College

I was watching the Republican National Convention last night and Ann Romney was speaking about college. She was talking about how their children had the opportunities to go to college and how, for many parents, they do not know how their children is be able to afford to go to college. She also spoke about how many recent graduates are either under or unemployed.

Nash started grad school on Monday. He is fortunate to be able to attend school and it was part of his long-term college goals.  He was saying that the new requirement for some types of engineers, before being able to get their engineering license, they must have xx hours in continuing education, which equates to a Masters degree.

Some of his friends who have graduated from college are gainfully employed but some are underemployed. So whose responsibly is it to help these kids? Most of these grads were excellent students with great grades. The economy is in such disarray that many are unemployed.

She also spoke about student loans. So I did some research.

 "For all borrowers, the average debt in 2011 was $23,300, with 10 percent owing more than $54,000 and 3 percent more than $100,000, the Federal Reserve Bank of New York reports.

To that end, the Obama administration has given out more grants and loans than ever to more and more college students with the goal of making the United States first among developed nations in college completion. The balance of federal student loans has grown by more than 60 percent in the last five years

Education Department data shows that payments are being made on just 38 percent of the balance of federal student loans, down from 46 percent five years ago. The balances are unpaid because the borrowers are still in school, have postponed payments or have stopped paying altogether.

Nearly one in 10 borrowers who started repayment in 2009 defaulted within two years, the latest data available — about double the rate in 2005.

 

Still, economists say, growing student debt hangs over the economic recovery like a dark cloud for a generation of college graduates and indebted dropouts. A study of recent college graduates conducted  ... found that 40 percent of the participants had delayed making a major purchase, like a home or car, because of college debt, while slightly more than a quarter had put off continuing their education or had moved in with relatives to save money. Roughly half of the surveyed graduates had a full-time job. "   

 (http://www.nytimes.com/2012/05/13/business/student-loans-weighing-down-a-generation-with-heavy-debt.html?_r=1&pagewanted=all)

Having read this, some students are coming out of college with $23,300 in debt or more, most are repaying their student loans timely, and not making big ticket purchases, because they can't afford to.  They are just struggling to stay afloat in this economy.

 

Although the loans are at a low interest rate, 5-7% is not considered low in these economic times.  The lenders say that you can consolidate and extend your repayment period, even though, for many I know that have tried were unsuccessful. But the good news is that most are making efforts to repay their debts. Some people feel that the government should forgive student loans. To forgive $902 billion in student loans would have a detrimental effect on the government. 

 

We all want our children to go to college. We've  promised our boys that they would be debt free when they come out of school. Many people can't make that promise.

 

So what can we do?

Until next time, when I continue the rantings and ravings of a mom of an

American Dream Family.....