Hey, I would like a new topic, too!
Email me if you have something other than
student loan crisis that you want me to discuss.
How Bad Is The Student Loan Crisis?
Catherine Curan at the New York Post writes, it is getting worse at the hands of servicers.
Old news, yes, but, it is not getting better.
Earlier this month, the Consumer Financial Protection Bureau slapped the nation’s largest student-loan servicer, Navient — formerly part of Sallie Mae — with a lawsuit alleging the company incorrectly processed payments, and steered troubled borrowers toward expensive repayment plans.
As I have written before, the student loan servicers are walking, or, should I say, tripping, in the shoes of the mortgage servicers who helped botch that crisis.
The Student Loan Hero website recently updated the bad news.
If those numbers weren’t stunning enough, here’s a closer look at how students accumulate debt based on the type of school they attend.
In 2012, 71 percent of students graduating from four-year colleges had student loan debt:
- Represents 1.3 million students graduating with debt, increase from 1.1 million in 2008
- 66 percent of graduates from public colleges had loans (average debt of $25,550)
- 75 percent of graduates from private nonprofit colleges had loans (average debt of $32,300)
- 88 percent of graduates from for-profit colleges had loans (average debt of $39,950)
- Read the whole story, but I will share some more:
Graduate student loan debt
About 40 percent of the $1 trillion student loan debt was used to finance graduate and professional degrees.
Combined undergraduate and graduate debt by degree:
- MBA = $42,000 (11% of graduate degrees)
- Master of Education = $50,879 (16%)
- Master of Science = $50,400 (18%)
- Master of Arts = $58,539 (8%)
- Law = $140,616 (4%)
- Medicine and health sciences = $161,772 (5%)
I should remember what law school cost back in the last millenium, as I paid for it, but, I don’t.
Nowhere near what it cost these days.
And what is that diploma worth, that law degree?
I am filing bankruptcy cases for lawyers making $14 per hour.
Working as lawyers.
That is not enough to make a living and pay off six figure student loan debt.
I read that we have 5,000 janitors with master’s degrees.
I know some of my clients take graduate programs to kick the can down the road, to put off the date they have to start repaying their student loan debt.
Not a good strategy, as they are borrowing even more money, which is not the way to solve a debt problem.
In spite of what our federal government does.
Law schools have been making so much money, there are more of them admitting more students, who are failing the state bar exams in increasing numbers.
The law schools solution? Lower those test standards!