Student Loan Crisis - another Mortgage Meltdown?

[whyyesyes]

END THE DEPARTMENT OF EDUCATION.

[Nomoreidsleft]

The guy says he's living an upper middle class lifestyle before, and he can't scrape together enough money to pay off a $11K loan? I think he was living beyond his means.

[PurrGrrl]

In a democratic society, people can choose to go to college at any age and regardless of income level. Unfortunately, some Americans don't believe in democracy, as we can see by some of the comments here. They only want people from wealthy families to attend college or to be able to enjoy life. The rest of us can just work 80 hours per week so that 1% of the population can continue to bask in luxury. (Didn't use any abbreviations here, so I guess even Republicans will be able to read this.)

[PurrGrrl]

It's a shame some Americans can't see how important education is. An educated populace is vital to a democratic society. The system is now rigged to prevent poor or middle class people from going to college. Ignorance makes it easier for the wealthy few to control the masses. The problems in our country right now are complex. That's why some people vote against their own self-interest.They have no understanding of history or political science or the complexities of managing a society.

[JeffersonDinedAlone]

@PurrGrrl Yes, an education is important, but college's only purpose is training for a profession. You can get an education at the public library and, now, on the internet. And, considering that many people do not care to attend, or do not possess the fundamental intellect to attend, and prefer simply to work, all of the jobs required in Society need to be filled, and the majority of them are not of interest to college graduates. All of those positions need workers to fill them.

[DHarri9977]

@PurrGrrl The point here is that people are willing to get an education and are doing so through student loans which begs the question regarding the quality of life one will have after completing college. The markets are flooded with degreed people, the level of employment is well below the norm based on changes in the markets. Education provides an intrinsic quality to ones life while an economic crisis chips away at that very quality to the point of it becoming a distraction. .

[vfIskullangel]

Student loans are a trap. Just like a mortgage or credit card.

[rockon6191]

@vfIskullangel I think they're only "traps" because people don't know what they're doing. I use a credit card for almost everything and I've never had a single problem, because I always pay my bills on time. I have a mortgage that causes me no problem, because I always pay my mortgage on time. And I took out some student loans. They caused me no problems because I did the math, determined how much money I'd owe, how much I'd be making after receiving a job, and was able to pay them off.

[vfIskullangel]

@rockon6191 But you still "owe" on the debt you've taken out. Your paying a mortgage, loans and credit card debt, sure you might make payments on time but wouldn't you rather be debt free and have all that money to yourself? I know I would! but all trouble for a damn job? not even a business that you yourself have ownership over. Your pretty much on slave wages until god knows when.

[rockon6191]

@vfIskullangel Not if you plan properly. The problem is that most Americans, particularly these young college kids, aren't informed, experienced, or intelligent enough to understand what it is they're doing by taking out these huge loans and then taking majors that don't lead to high paying jobs. They're told their whole lives that you MUST go to college, when for the jobs they end up taking they'd have been better off with an internship/ trade school.

[farah2619]

@rockon6191 What if you get laid off? or fired? and cant find another job in time? some people were probably in the same boat you were but with the recession things have gone down hill

[rockon6191]

@farah2619 That's a valid point. I could get fired, and miss mortgage payments as a result. But guess what? I knew that before I bought my mortgage. I can't blame the banks for my losing my job. Life can be difficult like that. It's important to know who to be angry at in those situations, though, and to remember that the difficulties and uncertainties of life do not make you entitled to anything, not even if others seem to be more fortunate.

[farah2619]

@rockon6191 This is why im glad my dad did what he did. we may not have the most fancy house but at least we own it without having the threat of having it taken away from us. Back as a child i used to be so jealous of other kids, always having toys and such as my dad would rather save money then spend. he immigrated to the united states 20 years ago and became a citizen, now owns his own home is still saving in case he gets laid off. He may not speak the best english but he is a smart man

[rockon6191]

@farah2619 That's a great story. Your father is a very smart man indeed. I just wish other Americans would be as smart, or at least not blame everyone else for the consequences of their risky decisions.

[farah2619]

@rockon6191 yup indeed he is thank you, his friends still flaunt their big house and big tv and such but my dad dont give a dam lol because he knows they didnt pay that house in cash and can risk it being taken away from them if something goes wrong. I think americans should set their own american dream that they can afford, not just try to copy friends

[moistfaucet]

America is all about Debt.

[PurrGrrl]

We're falling behind other countries cuz we refuse 2 provide decent education 4 ppl from all economic bckgrounds. Only the rich have a right to an education in the US. Now we're all suffering cuz the best & the brightest can't succeed, but r being oppressed by poverty. When u wonder why there's so much incompetence & poor quality in this country just take a look at how we prevent the quality ppl from contributing. Everyone shd have a rt to an education! (unless we want 2 live under tyranny)

[Brett9897]

@PurrGrrl Yes everyone does have a right to an education. The public library is free. Nothing is stopping anyone from getting an education.

[rockon6191]

@PurrGrrl The irony of this post is overwhelming.

[MultiPBW]

This is utterly nightmarish. As long as Sallie Mae and the college industrial complex keeps profiteering from breaking the spirits of college students by handing out loans that they'll never be able to offset, financial slavery will continue to be prevalent in America. Those bankers, college professors, and NASW social workers really are full of PURE EVIL.

[facelessstateofmind]

Sallie Mae is SCUM! STAY AWAY! They can garnish your wages, YOU CAN'T get out of these loans, not even in Bankruptcy! They own you and can get away with murder! PIGS! PIGS! PIGS! If you do not repay them before you die, they can garnish your estate! How can you sleep at night when American students are trying to better themselves? SHAME ON YOU SALLIE MAE!! please also google screw sallie mae, you will find a site dedicated to them! WAKE UP AMERICA private student loans SCAM!

[MrCervantesent]

@facelessstateofmind How much are they taking away from your checks?

[rockon6191]

@facelessstateofmind OR MAYBE PEOPLE SHOULD READ THEIR CONTRACTS AND NOT TAKE LOANS THEY CAN'T AFFORD!!!

[09geauxtigers]

I read today that there is expected to be another wave of massive layoffs coming. Unemployment will over 10% soon. This is not going away anytime soon. Not only is the economy that is responsible but what isn't mentioned that often is that many of these jobs are being replaced by technology. We were warned decades ago that people needed to get training and education in tech, management, business, engineering, etc. Blue collar jobs are a thing of the past.

[ATG0009]

EDUCATION IS NOT A PRIVILEGE......IT IS A RIGHT!

FUCK ALL BANKS AND THEIR GREEDY SYSTEM!

JOIN THE REVOLUTION NOW!

[crumcon]

@ATG0009 what revolution? typing shit behind your desk isn't revolution

[1XMarksSpot]

@ATG0009 Yeah. The Right to get yourself educated - NOT to be given to you. Idiot.

[personalinjuryfirm]

Did this happen to you? Investigations are under way throughout New Jersey. Take a stand today. Visit newjerseyconsumerprotection (dot) com and file a complaint.

[CollegeReform]

Colleges need drastic reforms! Let's start a movement to change things. Type Reform Higher Education Now in the search box on Facebook or click CollegeReform below.

[Sensaistar7]

so true!

[getplaning]

It also depends on where you go to "college." If you waste your money at so called "colleges" like Corinthian Colleges or Devry University, employers don't consider degrees from them to be legitimate. And these institutions are the worst offenders when it comes to high pressure sales tactics to get students to sign up for financing of tuition.

[avataz]

@itubenowplease  The idea is that it speaks to your ability to control your finances responsibly.

[MrFaisel34]

Please join the move to oust Dr. Amy Gutmann at the University of Pennsylvania from her position as president, because in this economy, money is a terrible thing to waste.

Over two hundred students could fund college with a salary like that.

[missaquaboogie]

old guy in the vid...just change your identity lol

[bermeatytriangle]

College and crap job is the norm. According to Richard Vedder, director of the Center for College Affordability and Productivity and professor of economics at Ohio University, there are over 5,000 janitors in the U.S. with Ph.D.’s, other doctorates, or professional degrees.

Why Did 17 Million Students Go to College?

by Richard Vedder

[bugsz1]

Funny, 20% can't make their payments on time. Isn't that about the same percentage of unemployed nation wide? Wonder why they can't make their payments.

700 billion in student loan debt? Thats about the same amount of money per year that we spend to police the world. All that debt could be payed down in one year. Don't we have enough bombs already? We need more and more each and every year?

[Jinxguy1000]

You need a college degree to work for $9.50 an hour. Colleges are no different than banks. Schools will get as much from you as they can,then when things hit the fan,the students are the ones who will get the short end. The government itself through Sallie Mae is fueling the fire. College is getting more expensive but salaries and job oppportunities are going down. Sound familiar?

[artmak5]

IT GREW BY $200 BILLION SINCE THE VIDEO WAS POSTED!

[ImNotYourFriend212]

What's the point of attending college if you will not even get employment? No point at all...

[ogicabp4u]

Why is getting a college degree an 'American' Mindset???

[Devildriver763]

@ogicabp4u

Because big business made it that way.

[ogicabp4u]

@Devildriver763 It's not what I meant..I meant its ALSO a mindset all around the world!! BUT I do agree with your point!

[td84]

Why does this guy try to blame it on his student loans? In all reality, it's his dumb choices he made.

He decided to get a $10 an hour job 50 miles one way, while owning a new house and two new cars. I'm glad employers are now doing credit checks on these kinds of people, because it shows how irresponsible they are with finances and life in general.

[cervantesent]

Ugh!! Man if i knew about this channel earlier, I wouldn't have gone to college! I'm in $130,000 in debt for getting a BA in Media Arts and Animation with AI.... All it did was get me a freelance job of $10/hr and then a "job" working for free... Can't pay my student loans with a $9/hr job. Employers won't hire me because of my credit and ethnicity since it's ARIZONA we're talking about. Keep updating my demo reel and portfolio and it's just not good enough for employers. Don't Go To College!!!

[RedMclaren]

@cervantesent Oh my gosh, $130k? I'm really sorry, mate. I am an international student, and I am thinking about going to the US... but is a piece of paper worth all that debt? Hopefully I won't get a job paying me $10/hour :/

[cervantesent]

@RedMclaren Don't even bother. The majority of the jobs are done overseas now. College is nothing now. It's like an auto dealer ship. They'll do whatever it takes for you to buy the car(get you to go to school). You're better off going on your own and become a self-educator.

[supertrouper]

I personally don't like the idea with student loans. I feel either have financial aid grants and/or find a way to pay for college on your own or forget college. I don't think student loans are worth it. I personally think if you do take student loans out, there should be a limit. I think $15-$20,000 should be the limit. parents need to start becoming more concern and discuss methods on paying for college and choosing colleges to avoid all the problems with paying for college and student loans

[Rockynurse]

@supertrouper

The limit that would avoid financial hardship depends on a number of factors. College major, grades, school name and age need to be all taken into consideration. A 30k debt for an engineering bachelors earned with a 4.0 gpa from MIT would probably not cause a financial burden. A 30k debt for a BA in english from cal state bakersfield earned with a 2.0 gpa might cause significant financial burden. This is assuming these are both no work experience twenty something year olds.

[supertrouper]

I agree it does depend on the major and work experience you have in it. And that is where parents need to start getting the updates that college is not what it used to be and talk to their children on being more careful on choosing colleges and figuring out methods/choices to pay for college. And people need to start realizing a more prestigious college doesn't mean you have it better. You need the work experience as well mostly. Don't have the work experience have to start somewhere.

[tothatextent]

People do not realize how huge the student loan problem is.

[Rockynurse]

If a guy walked up to me and offered me a rolex watch for $100 I would know it was a scam. As would most other people. The watch would either be stolen or fake. People need to realize that if things are too good to be true they usually are! Look at the mortgage crisis! If you have a 20k per year salary something is wrong when the broker approves you for a 500k loan!

[Rockynurse]

Here is the issue and why student loans will become an issue.

They give 18 year olds with no credit history, no collateral, and no job a $5000 loan for the first year with a low interest rate. The government allows these students to take out in excess of 30k with no job, no credit history, and no collateral. Come on there has to be strings attached. Can't these college educated financially illiterate morons understand?

NO BANKRUPTCY DISCHARGE BITCHES! IT NEVER EVER GOES AWAY!

[UnemployedLaotianGuy]

Im glad I dropped out early and didnt fall for the college scam. I support this channel and respect its movement. You stupid fucks out there dont know how to listen. This guy is trying to help you out and save you alot of money and time but you keep bashing him. Im Unemployed in the 9-5 work force but Im gettin money and making my own opportunities my own way. They dont teach that shit in college.

[dvdcervantes]

@UnemployedLaotianGuy Thank goodness you dropped out!! Enjoy your life man.. You're a lot better off not going to college.

[WonderWomanFan4life]

OMG that was like last month. where is the rest of story

[WonderWomanFan4life]

OMG that was like last month.

[k16jones]

That's the thing, the big banks don't want anybody to progress. They want to bankrupt you and reduce you to a serf. A new form of wage slave trying to chase a "dream".

[lostprophet912]

No offense to anyone older, but if you are going to go to college, you need to start your career earlier. The guy in the video looks like he is about 50. By that age it is usually a waste of time.

[Rockynurse]

@lostprophet912

The problem is they do not tell you that age is a major factor in the return on your college degree regardless of the degree. If you graduate in your 50s you cannot even work more than another 20 years if you aren't too senile.

[certifiedgangster05]

@lostprophet912 50? you mean like 60

[evarojas]

Hiring someone based on their credit should be illegal and considered a discriminatory practice. How is a person supposed to pay debt without being hired? This is the Kingdom of the Reverse.

[ImNotYourFriend212]

@evarojas Exactly. This country is a retarded country which is run by idiots who have never held a real job.

[DrBakshandeh]

@ImNotYourFriend212 So do I but, I need to collect more smart people in this country!

[k16jones]

@evarojas

exactly!

[gigalin]

@evarojas so true, this is discriminating 101, USA has become a potty hole and americans shoot their own foot everyday, so sad to heard this kind of story.

[DaNepaul21]

I scared to go to college!!!

[freestylefighter123]

20% THATS BIG TIME BULLSHIT, ILL say more like 85%

[DewbieHaut]

well, if mommy and daddy are paying for it..

[oc5nsli341nforce4]

@DewbieHaut

But mommy and daddy lived high on the hog while trillion dollar debts were run up by the government. $23.7 trillion stolen under the bailout alone. No future for those who aren't boomers. They did nothing while 50-70 million unborn were slaughtered in abortion clinics. They did nothing as our schools became cesspools of political garbage. They did nothing as the world continues to crumble around them. They have blood on their hands and deny of its existence.

[Superseadragon]

@oc5nsli341nforce4 Screw the previous generations. They had a great country, and handed us shit. They screwed it up for us; now we have to pay for these old bastards? Lets get rid of Social Security and Medicare/Medicaid!!!!!!!!!!

[1XMarksSpot]

@Superseadragon Amen!

[Superseadragon]

@1XMarksSpot Let's really get the word out for Ron Paul 2012!!!! Young people unite.

[1XMarksSpot]

@Superseadragon Yep! Keep getting the word out!

[jryan1971]

Just as with the mortgage mess, government intervention is to blame here.

Do-gooding programs such as the Federally guaranteed student loan have removed the market's natural price controls. If students can be assured of paying their tuitions (no matter how high the cost) simply buy hitting up Uncle Sam for a loan, then what motivation do the institutions of higher learning have to keep costs low ?

And so education costs rise until students are saddled with unsupportable debt.

[tiecuando]

Well, as if it wasn't bad enough with the mortgage thing, now this. Shit, all that had to happen with this mess from the housing bubble was to leave it alone. NOW this...well I can say, there will be problems.

I think the main thread here is the lemmings who feel that they need a house they can't afford, and job qualifications that they can't afford either. You can pay for trade school on minimum wage, and you can pay for college on a trade sallary!

[Richardcuz420]

At least with a mortgage there was an assets, a house. Now all you have left with this student loan crisis is a bunch of brain-dead debt slaves who have nothing to show for the money lent.

[TurboGC8]

I A4V'd but they wont listen!

[TurboGC8]

@TurboGC8 * Accepted For Value | Bankers Acceptance