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College Debt: Where's Our Bailout?

Posted: 02/22/10 12:20 AM ET

I graduated from high school in 2002 and went straight to college at the University of Florida. I graduated from UF in 2007 with two degrees: a Bachelor of Arts in Business Administration and a Master of Arts in International Business. I was fortunate to be able to leave UF without any debt, mainly because of Florida's Bright Futures Scholarship Program and some personal savings.

I'd always thought about becoming a lawyer, so I started applying to law schools and chose to attend the University of Miami. At first I hesitated to attend a private institution because of their high tuition rates especially in a city like Miami where life can be expensive, but I'm from South Florida and I wanted to be close to home. I wasn't sure how I would pay for it all so I looked into student loans. The financial aid office at UM was very helpful and was able to help me get the money I needed for tuition and living expenses while in school. I knew I would have to pay the money back eventually, but I thought about the earning potential I would have as a lawyer and didn't think I would have any problems paying those loans back. Unfortunately, my plan didn't involve an economic recession.

Now here I stand three months from graduating, $180,000 in debt and no prospects of a job after graduation. I've started reaching out to everyone I know in hopes of finding something to pay the bills after I graduate, but no luck so far. Every industry has been hit hard; even the legal profession, which was once thought to be recession proof. The recession has made finding a job that much harder because I'm now competing against experienced attorneys who were recently laid off and are also in need of a job. I had originally hoped to have paid off my loans in 10 years, but now I don't know if that will be possible. I know there has been talk in Washington about helping us "student debt-drowners," but I watch politics go on as usual and it leads me to believe that there will be no help for me and the thousands like me. Where's our bailout?

Millions of Americans are struggling to get by and yet Washington seems unwilling and unable to cooperatively work towards helping the American people. I always thought that's what politics were all about. Politicians need to wake up to the fact that most of my generation is willing to cross party lines to vote for someone who will actually work for the people regardless of their party affiliation. So shape up Washington, or we'll find a way to ship you out!


 
 
 
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07:56 PM on 04/05/2010
If you can't afford to go to college, THEN DON'T GO!!!!
High school counselors have to stop being shills for the student loan industry and tell students that college is an evil debt trap. They need to warn students that student loans are like child support--you cannot default on them. High school teachers don't tell students to join the army--why should they tell students to borrow money to go to college?
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buttonz
01:18 AM on 03/03/2010
School is an investment.

US universities are very good but are very expensive. Unlike our European counterparts a US university diploma goes further and is more likely to guarantee better jobs.

The downside is it will leave you in debt. Either way you will make more money in the end.

Students should not be bailed out. Particularly in the instances of graduate, law, or medicine. I do however feel that a moratorium on loan repayments until the student can find suitable work (I honestly don't think a law student would keep a low paying job in order to avoid paying back loans).

Although I find you situation very curious Todd. How are you just finished with law school and without a job? I have had many friends go through law school and have had their internships turned into jobs (even in these hard times), the only exceptions being the students who were poor professionally and academically.

Nonetheless there are understandable stories.
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way2muchsense
A hobbit who lives in a hollow tree.
03:03 PM on 02/24/2010
Here's a modest proposal. Go to the best school that will take you. Accept whatever student loans they offer you to pay for it. Enjoy yourself. Go on spring break and get tanked. The whole college experience. Graduate (this is important). Then flee the country before Sallie Mae knows you're finished with school.

Hopefully you took some courses along the way in the language of the country to which you're emigrating, made sure there is no extradition treaty between that nation and the United States, and that you majored in something in demand where you plan to spend the rest of your life as an ex-pat.

And don't feel guilty about any of this. Remember, in most Western democracies, you probably would have qualified to go to one of their universities, and wouldn't have to mortgage your soul to do it.
11:08 PM on 02/23/2010
Yes, but if our taxes go towards lightening his burden, then it stands to reason that they would also go to lightening your burden while putting your child through school. The issue here is rampant inflation in the cost of school and how unrealistic and costly this is to future generations if it continues at the current rate. Soon, only the wealthiest few will be able to send their children to school without crippling debt and this will create an intellectual upper class, which will most likely further exasperate the wealth gap between the rich and the poor. Look at the bigger picture here rather than just letting loose a knee jerk reaction, if you have a child you will soon be faced with the same choice between many poor decision and few if any good ones.
09:20 AM on 02/24/2010
Exacerbate.
Also, you are correct. The wealthy are conducting war against the middle class, and winning handily. It won't be long at all before only their children can afford college. Welcome to AmericaCo.
07:07 PM on 02/23/2010
You should have gone to University of Florida for law school. Much cheaper tuition in-state ($4500 a semester) and better reputation than Miami to boot. That being said, not sure career prospects would have been any better, just less debt.
01:15 PM on 02/23/2010
The fact is, school are what I call "part of the machine"-meaning that very few people who graduate get good jobs. I try to discourage people from taking out student loans because it will mean they will end up in my situation.

I have a master's degree, a full clear multiple subject credential, eight years of experience teaching (six as a substitute)-and I cannot get a full time job as a "real teacher".

I get asked a lot, "Are you a teacher?" The implication being that I am far better than "just a sub"-but that's all I am. And will ever be. They would rather hire people with mere four year degrees, people without real credentials or experience because it's cheaper for them. Someone like me would cost a school district around 60k-about 10 to 20k more than a newbie.
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01:34 PM on 02/23/2010
It would only cost them 10k to 20k more because you obviously refuse to work for less than 60k a year. Maybe if you lowered your salary expectations you could take a "real teacher" position, get your foot in the door, and parlay your degree later on when you get to know the power players in the system. Your degree is a piece of paper showing that you have knowledge in an area of study, it isn't a 'carved in stone price tag' for your services. Looks like its better to be a a teacher without "real credentials" making 40k, than a teacher with "real credentials" making nothing.
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JuniperSunshine
Libertarian Homeschooling Mom
07:31 PM on 03/09/2010
Public schools are required to pay based on credentials, and are not really able to negotiate due to the NEA's rules. He's not just being demanding.
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01:11 PM on 02/23/2010
Don't stand around crying for the government to help you with taxpayer money. Get off your a ss and get a job, any job. You don't have to limit yourself to jobs in the legal profession. The fact that you have a law degree opens doors for you in all kinds industries. Seriously, if all you have to worry about is 180k in debt, you really don't have any problems. What about the father of 3 without a law degree who just got laid off, or a single mother with only a high school education? Get a grip.
09:23 AM on 02/24/2010
I would suggest that $180,000 in educational debt is a serious problem for anyone.
10:28 AM on 02/23/2010
You want the government to help with your $180k loans, and you're willing to cross party lines to make it happen? How diplomatic of you.
07:06 AM on 02/23/2010
A scam that big lawfirms utilize is that they have a new associate sit in with the partner assigned to the case on every conference and deposition. The partner bills out at $ 450 an hour plus $ 225 an hour for the associate just sitting on their butt and merely observing the partner doing the work and "learning on the job".. This is a rip-off that many clients are now understanding that they do not want to pay for. I know of one medium lawfirm that actually marks up UPS overnight mail actual costs by 75%, which is rather irritating to some clients shelling out $10,000 a month retainer.

You won't get a job at a big lawfirm unless you are among the top 5 or top 7 in your law school class
or you graduate from a very prestigious lawschool (think Yale type or maybe Northwestern) or you have a close relative who is already a partner at the big lawfirm that you are applying to or you are related to a US Senator.
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05:12 AM on 02/23/2010
I loved the description of the helpful folks at financial aid. They're not really there to help you, they want to maximize the dollars coming to their school. They are fully aware they are going to send you off with a huge debt. What will the paymnets be? I'm guessing about $1800/month. A 60K job means only half your take home will go for debt, of course that's going to be for a long time.
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cloudminder
07:01 PM on 02/22/2010
you say shape up Washington DC
well, my senator Dianne Fienstein and her hubby stood right next to Obama at the inauguration
her husband, Robert Blum is a regent at UC

yet UC does not provide its employees with whistleblower rights -Arnie vetoed them and
the UC has scandal after scandal going on

Wash DC does not care

http://cloudminder.blogspot.com/

# 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)
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kel2
06:32 PM on 02/22/2010
We will become a very impoverished nation indeed if we require the majority of our students and potential students to take on crushing debt in order to gain higher education. The more trained and knowledgeable our workforce and our future workforce is, the better this country will be. Escalating costs of a college education will soon put one out of the reach of most Americans.

These are our future leaders, scientists, doctors and entrepreneurs and if the only way to afford the crushing costs of higher education is to be from the wealthier upper classes, then we will become even more highly segmented into the haves and have nots. If you want to invest in your country providing education is the ideal way to do it. Public colleges should be heavily subsidized and higher education and technical training available to the public and a little to no cost.

Tax dollars are to support the needs of the populace whether it is for our infrastructure, our schools or our safety. It shouldn't be all about providing a cheap labor pool for business or one more tax break for corporations and the highest income earners.
06:18 PM on 02/22/2010
Look, I understand that all of us with student loans are responsible for them, but I think most of you are missing the authors argument. The big time lenders and banks in this country just got bailed out from THIER irresponsibility, so I think he's asking, why, if they can be saved from their mistakes (being responsible adults, and all) why can't we all be saved, too? The total student debt is $680 billion. Seems to me, if everybody wants to stimulate the economy, wouldn't it make sense to bailout the student loans so people will go out and buy things, instead of giving the bailout to a small group of greedy people that will NOT stimulate the economy, yet use it for their own bonuses?

Pretty sure that's the basis of this article.
06:49 PM on 02/22/2010
BTW, college tuition has increased %483 since 1983!
08:48 AM on 02/23/2010
Again, two wrongs do not make a right. Don't try to pass your bill for services already rendered on to me and the rest of the taxpayers in this country - pay it yourself.
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jasev01
05:55 PM on 02/22/2010
Oh well thanks you just about wrote my story so I don't have to. Add to that the fact that your bills are due and there are no deferments. My suggestion, start practicing on your own like me or quit the law game, that's my plan.
06:30 PM on 02/22/2010
You sound like my twin!! I'm in the exact same situation and wondering why I went to law school and not med school :)

I wish you nothing but the best as you hang your own shingle or look outside of the law for employment.
05:53 PM on 02/22/2010
A lot of us (myself included) perceived a college education as necessary in order to get a good job in a competitive economy. The debt was presented as being "worth it" and the ultimate investment in your future. The reality is, regardless of what your degree is, students graduate to no jobs, or lose jobs to peers who didn't attend college but have more experience as a result of immediate entry into the labor force.

Our tax dollars are used for a lot of things, many of which protect the wealthiest 3% of the country and major corporations. Every other industrialized nation offers strong support for young people wishing to attend college, and government subsidized heatlhcare. It strikes me as odd that every time there's a suggestion to introduce something into legislation that's helpful to anyone other than the wealthiest 3%, people buy into propaganda pushed by those people and believe that it's ultimately bad for us and our economy. If student loan debt was forgiven, people who currently cannot buy houses, cars, or take creative chances would have the opportunity to do so. It's bad enough that cost of living has increased dramatically while salaries from coast to coast have stalled. I'd welcome the break - and I've always paid my debt on time, have a job, and surrender 1/3 of my income to taxes. I wish I could pick what my taxes went to; I'd happily pay for education, and someone else can pay a banker's bonus.
08:53 AM on 02/23/2010
You made the decision to finance your education with debt, you signed the papers, and now you have to pay it off. You wrote your own ticket, and the taxpayers of this country don't owe you anything. I'm in the same boat with you regarding student loan debt, and I don't expect anyone to pay it off for me.
09:30 AM on 02/24/2010
I do. I think we owe every American an affordable education. The fact that I happened to arrive at school just as the Republicans decided to eviscerate government support for education matters. And it doesn't just matter for me - it matters for every single person who lives in this country. We are all subject to the same economic forces, and when a large segment of the population suffers, we all pay the price. It would cost less to help each other now than the consequences of not helping each other will cost in years to come.