Kelli Space graduated from Northwestern, financed by Sallie Mae. She owes almost $200,000. Tuition there is $14,000 a quarter, or $38,000 for three quarters x 4 years, which totals $152,000. So she wasn’t a spendthrift, not at all. Now she has crippling debt for decades into the future.
Student loans are not dischargable by bankruptcy. Sallie Mae is a GSE (Government Sponsored Entity). The loans are guaranteed by the government and often financed by banks (who can’t lose, now can they?).
- Any college undergrad who lets a loan balance get that high is unclear on the concept of debt.
- That loan balances are allowed to get this high by lending institutions is unconscionable.
- College may soon be just for the already wealthy as no one else will be able to afford it.
I went to community colleges and public universities. My two year degree in computer programming started me on my career and I owed $5,000 when I graduated. I probably would not be able to afford such formerly low-cost schools today as even their tuitions have risen sharply. As for private universities at $40,000 a year, well, who can afford that.