Student Loans Based on Emotion

Discussion in 'General Distance Learning Discussions' started by SurfDoctor, Jun 2, 2010.

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  1. SurfDoctor

    SurfDoctor Moderator Staff Member

    This article is a good example of someone having blind faith in acquiring a degree. This lady racked up almost $100K on her 4 year degree and has not gotten a job and is now in serious trouble. This was at a B&M school, mind you; it's not just DL schools that are creating this problem that could end up like a mini version of the "mortgage meltdown". What will happen when all of these people don't pay?

    I think student loans should be controlled more tightly. In a way, this is almost like allowing someone to charge up their credit card. A potential student sees this education that s/he wants and is willing to create huge debt to get it without doing the due-diligence research on whether or not it will pay off.

    What do you think about this?

    placing-the-blame-as-students-are-buried-in-debt: Personal Finance News from Yahoo! Finance
     
    Last edited by a moderator: Jun 2, 2010
  2. b4cz28

    b4cz28 New Member

  3. SurfDoctor

    SurfDoctor Moderator Staff Member

    My daughter, God bless her, was the opposite of this. She came to me and said that she didn't see the point in paying big bucks for 100 and 200 series classes. She said that she would rather take those at city college and then transfer, because she considers going 4 years at an expensive school a waste of money. She is an honor roll student, by the way. She even pulled off a 4.0 for this semester. Daddy's proud!
     
  4. Koolcypher

    Koolcypher Member

    Awesome! Your daughter has a good head on her shoulders, again congrats.
     
  5. cookderosa

    cookderosa Resident Chef

    >>

    I think people would freaking explode if they couldn't just get an educational loan on a signature. Education in American is (incorrectly) viewed as a right. Honestly, we put all education - not just college- on a huge pedestal in this country, and to what end? Three cheers for teachers, how dare you cut programs, of course you go in debt to go to college, etc. Any expense is justified, nothing is spared. It's such a shame that the public is so gullible.
     
  6. Maniac Craniac

    Maniac Craniac Moderator Staff Member

    JOKE COMMENT: Is this the one that got into Cambridge? She's frugal too?!?!?! Um... is your shotgun loaded? :D

    REAL COMMENT: I really don't understand it. Mind you, NYU is a great school, but $100,000.00 in debt is just unfathomable to me. I will complete my degree from a well-regarded B&M school with NO DEBT at all, and I really don't think, as nice as NYU is, that it carries so much more weight or better education than an average public school that it will eventually make the investment worth it.

    I believe (and am sure that the experienced and well-educated members of this forum will agree with me whole-heartedly) that just a little bit of information will go a loooooooong way. If she knew that there were inexpensive ways to get credit that would transfer into NYU, or bothered to even see if there were, then that debt could easily have been reduced by at the very very least half and yet still end up with the same degree from the same school. Bummer.
     
    Last edited by a moderator: Jun 2, 2010
  7. SurfDoctor

    SurfDoctor Moderator Staff Member

    Yes, she is amazing. She says she might go to UCI instead if she doesn't want to stay in England. That's 10 miles from my house...Daddy likes that! :D
    As far as cost, I have been saving for this for over 15 years, so the money is not a shock to me. I will be happier if she lives at home and goes to UCI though.

    As for disclosure of costs, I think many universities are guilty of underplaying the total cost. That applies to DL and to B&M schools.

    Kudos to you MC for getting through for zero costs. You just might be smarter than all of us!
     
    Last edited by a moderator: Jun 2, 2010
  8. Maniac Craniac

    Maniac Craniac Moderator Staff Member

    Zero cost would be nice, zero debt is the reality. Without scholarships (it would be nice if part time DL scholarships were easy to find...) my total out of pocket unreemboursed expenses will be either 4k or 1k. 1k if the American Opportunity Tax Credit is extended for at least another 2 years (Obama wants it permanent), 4k if not. Either way, there is no way I could possibly complain about the cost!!!
    Smarter than a 4.0 GPA on a master's degree like some MichaelOlivers in the world have done? :eek:

    Over the course of my studies, I will save more money by making my own food, as opposed to eating out, than I will spend on my degree. I wonder if that qualifies for Personal Finance portfolio credit from Excelsior? :D
     
  9. Cyber

    Cyber New Member

    The sad part is that she spent that 97k to get an degree in interdisciplinary degree in religious and women's studies. I wonder what she intends to do which such worthless degree. I still don't understand why some institutions cost that much...........they all teach the same stuff right?
    Very sad...
     
  10. SurfDoctor

    SurfDoctor Moderator Staff Member

    Good job. We eat out too much and wast a lot of money.
     
  11. soupbone

    soupbone Active Member

    This thread has me reconsidering my choice of master's programs. While it has huge name recognition I think the price tag is making me ill. My wife is finishing up her masters this fall and we have her loans to start paying back too. I really want to get a masters and I know that in my current career field it will help tremendously but I just think the price may not be something I want to take on right now. :(
     
    Last edited by a moderator: Jun 2, 2010
  12. Cyber

    Cyber New Member

    Soupbone...... yes, Penn State is expensive and the Agricultural Biosecurity option is expensive than the Geospatial Intelligence Option.

    AgBio is a rare specialization, similar to UMUC's Biotechnology professional masters
     
  13. soupbone

    soupbone Active Member

    I don't want to derail the thread but does rare = more money and worth the price tag?


    The articles I read that were posted up top sicken me because lenders are so willing to give the money away, and people aren't researching enough to know if the debt is worth it. If you ask me there is enough blame to go around for everyone.
     
  14. Cyber

    Cyber New Member

    In my opinion it does not, and even if it does, just because they offer the program doesn't mean everyone can afford it or should try to pay for them.

    Alot of these very expensive programs are geared toward folks that work for companies that will reimburse or for folks who can afford to pay for the institution's brand name.

    I would definitely look at other less expensive programs...
     
  15. SurfDoctor

    SurfDoctor Moderator Staff Member

    I'll spout off with my opinion here: I know nothing about biotech, but I don't think you will find that kind of track at a less expensive college, so you are right, you might be stuck there. Does a degree like that offer more income? The problem is racking up all that debt and not getting a job or promotion that will compensate you, not just going for an expensive program. If you are pretty certain that you will make the money back, then I wouldn't worry. If the job outlook looks sketchy, maybe your misgivings are correct, only you can say.
     
    Last edited by a moderator: Jun 2, 2010
  16. AV8R

    AV8R Active Member

    That is sad.....it's a mystery to me why people choose such worthless degrees.
     
  17. Maniac Craniac

    Maniac Craniac Moderator Staff Member

    Well, maybe they do it out of interest in the subject, which in itself wouldn't make any degree "worthless" to the holder... but the article is clear that she was expecting a JOB out of it. "Doing what?" however, is a great question.

    As for the cost differential among schools, I'm more concerned with the cost differential within a single school. How is an MA $300 per credit but an MBA $550 per credit :confused: I'm sure the simple answer is: Demand.
     
  18. Randell1234

    Randell1234 Moderator Staff Member

  19. SurfDoctor

    SurfDoctor Moderator Staff Member

    Absolutely, it would be understandable if you were going for such a degree out of interest and the price tag was much smaller. Also, 30 or 40 years ago, a bachelors of any kind would land some sort of job because they were not ubiquitous. Nowadays, most people in the marketplace have a bachelors and that alone doesn't get you much. I think she must have been thinking that any bachelors would land her a job. So sad.
     
  20. SurfDoctor

    SurfDoctor Moderator Staff Member

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