able to discard their debt in bankruptcy, just like anyone else. Then she would have to suffer for a decade, but not 'till she's ready to retire, for not being able to see into the future when there would be no decent-paying jobs for college graduates who worked hard and did what they used to tell us we were supposed to do.
02:36 AM on 02/23/2010
Being from that I am from Vegas and that I am a graduate of UNLV I can definitely understand the desire to go away and get some different experiences. I am on my way to Law School in the Fall and while I have some incredible scholarship offers from different schools including UNLV I have no desire to go there even though they offered me a full ride.

I am up in the air between the highest ranked school I have been admitted to so far (#19USC) or a lower ranked school that has offered me pretty much a full ride (#30 Alabama).

I definitely think that you took a calculated risk...one I might be willing to take for law school but that I definitely was willing to take for undergrad. Good Luck!

I'm glad I read about your experience, I have been admitted to Tulane Law with a scholarship but it's not a full ride and it's not ranked high enough to chance an increase of 30 grand over my three years.
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HUFFPOST SUPER USER
Ward Adams
10:19 PM on 02/22/2010
The cost of college is getting ridiculous without a doubt, but if you make choices like Sarah did, be prepared to suffer the consequences. I'd like to know what her major is, too. Is she taking classes that will help her get a good job?

I borrowed so I wouldn't have to work while earning my bachelor's. I graduated from a state university in 1995. I'm down to about $5,000, and it's the money I ever borrowed. I then paid for my master's degree out of my own pocket, one night class at a time.
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TheRLeePost
A 'blue' Southerner
09:30 PM on 02/22/2010
I see lots of sympathetic and unsympathetic responses here. Whether you believe Ms. Tobin has made her own bed or is a victim, surely, all must recognize the hyper inflated cost of attaining a college degree compared to thirty years ago.

Many have blamed Ms. Tobin for making a poor value judgment. Today, for those who plan or want to achieve opportunities beyond what a high school or trade school education portends, that judgment is tougher. Unfortunately, education is no longer priced on the fundamentals, but by the mass of demand, features similar to economic bubbles.

As demand isn't likely to abate, there needs to be something done to recognize that the underlying fundamentals of education attained by graduates do not justify the prices. The only thing driving the price of college tuition is the need by each and every buyer of education (i.e. a degree) to out do just enough of the other buyers to sufficiently stand out in the job market.

Quality has not increased, but surging demand has given the academic industry ample room to profit handsomely. The socially promoted perception that a degree is training for a job, or that a person without a degree is less qualified for a job than one without, has positioned colleges and universities to extort billions of dollars from the American public.

Perhaps after health care, we can address the unique economic niche which higher education occupies and how it has abused that position.

-RLee
http://therleepost.blogspot.com
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HUFFPOST SUPER USER
cloudminder
06:55 PM on 02/22/2010
Air Force One and The White House...

The UC head also said during a New York Times interview that the "shine is off" education and adds that his inflated salary doesn't compare to President Barack Obama's because he doesn't get the same perks:

"Will you throw in Air Force One and the White House?"

- Mark Yudof

source :

http://www.nbcbayarea.com/news/local-beat/Mark-Yudofs-Case-Against-Himself-62673782.html

http://cloudminder.blogspot.com/

--some folks aren't hurting at all...
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HUFFPOST SUPER USER
cloudminder
07:12 PM on 02/22/2010
# Operational Mediocrity- Daily Californian (2010)
# UC regents Schwarzenegger and Wachter – are they making a profit from university investments? (2010)
# Schwarzenegger vetoes whistleblower protections for UC workers (2010)
# UCLA consultant involved in accounting scandal (2010)
# More Scandals Uncovered at UC, Yee Requests State Audit (2010)
# UC Admits Misleading Public About Senior Executive Buyout Taker (2009)
# List of Salaries of UC Highest Paid Employees (2009)
# UC regents OK millions in incentive pay to top execs (2010)
# UC Boss Mark Yudof's Case Against Himself (2009)
# U.S. Senator Grassley Raises Concerns About Integrity of Finances at University of California System (2009)
# UC regents award huge pay increases to execs while furloughing staff (2009)
# Audit finds excessive expenses by CSU and UC Senior Administrator (2009)
# POGO praises U.S. Senator Grassley for raising concerns about integrity of finances at UC (2009)
# Yakuza Mob and UCLA Med Center on CBS "60 Minutes" by Lara Logan (2009)
# UC San Diego Data Security Hotline Swamped (2009)
# UC Irvine to fire whistleblower nurse?! (2009)
# New UC Davis Chancellor Linked to "Clout" Admissions Probe (2009)
09:57 AM on 02/24/2010
Yudof - that SOB raised my tuition by double digits every semester that I was at the University of Minnesota. I sold my house in the early 2000s so I could use the proceeds to pay for an undergraduate degree. I had enough set aside to pay for tuition and cost of living (as long as I worked part time), with a modest annual increase factored in. Instead, I graduated with $20,000 in student loan debt thanks to Mark Yudof. It wasn't just tuition - let's not forget the fees. Oh, sure - the colleges say tuition increased 12% or whatever, but they never mention the $700 per semester health fees, $500 parking fees if you can't afford to live on campus, $200 technology fee, $300 student organization fees, $200-600 per class for books, etc. I didn't live an extravagant lifestyle - I was careful and frugal - and unlucky enough to go to a college with Mark Yudof as president.
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HUFFPOST SUPER USER
Clive Coogan
Lang may yer lum reek!
06:48 PM on 02/22/2010
My only advice to all gradating students with excessive debt is the following: GET AS MANY SEALED TRANSCRIPTS AS YOU CAN WHEN YOU GRADUATE! One day you will need these for something. If you miss one payment on your student loans you will NOT have access to transcripts. I ran into this problem with a fantastic job opportunity and I could not get the school to release transcripts. Order at least 20 sealed copies of your transcript for future needs.
HUFFPOST SUPER USER
middleoftheroad
01:58 PM on 02/23/2010
That is probably the best realistic advice I have read on huffington since I joined on its first day.
This user has chosen to opt out of the Badges program
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ShanniC
For truth, justice, and the 'merican way!
09:28 PM on 02/23/2010
Thanks for the advice. I did not know that schools would not release your transcripts if you default or have trouble paying. I will definitely do this in May, but I sincerely pray that I can pay back my loans.
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HUFFPOST SUPER USER
floodberg
Attorney (ret.)
06:36 PM on 02/22/2010
It sounds like you were raised thinking you should be able to have it all without personal responsibility, and you made decisions without considering that you would suffer the consequences as well as the advantages of those decisions. An english degree? What did you envision as a job, what did you expect to get paid for a BA in English that could pay your college debt? A lot of people would like to go to Europe for a year to study English, but it's a very expensive luxury, especially the way you did it. Tulane is fairly prestigious, but more impressive in the southeast; why do you now choose to live on the West Coast? Finally, do you really intend to let your MOTHER work a second job to pay for it? Work two jobs to pay for it yourself and give your mother a break - it should make you much more empathetic and appreciative. You made the decisions, you expect respect from other people: Now's the time to earn it. It's a tough world.
06:18 PM on 02/22/2010
I paid every dime of my college and made sacrifices. I did not go away to college, I did not join a sorority, I did not assume a loan, I tool a year longer. I worked 30 hours a week. What did I come out with? Excellent grades, the ability to organize my time well, an appreciation for my education, a job offer from IBM Research and Development, a graduate program totally paid for with a living subsidy as well. No obligations to nor guilt about what my parents did sacrifice in my behalf, a love for my father who sat me down in 7th grade and told me I needed to work hard for scholarships, etc so I had 6 years to prepare well. I got a one year scholarship in undergraduate but lost it due to working part time. I didn't miss games, clubs, cultural events or any activities in college I wanted to be involved in. And as an adult, I worked in jobs I likes, made enough money to travel extensively, overseas, had a clean conscience and a self reliance I doubt this young man has at all. I have lived my life virtually credit card free and do not contribute to the banking crisis.
10:02 AM on 02/24/2010
Wow, Geo. Congratulations on being a more fabulous human being than the rest of us. May you continue to never make a single mistake or bad decision, and may life continue to reward you for your obvious superiority.
05:54 PM on 02/22/2010
"Hopefully if my mom keeps working her second job and I keep driving my jalopy Toyota around for the rest of my life, we can pay it off before I'm 80."

You say you're $100,000 in debt, but also that your poor mom is working a second job to pay it off.

Also, if that's how you envision your future--your mom working a second job and you driving a jalopy until you're 80--then what good was that "prestigious" degree? Wasn't part of the purpose of it to get a job with decent pay? Aren't you intending to pay off your student loans with income from the high-paying job this degree was going to make possible?
zanzy
your micro bio is empty, just like our democracy.
05:36 PM on 02/22/2010
100K debt for an undergraduate degree. This is clearly not this students fault. It's Tulane University who has tuition and fees that students cannot afford. Alot of Universities have become a for-profit business. Tulane is obviously racking in the dough on the backs of students. This needs to be address. We need caps on tuition and fees, so a college education is affordable. Universities should be penalized if students are not placed at jobs were they can pay off their loans in a few years time. These indicators on job income, job security and loan repayment should be collected by an independent party. The cost of school should be in direct proportion to income and loan repayment. Shame on Tulane U and shame on people on this forum that are blaming the victim, a young women who just wants a college education. It is not your fault Sara.