Sorry, Samantha, but that is EXACTLY what it means. You CHOSE the loans, the college, the career, so indirectly you chose the consequences. Others chose community college, or worked first and saved enough, or obtained different loans. You have survived the first hurdle, getting a job. Consider yourself lucky on that.

A lot of this crisis is caused by people refusing to live within their means...too high mortgage, too many "things", high-end autos. private colleges..no savings... the list goes on and on. And then they have a medical crisis or lose their job and have no fall-back plan. When does the US stop rescuing everyone?? What has happened to personal responsibility?

we as a NATION need to support our next leaders of the future, ie college students

I've been out of school since '95 and sadly still have over $30,000 in school loan debt. Currently, it's in forbearance because I can't afford the monthly payment. Sallie Mae's advice, "Go get a second job." Easier said than done these days. The government seems to be really good at eating other people's debts these days...let them eat mine.

An excellent point--–I'm still paying for school loans for one of my children-–and I believe that I will make it to Arlington National Cemetery before the coupon book ends---we help the next generation by bailing out corporations of greed--and in return--give the bill to the recent college graduates--no good deed goes unpunished--does it?

What's worse is that our Government won't allow us to get rid of student loans in Bankruptcy court. Yet, we can give billions and billions of dollars to companies that aren't selling any products, like cars.

If the government wanted to really stimulate the economy, they should give 50 thousand dollars to each taxpayer as a 2009 stimulus check.

That would help pay off part of my student loan, as well as, help out the auto industry (people would buy cars) and more.

Help the people first. Then the business will prosper.

I agree 100%! My husband and I do not pay near as much as you Samantha, but our combined monthly student loan payment is as much as car or house payment! I too am outraged that this subject has not been talked about more than it has. Decreasing the interest or reducing the amount owed all together would help just as much as the $8000 new home buyer stimulus credit. Why should the people who tried to better for themselves (going to college, buying a home they could afford, etc.) be penalized?

I hope something comes up about this in the near future...

Way to go Samantha!

I couldn't have written it any better than that! I too am a struggling recent Grad with no career opportunity in sight and over 20K in loan debt that had to recently be put in forebearance.

I envy you for writing this wonderful article and sharing your fears and crushed aspirations with your fellow peers that are in the same sinking boat! Kudos to you! Keep up the great work!

Best Regards,
Lisa A. Lupo

This speaketh to me as well. I'm 11 years out of nursing school, and still paying on loans. I went to community college to try and save money, then finished at a State University-the debt continues.
Wish student loans qualified for as much attention as the mortgage crisis.
Wish there were some way to link debt-free college grads to a stronger American dollar.
I'd almost have been better off to have never gone to college, but to have just stayed in my high school job at the mall, and climbed up to management that way. I would be making just as much money-without being vomited on.

I’m sorry but I can’t sympathize with people who took student loans they could not afford to pay back. Nor home loans they couldn’t afford. I worked while going to school. And I went to a school I was able to afford. I never used student loans. I’ve also never bought a house because I never made enough money to save for a down payment that would have qualified me for a regular loan. We should not bail out homeowners or student loans. Those who took advantage of the system should suffer the consequences. I shouldn’t have to bail them out.

I'm 42 and owe $75,000 from the last time this happened in 2001. Went back to school to get a better job and now my payments eat almost a third of my salary. I'll be 75 by the time I finish paying them and that will be by usin my social security checks!

I have a similar story. I graduated from seminary as a non-traditional student in 2001. I had a family to support while attending college and grad school. Upon graduation I was an entry level pastor earning aprox $20k in salary carrying $90k in student loan debt and still supporting a family. Where is the motivation for young people to seek higher education? Is the American dream really for everyone? Or only for the wealthy to pass on to their kids?

Thank you, thank you, thank you for this article! I can relate to your personal struggle in every way. I also chose a private college to pursue my bachelor degree. I graduated in 2005 with the hope of becoming a teacher or working for a non-profit. Unfortunately I was left with the over 70,000 in debt and monthly payments (interest only) of more than $600. Now four years later my outstanding balance has grown to $87,000...and i am working a nanny to maintain the income necessary just to make my monthly payments-which dont even make an impact! I can't give back to the community and apply my teaching skills when the salary doesnt cut it. I feel stuck and abused by the system. An eighteen year old student should be given financial counseling and advice before signing the dotting line. Our country is setting us up for failure if the student loan crisis continues in this way. The banks get a bailout but those of us trying to make a difference are forced to settle for less than our dreams because of our debt!

I wonder if America ever looks at itself and feels bad for the way it puts people in these binds. A) College doesn't have to be so expensive. B) College education (like Health Care) can be FREE via taxes. just put the students who benefit from gov't assistance into a specific tax bracket , if people want to still pay for school then they can. C) Certain schools look better on resume's. Your choice in school is your business and has nothing to do with your loan. D) All STUDENT loans should be capped @ the 10%. That leaves about 28% (I believe) for a mortgage or rent and then the other stuff so that seems fair .... except when you add tax and interest which can sometimes come to 50%+. E) College doesn't have to be 4 years. They include the core curriculum to get more money. Someone should have looked into that a long time ago. That's why people who go to speciality schools (producers, computer programmers, animators etc.) make a lot of money and are in the workforce sooner and last the longest. They're ahead of the traditional college competition.

Good luck with everything. I'm sure CNN already gave you a raise!

Money spent on education is always valid, even if the person is a bit broke after the investment. (within a minimum of sense)

The person may lose the house, you can lose the car, but what learn never lose. Knowledge is a legacy that no one takes.

And the more the better! After the university, (within the conditions of each one, of course), the person should go to a post-graduate, MBA and so on ...
This is an investment ... I'm just me recapitalised for begin a master's degree. We can't stop – never!

The problem with each and every new plan generated to help out those with student loans is that they are designed for current and future borrowers, while those of us who are still struggling to pay off said loans are usually left out. How about something that covers everyone who still owes money, regardless of when you took the loan? (Some of us are still paying them off and jobless )

"I chose to go to a private school and theoretically, I chose to work in a field where the starting salaries are low. Does that mean that I chose to live a life of struggle, wondering how I am going to pay my rent, afford the basics of living and still stay in my chosen career field…all while putting up with high interest rates and an amount of debt that brings me to tears?"

Yes.

I don't disagree with you that the student loan system is outrageous at the moment, but you made a choice, and from a money point of view, a poor choice.

I made the opposite choice. I went to a public university's business school and repaying my student loans was a breeze. I really would have preferred to study art tho, so I made a poor choice too.

I'm not sure which poor choice is the tougher road to travel.

Great column..You touched on a very serious problem in our country. I can only hope it gets some attention from the higher ups that can solve the problem. Thank You for bringing it into a brighter light for those who have no clue what it is like to be burdened with heavy school loans at rates that are higher than we can even afford.

Great article! I graduated from a private college in Upstate New York in 2005 and was lucky enough to get a job in the communications field right away. However, I'm completely overwhelmed by student loan debt. Sometimes I feel like I'd have been better off going to community college instead of the expensive school that I chose. It's a catch 22. Get a degree from a great school, get a good job and live in debt or don't go to college and live in poverty.

Well said! I graduated in '96 and in same boat. I was in the mind set that the loan would be chump change since I was graduating from USC. Now I'm stuck with a huge monkey on my back.

I actually owe a greater amount and also attended a private university. The stresses I feel are identical to yours! I pay over $500 monthly and can't consolidate my loans. In addition, the majority of my loans are private and the variable interest rates are unforgiving to say the least. Being in an entry level position makes it even more difficult to make the large monthly payments. I can't fathom how life would be if I had a kid right now. Thankfully, I have a job that allows me to make my payments, but I feel that my life is at a standstill. I dream to attend medical school and fear adding to the debt that already consumes the majority of the money that I make. It's all very frustrating and I wish there were people or some programs available to help us.

My son is in the exact same boat as the writer but he has no job.I don't know how he is going to pay rent much less pay off his student loans without a job.where is his bailout?

That's exactly what it means. If you think society (by way of taxes and the government) were supposed to help you get an education, you're right, they did. They're called state schools. You didn't want that and instead made this choice. Money can only be spent once and while money borrowed for education is better spent than money borrowed for a vacation, it still needs to be paid back.

I work and pay cash to go to school part time at night. Now I have a job that will reimburse most of my tuition expenses. It will be slower, not nearly as fun as going away to school, but I will graduate debt free with a degree that will earn me decent money.

"I chose to go to a private school and I chose to work in a field where the starting salaries are low. Does that mean that I chose to live a life of struggle, wondering how I am going to pay my rent, afford the basics of living and still stay in my chosen career field…all while putting up with high interest rates and an amount of debt that brings me to tears?"

Basically, yes. There are many fine public institutions that have curriculums in the broadcast category. You made a chioce and now you're stuck with the consequences. Welcome to the real world.

THANK you for calling attention to this problem. I'm finishing my Ph.D., have been looking for a job since 2006 when I finished the master's, STILL cannot find a job, and worry SICK about my loan repayments. I certainly hope something gets done about this growing problem.

I feel really bad for you. My husband has a Stafford and a Perkins loan. He went to a state school in Calif. He has had to reapply for two forbearances in the past four years due to the economy. He graduated in 98. I wish there were more scholarships available to more people. You shouldnt have to barrow against your future.It seems a college education has become a luxury in this country.

I agree that something needs to be done. In this economy I feel like I have no choice but to go directly into Graduate School after graduation next year, but that means taking on even more loans than I have already accumulated after four years at a private institution.
I think that Rev. Jackson's plan is far more realistic than the current program. High interests rates only punish people for making the effort and getting a degree. If we want more students to go to college then we need to make it more affordable and more accessible to all.

Thanks for a succinct article. At the very least, consolidation should be an option, and with it an extension to pay back.

It's an untenable situation, yet education is one of the best investments this country can make. I'm in school outside of the US, and it seems like every other country I come into contact with is more willing to help out college and grade students than the US.

The President keeps talking about the future and education. I believe that unless he begins dealing with the current education crisis, including your situation... we will continue to be in the current financial situation for a very long time. I believe student loans should be restructured to help the educated workers! Stop bailing out the corporations and start helping the individuals!!!

You might consider the Armed Forces. They have programs designed to payback student loans and provide future educational money. With your degree and experiance – officers candidate school is a possibility. So more food for thought – given CNN's budget issues crippling their efforts to report globally- a connection to the military might provide reporting access to Afganistan, Irag and various other newsworthy locations. Just don't give up, there is a way.

Become an economic terrorist and JUST STOP PAYING!!! Education is a right!

It's not like these banks and lenders actually HAVE the money when they lend it to you. They just make it up out of thin air. If you don't believe me, go watch the video, "Money as Debt."

I apologize to you Miss Hillstrom that some of these commenters lack the couth to understand your situation from both sides. It is NOT your fault that you wanted to go to a school that best suited you for a job working at CNN. Few people realize that choosing the right school (Harvard, Columbia, Tisch for Media, USC etc.) can be pivotal in the JOB you ultimately get. I trust that your commentary brought light to this ongoing issue. I hope any college bound students who come here understand the value of an education FIRST and yes making sure it's affordable is key too. That's why our generation must do all we can to reduce those rates for you, not belittle your desires. Education is INVALUABLE. Please ignore those saying that it's the students fault for wanting the best (they are bitter) always shoot for the stars.

Thanks for sharing Sam! Very informative

I do not know even where to begin. This article is just part of how our Nation is in the mess we are in.

Our four college-graduated children attended State Universities, which are affordable to most Americans.

One of them wanted to attend a private Catholic university, and we said no. We did not want to ..... live beyond our means....... nor be in debt for years on end!

We can't always have what we want. Its time to learn a very hard lesson, and say no to ourselves or our children whenever we or they want something we can not afford.

I know exactly what you are going through! I'm in the same boat, though my debt is not as much, I'm still toying with the idea of getting a 2nd job cuz the first one's paycheck just doesn't stretch as far as it needs to!

This situation is a horrible one, especially during these rough times in our economy. I as well have over $100,000 in student loans owed, with a Masters' Degree and no job!!!! Either the government adds more jobs, that I am qualify for, or help us out as well with a bail-out.

I can't work because my child has a disability. If I had a disability, the loan would be paid off. But I was told to get a job anyway and leave my son's development to the "professionals." So, I have a student loan and no way of paying them off right now. All that interest just keeps being added on. I have no way out, and no way to stay in school so I can get my master's. (which probably wouldn't help that much in this economy anyway.) It was very nice of the loan people to make health and welfare decisions for my child. But I'll stay home with him for now. The money will have to wait.

Please Obama help us with Jesse Jackson's plan really all of help would be our only salvation! I am disabled and my son is on Deans list but I have no money to help him! I pray we get some relief!

Maybe somebody could offer some advice on getting out of this situation. This will help others before they get in the same situation.
Good Luck Sam!!

Unfortunately, you DID choose your situation.

That said, I sympathize with you. I graduated with about 32K in loans, but I was very lucky in that a) I got a job right out of school, and b) I am able to live at home to reduce my expenses.

As it is I have only been paying down my loans for about 10 months, but I have paid off about 13K.

I do agree that education should be more affordable.

Student Loan Crisis = Predatory Lending Practices by our Federal Government

Great Article! I agree someone needs to help. High School students don't know what theyre doing when starting college and getting loans. I too attended a private college and regret it every month.
If I didn't have this monthly payment, I would buy a house and, in turn help the economy somewhat.

Someone step up and help those who decided to go to college for a better future!

As a college instructor, it makes me ill to think of how nuch debt students are carrying. The nation is not investing in education. College and graduate school should be affordable, so graduates can go out and change the world.
Best wishes Sam

I paid off my student loan when I was 45 years old - 21 years after completing law school, and 24 years after completing college. I had to consolidate my loan into a 20 year loan.....but I paid it on time every month. It was indeed a hardship, and to this day it seems unfair that wealthy classmates had no loan to worry about. But that's the way it goes. And - this was when annual college tuition in the 1970's and 1980's was in the $5000 to $7000 range - I can't imagine what it's like today, with tuition 10x that amount.

Way to go Samantha!! I agree... after a Bachelor's degree and a Master's degree, I am over $100,000 in debt myself. Because the job market was so tough, I couldn't find work in my field (higher education), so not only do I owe the money, but I am working for less money in a field completely unrelated to my Master's degree. Instead of the government bailing out all of these corporate fat cats, how about giving those of us who will have to pay off the corporate debt a break!!

I have said this many times, the government should stop backing student loans that are impossible to pay. If this was done, the schools could not charge so much. The issue is that you made a really poor choice. I do not feel sorry for you, as it was your choice. I went to a state school and finished after 10 years. Many of those who graduated high school at the same time, I am earning significantly more them them (as I did not give up experience, I went directly into my field) and this year I will takeup student loans for attending a top tier business school, which when you do an ROI, will pay off. The missed issue with the education system is that those who take up 100K or more in debt fail to realize that their intended major will never allow them to pay it back. The goverment should refuse to back the loan or set specific amounts for specific majors. This would slow or reverse the tuition rate.

It's appalling to see the amount of envy that so many have when others get into the best schools in the country. The situation you're describing, Samantha, with regard to bail outs for greedy corporations but not fur students is spot-on. It truly is a shame, and so many of the same people who are spewing forth venom and jealousy over your acceptance and attendance at a top school do not see how the same sort of mentality is what got us into this mess in the first place.

Put the interest rate at 1%, make it tax deductible and extend the terms. No free handouts. You made the choices and have the responsibility now, just like everyone else. I too went to a private college, but I did it over 11 years, 100% with the money I made working full time, straight out of my pocket.

Honest, responsible, accountable and hardworking.

So it is not enough that I have to work two jobs to save for my own children's college fund, now you want me to pay for yours too??

Pay your own bills and take responsiblity for your choices. No one told you to go to a school you couldn't afford and no one told you to choose a low-paying vocation when you knew fuill well the obligations you were going to face after graduation.

i graduated from a very expensive private college in may 2008, and am very lucky to have a job and a relatively small ($15,000) amount of loans. my boyfriend dealt with a horrible situation where he signed a loan when he was 18 that didn't include a deferment for graduate school, so as a PHD student he was expected to pay $800 a month on a small stipend. fortunately for some magical reason he was eventually given a deferment, but not until after a lot of worry and struggle. i consider myself lucky that my monthly payment is only $150, but i just don't understand why we are expected as very young people just starting out to know how to manage and control thousands of dollars worth of loans with no help from the government or our lenders.

Sorry, but you made these choices, and should have thought it through more carefully. I was poor and had no assistance, no grants and unsupportive parents when I started college in 1983, and I was living on my own. I worked full time, took out what loans I could (a grand total of about $9,000), went to a state university, and even then had to frequently skip semesters when I did not have the cash on hand to pay for tuition.

Did it take longer? Yes. Did I miss out on dorm life? Yes (I had to live in a cheap apartment instead). Was it the ideal situation I would have hoped for? No, but life is not about fairness. We do the best with what we have, and considering this humble start, I have done well for myself since that time.

Easy student loans are why college tuition has skyrocketed. The schools know there is easy money out there and are out to get all they can. It's a shame that we have to mortgage the future with debt to fuel the greed of the college institutions.

I'm in the same boat, we need help too what's up Obama??

I think we are not doing any favors for our next generation of leaders by teaching them they don't have to be held accountable for their decisions. I chose a cheaper; in-state school because I knew that I would eventually have to repay my student loans. As a nation, we DO need to support our next generation of leaders... by teaching them (myself included, being just 25) that every action has a consequence. I had the foresight to choose wisely, why on earth wouldn't you realize you'd have to repay your loan?

Right On Girlfriend! I genuinely believe every High School should have a course on personal finance and the effects of borrowing money PRIOR to allowing ANYONE to agree to attend college/university. This class should include information about credit cards and how applying for the billion cards offered on school campuses in exchange for nick-nacks like pens and hats actually negatively affects credit. Anyhow... good luck to you!

I will be finishing up with my bachelor's degree next spring. I go to a private college as well. I did however go to a community college first, but my career path is set on becoming a teacher. It isn't a secret that teachers don't make awesome salaries. I want to go to go on to get my masters, but it looks like it will be very difficult to add even more loans on top of what I have already accumulated. I'm considering the military now...and I can't honestly say that I am considering it for all the right reasons. Hopefully we'll get the support we need in the end.

By doing "the next right thing" I am paying off my Parent Plus loans on time – but taking on more credit card debt. I'm trying not to become resentful for all the bailouts - there's not much for the consumer who struggles to pay all their bills on time.

Let's not forget what a joke the FAFSA is. We have four kids attending college and they still don't qualify for any grants or free money towards their education. I feel horrible they have to take out loans, but if they want to go to college, it is the only way they can make up the difference between what they make during the summer and what they make at their part-time jobs. The first will be done in another year and I pray that there is a plan put in place to change the structure of his loans to ease his burden once he gets out into the working world.

The Dept. of Education has a new plan as of 2007 where if you work for a non-profit ( government job, teaching) for 10 years and make all of your payments they will pay off the rest of your loans at the end of the 10 years.

I've already been paying on my loans since 1999, but at least this will help me somewhat because i still owe $78,000 on these things. When i signed the paperwork nowhere did it say I'd be acruing interest on a daily basis. At $600 a month payment, only about $90 goes to principle. And unlike a mortgage, you can't consolidate at a lower interest rate a second time. Why? Congress protects the student loan companies of course.

Dear Samantha,
I am a 27 year old lawyer in Detroit. I am in the exact same position. Every month I face eviction or student loan payments, I am inundated wtih debt collectors phone calls. I am desperate for some assistance and have gotten no help or compassion from the loan companies, If you come up with a solution, answer, or petition please let me know.

Your mirror image

Lauren in detroit

This starts with educating outgoing juniors/seniors and their parents!

I chose a major based on a career and what I knew that career would pay me back. I know so many people who went to expensive schools for majors that have no chance of paying off. Some have 100k in loans making 30k now – poor choices.

My parents were unable to help me.I worked through school and took out loans. My husband and I both graduated from state schools with 30k in debt each – it took us 10 years of $800 per month payments to get out from underneath it.

For my first few years out of college I would go back to school and lecture kids on this very subject. Put a spreadsheet in front of your children – show them the numbers. They may still elect to go after their dream major/job/career – but they may never get to enjoy it with all the loan debt they can accumulate.

A few observations:
1) We're in a higher ed bubble, just like housing or internet or what-not. Colleges are charging prices far and above what it takes to educate a person, mostly to support "research"... which can be useful (i.e. physics, engineering, or whatnot) or not so much, like anything coming out of a ___-studies department. Professors don't teach; they work for tenure. That, and a lot of the degrees coming out of colleges are nigh-useless after school; but people still want them to have a B.S or B.A on the wall. College in a lot of cases now is NOT worth it, but we're told it is.
2) Sam– all my sympathies. But I don't want to pay for the loans. Loan forgiveness also penalizes those who either went to less expensive schools or paid their loans off, in effect subsidizing bad loans. And we see what happens when gov't forces that... see the mortgage debacle. Government money is tax money. Everytime you see "government money" or "federal aid", subsitute "my and my family's money" and see if you still want to pay it.

One missing aspect in your article is the connection between banks and debt collectors. When I could not pay my $19k student loans, the interest, collection fees brought my total to $60k within 3yrs. I was told it was all perfectly legal. I am still paying $450 a month after 15 years of out of school. Someone needs to give us a break. We need to form a debt cartel. Maybe our refusal to pay all back will force the govt to change the rules

I worked in the student loan industry for years until I couldn't stand it any longer. Yes, people have to take responsibility for taking out these loans but the system itself is predatory. I agree that the whole system needs to be overhauled.

Being an adult means accepting the consequences of your choices. Stop whining. Suck it up and pay off your loans as fast as you can. It's not America's problem - it's yours. I speak from experience. I put myself through private college and it took many years for me to pay off my loans. But I did it, and it was worth the effort. And I did it without asking for public sympathy or financial breaks from the government. Grow up.

I'm thanking my lucky stars I was raised by a poor single mom & busted my butt to get good grades so I could attend Michigan State University on needs based & academic based funding. Four years cost me ~$10k in federally subsidized loans.

1st comment, Stacie – valid point! Personal responsibility is gone, completely. I have a student loan, and although it would be nice if someone just gave me money to pay it off, I understand that no one should have to do that and it is my debt to repay! Therefore I will pay for it. No offense, but it takes two minutes to research how much the average starting salary is, for any job position, an I would say that about 95% of starting positions cannot afford that type of debt. You can know how much schools will cost also with about 5 minutes of research, so... lets use some basic math and decision making skills her folks. Don't go to a private college, rack up $100k in debt, only to become a teacher making 35k a year. I wish I would have been better educated on the loan process as well, but I never, ever, would have racked up $115,000 in loans, ever.

My daughter just graduated and passed the bar and cannot find a job in this economy. She is saddled with $125,000 in law school loans. I, also, feel the interest rates for these loans should be lower (her's at 6.8%). This would make the monthly payments a little more manageable. I think these kids were willing to take on debt to get an education in the field they want to work with the thought they would obtain good paying jobs and be able to pay these loans back. Unfortunately, our economy will not support that belief. Let's pray things change soon.

i too have too many loans- i DID work while i put myself thru undergrad and graduate school in my 30s. i became a therapist, and while in grad school the hmos came about and changed everything. now insurance companies determine how much and how long a client can be seen for therapy.
all of us make choices, and everyone of us is different . our lives and our paths are unique. so those of you who are being judgmental and saying that you worked thru school, you need to step back and understand that for millions of people, without student loans they would never have been able to college.

I completely agree! I'm in the same boat as you, Samantha: I graduated 2 years ago and work in technical theatre, which means I'm looking for a new gig every 3-4 months or so and working retail in between, so my average income varies dramatically. I moved back in with my parents so I don't pay rent and rarely have to pay for food, but I still find it difficult to pay the minimum on my consolidated loans, even though they are low (relatively speaking).
I hope the government does give student loan holders some relief: the mortgage crisis isn't the only financial crisis within our boarders.

there are things that the average citizen will never understand and will never be explained to them. things like how credit scores are arrived at. these are untoucable economic paradigms that are structured to serve the few and enslave the masses. a necessary part of this plan is keeping the masses ignorant. let alone a rescue plan for student loan victims couldn't the feds at least make their good friend sallie mae at least assign a personal loan officer to each client...or even have a traveling symposium on how to batlle student loan turmoil?you try to call sallie and get answers and you'll see what i'm talking about.

a year ago this kind of talk would have been considered conspiracy babble but i think everybody sees the picture a bit more clearly now. it's funny how quickly ideologies move from the fringe closer to the center.

I owe $30,000 and never got a degree. I hit a wall with a learning disability and an administration unwilling to help me. I am currently struggling, having just been laid off and supporting my husband who was laid off last year. I don't have the opportunities to get the good jobs that come with a degree, but I still have to pay the loans. I have no recourse at all.

You yourself say, "I made a lot of mistakes when signing up for my loans." Why should anyone pay for your foolish mistakes but you? Do you really think anyone else should be responsible for your bad choices?

I am not in the least sorry for anyone who chooses to live far beyond their means, like you obviously did, and now wants a "get out-of debt free" card. How dare you whine publically, you should be ashamed of yourself. Your valuable education obviously did not improve your common sense or reduce your sense of entitlement. Get that second job and shut up.

I earned my college education by hard work and with difficult-to-obtain scholarships. Anything worth having is worth working for - something you apparently did not pick up along with your diploma.

A private school in NYC...and you want to be bailed out? You have a lot to learn about how the world works. I, as a taxpayer, do not owe you anything. You should get ahead just like the rest of us...hard work, don't get in debt over your head, live within your means, more hard work...

Perhaps before signing up for these student loans – before graduating from high school – students should be required to take a FINANCE course to better understand what living within your means actually means and what the terms of these loans will mean to you after graduation.

There is always more than one side to a story and that is true here as well. I also have a huge school loan debt and payments. I did go to a public school. But, at the time I went to school only 9 coleges offered a masters in the field of study I wanted, and a masters is required to work in this field. Most schools only accepted 2-6 students. A few offered more spots. The majority of these schools were private. Sometimes there isn't a choice to go to a 'state' school. Obviously some people wouldd rather that I didn't try to become a productive citizen. I should have just stayed home, live on welfare, medicaid, and fund my life by having several children from multiple fathers and bilking tax payers. Apparently thats acceptable... but don't ask for help for higher education from taxpayers... thats a no no!

Stop crying! If you did not know what you were signing when you signed for the loans why did you sign for them? Take some responsibility and pay off the loans. I took out students loans in the 80s and paid them off early. These are future leaders boy are we in trouble.

Why don't we have Universal Education like France? Everyone in the nation pays an education tax and suddenly predatory student loans no longer exist....not just predatory student loans...but ALL student loans disappear. As Louis Armstrong said....What a wonderful world.

While my student loan debt is minimal (probably $20,000 right now), I keep making that number grow with graduate school. I couldn't find a job after college, so the only choice I had was to go back to school, in essence avoiding paying them off and hopefully finding employment once I am better educated. But to keep that number down so low, I paid for at least half of my college career with scholarships or out of pocket, which meant there were months when I was ecstatic to have even the smallest of luxuries-like McDonald's.

We're pressured to go to college, as it is the only way you can get a good job. Yet, with today's economic environment, most cannot afford it. The "higher ups" push college, saying that America is uneducated compared to many developed nations. Well, perhaps they need to look at this article, look at current costs for a public university minus Pell Grants, and see that something needs to be done about the big business of education.

To the people who basically said, "you chose to go there, now you have to pay for it", my concern is 2 fold. Why is it that when you apply for a house, or even a car loan, they do a credit check, and determine how much house you can afford, but not for a school?
Secondly, I was 17 turning 18 years old when a signed my acceptance offer and loan paperwork, and should've had no business making that big of a decision, for that much money, but there are no protections for young kids out there making those choices.
Had I tried to go out and buy a $150k house, they sure as heck wouldn't have given me the money for it. Granted I did get a good job, and am able to pay back the $1100 per month for my loans without too much of a problem, but I can see how other kids could get it much worse situations.

Student loans to high? The reason – many colleges and universities
are charging too much. Most could care less about reducing
their expenses. Therefore, college costs too much, and students
have to borrow to much. I do I know this? I just retired from 37
years of service at a public university. The waste and overcharging
is just out of hand.

Samantha wrote:

I chose to go to a private school and I chose to work in a field where the starting salaries are low. Does that mean that I chose to live a life of struggle, wondering how I am going to pay my rent, afford the basics of living and still stay in my chosen career field

Short answer: Yes.

Why is it the taxpayers responsibility to take on your obligations? Whose decision was it to go to a school you couldn't afford and tehn take a low-paying job? Why do I need to pay for your foolish decisions?

You have plenty of options available to you: Reduce your frivolous spending, find a chepaer apartment, take in roommates, take a second job. Lots of folks deal with economic difficulty without whining and expecting others to bail them out of their own irresponsible decisions.

One should not look at the lender for the issues, one should examine the institutions that charge the insurmountable fees. The banks should not shoulder the blame for the greed of the professors and administration at some of the top institutions. Perhaps Universitites should consider decreasing their inflated tuition to match what one will actually be able to pay back.

Easy money (here the loans proposed at 1%) is exactly what caused the financial crisis that is destroying this country, and in the case of college education has caused tuitions to skyrocket to absurd levels. Until we bring back the concept of disciplined borrowing and disciplined lending, college tuitions are going to continue to skyrocket. Nowhere do you question how colleges have continued to jack up rates, and that's because everyone can get a loan to pay whatever they want to charge. No one seems willing to link the rediculous costs of college to the easy money problem our country is sick with right now. Unfortunately, so many of the solutionis proposed are just more "easy money solutions" to buy a car, to pay for tuition, to buy a house. The prices for these huge expenditures for the typical family need to come down, ESPECIALLY college tuition, and that's not going to happen if we give out more free money to every student asking.

The bottom line is that banks get a 1% rate and then charge a huge mark-up. It's not an issue of whether people should have gone to a cheaper school or not, but whether we wish education to be such a profitable trade. We consolidated our loans about 7 years ago to a lower rate, but then rates dropped again and we were told we couldn't re-consolidate again similar to a mortgage? Once you got em' your stuck and the huge companies that fund these on behalf of the government have lobbyists to assure Congress is too wimpy to confront this ridiculous burden. People here aren't saying they won't pay them, just that there's not tools to manage them equal to other loans.

Well played, Samantha!

Don't apologize or even so much as reflect on your choice to attend a quality institution. Perhaps you landed a job because you didn't compromise where you chose to go to school.

(comment to cnn: PLEASE continue to make this an issue! Students need a voice out there!)

Samatha, I'm in much of the same boat as you and thousand of other Americans. I am a social worker and in the state of Missouri that means you need a Master's Degree. I worked all through college and grad school even when that meant a full course load and 35 hours of internship a week. I still had to take out tens of thousands of dollars in debt and that's the same no matter where you attend school. As a social worker my earning power is low: 25-30K for entry level. But I love my job and everyday I'm helping those with disabilities find jobs themselves. Shouldn't we reward the people in this country helping others? Teachers, social workers, counselors? Shouldn't we be helping individuals in these professions seeing as how they give so much more back?

The strong points here are that job loss and wage cuts effect someone's ability to pay a student loan just as much as a mortage. For years, everyone has called student loans "good" debt, but now it's just another albatross around many people's necks. I finished with a masters degree and 40K in loans that I'm only paying off the interest on currently– condolidated to 7%. I could pay more, but I decide not to. For me, I knew what I was getting in to and have no issues with the system– that is until I see these bailouts for folks with mortage issues and the banking system as a whole. Student loans don't need to be a cash cow for banks– lowering the rates for everyone and extending the payback timeframe is only fair at this juncture.

I would like to take this idea even further. I would suggest that those who teach in the K through university systems have all their loans forgiven. We need qualified teachers in this country, don't we? Why not create a real incentive to remain in the field by making it easier for teachers/professors to live a better life without the burden of their student loans? I owe 100 grand myself!

I totally agree with you. I graduated from a private university 2 years ago also. Unfortunately for me, I only work part-time. I was working full-time for a month, but got laid off. How were we supposed to know that the economy would be this bad? We don't have mommy and daddy paying for our education like some people do. I can't afford to pay any of my loans right now. To me, groceries and rent come first. The interest on my loans will go up. It's a huge burden that I am always stressed about. I thought I would find a good job right after college and wouldn't have any problem paying off the loans. Something has to be done because it's absolutely ridiculous.

My son has a huge debt with student loans, about $1,300.00 per month and is trying to pay it off but the interest rates are so high, plus he has living expenses as well. In this economy my husband and I cannot help him out with the payments, we have a younger son who still lives at home worry about when he goes off to college how will we pay for it.

"I chose to go to a private school and I chose to work in a field where the starting salaries are low. Does that mean that I chose to live a life of struggle, wondering how I am going to pay my rent, afford the basics of living and still stay in my chosen career field…all while putting up with high interest rates and an amount of debt that brings me to tears?"

Ummm.....yes.

I personally have 50k in student load debt to obtain my B.A. and I went to a state school. 5000 for tuition a year plus 600-1000 in book (not all professors put them in the library), student health care is about 1500 a year. What about all the student activities and fees that a student can't opt out of that equals another 800 a year. Once it is all added up I spent 8300 a year not including room and board. If anything should change it's how our government qualifies for financial aid. It is very unfair that a person has to report parents income when putting him or herself through school. If my parents were not included in financial aid I would have 1/2 the debt. It is disgusting how education which will add to the tax base in a few years is not more affordable for those in need.

Did anyone consider that the easy availability of loans allows the colleges and universities to charge so much for an education? If the money isn't available, they won't have students. Making the loans more affordable won't solve the problem – the colleges will just start paying more. When inflation was so low, why did tuition go up so much? I understand your plight; but, I have little sympathy. I will pay off my 6th and final student loan this fall, and I graduated in 1991. I've been out of work twice in the past 18 years and still have had to pay back the loans at an 8-10% interest rate and have only been able to use the tax deduction now available for a limited time. Life is tough and the economic situation today seems to make everyone think that they deserve some payback for it.

To those of you proclaiming that those of us with student loan debts should have worked our way through school, or saved enough to go to school without taking loans, you are very disillusioned. I grew up with my grandmother, whose entire SS income was around $500 monthly. I had some kind of job from the time I was 13. Saving enough money to go to college would have been wonderful, but unfortunately, in some situations, is just not possible. I have a master's degree and nearly $40,000 in student loan debt. I have been paying for years and have barely made a dent. The three major jobs I have held since graduation have been primarily public service jobs, creating and providing programs to assist low-income citizens. I think I deserve some kind of break, and so do many others.

Samantha,

I wrote this same letter to President Obama a month ago. I went to law school from 1993-1996 and my $70,000 loan has now ballooned to $170,000 due to job issues over 12-13 years and some untimely factors. Yet we bail out car companies and banks and others who have corruptly made their own trouble while others like myself and you are stuck getting ramrodded by the likes of Sallie Mae. If they want the economy to turn, they need to bailout people with student loans and let them use the new found hope and money to throw back into the system and to jump start the economy. It's a joke in its current state. Thanks for stating what I personally wrote to the Pres in his email site. Of course...no reply as yet.

We must all take responsibility for our actions. You ask "where is your bail out?", we can't possibly bail out everyone who makes bad financial decisions. Eventually someone will be paying for the excesses and it may well be our children and grandchildren. We should be known as the "neediest, self-induldged, whiniest generation"
A culprit you have left out is the Universities that have been raising their costs at double the inflation rate or more for decades. They promote "increased financial aid" as their justification but it leaves many with these onerous student loan debts.

Have you considered contacting your alma mater (Columbia? Barnard? NYU?), and giving them an earful for selling you a good which has, I presume, fallen far short of your income expectations and needs? These same institutions have multi-dollar billion endowments (admittedly impaired over the past year) that should be tapped to provide assistance to alumni who, through no fault of their own, are hard pressed to generate $1,000 a month to service their educational debt.

I understand Samantha's situation- I too went to a private school and graduated with student loan debt. I did not find a career for one year. However, I worked 2 jobs to pay my debt. I found a steady place of employment, and continued to work a second job while working 45-50 hours a week at my primary place of employment. I chose the private school, and with that I chose the struggle- but I chose to work hard and overcome it. 4 years after graduation a lot of hard work, and wedding, and a baby later my $30,000 in student loans- plus my husband's $30,000 will be paid off in 12 months. It can be done- you can choose to struggle now and prosper later- or you can choose to struggle now, whine about the situation, hope someone else will change your situation and struggle for the rest of your life.

People need to stop looking for the easy way out and start working harder. There is no magic wand that will make it go away so stop looking for handouts and take control of your finances and future. Work 2 jobs or 3 if you need to, but don't look for someone to clean up the mess you made- roll up your sleeves and do it yourself!

Finally someone is talking about this! I have around $175,000. I went to a private catholic law school. Of course members of university administration specifically said not to worry that we would all make a lot of money. I cannot even get a job doing this right now. I am really irritated that if I had been one of the homeowners who purchased more than they could afford or ran up my credit card bills buying designer clothing, I could just walk away or go through bankruptcy. With student loans, bankruptcy is not even an option. This kind of situation makes going to school on the same level as buying an expensive purse – a waste of money. I would gladly give back my law degree in exchange for an expungement of that debt.

Your student loan debt burden is your burden to bear and bear alone. You are completely responsible for the loans you CHOSE to take on.

I could not afford college when I graduated high school, so i joined the Army. 6 years later I attended college full time and used my GI Bill, and graduated with no loans or debt.

I made a choice, and you did also. You deserve no "bail-out".

I have no sympathy for those who accumulate excessive student debt. My daughter and I didn't agree on college choices. I put my foot down and told her she could go where I could afford to pay. I told her she didn't have to recognize it at 17 but the day would come when she would understand and in the meantime she'd have to trust me. She went to a state university and graduated without debt.

My position on student aide is the same as a car, house or credit cards. Live within your means and barrow no more than you must. You'll sleep better.

I started college at 25 after being out in the real world for a while. I took a job I disliked, but my employer (a finacial firm) paid for most of my undergrad and masters degrees. Y'all should stop whining – there is risk in everything you do – no one owes you anything in this world – get in touch with real life.

Sorry Samantha – I don't feel your pain – too busy with my own.

While I like the suggestions you've given, as others have said, you made an informed choice. It's your obligation, you accepted it up front, now it's time to accept your responsibility.

It seems so easy lately that so many are saying "poor me – made a bad decision – someone bail me out". Some of us who've made a bad financial decision have also decided to live with the decision rather than stick our neighbors with our problem. By neighbors, I'm talking about the fact it they and their children (tax payers) who you're asking to help you out.

Not much sympathy here, folks. I earned scholarships, got into an Ivy League school, and chose to go to a state school instead, because I didn't want the debt. Because I wanted to live on campus, I decided to work as a Resident Assistant to earn my room and board. I left school with only a small loan that was paid off within two years. People need to be realistic about their ability to pay things back. If you want to be a teach or work for a non-profit, PLEASE take the community college path. Young people in America have a sense of entitlement like no other. I don't disagree that the system is broken and that colleges and universities shouldn't cost so much, but you had the free will to choose how much debt to take on. And as for offering solutions...better financial education in middle and high school. People need to understand debt, credit, banking, investing, and retirement before they are deep in the depths of any of the above.

As a current college student, attending a small private school, this sort of news freaks me out! While I'm not going to be in anywhere near as deep as most of the people posting here (somewhere around $16000-$20000, depending on scholarships and what my mother can afford to help me out with) but I'm already cringing at the prospect of having to pay off those loans. I'm already taking two jobs this summer, just in an attempt to keep it down.

That said, I do not regret my school choice. I'm getting an infinitely better opportunity here than I feel I would have gotten elsewhere.

All I can say to any high school students reading this is to plan WAY ahead, apply early to all of your schools, and apply for every scholarship you can find.

I joined the Army after high school because I didn't want my parents to pay. I got the College fund and the GI Bill. For $1200, I rec'd over $24k while going to school. I also joined the co-op program while in school. I still had about $30k in loans to pay and they were quite a handfull...but I didn't get the new car and new house right after graduation. I paid off the loans and the other things came after.

Student loans have been a low risk deal. Get into debt, but get a better job and pay them off. No one, let alone young students could have foreseen the greater risk that this path would become.

And unlike the banks and the mortgage defaulters, students are not responsible for the collapse of the economy but are now stuck with a cruddy job market.

I do not favor bailing out students, but we should provide them with favorable SHORT TERM repayment options before we have thousands of unemployed students defaulting on their loans.

Well everyone keeps saying you chose to borrow that money, so it's your fault. The reality is that people can buy a home or a car at lower rates. How fair is that? The government is making a profit on student loans, it just does not seem right. I have been paying on my loans for quite some time now. I have paid over $12,000.00 in interest and still owe more than what I borrowed. The interest rates need to be lowered, period. The high interest rates are making it so that even if you graduate and get a decent job, you will be saddled with a huge debt, that you will probably carry to your grave. I really hope that the current administration takes a look at this, and realizes just what is going on, and takes action to change it.

Student loans are no longer dischargeable in any chapter of bankruptcy unless you can prove that repaying the loan creates an undue hardship on you or your family. Prior law allowed their discharge once they had been in pay status for 7 years. The law changed in the fall of 1998.

Proving hardship usually requires showing that you can't provide a minimum standard of living for yourself and your dependents if you have to repay the loan. Some courts will discharge part of the loan on a showing that repaying it all would be a hardship.

Student loans are sometimes unenforceable due to school closures, fraud, etc. Chapter 13 can provide a way to cure defaults on student loans, or to pay them off over the course of the plan.

What we need are debtors' prisons. For Bankers and people who take out loans they can't afford. Why should bad behavior be rewarded with cheap loans. If I commit a crime, I can't use the excuse that I didn't know what I was getting into. So why should people with student loans be rewarded for making bad decisions. If people stopped paying too much with student loans market forces would decrease the cost of schooling.

I'm currently helping my daughter pay off one of her student loans – one that I co-signed for. I wish I could afford to help more. The college financial rep who arranged the loans advised my daughter that there would be nothing to pay until she graduated. What wasn't mentioned is that interest was being accumulated all during her four years of school. Even now that she's graduated, the interest continues to accumulate each month on the unpaid balance. This is true of all her loans. What a racket. She now works for a non-profit, doing work that most of us would never choose to do, and is definitely underpaid. She did not go to a private school, but the state schools in NY can easily run $15,000/year for tuitition, room and board and fees.

Even when you do make enough money to pay back your student loans the loan companies make it terribly complicated just to pay on the principal. They make convoluted rules and processes, making you jump through hoops just to pay down the principal. Normally I am not interested in government oversite but these predatory companies make a fortune off us and nothing is ever written about it. Thank you for taking the time to make light of this important issue

I too have student loans as does my wife. You can choose to pay them off over a longer period if you have to. Plus you choose how much to borrow. College shouldn't be free otherwise we'd all have PHDs in basketball.

You could have chosen a public school. You also could have chosen to go part time while working to cut down on the debt.

I agree.

Sorry, I have no sympathy. I went to a private college while working a part-time job and a work-study job. My student loan was manageable. I lived below my means in order to save for the 20% downpayment and closing costs on my home. We as a country need to stop wanting instant gratification and learn once again the meaning of hard work and responsibility.

I too have a large sum of student loans from attending law school. I went to a state school but still have a large amount of loans. I am finally making a wage-after graduating almost 9 years ago-where my student loans are affordable. However, I struggled for many years to make my payments at low wages (many attorney's make much less than people realize) even with the loans consolidated for 30 years. I am not asking anyone to forgive my loans but I am a strong believer in incentives. I have paid on time for fours years so I got a 1% reduction on my 8% interest rate. There should be more incentives. Also, my husbands student loans are at a much lower rate-just due to the luck of when we each graduated and consolidated. That needs to change so we can re-consoliate anytime rates go down-like homeowners!

I am frustrated with people commenting about a "bail out" for Sam. The same wagging finger towards Wall Street should be made applicable for Sam's own management of her personal finances. My sympathy for you basically ended at "Well, I made a lot of mistakes when signing up for my loans, but I was uneducated on the process and on the repayment and now I’m stuck."

I think it's time Americans started paying attention to the price tag. Before you get a private school education for for hundreds of thousands of dollars, how about taking a basic class at a community college on basic finances! You'll thank yourself later!

At least you are getting the work out about making bad decisions... but why should we feel sorry for you? You should have thought about that before you chose your school and profession. I have a whopping 3k$ in student loans. I went to a public university in a small inexpensive city, worked through school, and studied in a field where I knew I could make money. Of course a public university in the midwest wasn't my first choice, neither was engineering, but life isn't fair.

I'm amazed at how many people can compare taking out student loans with buying a house you can't afford. from the day you start going to school, your are told that your goal is to get to college. you're told from parents, teachers, and peers that higher education is the best path toward a good, stable, career. because of this environment, tuition has skyrocketed. i graduated from a public state school, and the level of debt is still high! education is supposedly something that everyone in our country has an opportunity for, yet we saddle our graduates with thousands of dollars in debt to start their adult lives. i don't think you can compare this to people buying outside their means , when education in general has become so unaffordable and class restrictive.

Agreed- the rest of the world is apparently passing us in the education of their population but we insist in putting up barriers and making it as onerous as possible to obtain a quality education. Instead we are having to give visas to "knowledge" and tech workers because we are not educating enough of them. Does anyone else see the anamoly here?

We can bailout millionaire bankers and insurance CEO’s, let these fat cats keep their 12 million dollar bonus; but let a working class collage student ask for the same interest rates on their loans and the conservative rabble wants them sent to prison!

Two weeks ago a contract with a Wall Street broker was a holy bond that could not be broken; but an auto workers contract – NO PROBLEM – tear ‘um up – they don’t deserve a living wage!

Double standard for the middle class vs. the idle rich!

I think it's pretty sad that student loan debt is pretty much the only sector that doesn't get any help. People can buy homes/cars they know they can't afford, file for bankruptcy and be done. Not so much for the folks who owe student loans. Auto and Banking industries can wreck the country and get bail outs. Why not student loans?

I am in the same boat. However, I'm at about $130,000. I have researched extensively for more information to help me but there is not much out there. I got no help from the gov. Just because my parents live in a wealthy zip code and make a certain amount does not mean they are going to help me or can afford to help me pay for school. Currently I make $15/hr and get paid for an avg. of 40 hrs a week. My student loans take up more than 1/2 of my take home. It is absurd.

Finally, someone has identified a huge problem in the way our system works. We always hear about predatory lenders and their tactics, but we never consider the fact that the education system essentially does the same thing.
Why are schools charging $50,000 for a Masters in Public Health, for example. Most public health jobs don't pay more than $40,000 a year. Why are the costs for undergraduate educations escalating to similar levels? A lot of jobs now require graduate level degrees. If colleges -even the public ones – are going to continue charging tens of thousands of dollars for an education, then their tax statuses should change.
These schools and loan programs are taking advantage of young people who have probably never been exposed to credit and personal debt at the age of 17 or 18 when they graduate high school. Education has become big business now and colleges and lenders are selling people on a debt-filled future. That's predatory in my book.

Everyone wants a bailout. We've become a society where nobody takes responisibility for their actions and decisions. The worst and first excuse everyone uses is "I didn't know what I was doing at the time."

Everyone has dreams of leaving school and immediatly rising to the top of their field, with no experience. Starting out at the bottom sucks, but it doesn't last for ever. Looking down the road that burden will ease up, and it won't seem so daunting. At least you took the smoothest route, by pursuing and getting the education.

Where is the bailout for the person who couldn't afford the college education, with loans or not? Who'll never see the riches that lie in your future, because you did? Are you going to wake-up one day and give your money to them, because "They didn't know what they were doing" at the time? I doubt it.

The amount of venom being spewed by people on this subject is disgusting. How can you possibly compare an 18 year old who is just starting college to adults buying homes they couldnt afford? How many high school kids really understand what signing on the dotted line of their student loans means for them? Not many, I guarantee you.

As for the public vs private school debate, why should someone who has the academic chops to cut it in a Ivy League school take several steps down and go to a public university that anyone can attend? Sounds like you think only those with wealthy families should reap the benefits of academic hard work in high school and those who werent born with silver spoons should just stay 'in their societal place'. Shouldnt those students have the chance to better themselves?

I owe about 40k in student loans and, while I make enough to afford the payments of my consolidated federal loans, the private ones are on hardship forbearance because I dont make nearly enough to pay them. I would have to stop paying my mortgage in order to make those payments, and even then, it would barely be enough.

If the government can bailout failing companies who KNEW the consequences of their actions, then they can certainly take steps to assist those who are the future of this country, those who would stimulate the economy if only they werent charged ridiculous interest rates on their student loans and not given any options by private lenders. The private lenders are no different from the credit card companies in terms of being predatory to college students.

I shook the devil's hand twice, my wife and I have just short of $100,000 in student debt for our undergrad and graduate degrees. It’s a long miserable burden for sure, but it beats menial work and the wages that go with it. I’ve been enriched personally by college in ways that are hard to describe and it was worth what I paid. That being said, I’m also self-serving and would support any candidate who offered me debt forgiveness. I don’t deserve debt forgiveness, but “deserve” is a quaint notion that has no place in wealth management. If I had my loans forgiven, I’d move to a better neighborhood, trade in my Echo and make some retail purchases. So if you need to rationalize it as an economic stimulus, go right ahead.

Y'all should stop giving people grief about taking out large student loands. I could have drank, drugged, gambled, and bought a fancy car and got into debt, but instead I took out a student loan and lived on Ramen noodles for 4 years. Thanks to my education, I have a decent job and when my loan is paid off in 10 years I can upgrade to regular spaghetti. My situation would be much better if I was able to make what my education is worth in this economy but if I didn't have such a large loan my future would look much brighter.

I really hope Jesse Jackson's plan works out. I'd like to be able to support a family on my income, but I'm not going to be able to think about having kids until my financial situation is better. Of course, I can go and be irresponsible and hope someone else pays for them...

I am truly sorry that you are in this situation. However, having said that...I'm getting a bit tired of hearing how those who made bad decisions (either through being uneducated or naive) are expecting to be bailed out. I bought a house that I could afford on one income (knowing full well that my wife wanted to stay home once we had kids), I purchased a car that did not eat into my monthly income, I went to a college that I could afford, read the student loan provisions, and faithfully paid off the debt. If anything, these constant bailouts and debt forgiveness schemes are simply rewarding those who were either to quick or too uninformed to make the right decision. Home ownership is not a right, credit cards are not a right, and college is not a right. I know that you and those in your situation will likely disagree with me on this and that is your right. However, please don't expect me to stand idly by and watch my tax dollars go to you for making a bad decision....

Great work Samantha. The Student Loan situation has been a mess for 20 yrs. Like the president mentioned. 30 years ago, students received 30% of their funding via loans and 70% via grants. It has now flipped with 70% coming from loans and just 30% via grants. But don't feel bad. I served in the USMC during a period where the old GI Bill expired prior to a new one. I received NOTHING from my honorable service in the Corps. Until this country makes education truly affordable, we likely will nver compete with nations such as India, China, and many Eastern block countries where the educational costs are near free.

Way to go Samantha! I hear ya! I have a job, but I also have $45K in school loans. All of them are Federal, so it's good (for me) to hear about the new program that's about to start. I'm going to have to check into that! The $450/mo is killing me, on top of Mortgage, Car payment, Insurance, etc.
President Obama is so into getting everyone educated. Sure they have a plan to help all of us that have already taken that first step.
Keep up the good work! Good luck to you!

I have over 64000 in student loans but most of it was because my parents "made to much" for me to qualify for Pell Grants or even Subsidized loans. BUt the problem was they were still paying off my older sister's loans from when she dropped out after they cosigned on her college loans. Yeah my dad makes a decent salary but he has a morgage, car payments, and other loans to pay so how was he going to help me. I teach school so I'm not in a crappy paying field but its not enough for me to cover all my expences esp if I want to pay principle on my loans. And I when to a public college and it cost as much as a private college I looked at. When AL cut funds to all the colleges my tuition went up. That wasn't my fault but I have to pay for it over the next few decades. I want a house but cant get one becasue I can't save because I have to pay loans. But if I could save I could buy a house and have LOWER morgage payments than rent. I can't move in w/ fmaily because I can't get a job where they are to save money. It's a nasty cycle and a lot of us are in it. I don't expect to get bailed out but it would be nice for a little help.

I had a federal and private loan. The bank wouldn't do a consollidation for me either becaue I didn't have the minimum amout. I did a federal consollidation loan and it went through in about 6 weeks. Check it out. For me it saved about $50 but mine are only $30,000. Best of luck

Why should your economic choices be someone else's burden? The argument that the country is throwing away money to help other bad loans and should accordingly throw some away to solve your personal problem is weak.

As a nation we must learn to live within our means. This applies to the full range of economic choices. If the individual is protected from his or her bad decisions, when will the individual learn to make good decisions?

If you want to attend an expensive school, then you must either enter with the means to pay the tuition or acquire the means to pay the loans after graduation. Why should the government further underwrite the cost of college education when it gets such a poor return on its dollar? Research the percentage of Pell Grant recipients that actually graduate.

I earned a Ph.D. at state universities and used work plus graduate research stipends to pay my tuition. It is a novel idea, but maybe others should try it.

THANK YOU! I am 50 yrs old, started college late, and STILL have student loan problems. We all borrowed thinking that wages would rise and we would all be successful and make enough to pay back these loans without big problems. WRONG! I am so strapepd myself I cannot help my own kids through college and now THEY are beginning their lives with debt.

My un-educated friends are doing much better than I am, and I have a hard time encourageing young people to take on college knowing what they will face after graduation: huge debt and a low paying job–and that's assuming they can find one!

Why would anyone accept the President's challenge to get more education when all it will do is come 'round to bite you in the butt later!?

I know exactly how you feel. I come from a middle class family, so I didn't qualify for any financial aid even though my parents didn't make enough to pay for my college tuition. I took out loans as an undergraduate and graduate student because that was the only way I could pay for school. Even though I worked during school to pay my rent and living expenses, I still needed loans to pay for my classes and books (which are costing more and more these days thanks to the evil, money hungry publishers). I'm now obtaining my secondary teaching license (because there aren't any jobs available in journalism, the subject I got my bachelor's and master's degrees in). I consistently get threats in the mail from my lender even though I'm enrolled as a full-time student and they are required to defer my loan while I'm in school. And while they're threatening me, I'm racking up that pesky interest which I've barely made a dent in thus far.

My biggest fear is that I'll never be able to buy a house because I will be too busy paying off my student loans. I've worked hard up until this point, but it basically feels like everything I've worked for will go down the drain once I begin teaching and have to give up a good chunk of my salary to what it cost me to get educated.

My friends in the U.K. pay a modest tuition at their universities, and they never have to buy books. They also have a great deal of time to pay back their loans and aren't required to do so until they've obtained a job with a decent income. Why isn't the U.S. more like this?

For all of the people on here criticizing us students who aren't settling for a cheapy community college or saving up money for years to go to school, I ask you to look around and see what these conditions are doing to your country. Less and less people will be motivated to get educated with financial conditions like these, and we will soon slip far behind all of the other major countries in terms of intellect and industry. Some of us need to borrow money just to get a decent education, and there is certainly nothing wrong with that.

I have to completely disagree here. I went to an in state school and was lucky enough to have my parents pay for college. I still WORKED through college and paid for books, food, and rent. I had a small loan the first year and paid that back quickly.

My wife lived at home and went to an instate school, and worked 40 hours a week while becoming a TEACHER (very underpaid, under appreciated profession) yet still managed to save enough to pay for our honeymoon and a down payment of 10% on a modest affordable house.

People make choices and have to live with them. I am so tired of this entitlement mentality in this country that we DESERVE things. People, this is AMERICA, where we EARNED our freedom, where we EARN the american dream, no one handed it to us. Too many people have too much stuff (new cars when they have paid for ones, leasing cars so they can be IN, bigger homes then they can afford).

While I agree the costs of an education are enormous, everyone here is kidding themselves if they think democrats or republicans will actually do anything about it. Just look at our dismal school systems. This isn't a priority now and never has been and they just give lip service for votes.

Work hard, work SMART, and make better decisions america!

To all the people who say "you live beyond your means":

Actually, we are not living beyond our means. We are getting educated to have a better salary in the future than at present. The average private school tuition is 30K per year. Most students pay less than that due to scholarship and parents carry some of that burden. So its still a deal. But consider most employers require a college degree for even basic employment in a career.

I have 30K in loans, 10K from interest accumulated while I got my M.S. and PhD. I am in the same boat as Sam, though. Having my degrees will benefit me in the long term. But in the short term, with starting salary's so low, and health care rapidly increasing, its hard to justify an advanced degree, let alone a degree.
Would rather we not get a good high quality education? Answer yes, and you are asking us to be a burden on you in 30-40 years when we are unemployable, seeking welfare and food stamps because we chose not to be educated.

Turn it around: what about the people who wisely say we cant afford an education? They wont ever get a high paying, good benefits job. their offspring will also suffer the same fate. They will be who our tax dollars support in the future.

The question is: How do we educate people and not saddle them in so much debt as to make education unaffordable?

Thank you for this article. I am 56 and went back to school a few years ago to get my masters and am ABD on my doctorate. (not a private school) Student loans were the only option available to me for an advanced degree and at the time I was making enough of a salary that repaying the loans was not a concern. I needed the degrees for career advancement.

Needless to say in the downturn the corporation closed my department. I have not yet been successful with a job search and am now in a catch 22 situation.

In a nation that values and promotes education I have to agree that if we are willing to bail out corporations we need to bail out our citizens as well. I am not opposed to national service or similar program for forgiveness of a portion of my loans nor am I opposed to accepting responsibility for the debt. I need an opportunity to use my skills to do just that.

Way to Sam. This topic is not nearly discussed as much as it should. I graduated 8 years ago and I am sitting on about 85K of student loans. Many people may criticize the choice of going to a more expensive school, but I was much like you as many (18 year old students are) and very uneducated about the student loan process. Hindsight is 20/20. The is a little hope though with the College Cost Reduction and Access Act of 2007. There is more information at http://www.finaid.org/loans/publicservice.phtml Its not just capping payments but possible loan forgiveness after a given period of time and service in various areas of public service. Not for everyone but it could help.

Hi,

I'm sorry at first I did sympathize with you, I graduated college from a private school and currently have $149,000 in student loan debt, my payments are $1502 a month and because of it I'm always broke but when it comes down to it, I chose to stay at private school and fully accept the consequences. I will have paid them off when I'm 39 years old, Im currently 24 years old. It was your choice to stay at an expensive school and while you cannot be responsible for the economic downturn and the salaries your field pays you, you should have known a job in TV is not going to pay you $40,000 or $50,000 a year like a finance career would coming out of college. Because of that you should have chosen a state school or community college into a private school for 2 years. I agree with you, I had no idea what I was signing when I was 17 years old and applying for loans. I also have a 15 year repayment window. While I do agree it would be nice if they lowered the rate to 1% as my interest payments are about $600 – $700 a month, I don't expect it. This is america, the little guy always gets screwed. The reason I have these loans is because the government said my family made to much money to qualify for federal loans except my families a middle class family from the north east where living expenses are much higher than elsewhere. Oh well like they say s*** happens, you just gotta deal with it.

I don't mean for this to sound mean as I feel for your situation as I'm in the exact same one, I just accepted the fact I chose this for myself and in reality I'd pay double for the memories I got from that school.

-Mike – NYC

You actually can consolidate your federal loans with Direct Loans if your lender does not offer consolidation programs. http://loanconsolidation.ed.gov/

As a Financial Aid Counselor, I like Jackson's proposal but do not like the idea of schools NOT being held accountable. That would be a big mistake. Schools must be held accountable for educating their students on loans and repayment – and a high default rate is an indicator that schools are not doing a very good job of this. As you said yourself, you were uneducated about loans while in school and if you had been counseled by someone in your school, you may have made different decisions. Borrowing is not a one-sided responsibility – schools, lenders and borrowers all have a role to play with respect to social responsiblity.

I believe that we will see a bigger crisis in the student loan industry and it will shake things up in a big way. I'm surprised that it is not a bigger topic in economic discussions but regardless, we can expect that it will have a large impact in the very near future.

Like Samantha, I owe over $100,000 in student loans as a result of going to a private medical school. I currently owe more in student loans than I do on my mortgage. But I knew going into medical school what my debt was going to be and I have prepared properly to pay for it. I guess its not fair to pick on people who chose to go into careers that pay less, but you need to decide early on whether your education is worth what your paying. If you are collecting $125,000 in debt for an education, that education better get you a job that can help you pay off your debt. If not, then your education was a bad investment.

as i'm sure you are all aware, every situation is different. for those who preach about "working through school" and "living at home" to curb the costly investment, you should know that these are not the simple answers for everyone. i couldn't live at home, since there was no school within driving distance, and my home life didn't beg extension. second, i went to a state school (as cheap as any other) and worked through my entire collegiate experience. however, there was still no way i could afford living costs, tuition, books, food and other necessities. i never traveled, never lived out of my means, yet i couldn't have come close to paying for my education alone. no grants or scholarships came my way, so it was loans or bust. my point being, don't slap the righteous "i did it, so should you" brush around my friends. it ain't like that for everyone. some have no other choice.

I can completely relate to this article. I attended small, private university close to my home. It was the best experience of my life-I was a foreign exchange student and lived in France. I never would have had this opportunity otherwise. I came from a poor household with a single mother. I remember signing all the loan papers every year and just thinking "I'll worry about it later." Well, I graduated in 95 and the loans payments began. I did the graduated schedule for 4 years because I couldn't find a job in the depressed area of FL that I live in. I drove a crap car and didn't have anything to my name. Over the years I got better jobs and paying the loans was my top priority. I ended up paying over $30K back in 9 years. I feel so bad for these kids today. College tuitions are out of control and the jobs just are not there.

With the cost of attending college rising 325%+ since 1980, I feel schools are exploiting the students and families. You hear everyone complain when taxes increase 15% in 4 years, costing you a few hundred dollars, so you imagine what it's like to have tuition nearly double during you 4 years at college, costing you several thousand dollars.

I, like most students, am more than willing to repay my loans, but the banks are not willing to work with the students. Offer a structuring program for students similar to the one the home owners received. Allow them to renegotiate the contact and make the repayment of the loans reasonable. I've worked in the student loan industry. A $40,000 loan at a 14% variable interest rate is not reasonable! How do you expect students to have good credit at 20 years old? How do you expect anyone to repay that loan (not to mention all of their other loans) making only $30,000-$40,000 after graduation?

Fortunately I can afford my money payment at the moment, but there are millions of students who cannot. That is a problem as big as the housing crisis.

College is unafforable – period. Even state schools are out of reach for many kids, unless their parents are willing to mortgage the home to pay for college. My hat is off to students who are willing to assume the cost of their college education. I know – I have two in college – at a state school, and we are sharing the tuition burden with them. If individuals are willing to invest in themselves, stay out of trouble (you lose financial aid for a drug infraction), and work hard to become productive citizens, why is the government punishing them with high interest rates? Doesn't that ultimately hurt the rest of the economy? The doors of education should be open to all – that's what makes a democracy. No one should be penalized for working hard to better themselves, and in the process better this country.

Samantha,

I feel for you I'll be graduating from Law school this May with extremely high Undergraduate and Law school debt- it surpasses your debt by about 185K I went to an excellent private undergraduate college and sometimes I do regret it was so expensive but I feel the education I got there was better then anywhere else for my major. I think part of the problem is 18 year college students aren't educated in finances and most parents aren't either – When I signed on the dotted line I was sure I'd be able to pay off my debt, and then I accrued more debt by going to law school- I'll be lucky to get a starting salary of $50,000.00 in this economy and I definitely wont be able to afford rent or food...I think my student loan payments are going to be roughly $2000.00/month There needs to be more done for this situation, education shouldn't be a privilege- it should be a right, if you're smart enough, have the SAT scores and grades to get into a good school then finances shouldn't get in your way – It's unfortunate that our country has become so greedy as to charge people extraordinary sums for something like education. I also think the student loan companies like Sallie Mae and Nelnet should be fined for their predatory lending practices, as I said someone at 18 has no idea the responsibility they are taking on, there needs to be forgiveness for these loans – that would free up more money and help stimulate the economy rather then this stagnate mess we're in now.

"I understand the choice to choose a more prestigious school if a person chooses to become a doctor or lawyer but unless that person has unlimited wealth available to them, the choice to take on six figure loans is all on them."

So I guess the message is that we should let the rich people with doctor and lawyer parents be the only ones able to handle becoming doctors and lawyers? Don't bother achieving unless you think you'll get lucky. Just get by. Because your future and education should be a gamble.

This whole push isn't to remove all student loan debt on the entire population, it's to reduce the interest on it so that graduates can pay back their money at a level equal to that of the formerly rich banks that have way more money than the average college graduate (who just happens to make up a good amount of the middle class). That way we are STILL paying interest on our educations but not at some inflated and unfair level. We are supposed to provide incentives to be educated aren't we?

The real problem is the cost of college. By any measure, it is out of line compared to when I went in the late 70's. You can budget carefully, go to a community college, transfer to state college, it doesn't matter. A state college in Washington State will cost you about $18,000 a year (not including books & incidentals). My oldest daughter goes to a private college and pays less. It is a racket and a monopoly, just like health care. What are you going to do...not go? They have you by the short hairs.

President Obama had many students working on his campaign. My son was one of them. Believe me, Obama is very aware of the student loan crisis, and is committed to improving it. Remember, Congress passes the bills so we have to get Republicans and Democrats to be on board.

Also, for those who blame the students for getting into debt, this issue is not their fault. When I went to college, I got federal loans at low interest, and the tuition at the private college I went to was 1/15 of what it is twenty-five years later. Most students have to get private loans, which are much less fair and forgiving...that is, IF they can even qualify.

This crisis is upon us because private lenders took over the student loan business, and charged much higher interest. Also, there were deals struck with universities and lenders which allowed "incentives" for having loans approved for students.

The real question becomes, why is it so incredibly expensive to go to college?

I agree, student loans should be dischargeable in Bankruptcy Court. This law is from the Bush administration and the Republicans – they are responsible for doing that. It used to be that you could discharge them and this needs to be reinstated and soon.

In the Scandinavian countries, college is paid for. A student can choose the career of their dreams and not have to worry about re-paying thousands and thousands of dollars after graduation, all while starting a career, possibly a family and trying to live a good life. America does not treat its citizens well at all.

I am in the same position as Samantha. I chose to go to a private Christian university, went back for my Masters degree, and now I'm a teacher. I have a very large amount of student loan debt hanging over my head, and it's hard to make ends meet each month in my chosen career. I understand the frustrations of those who chose to go to a public school and worked hard to be debt-free. I am fully prepared to pay off my debt like a big girl, no matter how long it takes. However, your stories don't help those of us who have already made our decisions and are stuck with them. I, like Samantha, was uneducated about the financial burden that came with a college education. I took out loans as needed because even with scholarships and a part-time job, I couldn't come close to paying my way alone. I do not in any way regret my choice of college or my very rewarding yet low-paying career, but I do wish I had been given some better advice regarding my finances when I was first getting started. I don't expect the government to bail me out of my student debt, but I am interested to see how they will make some positive changes in the way student loans are handled in our country. Good luck to everyone! As depressing at it is to be in debt, it's nice to know that I am not alone!

I totally understand your situation as I have been through same thing, I go to private college too and first two years i spend in private college it was not even accreditted meaning other colleges won't even consider me continuing from there I had to start from scratch in state school or community college, in that case I ended up going to another private university which took my credits and i got stuck with more student loans.

Education in the US, is encouraged, but at what cost? College is almost expected for all high school students, but the tuition is extremely high at some universities. Loans when provided, are usually at high interest rates, and are expected to be paid off soon after the student graduates.
What really annoys me, is the US is more interested in college for illegal aliens, then our own citizens. There is a representative out in either Illinois, or Indiana, that put a bill up for vote, to give illegal aliens free college education. Are you kidding me! Luckily, he was voted down.
Our great governor of New Jersey is proposing that the illegal aliens be allowed to go to college, and drive a car. Why is the governor so interested in illegal aliens, when our children are struggling to pay for college?
This country has a weird fixation for helping anyone that is not a citizen, or outside the country.

There are numerous problems with the student loan program. First of all the process for "hardship" cases does not work. In all the years of the law being in place not one individual has received an approval for a hardship forbeyance. The main reason for that is that the Judges are paid for by the same Department of Education. The DoE would lose out if they did so. Again not one individual has ever been given leniency regarding student loans and that includes dying student loan holders. Student loans cannot be disposed in bankruptcy court although all other sorts of loans, private and government, can. The law was put in place because of the myth that students were going bankrupt on student loans at an alarming rate. The fact is the rate of student loan's disposed of bakruptcy was three times as lower than the national average for all bankruptcies in general in the seventies. The lesson, of course, is that don't ever take any money from the Federal government. Unlike a loan shark, they can actually get you fired, take your house and every penny you earn for the rest of your life. The answer is to reduce the influence of banks in this process. Some degrees are obviously not going to be able to paid off with the degrees people get. There should be no interest rate charged at all for student loans, they should be able to make a small amount for administrative billing and fees but most of their money should come from building a good relationship with strong and financially capable individuals down the road. "Guaranteed" does not mean that the bank is "Guaranteed" a return but rather the student should be "Guaranteed" able to afford to go to college. But Washington lobbyists have perverted the whole system. Repayment should based on a percentage of yearly income for a period of time, let's say ten years.

Why did you choose such an expensive college to go to? I do not feel sorry for you because you cannot repay your student loan. You borrowed the money and ignorance of the loan is no excuse. If student loans did not exist I bet the tuition at your fancy college would not have been so high. We have a lot of people with four year degrees that seem to be underemployed once they get out of school. Your student loan payment is as much or more than a house payment Unless you can make a six figure income I would say you are going to have to grin and bear your student loan consequences.

I would just like to point something out to the people who are saying that it is your own fault for being in debt. When most people choose their college, they are 17 years old. I do not know very many 17 year olds with financial smarts, or the ability to see the future of the nation's economy. I graduated from a private college. However I spent my first two years at a state college. I already knew what I wanted to major in, and I chose the state college first knowing that to live on campus it was more economical than a private school. However in my field I chose, it became clear that you were not getting hired unless you had a dual certification. Unfortunately none of the state schools offered the second certification. So after 2 years I transferred to a private school but lived at home. After a Bachelors and a Masters degree I am roughly $50,000 in debt. Luckily I have a job right now that I can pay these loans back. At least for now. However I am trying to consolidate the loans from both degrees and nobody will, so I am stuck paying more than I could be right now.

My choice to attend a private school was so that I could become dually certified, which is the only reason I have my job right now. If I had stayed at the public school I can almost guarantee I wouldn't have a job, as none of the people I know who stayed do. So what would you have suggested I do? Change my major and go into a career I wasn't passionate about? Or make myself unemployable because I lacked certifications. People want to do what makes them happy in life, and those educations aren't always offered at state schools.

Anyone who acts as if, in the past fifteen, twenty years, there hasn't been a societal mandate to go to college, that every teenager is told if they even want a job–this to 16, 17 year-old kids–then they have to go to college, that there isn't a million-ton weight on kids to get into schools, no matter what the cost, all with the promise that life will be livable after you get out, is a stinking liar.

Of course it was her choice. And she's owning up to it, she's not ducking her payments. What she's advocating is a sane, fair, rational student loan situation. I'm so sick of all these Social Darwinist types acting like an 18-year-old kid has the experience in life to understand what $100K in debt means. I think it's awesome if you have the resources–money, family, community, etc.–to get out school without debt, but for most American's that's not the case, and now these loans are killing people.

More than anything we need to make public higher education free. It'll boost our economy and our nation in the long run, and make us again the most competitive nation on the planet. The cost can easily be offset with mandatory volunteer programs and "work study" that extends beyond the college mail room. But in the mean time, thank you Rep. Jackson for doing the right thing for American student loan holders.

I was never looking for a handout to pay my student loan. I get my wages garnished over $350.00 a month for a $30.000 student loan that has about $10,000.00 in collection fees. I fell behind after our interest rate went up on our home and almost lost it to forclosure. But my wife and I saved out home but cutting back. But when that was said and done my student loan went into default.

I tried to work with them but it was never enough and now they take $350.00 a month, there is our recession. Instead of paying for new home improvment projects or buying a new car I am paying for a student loan that never had to go to collections in the first place. I am responsible and know I need to pay it back.

You can have kids without a father and the goverment will pay for your food and housing. You can be the father of your girlfriends children and walk away because this system will pay for your kids to get medical and food to eat. But if you try to do better for yourself and family and make a mistake you have to pay the bill and are told your stupid for making those choices.

You can ride a motorcycle without insurance and when you get in an accident the system pays for your medical and disability for the rest or you life. So don't say that system should'nt help with the education of every hard working American who pays there taxes.

I say Yes! to Bailout of all student loans!

My husband and I had over $200,000 for our graduate degrees. It's costing us over $1,500 a month to pay for it. And we don't begrudge it one bit. WHY? Because my husband will always have a job because of his education. Yes it's expensive. Yes I wish we didn't have to pay it. But, WE took the loans out and WE will repay them. It's no one's responsibility but ours.

I don't buy the whole "I didn't understand the cost of the bebt" argument. We were required to go to numerous classes on the cost of education to get our loans for both of our degrees. We knew the costs associated for our education. Gratefully, after careful consideration we decided that the education my husband received would be worth the investment made.

We joke about our loans being the equivalent of paying for a small house in the Mid West that we will never live in. So be it. I wouldn't trade our debt for the world.

I have been out of school for 6 years now and have made a little progress toward paying of my student loans, but since there's a forum here, I've got something to say:
I think it's ridiculous that there is a required EXIT interview, to explain your financial responsibility before you graduate, but no preloan interview to explain what you're getting yourself into... Someone up there made a comment about how you knew what your school cost, what your loans would be, likely starting salaries, etc. This is not always true. I expected to be making $10K – $15K more when I got out of school, but the reality was much different than I had been led to believe. Also, the schools print materials in such a way that you hardly look at each amount printed – they focus on the bottom line – how much will you owe "out of pocket?" That amount was affordable to me and my family. The loans were just a line-item, at the time. When I saw the total at that exit interview, I was truly shocked. Was it my fault for not being informed... yes, it probably was, but it really feels like my school wanted me to be kept in the dark... At 18 years old, I wasn't looking for "the catch." I learned that by signing up for all those freebies from the credit card companies that advertised on the quad...

In the same boat and facing the same situation here. Regardless of how myself and any others ended up like this the reality is we are in the same reality as the rest of the nation and the economy as a whole. I think there needs to be a stimulus for those seeking education and some one needs to figure out how to get this done! I can't afford a house so I won't qualify for the stimulus there but I can't get a bailout either because I only have education loans???? Does not make sense!!!

Three Pieces of Advice
(Help the Now) Advice 1 – Allow school loans back into the bankruptcy for folks who need to file. If not there is an unfair advantage banks have. They can take all their debts into bankruptcy and we cannot.

(Help the future) Advice 2 – Give Freshmen REAL advice. I know it was tough for me to understand how much i would really ow. They just tell you to sign and you need to go to school so you sign. Ignorance is not an excuse but we need to educate 18 year-olds on the ramifications of the loans.

(In the meantime) Advice 3 – Suck it up and get another job. There is nothing else to do. I have an MBA and 2 jobs. For now you have to rely on yourself and if you do make the sacrifice of paying the loans down first and fast then you will benefit in the future. Yes i have $30K in school loans but $200 a month and have refinanced a couple of times. My loans will not be paid off until I am almost ready for retirement but because of that I have NOT moved forward with a Doctorate education.

I totally sympathize. I just graduated in December with $50,000 in debt and zero real job prospects. I have a $450 a month payment I just had to put into forebearance. This was at a state run school with a tuition discount because my father works for them. Completely ridiculous that education costs have ballooned so much, especially when the poor and middle class wages have stagnated since Regan was in office in 1980. Check out how much it costs to go to school in European countries that take care of their citizens before corporations.

The reality is that going to a community college is simply a waste of money and greatly limits your available degree options. Employers are well aware of the difference in quality between community college and university students. Who do you think will make the better salary? The Purdue grad with the engineering degree or the Ivy Tech grad with an .... oh, wait, you can't get an engineering degree at most community colleges.

To me the real problem is the variable interest private loans. I did not want a freebee from the federal government. But anyone who wants to loan money to go to college should be able to lend it from the government at fixed interest rate, or an interest rate tied to inflation. My parents made less than 70,000 dollars combined, yet accorrding the the goverment they were supposed to pay for the vast majority of my college education. Thats a disgrace, a family making 70,000 should qualify for 100% of the cost of education in loans from the federal government. Instead I was paying 8 to 9 percent interest on the private loans I had to take out. Sallie Mae should not even exist! Nobody should be making a profit off of college education in this country as it is that education that leads to prosperity.

I think the real problem is the weathly in this country still think it should be like the 1800's where only the weathly were able to go to college!

I completely agree with the author. My family was/is firmly middle class, my one parent is a bank teller, the other a teacher. Yet, I qualified for almost no financial aid. Despite going to one of the cheapest Universities in the state I still left college saddled with 18,000 in debt. This is after I managed to take only the minimum loans offered to me.
My family and I carefully saved for my education and most of it was thankfully paid for, but that 18,000 left over is still a huge amount to me as a new teacher. My state is inundated with new teachers, leading to me having to fight for a job at a low paying district. I worked 30 hours a week while I was in college to help pay for my schooling but still, there were bills that required taking out loans.
The author should not be reprimanded for choosing to go to a private school. Teaching in a high school now, I am able to see how little information students are given on what they are getting themselves into financially. After having dealt with lenders for 7 years now, I can still barely understand the rules and regulations that go along with student loans. How can we possibly expect kids fresh out of high school to understand what they are getting into?

Thank you Samantha! Well said, and needed to be said!

I'm sorry, but, two wrongs don't make a right. Bailing out companies who made bad choices isn't made right by bailing out students who decided to get an education they couldn't afford.

I'm sure there are plenty of people who majored in what she majored in at colleges that didn't cost so much who now have jobs. Granted they probably don't have places at CNN...but I'm betting if they started out at a less prestigious job and worked their butts off they could eventually get a position at CNN and be debt free too. This sounds like a case of "I deserve to go to this really pricey school because I deserve a position at a high profile company". When in reality no one "deserves" anything right away.

If you have the money for it then great, go to your expensive school and get that high profile job...more power to ya. But if you don't have the money you have to accept that you might have to work a little harder to get your dream. You might have to live with your parents a few years and save up money for school, you might have to work more hours during the school year to help pay for costs or you might just have to go to a less expensive school and work your way to your dream job.

I can understand the Hillstrom's dilemma but I can also understand the opposite view. If she chose the private school and knew how much it costs, why didn't she plan for a worse-case scenario?

It's tough out there. There is no doubt about it.

What I do agree with is the student loans should be affordable and financial institutions should be required to work with the client especially in this financial quagmire.

We come back to the affordability issue. Education is not a privilege but should be a right regardless of income level. What this shows is that unless you are independently wealthy or have sufficient means, it's extremely difficult if not impossible to go to a private school if you have less than stellar grades. (not implying that Hillstrom has anything but)

I'm just hoping our leaders know what they are doing and have themselves planned for the worse-case scenario.

With current plan to pay for all of bailouts is to tax the rich then we better be creating a whole lot more rich. The current funding of education is insuring that we are dumbing down America everyone is working at a fast food place. It is totally unfair to leave young people with a huge national debt with out the tools to pay it off.
We could start by allowing for full tax credit for the cost of higher education. This way we can create the needed high tax bracket people.

Sam,
Perhaps you could do better on the speaking circuit, traveling the country, speaking to current college students about the aftermath of living beyond their means and attending schools beyond their means. Many are just like you, going to school and never realizing that the time must come when you pay the piper. There is no free lunch, or free education.

School loans are a huge problem. One problem I had with mine was that the loan kept getting sold to other places and every time the loan was sold, the interest owed became part of the principle! Half the time I didn't even know WHO had my loan! And I believe there was only maybe 4 companies that kept selling my loan back and forth among themselves! Quite a racket these lenders have going, I tell you.

Sam – I feel your pain!

But what really bugs me is that no one is looking at the colleges and universities that get away with these outrageous tuition costs! I mean, how it is possible that these private colleges can charge $40,000 or more a year and continue to raise costs, and no one even thinks twice. And state schools are not exactly chump change either! Call me crazy, but what if there was a cap on how much schools can increase tuition each year? (or is there?)

I just have my bachelors degree, and recently someone asked me if I was thinking about going back for my Masters, and as much as I would like to, I just will not allow myself to be in more debt than I already am. People say it's an investment, but an investment in what? Lifelong debt? My field doesn't pay six figures (even with a Masters).

Yes; it does. You made the choice to go to a private school and enter a low paying career field. You still have the choice to change careers or pick up new skills, or continue in your current career and remain in debt the rest of your life. Unfortunately, the choices you make when you are 18-25 DO count; and what you do at this age sticks with you the rest of your life (ask anyone who had a kid at that age.) You don't get a do-over, and it's not too late for you to make some changes in your life that will help the situation. Might this mean working a job outside of your dream career field? Yeah, but that's the case for a lot of people. I'd love to be able to do a lot of things, but IT work pays the bills.

I myself had the option of going to some very expensive private schools in the northeast, but chose a good state school (University of Texas) over some well regarded private or out of state schools (Carnegie Mellon and UC Berkeley.) I don't regret the decision in the least and I ended up paying $8,000 a year in tuition versus $30,000.

Now I won't argue with you that the cost of education is somewhat inflated, but you have a degree from a good school and that alone is enough to get you a high paying job somewhere. You may not get to be in television but life is about making sacrifices that may not always be apparent to us.

Interest rates aren't the problem. I consolidated my loans when interest rates were very low, and I still have almost $100,000 left to pay almost 5 years after graduating. The problem is tuition. When I was in undergrad, the university started a campaign to raise over a trillion dollars for the endowment fund. They did it, and yet tuition continues to go up every year, costing over $30,000 a year today. That's before room and board, books, etc. So much emphasis is placed on going to a top tier school, and they're essentially gouging their students because they know people are desperate to go there. It's even worse when you go to graduate school, as there are less scholarship and grant opportunities available. Something needs to be done to curb tuition rates and increase non-loan financing for graduate students.

Wow Stacie – you must have skipped the C section in the dictionary when you went to the community college you saved up for – that's where the word "compassion" is listed and went straight on to the D section which is where "disdain" is listed and read it twice. Let me take a guess – you're white, military/religeous upbringing...maybe catholic? Oh yeah, lets not forget – you're also republican right? If we can spend billions keeping rich, fat, white, drunk, republican, bankers and brokers afloat becasue they have similar friends in powerful positions or political connections while we spend, who knows how much, to fight a war against a country that did not attack us – I think we should consider what we are saddling our future generations with as far as student loans...along with the deficit GW left for them.

Stacie

Do you think most 18 year old prospective students are really in a position where they understand the consequences of taking on that much debt and the variable interest rates/compound interest that applies? Not everyone is fortunate to have a mother father so well versed in Finances to protect their children

I'm a single mom to a one year old and a graduate student. I have $60,000 in student loans. The only way I could've gone to college was to take these loans. I didn't like the idea of being in debt, but I thought I'd get a job after graduation and everything would work out. I graduate this December and I am scared to death that I won't be able to find a job to support my daughter after graduation. I don't support bailouts, but something needs to be done to keep education within reach. A lower interest rate on federal loans is a good start.

I paid off my entire student loan and it was at 9%. Even at age 19 I knew I couldn't afford to go to a private school and take out over $100,000 in loans.

Several times I had to ask for deferments when I was unemployed and they were granted, but other than that I bit the bullet and paid it back instead of buying expensive clothes, meals or vacations.

I now have a child who will be going to college next year and because we are middle class she won't get a huge amount of grants or needs based scholarships. This will limit her choices as to where she goes to school. If she chooses to take out massive student loans for undergraduate studies, we will counsel her about what that means for her future.

Good luck to you, welcome to the real world.

the real thing people should be mad about is the cost of college these days. There is no reason college should be going up about 10%-20% more than cost of living per year. The main state college here is Mizzou and it is almost $20,000 A YEAR in state. That means that a kid has about $80,000 or more in debt going to a state university. Something needs to change!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

This is a very important topic, which is needing attention. Thank you very much.

BRAVO! This is a crisis that needs addressing. Everyone's circumstances are different yet the end result is the same. As a single mother of four children I decided to return to school for my BA and did some graduate school and have almost 40K in debt. My monthly payment is set at $290 a month with only $90 going to the principal! IT'S OUTRAGEOUS!!! I can't afford to pay more monthly because two of my children are now in college. My decision to return to school was economically motivated. So now I have a college degree and instead of making $7/hr I'm now making $42K a year. It's a drop in the bucket compared to the salary of all those being bailed out with OUR TAX DOLLARS!!! We need relief. I feel that we should be held accountable for our debt but the interest rate should be lowered to anywhere between 1-3% and not a point over!

I don't know if I can sympathize with you. I do have almost half the amount of student loans that you have. Although my payments are not $1,200 a month, I still have a significant payment. Those automatic payments coming out of my paycheck every month could go somewhere else; my savings account or IRA for instance. However, I made the choice to get a higher education. It's the price you have to pay these days to have a better resume and more doors open to you. But I don't expect the government to do anything about it. Maybe I do have one reason to have sympathy for you and that I feel it is unfair that you cannot consolidate your student loans. It would dramatically decrease your monthly payment.

Thank You! I defaulted on my loan 2-3 years out of school. When I was told by the Ford Foundation helped me consolidate and told me I had grounds for a lawsuit because my original lender was not forthright with me regarding payment options. I was 25, working two jobs and overwhelmed. I didn't pursue the lawsuit.
I filed the papers for the ICR two days too late. The Government fined me $7,000 for defaulting.

I disagree with Stacey. We should have the right to choose where we want to attend school and not feel the wrath of overwhelming debt. In a country where kids are told they can be anything they want to be, we forget to mention the high cost that comes along with it.
I, myself, attended a community college then a state college. I racked up 45,000 in student loans while getting my bachelors degree and I am currently unemployed. My dream of attending law school was put on hold when I realized I would end up with over 150,000 in student loans. I figured I could work off my first loan before I added to my final loan. Only, I couldn’t get work ANYWHERE. I put out over 200 resumes in 4 months, I walked into every business that was hiring, and then I realized my goal of getting a job as a receptionist in a law firm was shot down. After the realization everybody wanted experience (something I sacrificed while attending school) I chose to work at Big Lots, for 9.75 an hour. How would I pay my living expenses, let alone my student loans with 9.75 an hour? Did I mention I was a single parent?
So Stacey, even if Samantha had taken your advice and gone to Public College at what point does it make a difference? Paying back 45,000 for me is like paying back 100,000 for her. We need to take a deeper look into this issue. There seems to be no simple solution, however, if our government is willing to spend money on the housing, automotive, and financial market, (markets that HIRE and PAY BONUS’S to executives who maintain and gain-or lose profits for their company.) then why cant the students get their cut? Funny, seems like every other democratic country is able to offer such finances to their citizens. Much like healthcare, we need to look to other countries to find out how they are able to offer such luxuries to their people. Its time to realize America is not the best at everything, put our pride to the side, and ask Europe for some serious advice.

For those who say "She chose to go to private school, it's her own fault!," I respectfully disagree. I acknowledge that the cost of the education was something she knew ahead of time, but the financial aid staff at most schools sell you a pipe dream about how much money is available through scholarships and grants. I've attended both public and private colleges and have federal and private loans to pay back my time at both schools. I've also worked a near full-time job through both degrees, although at times it was nearly impossible to perform well in a full course load of engineering classes and work in a job with enough flexibilty and pay to make the sacrifice worth it. Either way, working was not enough to live and pay for school so I was forced to take out loans. State schools, especially in the Northeast, are not as cheap as you think they are. I've actually moved to TX to attend a state school, because their out-of-state tuition is cheaper than if I went to the state college down the road from my parents' house. This is not a problem of people choosing to go to expensive private schools irregardless of the cost. People who attended state schools are in just as much trouble.

Also, something to be considered is the cost of advanced degrees and doctorates. These people, myself included, are putting the cost of their education as a smaller priority compared to the knowledge they'd gain through education. Before the same people start up again about how these academics are whiners who didn't think through their responsibilities, take a minute and think about something. Who is the doctor that treats you in the ER or the specialists' office? Who is the vet who takes care of your dog when it gets hit by a car or the cow whose ribs you are planning on grilling tonight? Who is the one who designed the blood pressure medications or the car safety system that keeps you alive every day? People with advanced degrees, whose lives will be crippled by debt in order to work and advance the knowledge that keeps us going.

Face it, this is a problem that is off the politician's radar because it is an individual sacrifice that burdens millions of families. It is not a corporation or bank, so it is not worth their time.

I think lenders need to sit down and talk with every person thinking about getting student loans, even if it is more like a lecture and not one-on-one.

I don't think there was much explanation when I signed up for student loans about what I can expect to pay after, available options, etc. If there was, I probably would have considered (if not, gone to) a state school.

What happened to being acoountable for our own actions. Simple high school math could have informed you that you would be in this situation. If college costs $ 200,000 and the only job available after graduating means you will earn $30,000. Then guess what...you won't be able to afford it. No one else put you in this situation, no one else should get you out. Pay your debt.

I know exactly how you feel, don't listen to these people who are saying you should have chosen a cheaper college. You only live once and I think it's great that you chose a college where you knew you would get the best education... and even better, its great that you chose a career that you are happy with.
I made the same decisions.. went to a great college and chose a career with a low salary. I just graduated last year and I am swimming in student loans, but luckily I still have my job as a designer and I can live at home until I make a dent in my debt.

I have no regrets about anything... i got a great education and I know i wont be amongst the many people who say they hate their job. I might not make a lot of money but I love what I'm doing.
Good luck, I hope something is done about this soon!

There is something wrong about student loan as much as our nation's healthcare plan. I think these two areas need to be managed by Government, whose role is to serve the all general public. Education and Healthcare are for everyone, and yet how could this be managed well, when some of private lenders and managed care's goal is to generate profit for very few. This is a complete contradiction.

I am 62 years old and if not for my parents passing away 10 years ago and leaving me a small amount that I used to pay off my student loans I would still be paying them off. Now I have a parent's PLUS loan to try and help my son with his education (he also has student loans). I will be paying the PLUS off with my Social Security; not sure how that's going to work out for me.

Bravo, for this! We need to get some attention on this matter. Non-Federal, Private Loans do not have the same benefits as Federal Loans. They cannot be consolidated, offer little or no forbearance or deferment options, and cannot be discharged in the event of disability or even DEATH like Federal Loans cans, making your family and children responsible in years to come. Why is it that these lenders like Sallie Mae and AES were able to just hand out Private Loans like candy? They are credit based loans and how did they determine that someone getting a liberal arts graduate degree like myself could ever pay off $200,000 in loans after graduation? This is bigger than the mortgage crisis, as these lenders were just qualifying anyone for these so-called educational loans because they slipped some shady language into the 2005 Bankruptcy Reform Bill making it appear that these Private Loans are the SAME as Fedeal Loans, and non-dischargable in bankruptcy. For myself, a single mom of 2 kids, unemployed and on the verge of bankruptcy, my private student loan lenders refuse to work with me. I cannot get a forbearance and cannot afford the $1900/mo payments on these loans anymore. What am I to do? I can let the bank forclose on my home if I can't make the payment anymore, and get a so-called "clean start" through bankruptcy, but because of my outrageous private student loans, I cannot. I am stuck for the rest of my life. Within the last 3 years the capalized interest on my Sallie Mae loans was $26,000 (Original loan amt was $54,000 and I now owe over $80,000 to Sallie Mae). My loan amount has doubled in 4 years and there is no way I will ever be able to pay off my loans in my lifetime. Right now I am inelligible for Chapter 13 because my unsecured debt due to my student loans is over $336,000 and I cannot file for ch 7 because I do not pass the means test. What are people like me to do? I realize I made some huge mistakes and should have taken out federal loans instead of private loans, but my school geared me towards these private loans before I even maxed out my federal loan option. The schools and lenders should be held accountable for this fraudulent practice.

The key problem to the student loan problem is - THEY CHANGED THE RULES in the middle the game - Not biting off more than you can chew or accept is not the problem or being responsible.

What was expected and agreed to at the beginning of a 4 year or 8 year college stint is not what was waiting for those students when they graduated.... So, consolidations, low loan interest rates, etc are just not available any more, so sorry.

So SORRY STACIE that you have an all-electric home but electricity in your town just tripled in cost - guess you should have anticipated that happening and used solar power 10 years ago....

I think some of the people leaving comments are not really informed about what goes on with the student loans. Wonder how you would feel if in 1973 and 1974 for two years of college you borrowed 3000.00 for college (also attending a hometown school) here we are 30 something years latter having paid back almost 15000.00 and being told that I still owe another 17000.00, and that is with paying every month regular as clockwork. My debt just keeps going up. Or how about the Vietnam Vet who went and interrupted his education to fight for his country, coming back wounded with no legs on disability and the lenders took his disability checks. There is an organization trying to get justice for student loan borrowers, Studentloanjustice.org – check it out it gives quite a bit of information.

This article left me feeling very hopeless. My three children-one out of college, one currently in college, and one starting next fall-made their college decisions based on (1) the costs of the colleges they were interested in, (2) the amount of need-based and merit-based aid available to them, and (3) what they could expect to earn after graduation. If the writer had done that, she wouldn't have made the choices that she made. Having made unwise choices, she now seems to think that I and my children, who made wise choices, should pay for her education. That kind of thinking will destroy this country.

I agree with you Samantha something needs to be done but I'm not sure if what Rev Jesse Jackson is stating is the answer. There needs to be changes in interest rates, amt of years to pay back loans and the start date for paying back on a loan. Maybe for individuals that attend in-state colleges and actually graduate with a degree only have to pay back a certain %. This could be a stimulus.

Seems like you paid waaaay too much money for the education for what you are doing now. If you had paid that much to be a lawyer or a doctor, then your starting salary would have been higher and you could have paid the debt off quicker. You would have been better off going to a state school and saving yourself the misery and bondage of so much debt. I think that Americans are screwed up in their notions of finance, especially young people. If they only knew how hard it is, even without debt, to hold a job, have a family and save for the future, they might think twice about going to a school for prestige on student loans.

What happened to a little common sense? I would have LOVED to have gone to an expensive private school, but came from a modest middle class family. Instead I went to State College, had a part time job and modest student loans that were paid off within five years. I feel no pitty for her or anyone like her.

I am in the same sort of situation. I attened a private college where I completed my my BA and MA in 4 years. My parents made too much money for me to receive a significant amount of financial aid, so my only option was to turn to student loans. Now, I am sitting on over $100,000 in debt and no way to pay for it. My first payment was due in Janurary and it almost wiped out my bank account. The government should help with Student Loans the way they are trying to help with Mortgage Foreclosures...but I believe that any solution is a long time off.

How about this one? I graduated with a masters in Social Work in '88 from a private school and had $20,00 debt. (I was 59 and so proud of accomplishments!) couldn't pay the debts on my low salary so I did forbearances, consolidated at the then rate of %9!! and periodically made payments as I could. over the years the debt is now $50,000 due to "capitalization" Katrina forced me to leave the small private practice Ihad in '05 and now I am 67 struggling to re-build a practice. no end in sight. Sallie mae won't lower the interest because once its consolidated you can't change the rate, according to them! sure, I made some mistakes originally in the loan process- (don't we all?)and I should have known that social workers can't pay off huge loans, I had high hopes and encouragements,but now I have a humongous loan at %9 I can't pay . What can we all do?

I would have to say that everyone's choice is different when it comes to their field of study. I am a junior in college and I plan on obtaining a M.A. as well as a J.D. and a M.L.A. After all of this college I plan on joining the military and part of their sign on bonus includes up to paying off 65k in student loans. Futher plans includes me working for the federal government after military service.

I would say that first and foremost, a person should really know if what they want to do in this life is something that they love to do, and not because everyone else is doing it. Secondly, get great ACT, SAT, GRE scores. Whatever happened to the emphasis on brain smarts.
My parents pushed education when I was growing up.

There are so many scholarships for those who have the academic merit in America. It is not over for college students, but students REALLY need to plan what they want to do, and how best to do it.

Hi, I agree 100%... I can't stand when people say... "oh well you should've known what you were getting your self into, you shouldn't have went to a private university"... I chose to go to Hofstra University on Long Island for my engineering degree (graduated 07), when I got my initial financial aid package (17 years old), i was a little confused. Yes I got just under 15k a year in scholarships, but I didn't really understand the difference between private loans, federal loans, and which was grant money. All I saw was the total financial aid package, which looked really good at the time. Point being, when i graduated I owed about $60,000 (mostly in private loans) !!!, it felt unbearable. Can you imagine if I didn't have scholarships. I think the student loans system rapes these young kids and preys on the fact that they have not a clue what they are getting themselves into... and colleges need to stop being so greedy especially since they sit on millions of dollars in endowments! There needs to be stricter regulations on this industry and on how much a student is allowed to borrow. The goverment is also in need in reform, as they are the one who decide your EFC (estimated family contribution), and they expect you to be practically homeless to get any grants from the government. Oh and i also didn't know that my private loans were accruing interest in college... so when I graduated I already had $10,000 in interest.! great huh

I went to a fancy school for one semester because they gave me a ton of financial aid grants They cut back my financial aid dramatically due to budget issues and offered me loans. I chose to leave and go to a state school (SUNY Buffalo) in New York because I didn't want to have an unmanageable debt upon graduation based on my likely earning power. This seems to me to be a common sense thing to do and am shocked that anyone would not do this. I also took a year off and worked full time to save money in order to rely less on loans.

I found the education to be better than in the private school and the cost a modest fraction of the private school. I worked all the way through school keeping my stress level high and debt low. I then lived at home for a year and paid off all my loans within a year. I am grateful to NY State for the great bargain and great education that was provided to me.

I am baffled why there is no anger at the colleges! Why don't you ask for a refund from them rather than the taxpayer. The college profited from your profligate spending not the government. The colleges also apparently misled many people about their earning potential after receiving their diploma. The colleges need to be challenged about this behavior.

I lived within my means and feel that the situation these others are in is very unfortunate. But it is not the burden of the responsible to subsidize the irresponsible.

While I agree that the current interest rates (8%) are prohibitively high, (up from around 3% less than 10 years ago) why did you borrow most of your tuition/expenses from private lenders? Having just finished graduate school, I've been given the opportunity to defer my federal loans for 6 months...even with a job this is a blessing. Or did the cost of school well exceed the possible amount you could borrow from the feds? 12 years to repay all that sounds crazy! Too bad we don't have the option to roll private loans into federally-consolidated ones.

In any case, I would support any legislation that decreases interest rates!

My daughters worked both during high school and college and saved, saved, saved. They kept their grades high and applied for every college scholarship they could find. On spring breaks they did NOT join their friends who took expensive vacations. They were satisfied with used books, used clothes, and used cars.

I am proud of how responsible they proved to be....which leads me to ask:

Why is it always that the people who make responsible choices are expected to bail out those who make irresponsible choices?

Student loans will not be improved because there is no lobbyist.
I have a student loan that is fixed at 8%. Even when interest rates were/are only 4% they would not let me refinance. If it had been a house or a care or a business loan I would have been able to refinance.

There is no advocate so expect no fairness in the system. Student loans are the silent victim of the screwed up student loan system.

I am paying but see it is unfair that I cannot refinance because banks do not want to give up their 50% guaranteed margin built on my back.

Prime Rate is around 3.25%; Federal Discount Rate is 0.25%. Yet Federal Education Loans start at 6% for Subsidized Loans, 6.8% for Unsubsidized Loans and 8.5% for Parent Plus Loans and presently cannot be consolidated.

This is outrageous – it’s obscene and does not reflect economic reality!

If the government wants to insure education of it’s populous, then lower the interest rate charged for US Dept. of Ed. education loans. These high interest rates were pushed through the Bush administration in 2006 jumping 3% to 4% at once. There is no reason why the government couldn’t consolidate existing loans and provide new loans at much lower rates as a means of helping students and parents navigate the education process.

As for private versus state schools, the reality is, there aren’t enough state (funded) schools available to solely meet the educational needs going forward. Private schools aren’t a luxury; they are needed just as much as state (funded) schools.

I urge you to direct your comments to both your representative and senators.

I remember when I signed up for student aid to go to a popular public technical college in Atlanta. The loan advisor said "sign here saying that you received counseling, you seem like a smart guy, so you don't need it." I was 18 years old coming out of suburbia, and unfortunately my parents hadn't really taught me anything about debt. Predatory lending is a problem in our nation, however, so long as there is demand, someone will supply. We need to educate about debt in public high school and many problems will be solved. Had I beed better educated, I would have made different decisions out of high school.

Wow. I have a Ph.D., paid for everything myself, and have less than half the loans than the writer.

How did I do it, you ask? It was (not) easy:

1) I went to state schools
2) I worked 30 hours + per week
3) I joined the Army reserve, which helped a lot with undergrad tuition & a little loan repayment

I can't have much sympathy for the writer, who made bad choices across the board and still manages to get an international audience for her whining.

Well I see all of your points on student loans. I myself am in the Army and when I chooes to go back to school I have my GI Bill. My wife on the other hand isnt able to use my GI Bill as of yet (soon to change for Spouses and children) I will retire in about 3 months after 22 years of service. My wife quit her low paying job about 6 1/2 years ago and went back to school. We got some student loans to make this happen. I did this because in this day and age in the military you never know when you might be deployed and not come back. I have been deployed 5 times since 9/11. I wanted her to get an education in case I didnt come back, her and our children would be ok. Well with that being said she will graduate (doctorate) this summer and we did some research and found that she could join the Air Force and they would pay off 40K of her student loans and provide her with a job in her career field as an officer and she could serve her country to repay her debt for the sudent loans. I say this because there are some different ways to get rid of your student loans you just have to think outside of the box. 30 days paid vacation, unlimited sick days, full medical/dental, and a py check every two weeks and, in 20 years you retire and you dont have to pay in for it. Just some food for thought.

While I sympathize. I had student loans too. It was a bear to pay and eventually I did. No gave me a break. As been said it is a choice.

Anything that could b e done won't necessarily help the worst of the student loans, private student loans. At 9% (if you are lucky) you are paying 90% interest every month. And by the time you graduate the can accumulate as much as 15-20k in interest charges.

My fiance and I started two years ago with ~240k in student loands (120k private) and are on road to repayment within 8 years of graduating if we are lucky. What does that mean? Payments of $4,200 a month.

I agree 100% that the system that failed so many students needs to be addressed. They play on people and no one realizes it. People have taken out student loans because they were led to believe it was the choice for them, the right choice, a safe choice, and it isn't. One of the greatest things that can be done for our nation is to wipe out all student loan debt and credit issues for people. Those who take it seriously will prosper, those who take advantage, you had your chance to shine..use it or lose it.

Slightly different perspective: Student loans, however scary, are an investment that will pay off over the course of a career.

When I finished college I had no student loans. I went to graduate school and ended up 30 k in debt. My degrees were in the arts, in fields that have very uncertain employment prospects. For several years I regretted going to grad school as I looked at the pile of debt that I had accrued. Now, seven years later, I have a great job that I could never have gotten without going to grad school, and the loans are paid off. The loans were a great investment in my future that have already paid off several times over. I didn't expect it to happen this fast, but over the course of a career I imagine that the education and degrees that student loans buy do actually pay off.

For what it is worth to post on these things – I have one point that is seemingly missed here. The problem isn't the federal student loans. My wife and I combined have over $150K in federal loans. They are on 30 years plans and the payments are manageable. We always knew that this was going to be the case and the dept of education loan service is fairly easy to deal with if you have a problem. The real issue is the private loan servicing companies like Sallie Mae. We have one $45K loan with Sallie Mae and they are impossible to deal with. The interest rates are awful and explode upward seemingly at random. We call and we call – they can't do anything about it, nothing, sorry. In the end we are just paying the interest on the loan to keep them from destroying our credit. The principal amount of our loan has not changed significantly in 5 years because we can't afford to pay anything more after the insane interest and our other more reasonable loan payments. I guess I always thought (rather stupidly apparently) that we could get something normal like a reasonable fixed rate of interest on a 30 year term for this loan. That is the real problem and something needs to be done to force the private student loan industry to deal with borrowers in much the same way as the federal system. As it is we are trapped.

State schools are not necessarily less expensive. I went to Johns Hopkins because they offered me more scholarship money than the University of Maryland. I worked 30 hours a week and lived at home while I was in school and I still graduated with $40k in debt.

You summed it up yourself: "I chose to go to a private school and I chose to work in a field where the starting salaries are low. Does that mean that I chose to live a life of struggle, wondering how I am going to pay my rent, afford the basics of living and still stay in my chosen career field?" . Well, yes, if that's what you choose to do. You made a commitment when you signed the papers and promised to pay back the money, and it's entirely your choice to work in a field with low salaries. Get a better job, take on a second job, get a couple of roommates. The only reason student loans were available to you was because generations of students who came before you paid off our debts. Now it's your turn.

I'm sorry that you didn't get better advice before taking out those loans Sam. I'm sure you're not alone, either.

I had student loans, too. My parents couldn't afford to pay my way through college. So I took out some loans and joined a cooperative education program at college (public, but out of state). Co-oping added 2 years to my schooling but it paid the bills. Also, I chose a field (engineering) where I could reasonably expect to pay off my loans. And yes, I DID do that calculation beforehand – researched starting salaries in my field and compared these to my loan amounts. So, unlike you apparently, I DID my homework. Choosing a college and vocation requires a practical and informed decision, not simply an answer to a "follow your dreams" question.

You made some bad decisions, but I fail to see why I should be expected to now bail you out. I have two kids of my own to try to put through college. I will certainly try my best to give them the guidance that you seem not to have received.

It's a national disgrace what young people have to pay, and borrow, to get a reasonably useful education today. For decades, our governement has been spending billions of dollars a month, on interest payments. Money from taxpayers, some of which could have been directed to better things, if the US Government hadn't gone on a nearly uninterrupted stream of reckless spending since before 1980.

We can blow a Trillion dollars on the Iraq War, then berate students for complaining about how much they have to borrow to go to college. What's wrong with this picture . . . ?

I was fortunate that my parents paid 100% of my education. I proceeded to save no money and live irresponsibly for the next 10 years. I now have a family of my own to support and I wish I could go back and live carefully and save.

In contrast, my 20-year-old babysitter works at Old Navy 20 hours a week ; they pay 75% of her Community College tuition. She also works 12 hours for us. She will have real work experience and no debt when she graduates. True, no fancy college name, but if I'm listening to her story in an interview, I'm extremely impressed.

For many people its too late, but we have to caution against young people taking on so much debt when there are other paths.

I completely sympathize with this article. I realize people enjoy saying "you CHOSE your student loans, therefore you CHOSE the consequences," but before you make such a simple statement, you should look at the context for most of the students who "chose" these loans. When I took on my student loans, I was 18 and 21 years old, respectively, for both my undergraduate and graduate loans. I was given little to no financial advice, and everyone around you simply states, "education is a plus, it's an investment," etc. etc. etc. – I do agree, it is an investment, but at 21, it's easy to overlook the true financial complications of even "good debt," as student loans are generally referred to as. Additionally, I did go to a State School for my undergraduate work, and I COMPLETELY agree, that I should have gone to another state school for Law, but (a) State-sponsored law schools are few and far between, and again – where was my guidance? Now, I'm not saying my student loans should be flat-out forgiven – but I am saying the interest rates, especially for private student loans, are ridiculous. This is education, over the past year and a half I have paid over 10,000 back, and have not even touched the principal amount of my loans – how is that equitable?

Everyone should be accountable for their choices, but education is supposed to be something we promote. Before anything, I would promote better financial advisement for those about to enter into undergraduate and graduate eduction – if I had had some more advice prior to my graduate work, I would likely be in a much better position. As for the interest rates, even private educational loans should be capped -there's no reason for students to pay 3 times their loans back – this is not a credit card bill for clothes or personal devices, this is education! On top of this, it does increase the gap between the wealthy and, middle class, essentially, b/c those who can afford to pay for their education outright, actually end up paying LESS – so b/c my parents couldn't afford to drop several thousand dollars in one go, I should pay 3 times what another pays for the same eduation? It's counter-intuitive, at least as far as education is concerned.

Funny how everybody says you will make "X" more dollars in your life if you have a college degree verses a high school degree. What they don't tell you is the cost that it takes to get that college degree. Sometimes the only people making more money are the college professors.

I really hate how many people assume that only those that go to private big named schools are forced to take out student loans. I spent my first two years at a community college, and am currently working towards my BA of psych at a public university. Despite the many scholarships I get for good grades and whatnot, I STILL have to take out student loans just to make it work. This isn't even mentioning that I want to go to grad school, and God knows how much that will cost me. While it is necessary that students get the proper education about their student loans, this isn't being done. Also having the psych background I do, many people don't realize that the prefrontal cortex doesn't finish developing until the mid-twenties. This means that teenagers, (just graduating from high school) aren't as adept to making such logical decision making as we are in our mid-twenties. This isn't trying to scapegoat here, but think about the age you are typically when starting school, trying to identify who you are and what you want to do with your life....it's no wonder why so many students change majors multiple times! But I agree with a lot of posters out there...it's pretty disheartening when the government will bail out major banks and companies that 'effed up big time, yet we can't even get some sort of workable program for students. I'm not saying students CAN'T be at fault...but often we have no other option than to take out loans, even at the bare minimum. Sadly, some of us can't work full time and keep up with our studies as some would have you believe.

I was responsible – I went to a public university, I got a degree that just a few years ago would have more than been lucrative enough to comfortably cover my student loan payments and my wife's. I have about $85k in student loans, probably aroudn $8k on my car loan still [have to have it to get to work]. Wife has around $40k in student loans.

My degree is Computer Science.
Her Degree is sociology, and she has 2 classes left to get Political Science.
Reason my loans are almost twice hers: increase in cost of education, i took a two year break in the middle of my schooling. That is how much in two years the yearly cost of attendance skyrocketed.

Nobody that has hired my wife has paid enough to justify her getting that degree – not a one: and several of them required you to have a college degree, but then didn't pay enough to justify you having one. She graduated December of '06

When I went into my degree someone with my open source and community programming experience could have gotten a $60k a year job in Iowa without problem... I graduated December of '08. I started looking for a job around April of 08... you read that right.. April of 08.
I didn't get a job until VERY recently, and with my wife's student loan payments and her job underpaying combined and despite me working for a lab at university we racked up some credit cards trying to cover the essentials. I finally got a job... it only pays $45k.... which if I was alone with no other debt than my student loans and my car I would be ALMOST fine... but with my wife's debt on top and having no other choice but having run up my credit cards while I was jobless... im not the greatest place right now.

A little bailout for the little guys like the the wife and I would be nice... heck just forgive my government loans and let us worry about our private loans and we'd be great. Eliminating our government loans would wipe out $60k in debt.

"Maybe somebody could offer some advice on getting out of this situation. This will help others before they get in the same situation.
Good Luck Sam!!"

1. Find a job that pays more. Sorry. That's the only option.

2. As for people looking at expensive schools, sit down and take an honest look at your salary after college and what you'll have to pay back in student loans. If you want to be a teacher at $35K per year, it's probably not realistic to carry $130K in debt from a private school.

3. Universities are going to HAVE to get their costs under control. Everyone else is tightening their belts. Colleges and universities are no different.

4. For people looking at student loans, never EVER take out a private loan. Regardless of the consequence, do not ever do this. If it means going to a community college instead of the school you want to, that's fine. Private loans will own you until the day you die and they can charge whatever rate they want.

The simple answer is "yes." If you chose to go to an expensive school with the expectation of a lower starting salary based on the field you entered, you should reap what you sowed. However it's really not that simple. I too went to a 4-year private university, and then went straight to a state law school. The costs for my private university after receiving financial aid (NOT including loans, but grants/scholarships) was actually lower than the out-of-pocket costs for the state school to which I had been accepted. The state law school I attended was also one of the best "bargain" schools in the country, but doesn't necessarily have the brand name as other schools. I entered law school fully aware that the inflated salaries for first-year associates were reserved for a small percentage of new attorneys. Upon graduating I found that employers won't even look at resumes coming out of certain institutions. Should I have instead splurged on the private law school and racked up more debt so that these employers would at least consider me?

My tab even with my diligence in getting the best educational "deal" without compromising my goals – about $60,000 in principal. If we want students to be more cost selective, perhaps we need to start eliminating the stigma employers attach to "lower tiered" schools which ends up forcing many students to pay for the brand instead of the education.

I agree wholeheartedly with Samantha–by the time I finish my master's degree next year I will be about $70K in debt, and those are tuition fees from public universities. I am getting a degree in library sciences which means that as a librarian I'll be making about $40K a year at an entry level position, if I'm lucky. Yeah, I chose this career path and yeah, I took on the debt–but I'm getting the message from some of you posters that because I made these choices to better myself I should justifiably be financially punished for it. I can understand why some student loan defaulters have chosen to go on the lam overseas!

OK -i have student loans also – $1000/mth (for 25 yrs) and am lucky to have a good job. However....

I read and understood what i was getting myself in for when i took out the loans – WE ALL MAKE CHOICES, and MUST ABIDE BY THE CONSEQUENCES. Deal with it. Many Americans have this sense of no consequences and refuse to take the blame for their own actions. If you didnt understand all the ramifications of the loans, DONT sign them. There are plenty of 3rd party sources for information.

While i admit some interest relief would be nice (and private loans are the worst), a bailout isnt the answer. Come on people – we (and our kids, grandkids and great grandkids) are going to be paying for the current bailout.

Sorry dear but students MUST weigh the cost of an education and future earnings when it comes to choosing a school and major.
There are no free lunches in life unless you work on Wall Street.

The only people here that are saying they feel no sympathy, are those who do not have a lot debt and do not know how it feels. I owe 50,000, and I did start in a community college and did 2 years at a private school. If the government can keep pumping money into the auto industry and AIG, why cant they give money to students who are the future? I chose to go to a private school because I could not get into the finance program at our state school with a 3.6 gpa, tell me how much that makes sense. In my opinion if we care about the wealth and future of our nation college should be free, we have paid enough tax dollars for the war in Iraq alone. I guess you could say i am disappointed American.

this is so frustrating...
I am one of those that went to state school and worked my way through. No loans, just elbow grease.
One of the most important lessons here, live within your means.
If you're out of money, take a semester off and work 2 jobs... save your money.
unless your in a very specific, guaranteed salary job, (lately only the super skilled tech field), a loan these days isn't a great idea.

with interest and whatnot, you wind up paying double what you borrowed.

I am in your same situation and wrote a letter about it myself. In the 13 years since law school I went from a $70,000 loan to a $170,000 loan. This was due to some unforeseen circumstances that let the interest pile up. It's a shame that banks and car companies get bailouts for their misdeeds but people like us can't get bailed out..and we are the ones that would put the new found freedom to use by spending and helping the economy.

For those who tell Sam "don't go to a college you cannot afford out of pocket", realize that if everyone followed that advice, we would be (even more of) a nation of haves and have-nots, where kids with wealthy parents enjoy first class educations, careers, and privledges, kids with middle class parents attend state schools and live lives much like their parents' lives, and kids with poor parents cannot attend college at all, and have few options. Not only is this obviously contrary to American ideals about opportunity, it is contrary to our national self interest. If Americans cannot afford to choose an educational and career path based on their abilities, and our national need,s we will waste talent and have an unbalenced workforce.

And on another note, it is foolish to criticize the choice that students such as Sam made as "immature" or "irresponsible", since the choice of what college to attend is typically made by 17 year old kids who have never lived alone or balanced a checkbook or had any experiences that would prepare them for the magnitude of the decision that they are required to make. It is apparent that there are serious deficiencies with the structure of higher education in the U.S., but putting all the blame on teenagers who have naively bought in to the mantra that they've been fed their whole lives – "Get a good education – Get a good job – Live a good life", is missing the point.

Why is it that only student loans are not subject to bankruptcy? I returned to school in my 40s while raising five kids and being without job skills. Now I have a degree (with honors...see how many bills THAT pays), $48,000 in student debt and can not find a job. The irony is that I have applied for 11 jobs at the very college that issued my degree and am not qualified, evidently, for even an entry level position. I look around and see many other women who returned to school in good faith, trying to become "productive" members of society only to find that many degrees are worthless in the very best of job markets (which this is not) but the debt will follow you forever. Is it sad that the advertised 'way out of poverty' (a degree), can trap you in poverty through student loans?

This nightmare is all to true for me as well. I took on $45,000 in federal loans from undergrad, which I consolidated luckily before the downturn. Then I decided to invest in my future and go on to graduate school, cause hey a Master's is worth more in the real world right? Yeah, don't bet on it. Now I'm $83,000 in debt, and the newer loans I can't consolidate and have to put into forbearance. I've been looking for a job since December, but have only gotten 1 stinking interview that didn't pan out. Here's the reality for recent grads in this job market:
a) We are too underqualified for the serious jobs that we earned our degree's in.
b) The applicant pool out there for these jobs are so full that companies hiring for entry level jobs can get guys with 20+ years experience for entry-level pay, and WE don't even get the time of day!
c) Think we can just go out and get basic low-wage, low-skilled jobs....Yeah right. If they find out how over-qualified you are, which they most often will (unless you lie about your education), they just toss your application aside like all the rest.

In the end, recent college grads like me who can't find a job only have one thing to look forward to, and end to all this chaos, and all the jobs coming back. But I'm not a dreamer, I know even under the best of circumstances that's won't be for at least a year, maybe several.

I'm 50k deep in student loan debt, 1/2 from my first year at school, 1/2 from the next 3 years due to scholarships and grants. I chose a public school and worked hard for good grades in a major that gets jobs after graduation. It’s because of the choices that I made that my debt will be paid off in 3 years after graduation. This is an issue of personal responsibility. Samantha, I hate to say it but your choices put you where you are and you should be the one left to deal with it, not the government or tax payers.

Hi Samantha,
I can definitely sympathize with you. At one point, my student loan payments were one and a half times the price of my rent. Believe me, lab technicians in universities do not rake in the big bucks, so I was working an additional part time job for awhile to keep making my payments.

I have to say that I think it is unfair for people to think the expensive private universities should only be saved for those wanting to become doctors, lawyers, etc. I actually wound up going to an out-of-state private university because they were willing and able to cover a larger percentage of the tuition than the state schools I applied to. If I'd gone to one of those state schools, my loans would be even worse. It really just depends on how much a school has to dedicate toward financial aid, not necessarily on whether they are 'public' or 'private.'

I think the real problems are 1) higher education in general is just too expensive and 2) college-bound students, particularly first generation college students like myself, are just not made fully aware of the risks of taking out loans, especially private loans which tend to be less forgiving. If I'd known then what I know now about private loans, I would have worked twice as hard to get private scholarships.

Samantha, I say keep your head up. Make cut backs wherever you can, and try to keep informed about changes your financial institution makes that may allow you to renegotiate your payments.

I find it appalling how many of these comments on this board come off as unsympathetic to Samantha's ) situation which mirrors thousands of others in our country. To focus on 'irresponsibility' of taking out the loans to get an education and to blame her and others for wanting an education illuminates the fact that 1.) education in our country is simply too expensive, making it accessible only to wealthy families, 2.) the US has accepted a view that its people should forego an education because of the high financial burden...well, take a look around the globe and you will see the US being surpassed by other countries who take their education seriously as it is a fundamental ingredient to our competitiveness in this global economy. Our government owes it to us to ensure that education is affordable. Our government owes people like Samantha and myself (sitting on about $100,000 in debt and working in mental health which barely pays $40,000/yr for the first few years in the field) to assist not just with paying off some of the loans, but forgiving a portion of them in the first place because our government should have never allowed education to cost what it does. I am 35 and will likely never even own a house. And this is MY fault? Because I wanted a MA degree and my family couldn't afford to send me to school? Hmm.

If you want to go to an expensive school, then you need to have a career prospect that will grant you the ability to pay off your loans in a responsible manner. We should be encouraging smart students like Samantha to enter fields that are not only lucrative, but also directly add to our country's sovereignty. Our country has far too many investment bankers and liberal artists and not nearly enough scientists and engineers. There are many excellent programs at public universities in these fields that will grant starting salaries from 55-80 K with only a 4-year Bachelor's degree.

So, what is the next step on this? What is our action plan?

Who do we need to write a letter or an email to? Can someone provide some information other than Reducetherate.org?

I agree that we need to take a stand on this. Why stop with this article?

I didnt go to a fancy college to start, I did go to community college and I paid for it out of my pocket. But in order to get my bachelor degree I had to transfer to a university. I tried working my way through school but it just got too hard. Not to mention getting married and having my first child while going to school, work was just not going to happen. Now 4 years after graduation I still owe almost as much as i borrowed, i work 2 jobs and still cant make any headway. I havent over-extended myself in anyway, but with my school loans and my wife's on top of house and car payments, leaves little left behind. My wife and I both graduated into the medical field to help people, and we both love our jobs, but work is not always guaranteed in the health field depending on the season. So I can completely see how and why people can not pay back their loans. My family and I can definately share the pain with anyone who graduated college tried to start your life and only gets stopped by the ever falling economy.

Not only are students struggling to pay loans, so are parents. I have a bright, gifted 4.0 son in professional school (pharmacy) and not only are his loans, huge, so are mine. I just know Sallie Mae will be sitting at the foot of at my nursing home bed to collect college loan payments. The government is bailing out the big boys who walked away with more dollars than many parents might earn in a lifetime, yet the same parents have no choices but to borrow monies for their talented children to go to school. If we do not invest in our best and our brightest, there is no tomorrow for our nation. Why are we not offering more to successful college students? Will these folks save, buy houses, and such if they cannot even make student loan payments? No! We are bailing out homeowners who made bad choices in many cases, yet our young people are making all the right choices to train and grow, yet they have to borrow. Mr. Obama and Congress, are you listening? Put dollars where growth can and will occur, not down a sink holes, already proven to be bottomless.

The bottom line is: Don't borrow money you cannot repay. I passed over several colleges and went to an in-state public university, because it was significantly cheaper. Borrowing $100k for an undergraduate degree is a bad idea, however you look at it. I have no idea how you thought you would be able to pay off the loans when you took them.

I owe over $50,000 in student loans, and the monthly cost is huge. I am over 60 years old and I can't retire because the money for my student loan payments will come out of my social security benefits. Education is very important, and it helped me get a better job, but not one that pays for the cost of getting the education.

We do need some help for those of us who have tried to make a better life for ourselves, but the cost of doing so is tremendous, and the interest rates are horrible.

When I went to school in the late 60's and 70's, it was affordable. As a single parent of three boys, and with zero help from the Air Force pilot ex-husband, I was so worried about what I would do to put my sons thought college to have a better life in the future. Well, we took out a lot of loans and I worked three jobs and they worked while going to college. It still was tough! Two of my sons ended up joining the military and one of them just came back from combat in Iraq after two tours. He is lucky to now have the GI Bill to help him finish school. My oldest son, has over $150,000 in loans and is working very hard to pay it off. It's the time period that is a killer. YES, change the time period to pay it back like a 30 year fixed mortgage! OR something other than making these young people feel like they will never get out of the money pit...... Here is our future struggling to survive in this crazy economy! AND NOW they expect our future generations to pay off these trillions of dollars worth of DEBT? UMMMMM is any one in Washington D.C. listening??????? How do a car corporations and AIG trump our kids?

I also have $100,000 in student loans. I am a high school science teacher and even the pay I get qualifies me to defer payment under economic hardship. I appreciate that I have a job but my job requires me to go back to school but I have to pay for it. I'm okay with this, but I can't afford to pay up front, so loans it is. I have no problem with paying off my loans, but a little help would be awesome! Honestly, I figure I'll be in my 60's when it's paid off, so if the government is throwing some bail out money to the banks, how about some for the student loans so I can afford to buy material objects that keep our country afloat.

My daughter and son-in-law are paying combined student loans of about $350 a month, they both went to state schools, paid part of their education from jobs, and the other part moms and dads. They were fiscally responsible but they still have a "car-loan" type payment each month. Even if you do it right, you can still get stuck, and the lengthy drawn out repayment schedule means this financial albatross will be around their necks for a while. They are fortunate right now, they both have jobs, a home, etc. I simply dont understand how young adults are carrying these large financial burdens, they are being penalized for wating the American dream.

Some reviewers are right– we, students, choose the loans. HOWEVER– as I am about to enter graduate school, I just found out that the FEDERAL student loan rate is over 6%. Excuse me??? Federal? Honestly, in order to support education and professional development, I seriously think we should cap student loans, and the feds should be perfectly happy with a 2 or 3% interest rate. think about it– 2 or 3% on about $24,000/year of a 3 year grad program, paid over 12-30 years... not bad. The govt still wins. Please, please, please– seriously look at student loan rates. Without loans, many of us couldn't even think about an education. I had scholarships from good grades, but the FAFSA determined my parents should pay 20% of their earnings toward my schooling– that's bull. So, loans it is. hopefully, educational loans will drop their interest rates. An interest rate is an interest rate– it's a win-win for everyone.

@Stacie and others -

Personal responsibility is the salient component of this argument, but it is mitigated somewhat by that fact that loan advising was often given out with dollops of reassurance that refinancing was a given, which it was. That is no longer the case, and the issue must be addressed.

America cannot continue to eat its young.

Can we at least remove the income cap on student loan interest tax deductions? As of now, you can take out a home equity loan (assuming you still have equity in your home), pay off your credit card bills, etc., and deduct the interest regardless of your income. However, you can't deduct any interest on your student loans if you make over a certain amount. I don't understand the purpose of the cap. Tax deductions are intended to encourage people to act a certain way, do we not want to encourage education as much as home ownership?

I am about 11 years out of college still paying on my student loans. I have a son who has graduated and that I co-signed for on his loans. He is struggling to find work that is full time in the field he has finally decided to go into. We have been trying to work with the loan company on forebearances or whatever to get us by till he works full time. I had expected myself to be in a much different place financially by now and to maybe have helped by taking on at least one of his loans-but that has not happened either. The student loan company is not being helpful and when I recently went to buy a decent car so I could continue to work I found out that they had hit my credit rating by 200 points because of his loan difficulties- even after I thought we had worked something out.

I am not saying I want the loans to be forgiven- we asked for them, we need to pay them back- but there should be a more reasonable way to work out repayment in this economy. We aren't denying the loans in any way-but the loan company should not have done what they did to me, and will find people will work harder towards repayment if they are treated fairly in difficult times.

Don't feel bad. When I retire in 65, I will still be paying off my student loan. Now, do you feel better?

I am in the same boat. Just finished a Master's degree since I couldn't land a job paying more than $9.00/hr with my Bachelor's after over a year of relentless trying, and am now off to a fully funded Ph.D. program knowing that 90,000 in Master's loans (when interest is factored in) awaits me post graduation.

The whole "you chose to go a big university rather than save and go to a community college" argument is clearly from someone that hasn't lived in this generation. We have had the concept – "you MUST go to college in order to succeed" crammed down our collective throats for the last 20 years and now there are no jobs awaiting us when we graduate. The value of a degree is declining because of this mindset, coupled with the reality that nobody is willing to retire due to an ailing economy.

Business owners getting bailouts because they FAILED is a slap in the face to America's youth who get no bailout because we SUCCEEDED in attaining a degree and did what we were “supposed” to do.

Thank you, Samantha, for bringing this very important issue to attention.

I'm a parent of two kids who graduated with some serious student loans. One went to a private university–the other went to a state university but went into a field with less income potential. Our advice to them and to every other student out there– DON'T BORROW MORE THAN YOU FEEL YOU WILL BE ABLE TO COMFORTABLY RE-PAY. How tough is that to understand??
They both worked at part time jobs during college and they both searched HIGH & LOW for every available dollar of scholarship money while in school. (Some of them were only $100, but every dollar counted.) You have to be responsible for your own actions. My kids are still paying off their loans many years after graduation, but they're doing it without whining that somebody needs to forgive them.

If you make the debt, be prepared to pay it back. That's part of becoming a responsible adult.

I coaxed all three of my children to go to community college for the first two years. After all English 101 is English 101 whether you pay 500.00 a credit or 36.00. Now that they have all graduated with BS degrees and their student loan payments are less than 200 a month they thank me. It seems there is a lack of common sense displayed by so many of our so called future leaders.

I am about to graduate from college myself. I have no debt, nor does my wife. She received a full ride scholarship so that was great for her. I couldn't get any so I decided to watch my costs as I went. I do, however, understand the pressure that some family members and school guidance councilors put on students to go to expensive out-of-state or private colleges. I hope students become better educated about the benefits of community college or local state universities. May be Yale and Princeton have great name recognition but guidance councilors should let students know about other options as well. I attended community college to save money and then transferred to a religious university which charges about the same tuition as a state university. My total school costs total around $18,000, which I have paid as I went. It isn't so shameful to show fiscal responsibility and young high school students need to be told that by their schools and parents.

I am a professor at a four-year state-supported university, and I am responding to Rev. Jackson's proposal rather than Samantha's personal situation. I am bothered by the immense amount of money wasted on students who flunk out (many of whom don't belong in college in the first place). Therefore, I would like to see loan (and grant) amounts begin at a modest level for freshmen and increase as the student progresses. Default rates increase when students flunk out after a semester or two and still don't have the skills needed for jobs that would allow them to pay off the loans.

I have a dual perspective on this:
1. I did attend a public school for a BS and PhD, and worked and TA'd. Twelve years out, and I'm still almost $50k in debt for student loans. The choice of private school does come with a higher pricetag, but graduating from anywhere debt-free is very rare. Anyone who thinks that they can work full time and attend graduate school is in for a very painful wakeup call. Unless someone can figure out how to function without ever needing to sleep, there just aren't enough hours in the day.

2. I am an educator. I teach at a community college, so I deal constantly with students who chose not to go away to college for a variety of reasons. The nationwide graduation rate for part-time students is abysmal, since paying the bills often (especially now) becomes more important than finishing the degree. As a result, the bigger picture of a coherent education suffers. If you take 5, 6, or 7 years to finish a degree, you've lost out on the connections between the courses and topics.

The loans allow full-time students to focus on their education in a way that a part-time student cannot. For that reason alone, the student loan system is crucial to the future of our students and our country as a whole, since the large majority of jobs now require some college education.

This may sound unbelievable but I have massive student loan debt and I graduated in 1982. That's right, 1982. In the height of the recession (back then) and in the heart of the midwestern rust belt. I struggled for years with low-paying jobs, even did a stint in the army, and watched my loans go into default, and was hounded by threatening collection agencies (and still am). I've been the victim of various frauds over the years by companies offering to put me on a payment plan, only to have none of that money applied to my loan balance. So look out for these scams.

I agree that this should be a better-known problem than it is. All the attention is going to mortgage failures. It's true that mortgage lenders often lied, but so did colleges when they told us how much more money we'd make by being college graduates. It's this crushing, endless debt, constant fear of collectors, difficulty getting credit of any kind, home ownership being virtually impossible, all because of student loans, that makes it impossible to become a full "adult" in a sociological sense. Then the dirty financial bastards get huge bailouts for doing nothing but gambling with other peoples' money. This is really a crime against humanity.

And of course our parents' generation doesn't comprehend this. In their day a college degree-in any subject whatsoever-was a guaranteed ticket to a good life. They still can't comprehend that bus drivers make more than college graduates even with graduate degrees.

What is the matter with all of you people - you made a decision to borrow money and now you're crying because you can't pay it back??? Just like the thousands of people who borrowed on homes they couldn't afford that got us in this mess in the first place.

I, along with thousands of other students, worked and payed our loans back. Just because you didn't land the six-figure career you were hoping for don't try and pass your bad decision making off on the rest of us. (Come to think of it, maybe your lack of decision making skills are the reason you did not get the six figures you were dreaming of).

Buck up and face your responsibilities. It's nobody's fault but yours...

Nice article, some very strong things to think about. The number of grads and high school students in currently in debt now is a problem. However, everyone keeps talking about the banks, and foreclosures while schools are closing because they say the attendance is too low.

Who wants to go to school so that they can come out in worse debt than their parents and no job because now they have to measure a degree against experience, and if i was the employer i, myself would chose exprience over the degree. I ran into that wall so many times, being over qualified and then too educated for the pay scale. I graduated in 08' and just landed a job this year so I'm lucky and thankful, but for those that aren't so lucky, what are they to do? The challenges and obstacles are plentiful against them and instead of being rewarded they are punished in a sense with this cloud of debt over their heads.

Stimulate the economy by investing more in the students and new graduates... Lets begin with student loan forgiveness. We are the ones that will take this country to the next level with more innovative, stimulating and fresh ideas for growth.

It is unfortunate that some people posting comments don't understand the tremendous hardship studen loan interest has on young people today. The vast majority of students enter college with no understanding of what they are signing when taking out student loans, what interests rates mean nor the realities of starting salaries. If you are a first generation college student, your parents don't have the answers either. We are told our whole lives to go to college, get a job, and everything will be alright. However, nobody educates us about the repayment process. I agree with Rev. Jesse Jackson 100%. If banks can pay 1% interest, why can't we?

I am fortunate enough to be in a position to potentially be student loan debt free in 10 years thanks to the Income Based Repayment plan because I work in the non-profit world. However, most of my friends are not in my financial position and will not fair as well.

Great post, Samantha!

In the exact same situation as you – graduated from a private university in DC May 2007 and owed $114K total. I'm down to $100K now, but that still means putting well over $1000/month towards three separate loans each month. I think there is something terribly wrong with a system that leaves students with overwhelmingly large federal loans to repay, considering many students must also take out *private* loans with variable interest rates, just to make ends meet. How are we ever supposed to help our children get through school if we're drowning in our own student loans?

I graduated from law school in 2007. I currently owe $180,000+! People say to me, "but you're an attorney...you make alot of money." Um, actually, I don't. I have five different student loan companies who don't realize that all of their monthly payments combined total more than I make. I told them point blank that it was impossible for me to make all of those payments. Oh and by the way, I have no deferrment time left either. It will be interesting to see what happens, but I do have to live somehow.

I think its sad that people are basically penalized for educating themselves. The industries in this country are lagging behind more able and better educated countries because we do not value education enough to make provisions and laws which would allow access to everyone to higher education. As it stands, for the next generation, education will only be for the wealthy because the average person and family simply cannot afford it. I have no idea what I am going to do............

In reply to stacie who said,

"You CHOSE the loans, the college, the career, so indirectly you chose the consequences. Others chose community college, or worked first and saved enough, or obtained different loans....
What has happened to personal responsibility?"

I believe you missed the part about being uneducated, which is primarily why people go to college. The period in time when a person decides to go to college is a time when that person is still struggling with many, many decisions and problems, from self-identity to making decisions about life-paths to take... Student loans are a last resort at fulfilling the pursuit of happiness for alot of kids at this stage. I took out loans to go to Film School and I made the grade, however I could not return when financial disaster struck my dad's job, no job, no co-signer. Now I have debt.

It has been said time and time again that certain leadership has wanted to preserve the status-quo. That means whatever financial tier you were born into is what they want you stuck in. Guess what, it takes money to make money and it's extremely difficult getting out of this "personal responsibility" madness you speak of. The responsibility has exploded out of the boundaries of its semantic meaning. What a ignorant mask of words to cover up the truth about America's greed and failed financial system.

Sorry, but you should not have signed anything that you didn't understand. When you buy your first home, perhaps you will read and understand every word, then you can avoid unsuspecting surprises.

I agree with those that are asking why higher education is so expensive in the first place. As a Health Education Assistance Loan (HEAL) borrower who took out loans that were market ineterest rates (at the time about 14%) and no interest deferrment while in school, I can sympathize. Only 4 years into practice, managed care had reduced my reimbursements by 60% and after years of struggling I ended up in bankruptcy and a career change. Apparently the government feels that even when you can't pay anyone else you still need to payoff your HEAL loans (other loans were discharged) as they are not dischargeable in bankruptcy (technically they are but the Secratary of Education has to waived their right to the money). So I'm still paying for a career I can no longer enjoy.

This article is so strikingly similar to my own experience. I went to a private art college in San Francisco. I sympathize with Samantha wholeheartedly. I can relate in every way.

I am in a similar position to Samantha. If I could do things over, would I have chose a more affordable education? Perhaps. But, I had a very good education. I was fortunate to be taught by top notch professors. This has changed my life forever, as has my debt. The current state of the economy is horrendous. The job market is in turmoil. Yet, I should be ashamed because I made the decision to incur this debt? Forgive me, for trying to better myself and making an investment into my future. I had to borrow against my future earnings in order to attain a college degree. But, to be charged a ridiculous amounts of interest while actively pursuing employment leaves me baffled. Private Loan corporations should emphasize and give us a break on interest charges. Besides, at the time, they thought I was a worthy investment by allowing me to borrow their money, right?

I find it irritating that most of the people who are speaking out negatively on this already have a job and can make their payments. I came from a low income family and there were no jobs in my area that I was qualified for, I went to technical college for 2 years, got my degree, and all the businesses had left because of the bad economy.

So now I'm left with a 500 a month payment, a degree that's pretty much useless in my entire state, no car, no means of relocating, and no job. I've been looking for a job for the past 8 months since I graduated,and for 4 years before that. Everything from fast food and janitorial, to higher paying jobs and the answer is always the same, its either A: we are not hiring, or B: your overqualified to work here. So what are people like me suppose to do that try to play fair and obey the rules?? I never tried to abuse the system or take advantage of anyone, I just wanted to make a better future for myself.

So what about people like me? Are all you people who are saying "you shouldn't have gotten into it because you couldn't pay" going to say that since I was low income I shouldn't have even tried?? Don't I have a right to pursue an education and better my future as well? As far as a bailout goes I really don't want the government to take care of my student loans, I'm a man and I'll repay those through hard work, I just want them to tell the student loan companies to back off until I can find employment.

That's not to much to ask considering how much money we've been giving these companies who have CEO's that make millions a year and continually accept bonuses and kickbacks.

Sam I completely agree. I went to public school finished in 3.5 years and left with 40K in debt. When my father died the governmet was nice enough to forgive his portion of the loan and leaving me with 20K. Then I had a bright idea that if I got my Masters I could make more money. After 2 years and 30k (private school), I owe a total of 50k at $425 a month for the next 20 years. Unfortunantly having a masters didnt bring more money. Now I have to get a second job to pay back the loans.

I dont blame anyone but myself for not being informed. But if we are going to bail out others for their bad choices why not those who seek higher education. The least the government could do is lower the interest rate for everyone to 1 or 2% and give people the option to refinance private loans with their federal loans at a fixed lower interest rate.

For those of you with such righteous attitudes, what kind of society do you want anyway? Obviously the one where only the wealthy get good educations. Do you realize that student tuitions increased 10 fold in the past two decades? I have been a graduate student for the past 5 years. The tuition during this time has increased 40%. I didn't sign up for that, I signed up to become a researcher and treat child trauma and help foster care children and for that I will never own a home or be financially secure. I'll be a doctor that is as poor as the family I came from.

Well said, Samantha!

To everyone who blames graduates for their student loan debt keep in mind that there are many students who received scholarships or financial aid, who worked their way through school, who attended cheap state schools yet still have student loan debt. I did all of that. I played by the rules. I worked while I attended school, but I still left with $25,000 in student loan debt. I had to give up my dream job as a reporter because I couldn't afford to pay my loans and survive on an entry level reporter salary.

Samantha, stick with your dream job. While there were some better choices you could have made in terms of cost it does not change the facts: 1)The cost of going to college has increased dramatically to ridiculous levels 2) Scholarships and financial aid have not kept up with the rising cost of attending college 3)The student loan industry is predatory.

If the US is going to improve we need to educate our citizens. We need to make college affordable so we have an educated workforce that can compete in the global economy.

Well I dont where your local colleges are, but my state colleges are very expensive here. I am working fulltime and going to school fulltime. I still have to take out loans to cover my cost, I just hope that by working it will not be as much as if I had not. The reality is that we should not being paying that kind of interest for any school loan. If you choose to go to a private school that is tution you need to understand you will have to pay back. But what were we, as a country, were thinking when we started charging 8-10% on these loans? In a age where education is a must, lets look at this mess. I am not talking bailout, but give all kids a chance for college..

I have more then Samantha does that mean I win. I have a whopping $220,000 in school loan debt. I will admit I was foolish as well. I thought I would actually be able to get a decent job and pay the loans off. My plan was to go get my PhD and teach because I heard professors in my field were making six figures because there is a shortage, but life happened and I couldn't continue on and now I'm floating up to my eye balls with a nightmare scenario of paying $2,000 a month for all my loans. I don't know how I'm supposed to do that. What sucks is the new bankruptcy law states that private student loans (the big ones I have) can't be included in bankruptcy so even though I have nearly $80,000 in credit card debt and medical bills that are near $20,000 I can only wipeout the credit and my medical debt, but still have the giant amount to pay back. I'm so lucky I own my home cause I am basically paying a mortgage for my education.

I agree though it isn't fair that everyone else is getting forgiven for taking on debt, but us students are screwed. This debt has also screwed up my marriage. I have been so depressed because of the debt that my wife is on the verge of leaving because she can't take my negativity all the time. So I want to know why can't we get some relief. I know people will say you took it on, but the banks were all ready to give me the loans. Does anyone remember the TV ads and the ads in the student loan office? They were pushing people to take the money. So should I take 100% of the blame? I think we all screwed up. I do know this if they don't give a little I may just say screw it I will live off cash the rest of my life and not pay anything. I'm getting to the point of not caring anymore because I try and try to pay these off, but I have to feed my kids and my family first. Anyway, thanks for shedding some light to this topic.

Wow, there are a lot of uneducated people who read CNN. You're chastizing someone for trying to better their position in life by taking out student loans? That's completely different from the credit card and buy a car and house and everything-else-under-the-sun crowd that is getting special treatment. According to you people, we would have been better off sitting around racking up debt rather than educating ourselves to create a better life. Is this what the US is all about now? Don't work to contribute, stop contributing and beg for your handout. Student loan reforms should take precedent over defaulted mortgages; afterall, we're the people who are going to get the rest of you beggars through the crisis, you're just going to be asking for another handout when we pay off your house, in addition to our student loans.

Okay, all of you well-educated people. Did you take time to do the math before signing up for all of that student loan debt. Get real. Surely you investigate a car purchase or home purchase and how you will make the payments before signing on the dotted line. Then you should do likewise with a student loan or any other loan. I went to a state college, received a 4 year grant that was canceled after 2 years because I began working full-time while in school which meant I had to pay my last two years from my meager earnings and maintain my own apartment. I graduated debt free from undergrad. I am currently in seminary and now have student loans that supplement my scholarships and I continue to work a full-time job to pay for my living expenses and additional school expenses. I will have about $10,000 in student loans when I finish this 4-year graduate program and do not foresee any problems repaying this debt. There is no way that I would agree to an overwhelming loan then try to weasel out of paying the money back because I used the money to not only cover tuition, but my living expenses as well. I agree that the interest rate should be reduced to reflect market trends, but you spent the money, now pay it back and stop whining about milk that you drank.

I agree 100% with you Samantha. You were not partying it up in Vegas with top rock star band, or riding around in private jets. You were not embezzling billions of dollars from stock holders. You were trying to get the education that the world says is required to get anything above a minimum wage job, and when you got out, you found out you were lucky if you could find a job that offered a starting pay above minimum wage even with your degree.

I know more and more families who are unable to live because of student loan debt.

At the time these families and students take out these loans they are assured that the payments will be small, they will be spread out over years, they will work with you to pay them back. Then the companies say, "Oh, no, we mishandled our money, so you have to pay it all back in amounts that are equal to or above your net pay. Sorry."

I suspect the largest part of the national economic crisis is caused by student loans. People can't spend the money because they don't have it.

Right now a bachelor's degree is to today's young adults, what a high school diploma was to the baby boomers. If you want the jobs, today, that used to go to people with a bachelor's degree, you have to go after the Master's or Doctorate. If education is mandatory to the work force, it needs to be free to the public.

I work in a University. Many of our PH.D.'s are only earning 40K a year. The education they received cost them more than their lifetime earning potentials.

I also notice that they aren't exactly "upfront" in forms about what a college education really costs. Reports show that last year a public four-year degree was $6,585. Where? Jamaica? The 6,585 is TUITION. College require much more than tuition of students.

Where I work, the tuition for the average student is $4,310.0, but the MANDATORY FEES are another $2,437.

Add on the room and board. (Many universities require freshmen to live on campus). That's another $7,310. (Per year).

And there are "extra" fees per semester for laboratory fees, course fees, property deposions. Those average around $170 a year. And you may need books for those classes. Books that can cost $200 – $400 per class, and a little gem they call "Institutional Designated Tuition Fees which basically mean certain programs get to charge more money for certain classes, per class hour. Up to around $94 a credit hour for those classes, and tacked onto regular tuition. Then you have to add on the fees

And that is if you live in the state and are an undergraduate student. .

That $4,310 tuition jumps to $12,740 if you are out of state.

For those of you telling the author that she should have gone to a state school: What about those of us who did go to a states school and are still in a similar situation? Do we get your sympathy? Or are you going to tell us that we shouldn't have gone to school at all?

Great article, but is the Gov't? I took out a small student loan while attending a community college (only 1,500.00). I was working at the time and paid for my education out of pocket, my husband & I made too much for me to receive a Pell or other assistance. I couldn't finish my degree because of a serious & lengthy illness which left me unable to work for 5 years. That tiny student loan went into forebearance many times until I used all of my forebearance requests (with interest & penalties being added the entire time). The loan then went to collections & into default, despite my documentation that I was ill & couldn't work. They didn't care!

I now owe almost $15,000.00 and do not qualify for lower payment options because I used all of my forebearance requests and the loan was turned over to collections (defaulted on) during my illness. To make matters worse, once I was well enough to go back to work I was locked out of most jobs because of the default status. At one point I did get a job and held it for 3 months, my employer (a state agency) let me go because they couldn't knowingly employ a person who was in default on a student loan.

I am currently employed but the Education Dept has refused my attempts to setup a payment plan that I can afford. They even told me not to send any money because they will not accept it if it's not the full amount. Paying less than the full amount immediately ended their offer of a payment plan and escalated collections through garnishment. The Education Dept has recently begun garnishment proceedings (15% of my net pay) because I couldn't pay the full amount each month. By the way the 15% garnishment is less than the monthly payment they assessed and is the amount that I had tried to get them to accept.

The Education Dept turned a deaf ear to my situation & pleas years ago. My only hope of ending the interest & penalties was if I had died. Talk about greed, the only reason I owe 10x more than my original loan is because of interest & penalties that the Education Dept refused to stop levying or later rescind. They even went a step further to make sure that any chance of restoring my credit is ruined by garnishing my wages for an amount that I had been sending but they refused to accept. The Education Dept isn't only greedy, they are idiots!

I am of two minds. I agree that students should be offered the same interest rates as banks. Surely that is a better investment in our future.

But I also believe that college has become a business and the cost of education absurd. I went to CUNY when it was free and received an excellent education. A private college or even a state university was not even an option. My mother, a widow and child of the depression ,would never consider taking out loans. when a free education wsa available to her children. How wise she was.

The reality is, not everyone can go to a private, expensive college. If it means going into debt, then the student must be prepared for the consequences. Just like when one buys a home that is really beyond their means.

As noted, college is a business. Perhaps if students went "on strike" and refused to apply, market forces might "reset" the cost.

This article is a very well written example of how the "age of entitlement" knows no economic or educational boundries. People of all kinds have chosen to live beyond their means. It's not just those who are uneducated. I went to a private college. I knew I would be able to afford the student loans. At one point, my financial situtation changed and I realized I might no longer be able to afford the college I was attending... SO I LOOKED INTO TRANSFERRING! While in college, you get quarterly statements about the loans that you are racking up and the amount of interest that is snowballing. If you chose to ignore those statements and have no plan for paying the loans back, then I certainly should not be required to bail you out. Sorry. But I have no sympathy for you because this is something you have been aware of for FOUR years. You could have prevented this but you chose not to, in hopes that someday something or someone would come to your rescue.

Samantha never said she did not want to pay back the money she borrowed, all she wants is a reasonable interest rate so there is some end in site. These greedy lenders should not be getting rich off students.

Wouldn't making loans cheaper have the opposite effect desired by the writer? Cheaper, larger loans means more people in school and leads only to higher tuition requiring even larger loans. The way we get better cheaper university education is by eliminating loans entirely, focusing instead on merit based scholarships. Universities would soon be cutting their tuition greatly and all would benefit.

What is outrageous is not the loans. Nobody forces you to get a loan. That is your own fault. The problem is with the colleges. They get all kinds of grants and cash from the government, donations, tuition, etc, and while claiming that they don't have enough money, they do $50,000+ renovations to their campuses, put in marbled bathrooms, install crystal chandeliers and put up huge portraits to their spendthrift administrators. All the while, they translate those pork projects’ costs to the students’ bills. Every year tuition rises, and every year the students go further in the hole. The government should be regulating colleges to make tuitions more reasonable.

My wife and I currently make a salary in the mid $50s, but we cannot afford a condominium or townhouse because we pay about $700 a month on student loan payments. Yes, we had a choice to go to local community colleges, and perhaps we should not have become teachers, but it is still very difficult. We are very responsible with our money; we do our best to keep credit card balances low and have put money into a money market fund. However, due to student loans we have to continue to defer our dream of home ownership.

Maybe I am cold, but I have no sympathy for this article. You signed the documents for every $ of principle. As your schooling progressed, a thoughtful person who was receiving an 'education' would have considered whether your choices were going to work before continuing to sign for more loans. Clearly, there is a big difference between knowledge and wisdom.

Contrary to the mob-rule mentality of the crowd, the answer is not more government, but less. Higher education tends to be extremely unresponsive to the value provided for the $ they seek. Take away 'guaranteed' loans, and the institutions have to prove their value up front (for instance – by lowering the price to something more in line with the expected income potential). This is otherwise known as return-on-investment, an old fashioned principle that will serve you well for anything you buy.

This article really speaks to me. I made a lot of the same choices you did, and have about $80,000 in loans to pay back, which are currently in default. The collection companies want me to pay $1,200/month to "rehabilitate" them, but that's really not something I can afford right now. So they sit and grow bigger with each passing day. I can't claim bankruptcy on them, so they just continue to grow.

It's a hole I dug, and I accept that, but what I get pissed about is the whole "Go to the best college you can no matter what it takes" mentality that was drilled into us from as far back as I can remember. "Don't worry, when you get out of college, you'll have such a good job that you'll be able to pay them back no problem."

There wasn't really much education on loans and what taking one out *really* means. All my financial aid department did was give me a form to fill out, which took 15 minutes, and bing bang boom, I had a $15,000 loan. How the heck do they give an 18 year old kid with very little credit history a loan like that? It's insane.

Only a year after I graduated did I realize what I had actually done to myself. And looking back (10 years now), I really don't see why I needed to pay that much. Community -> State is a much more sane way to go.

Certainly my kids (if I can ever afford to have any) will be going this path, and I'm going to do my best to make sure they don't make the same mistakes.

Instead of forgiving stundent loans, Amercia needs more emphasis on loan education. I'm sorry, but if you were foolish enough to sign up for student loans with poor Ts&Cs, you should pay the consequences. We are stupid when we are young, but that doesn't mean America should pay.

This is the problem with going to college now a days. Colleges have gotten so expensive and grads are leaving with unimaginable amounts of debt that can never be paid off. Then when grads hit the job market they have to start out with entry level jobs that don't pay enough to live on or to pay back students loans. I believe it's getting to a point where college is not worth going unless your from a very wealthy family or you have a full paid scholarship.

I feel for your dilemma Samantha but it is what it is. Nobody forced you to get these loans or to major in a low-paying profession. The fact is that many universities are not worth what they charge.

We have an expression here in NC: If you want an education, go to one of the fancy private colleges; if you want a job, go to a state college.

In many senses, you should feel very fortunate that you were able to get these loans and forego saving up the money beforehand. In the past, getting student loans was only possible for a very fortunate few individuals. The only loan I qualified for was a 18.5% signature loan that did not defer payments until after completing college.

For those of you leaving comments tieing this with the gov't bailout, remember that the bailout funds are loans – not gifts.

Are you suggesting we pay back student loans with more loans? Isn't this what got us into this mess?

Sam,

I work for a federal student loan guarantor in the Northeast. We guarantee the bank that you will pay your federal FELP student loan. If you don't, you defualt on your loan we pay it off for you. One of the services we offer is to cousel borrowers and parents on how to manage the financing and repayment of student loans. I think that there should be more up front conseling of potential borrowers. There should be more information available regarding expected payments and repayment options and compare that information to expected entry-level salaries. We need mandatory pre-loan counseling. If you had been given more information up front, you might have made different decisions.

I am 40 yrs old and have about $25K worth of student loans. For the first 13 years after college I worked in a very low paying job that only allowed me to pay a fraction of my loan per month ($120). My $120 was used to pay for service fees, and none reached the principal. Some magical way the debt grew to $50K. This is after I have paid $120 a month for 13 years. I have stopped paying because I know this is unjust. I know have a better job, but I am not going to pay back twice what I borrowed, plus give up all the service fees I have paid for 13 years($21K). I don't regret for one second that I went to a state school the best way I could. I can live with my choices. I just wish that private companies had to live with their choices. They get bailed out.

There are a fair amount of comments that those of us who are wallowing in student loan debt are responsible and should not be helped. They're right, for the most part.

Realize that we took these debts out at 18 or 19 years old, often under the guidance of our parents. Indeed, you cannot get these loans unless you have a parent signature. In my situation, my mother never informed me of the end result of borrowing so much: over $130,000 in debt, at 8-13% interest rates (on private loans – which are most of my debt), and over $1200 per month over the next 25 years. These companies, much like the mortgage lenders, have made a fortune on the backs of people who made misinformed, immature, and irresponsible decisions.

The reason for these decisions, as many in my age group (25-30 years old) will attest, is because we were told all through the '90s that the only way to get anywhere was to go to college – and the more expensive and prestigious the college, the better. So we did, many of us either not ready for college or unaware of the costs of such an adventure. Society led us to spend hundreds of thousands of dollars on educations that some of us probably don't need or use. The ultimate irony is that we were led to believe that an expensive college education would get us fabulously paying jobs, but instead, we still have to travel up the traditional job ladders, meaning we make barely enough to make ends meet.

Why is helping to reduce or eliminate this debt important? Because of it's effect on the economy as a whole. The age group most likely to spend money on new homes, cars, etc... is limited in their ability to participate in the economy. I don't think we're all arguing to have our loans eliminated. What we are arguing is that we be given a fair interest rate and repayment terms, and for those in the future, affordable tuition at universities.

These huge debt numbers, to me, show the consistency of a problem that America is having. "I'm entitled to this. I deserve this. I shouldn't have to pay for it though." You made your choice to take huge loans out to go to an expensive school, even though attending a local community college for a couple of years would have cut your debt load significantly and you'd have been able to land the exact same job.

It's about people living outside their means, and not planning for the future. Now, unfortunately, living outside your means has caught up with you. Sounds like your parents didn't teach you properly about this thing called LIFE. Save for the future. Spend what you can afford. To spend $100k+ to get a job that pays <$40k a year is ridiculous. Talk about a poor investment.

My parents saved for 18 years to put me through college. I remember mom putting $20 a week in to my savings account book. That's all it took. I did not have a car until I turned 21 and was working on my own and could make the payments myself. That's called proper financial planning and fiscal responsibility, people. Teach your kids what it's about. My kids will go to a school I can afford, and yes, I am paying in to their college fund RIGHT NOW.

Much like many, not all, of the mortgage loans people were biting off more than they could chew because they were either uneducated or desperate. You made an agreement, and you didn't fully understand the consequences. Even in a good economy you would have had trouble paying those loans so I don't think all of the blame can be placed there. I know many of people who have worked their way through college and it may have taken them 8 years, but they are better people for it and are much more financially responsible. Kids need to realize that loans are not handouts.

I think Samantha is very brave to finally bring this matter up to the public. We college grads have been under the burden of overwhelming student loans for years now. The leaders of our country have no problem bailing out banks, that then turn around and give millions to execs who made them fail in the first place, and the auto industry, which has had its head stuck in the sand for years, instead of bailing the future of our nation, our students.

Although I don't think we should be "bailed out" like everyone else, because the money we borrowed was put to a good use and should be paid back eventually, I am very mad that they will bail out people who made bad decisions when buying a home. Instead, they should be relieving some of the debt of the millions of students out there struggling just to make their payments. Again I don't think wiping away the debt is a good idea, it just encourages people to leach off the system, but the government could assist with getting loans consolidated to lower payments.

I also had issues getting my loans consolidated. In the current situation, Sallie Mae would not consolidate, so I turned to the Education Department. Luckily (after about 9 months of waiting) they came through and consolidated for me. Now I am only paying what I can afford.

I think it is absolutely disgraceful of these lending organizations to expect recently graduated students to be able to pay $1200 a month, within 6 months of graduation, especially in a time when there are very few jobs to go around, and even if they can get a job, they get pitiful salaries.

It's about time we student loan paying citizens stand together and call on our government to help those of us who are educated, who are the majority of the future workforce and tax-base, for help. It's about time they help those of us who made the right decisions, who do most of the work, and who are just trying to do the right thing in making our payments, instead of bailing out greedy auto industries and banks who make the wrong decisions and expect us and future generations pay for it.

When I graduated high school in 1993, I decided I didn't want to go to a state-supported school for four years and come out $35,000-$50,000 in debt, so I joined the Navy instead. When I bought my first home in 2005, I put money down and bought within my means (fixed APR @ 6.5%). What have my responsible decisions bought me? I've got a home with ever-decreasing value, taxes that won't quit going up, and now EVEN MORE irresponsible people like you are asking for me to bail you out. I am tired of paying for other people's impatience and lack of responsible decision making. You screwed up YOU PAY FOR IT!!!

Yes, the author may have chosen to go to a private school for undergraduate education, but many are in this boat for choosing even higher education. I went to UC Berkeley because my parents refused to pay for private school for undergrad. Well, my education did not end there. I just finished a masters program at a private school and I owe a fortune. The problem is that the program I needed was only available at one public school in the state at the time I applied. Was I supposed to wait and hope that more programs would come along in the near future. I think not. I was not married at the time and had no children and it was the best time to finish graduate school. Post graduate education in the state of California for UC schools cost at least 15,000 a year just for tuition. Private schools are about the same. People seeking advanced education that are middle class get the shaft no matter what. You don't qualify for financial aide and by the time undergrad is paid for, nothing is left for higher education. We want qualified nurse leaders, doctors, and scientists, and even political leaders, but we will not help them obtain the education that they need. This is wrong, backwards, and one the reasons why the US is losing the education and technology wars.

YES! i wrote to the president, and my state representatives about this very issue! this needs to be addressed!

to those of you who say "you chose the loans" – yes, i did. but i did NOT choose to divorce my husband (it was our combined incomes that would have made loan repayment possible) or to lose my good-paying job!

we need help! i have $80,000+ worth of principal and interest and i will NEVER be able to afford to pay this. right now i am lucky i can manage my rent and normal living expenses!

I feel your pain on the loans, and I think that it's ridiculous what people have to go through to get an education in this country. There should be a much, much better system in place. That being said...

There's always ways to make it work. You could have joined the military and gotten a lot of money for school for example. That's exactly what I did. In essence I had to sacrifice 9 years of my life to help with school. That's what I had to do, and that's what I did. Please, don't complain about your decisions about school. There were options that you could have pursued that would have significantly reduced your debt. You're an adult, act like one.

College is overpriced for most majors. Most majors never repay the time and money invested.

Companies were sued for using aptitude tests, so they started insisting on college degrees for jobs that really didn't require one. This allowed schools to charge ridiculous amounts of money for a degree. We paid it, so we (and our kids, I'm a big payee here) could get jobs.

Well, if they became engineers or doctors they did OK, but social sciences and liberal arts majors spent way too much money for degrees that honestly don't pay much.

Philosophically, I'm against all the bailouts. If we must bail anyone out, I'd rather it be the young. They get a raw deal tax-wise already.

Caveat emptor, kids. That's "buyer beware" in case you learned no Latin with that expensive education.

Just like Health Care, Education should be a right. Health Care and Education prices are ridiculous!!! Class warfare is here and its real people. Banks and Colleges have "raped" my generation. They won't even have paid off there student loans by the time their kids have to start paying back theirs. By the time my children are ready to head to college they won't have a chance to afford it. In 20 years instead of paying back $120,000 in student loans it will be closer to $400,000 for a 4 year degree. The only way you will be able to get a degree is to have rich parents. Only the rich kids will get good educations and the jobs of their choice since there wiil be no competition. The balance between the have and the have nots will continue to favwiden. It amazes me that the rich keep taking at the expense of everyone else. Where is Robin Hood when you need one? If we continue to allow genereations of kids to be saddled with debt they will never repay, parents will be telling their children not to goto college to have a better quality of life.

agreed! Just finished graduate school with private loans of $100,000 (adjustable rate). I feel like I will never be able to buy a home, I already have a mortgage payment! Any bills to forgive debt only apply to federal loans...

So true...

I graduated and got a great job out of college in tech. This was right before the 2001 recession that affected tech people greatly, but not other people.

At that time, I could no longer afford my loan as I lost my home, my job and everything else.

My life has never been the same. I am unable to get a car loan, unable to qualify for a mortgage, unable to get a cell phone plan (that isn't prepaid) and unable to even rent an apartment! Can you imagine??

All this because some lenders fooled me (as an 18 year old kid from the country) into thinking that my job out of college would more than pay for my student loans with ease!

I made the mistake of going to college and getting student loans to pay for it when I had no other payment option. I also worked 30 hours a week through college and 40+ hours a week during the summer and during spring and winter break to pay as much as I could for school. The rest was student loans.

My gripe? I was taken advantage of by a school system that assured me my future earnings would easily pay off these student loans. Ultimately, after that 2001 recession, my life was over. No longer able to buy cars, rent apartments, buy houses, get cell phones, etc... many people have fled this country. Sounds like a better idea all the time.

There is no way out of these student loans we were tricked into taking. I don't even know how much I owe anymore. The numbers just kept piling up with penalties and interest and such.

What am I doing about it? NOTHING.

If everyone stops paying their student loans, at least it might sent a message to the FOR PROFIT companies that administer and make big $$ off of them.

Me? I'm probably leaving the country. What's left here anyway?

I have two boys in college – one is at a private university and one is at a state university. I went to the University of Illinois and graduated in 1983. My tuition, room and board for an in-state student was $2500/year. I was able to work my way through school and graduated with a student loan totaling $3,000. Those days are gone! My husband and I started saving for our boys' college education the day they were born. Unfortunately, we did not foresee the rise in college costs to over $22,000 per year for in-state tuition and close to $50,000 a year when all is said and done for a private education. We raised our sons on the motto "work hard and you can go to any school in the country". Sadly, that was not the case because the middle class gets screwed when it comes to financial aid from the Federal government. The private university my oldest son attends has given him more aid, grants and federal subsidized loans than the total cost a year in a state university because of their large endowment. Yes, they look at need but they also look at the student as a whole – how much can and will they contribute to society when they graduate? The amount of loans my boys will have when they graduate is mind boggling. My husband and I will help them pay the loans, but the word "retirement" has been taken out of our vocabulary. Personally, I can't think of a better investment for our family to make. Too bad the federal government doesn't agree. Something's gotta give or only the elite will be able to attend college – at any level, at any cost.

To those of you who have no sympathy because you did it all the right way. Aren't you special. No one in this position is asking for a bail out. I, too, have large student loan debt that eats up a large chunk of my monthly income and will go with me beyond this life time.
What we are asking for is a company willing to work with us and not feed off our desire to get a higher education. Sallie Mae does nothing to help people honestly having a hard time paying their debts...in fact, they often place people in a ripe position for Default. I think giving us the same interste rate th banks has is a totally fair optin and will nt only allow us to pay our loans out and no be forced into default or poverty, but will allow us to use the extra money to stimulate the economy buying giving us some money to buy homes, clothes, etc.

I will reserach Jessie Jackson's plan and see what I can do to help put pressure on Congress to deal with this issue.

Thanks for posting this, Samantha.

It's extremely unfair to those who weren't fortunate enough to get their college expenses covered by their parents. We're forced to take out student loans, accrue a ton of debt and then have to pay interest on that debt. I have no problem paying back debt, obviously, but the additional interest makes it unbearable. How are we able to build a strong foundation for ourselves when the majority of our paychecks are going back into student loan debt to avoid paying interest (or even just to make the minimum payment)? It sure is tough.

Sam,
I graduated from graduate school with debt similar to you. I, however, was able to consolidate my loans, and, while my monthly payments are high, they are doable. I discovered that some business students at Harvard started a loan consolidation business (www.graduateleverage.com) in which they group student loans and sell the loans which enables students to receive lower interest rates than Access Group or other student loan providers. I would check them out.

The problem that I see is that some students think they have to go to a private school to get educated. This is not true. If the student wants to have the prestige and bragging rights as to which university they graduated from then they deserve the consequences. Sounds like now they don't want to pay for their higher learning anymore. it was good and O.k. while they were at the university but when they hit the real world........POW............they ask " can someone bail me out". It is no different than all the other bailouts. Put your higher learning to work and get going with your career. people are not going to hand it to you just because of the university you went to.

I do agree that something needs to be done, but I don't agree with bailing people out. When the rich people get bailed out, everyone cries and says bailouts are wrong. When middle class people are offered money, then everything is right in the world. That's a double standard and we would all be well to try to keep our focus on the situation, not what would help one class of people.

The main problem with student loans is that the people who have all the money aren't paying theirs. Make all the doctors, lawyers, etc. start paying their loans and have their interest rates cap at a certain %, then any % over that would go to lowering the interest rates of smaller loans.

I am a mother paying off her daughters 2nd student loan. She is a teacher and in order for her to advance she needed a masters. As you know teachers do not make a whole lot of money. Has anyone out there heard of a program for teachers that if you have already paid 10 years on a student loan the payments after that are forgiven?

Yes, student loans were a choice but there is one thing everyone is forgetting.

The money the government is giving out is coming from our taxes.

I want my money to go to my student loans. I should get the choice.

Bailing out graduates with student loans would be a better investment than bailing out Wall St or AIG turned out to be. You know how young people love to spend any kind of disposable income, and that kind of spending is good for the economy. However, that doesn't mean that anyone should be allowed to run up a huge bill in student loan debt, and then expect to be bailed out. Bad decisions or not, we have to face the consequences of our choices.

Sorry, Sam. I hear where you're coming from, and can empathize a little, but your choice was your own. Whether you knew what you were choosing or not, yes, you chose a hard life of debt. If starting salaries in your field were known to be low, and you knew the yearly tuition and dorm costs, then you probably should have found a cheaper college to attend.

It would be nice to see the government waive at least a portion of Direct Federal Student loans. It would certainly alleviate a lot of financial pressure on indebted persons, and provide immediate results back into the economy. Like I said earlier; more disposable income often means more spending by consumers. Houses, cars, TVs, vacations, etc--all factors in the big scheme of things.

I just can not help but to mention that if it costs that much, then why go? The costs of college will not come down if we as consumers keep paying the over priced cost. I have placed three of six of my children into college two graduated, one with debt with a ME and one who made it through by working full time and school took longer but no debt. My thrid child is in her Junior year and is getting slammed, we are paying about 800.00 a month to do our best to get through to that degree, but she will have debt as well. At what point does the debt not make the benifit real, I say we are past this point.

I used to provide career counseling at my organization and my first question to those seeking counsel was: What is the ROI? Meaning, if you pay $50K+ for a degree to get a $15 an hour job, you ought to decide if that makes financial sense. Another note about student loans, you don't have to take every penny that's being offered – I love it when folks take the extra (unsubsidized) funds to "live" on and then think that money shouldn't have strings. It's exhausting to hear people doing exactly what they want and then complaining when everything isn't utopia when all is said and done. No one is entitled to anything. I completed my Master's degree and have NO student loans because I made responsible decisions – state university and took classes as I could pay for them – 1 at a time, so apparently I'm in the minority of those who understand economics – buy only what you can afford. THAT my friends is the only solution to getting out of the mess we are in...

This debt is crippling. I'm sorry Stacie but many fields don't have the earning potential to pay off the loans you need to take out in order to get a job in the field or cannot be completed at the community college level.

The other problem is that some fields require more paying of dues than others. Social work, journalism and my own field (higher education) are just a few. As a college professor I can tell you that there are many fields of study that won't allow students to "work their way through". The arts, hard sciences and many academic research degrees work this way. Business majors, general studies and skill training courses tend to lend themselves towards work/study but not always. I have many students who are regularly torn between coming to work and coming to class.

The other thing that is sacraficed when students work too much is "the college experience". Taking courses outside your major, attending seminars, participating in student groups and activities. These experiences are the first casualties of your proposed solution. I

The student loans aren't the problem, the cost of college tuition is. Maybe if all of this student loan money wasn't available colleges would have to start charging tuition that is actually affordable. Instead, colleges charge whatever they please knowing that students are willing to go into massive amounts of debt to pay the cost of attendance.

At first, I was going to say "no" to any loan bailout, you made the choice to take the loans and go to a private college so you must accept the consequences, however, you did do the smart thing and continue your education. My remedy would be to forgive the loans only to the amount it would of cost to go to an in state college as this would have been the prudent decision, it amazes me that the smartest kids make the dumbest decision to go to an over priced over hyped private college and end up with HUGE LOANS when the "average" kids go to a in state school and get there degree at small fraction of the cost.

I see a lot of comments on here regarding public institutions, however attending a public institution as an out-of-stater will cost you almost as much as going to a private school. I was in this boat a few years ago, and with a grant from the private school, it actually cost me a few thousand LESS a year to attend the private university vs the public out of state school (the in-state system lacked a good program in my area of study), and I still ended up with about $90,000 in student loans. Student loans, in this day and age, are basically unavoidable. Sure, you can come out with a high amount or a low amount, but I only have 1 friend who made it through without loans.

good article. I do not believe in bailouts – neither for companies or individuals. HOWEVER – I strongly believe that if individuals are being bailed out of mortgages they CHOSE to sign then students who cannot afford their loans should be bailed out as well. Better yet, just forgive those loans for college GRADUATES. They'll use the money saved each month responsibly – maybe even use it to buy a house. It is a win/win.

Some facts:

1) U.S. post secondary education is the most costly anywhere.
2) We do a poor job of making sure our kids have personal finance training.
3) The workplace desires ready-to-work college educated people.
4) Salaries are adequate for cost of living and paying back the loans only for limited professions – not teaching unless you get on one of those loan forgiveness programs.
5) You're more likely to get a prestigious job if you have a private school diploma – Ivy league grads usually earn better money.
6) U.S. workers are competing against workers (like India) whose college is heavily subsidized. As a result, wage pressures make it harder, not easier, to pay the loans.
7) Almost every single policy maker and legislator is not recognizing #1-#6.
Starting off in community college can help – IF the classes will adequately prepare you for the higher level schooling when you switch over.

Some fallacies:

1) People who get expensive schooling are irresponsible or foolish: who can tell what they will be able to afford to pay 4 years+ after they enroll?
2) State universities are just as good as private schools. Just ask the recruiters.
3) One should work one's way through school. This could be true if one goes to a state university, draws out the program, has no other responsibilities etc. But for the most part this model is outdated.
4) Everyone should know what they need to know about loans, to make a good decision. (The credit market is a shark tank)
5) Schools have your best interests at heart. (One does need to know enough to tell truth from hype)

Good luck to you. This is not going to change quickly.

I'm in a similar financial boat to many of the people commenting here(~$75k in private school loan debt), but this 'reduce the rate' suggestion is clearly more stopgap than solution. The only reason I'm in this position is because lenders were actually quite generous with me – it's my college that set the cost of attendence so high. Higher education cost has grown faster than inflation, GDP, household incomes, and even healthcare over the last 25 years, with little opposition and essentially no pressure to control costs. Meanwhile the larger endowments have grown to the billions and tens of billions, all tax-free.

Protective loan terms would be nice for me but might just reduce the amount that lenders are willing to finance in the future – bad for current students. Protecting *schools* from defaults gives them even less incentive to rationalize their pricing.

As some said, it is the case that choosing to borrow for private school tuition is choosing deprivation in the early part of our careers. But don't fool yourself into equating mortgage, auto, and credit card excess with student borrowing – the whole principle of student loans is that, at the point at which they are taken, they are unaffordable. You borrow against future income in order to qualify for that future income. It's risky, but it's not excess.

Once solution to this would be to join the Armed Forces. The new G.I. Bill covers almost all expenses and it is based on the highest tuition in your state.

Unfortunetly you puut yourself in this situation. There are many other options than to attend a private college. This being said, I would tell you to find a straw and suck it up.

Many young college students do find the time to get informed on the loans they are signing for and "do the math" before they graduate with debt that they then claim is too much. Many do one or two years of community college in order to make it more affordable. Its an unfortunate situation that I'm living. I have four children all hitting college within the next 5 years and the cost is daunting and rapidly increasing. My first two both have student loans, have applied for scholarships and work 20 hours a week...and they are making it work. Before they applied for college, we looked at the careerfields they were interested, the type of salary they might expect and what type of loan payment they could afford when they graduate. It's not that hard, and it helped bound the choices.

Too many young students sign the loan paperwork with no understanding of what it means. That's not the fault of the system.

This is just the tip of the iceberg of issues facing our generations. I graduated from college ten years ago, in an economy that was already on the decline. By the my hard earned bachelor's degree wasn't worth the paper it was printed on. Most employers were already requiring a Master's Degree.

So on your own, trying to find a place to live that you can afford while working minimum wage or little better with no insurance just to have a job and pressing to pay student loans, rent, utilities and the like. Ten years later I am still paying off the debt.

The cost of living has skyrocketed, interest rates are astronomical, and of course the unpleaseantness of being diagnosed with a chronic illness (automimmune disease).

The truth of the matter is that:

1. The government is predominantly over 50 men who come from prominent "upper class" families in the first place. They don't have a clue what struggling is about.

2. The top 1 or so percent of our population who insists on paying more than I pay for a month's rent for a bag or a pair of shoes that keep driving prices higher. I mean they can always delcare bankruptcy or get alone on their celebrity or family name alone and still get to kepp the Jimmy Choos.

3. The overall view that one should be awarded for stepping on the backs of others and using the consumer to make profit. Ever try to figure out what all the extra fees are on a utility bill or better yet ask someone from the company to explain it to you? Or how about paying a fee for EVERYTHING. $1 for air; you want to apply to live here; Application Fee, Hold Fee, Move-in Fee, Deposit Fee, Rent. You want to workout here? Registration Fee, Card Fee, Monthly Access Fee, Locker Rental Fee.

These things have created our current economic situation

Sam, although I empathise with your dilema, I too was saddled with almost six figure in loans after college and law school. Paying them off in 13 years was a proud moment. You made your bed....students should not be absolved of their repsonsibilities becasue they either did not read the "fine print", were too young to know any better, or simply cannot afford to repay. If that is the case, I want my $100,000 back; I am certain that my wife would put it to good use.

Thanks for the great editorial.
Congratulations to the minority of college graduates who have never taken out a loan for their education. You can now afford to help stimulate our economy.
But the student loan crisis is not the result of millions of high school graduates exercising greed and disregard when choosing a university to attend. At 17 and 18, the American Dream, currently on life support, is sold to us by our parents and the media. 'Go to college, have a better life.' The reality is that higher education is necessary just to get by in a global economy. A high school education is a necessity, but so now is post-secondary education. Unfortunately, it's really expensive. We're all hard workers, savers and spenders. Many of us live in small apartments, drive economy cars and work 60 hour weeks pursuing the original 1950's-style American Dream.
Were our parents working this hard with so much debt when they were our age? This dialogue needs expanding. It's time our nation and our politicians recognize that the Dream has changed and that it now comes with a hefty price tag.

Hey Samantha.... Im going through the EXACT same thing....I owe about $103,000 in debt for going to a private art college in NYC. Luckily i have a job, but the pay is only enough for me to keep my head above water). Just saying the personal responsibility argument is oversimplifying... There are so many factors that plays into this. I was an 18 year old kid (23 now) when i was excited about going to college, and I wanted to go to the best school that I though was good for me which is why I chose the school that i did. But the conditions I am from.... A single mother household.... i'm very poor and didnt even realize it until now...and we didnt have cash to pay the tuition...and scholarships are really scarce..but we had good credit. Another thing is that college is getting exponentially more expensive and it is impossible for household income of the average family to keep up with the rising costs.... which in effect.....in order for the average family to get their kid(s) to go to school...they will have to take out loans...which i think i giant trap now that i look back on it....because essentially you will be paying and consolidating for 20 years....all for a 4-8 year education. So i expect to see the number of student loan defaults rise greatly, just like credit cards and this will be the next problem with the private lenders.....the crisis is far from over...the system is flawed and needs to re-vamped...because if you dont have a college education nowadays.... you're locked out of alot of things...except the military.

We as a nation and as people need to live within our means. When looking back 15 years or so, I too had the choice of going to an expensive private school and taking up massive amount of debt. I chose the less risky option of going to a less reputable school. I graduated with a modest debt. I paid them off. I did not go on a spending spree until I paid off my student loans. That meant having to wait for another three or four years to get my first new car, not going to two or three expensive vacations every year etc. Yes I did have a boring life. But I am not losing any sleep over unpaid student loans or a heffy mortgage. A good number of people that I know did the opposite. They had their good times. They enjoyed their new BMWs. They had their fancy vacations in Europe and elsewhere. Now they all want tax payer help to bail them out of their past misdeeds or stupidity.

Hey here's an idea, lets bail out everyone and start anew. Let's not make any consequences for making bad choices. My wife and I had a combined $160,000 in student loans in November 2005. I don't work and she is obviously in her third year of work. We now owe less than $68,000. We don't go out, we bought affordable cars and I cook and watch the kids. It can be done. I made a choice to take out loans for a college education and I have to pay for what I got. Stop crying and suck it up. Same with home buyers who bought homes they couldn't afford. I am tired of people wanting to get a free handout. My parents didn't have money and my wife's didn't either. So we did it the hard way and the right way.

I couldn’t agree with Samantha more when she says that we need to better educate today’s high school students. Take on loans, but you have to understand the consequences. I went to school for an education and to grow and become the person I want to be – I did that and I would do it again. I would be smarter though. More scholarship applications, work at the school, try to become a resident assistant (aka free, room, and board). In this market and economy, students declaring majors need to be aware of the adversity that they will face when they graduate. Do your research and find jobs in fields that are and will be in demand. I have a degree and job in healthcare and know that the market is here to stay.

All that aside loans are a tough pill to swallow. Do I get jealous when I see friends with no debt who are buying first homes? Yes. Do I get down when friends takes weeks off to travel Europe? Yes. Do I know that I could do those things as well if I didn’t have student loan debt? Yes. It is then that I realize though that I was lucky enough to go to college. Because of college someday I will have my turn – it may not be tomorrow, but someday and for that I am grateful.

I have come to terms with my debt because without having gone to college the opportunities I would have in life absolutely would be limited. I don’t think you can put a price tag on that. For that reason, I have tried to view my loans as an “investment” rather than debt.
Here’s to hoping that my “investment” will be paid off by the time my kids go to college!

This story is the same as the mortgage mess!

overpriced education in a wrong job market = buying an overprice house in Phoenix in 2005

I feel for your situation and the situations of others who have posted on here regarding their debt burdens. That being said, for individuals who seemingly attended prestigious schools, it seems like you lacked some basic fundamental understanding of what you were signing for. Sometimes the educated are the most stupid. I also went to one of the best (and most expensive) private schools in the country, however I strongly considered the financial aspects of my financial aid package when making my decision. I also chose to work 25 hours/week during college to defray some of the cost. Finally, I also chose a field where I could pay back my loans.

Now, I had considered going into education, but realized that the salaries in that field would not support the repayment of my loans. I have sympathy but no understanding of individuals who obtain six figures of debt for the pursuit of careers that pay less than $50,000. Poor decision making, and now unfortunately you pay the price.

There are families that have the means to afford a good future for their children and then there are families where their children must struggle for a good future and struggle hard.

The American dream can only be accomplished if you work hard... unless you're born to a wealthy family.

While I have no objections to the changes proposed by Rev. Jackson, they're not going to fix the writer's basic problem: going to an expensive school with plans for a low-paying career means difficulty paying off loans. This is why I worked all during college and grad school, including fulltime in the summers, and never took out the maximum in loans for which I was eligible. I also did well enough in high school to earn scholarships and admission to a top school with generous financial aid, and I chose my grad school based on my plans to go into a nonlucrative field. While it has been a struggle, it has been one I chose and planned for, and my grad school loans will be paid off at the end of their original, ten-year plan next year. Samantha made her choices, and that commenter who is planning to go to grad school just because the economy is bad will be making his or hers. Why should taxpayers as a whole pay for their lack of planning?

I borrowed 24K on a BS degree. I now owe almost 180K because of interest and penalties. At almost 50, its seems that unless I win the lottery there is no way that I will ever be able to pay these loans before I die.

I worked my way through a local community college and university and took 7 years to get a 4 year degree. I went on to get 2 Master degrees, one using loans and the other on scholarship. I chose fields that I thought had a high potential for employment, the sciences and engineering, rather than what I thought would be the most fun. School was always an end to a means, employment, not a time to find myself or pursue pie-in-the-sky careers. I have never not been able to find employment and I paid my school loans off.

Do I feel sorry for anyone who is burdened with loans because they chose an expensive school or a discipline with little potential for employment - Hell no! Life is full of difficult choices and we must take responsibility for the choices we make.

I'm on the fence on this one. I really am hurting because of my $40k in student loans. At my current salary I am able to pay my bills on time (although there is not much left over) however I work in finance and my company has just announced that my department is going to a 4 day work week instead of doing more layoffs. This 20%+ paycut means I have to leave my job and move back to the small town I come from and wait out this economic disaster...

I don't believe in bailing anyone out but if we're going to be doing it why wouldn't we bailout those who sought a better education when we are bailing out those who bought houses they coudln't afford? An education isn't a luxury, its an investment in your future and the future of our country.

What they should do is change the rules for putting your loans in forbearance so those who are underemployed are eligible as well.

This is such an important issue. New graduates should be the first recipients of stimulus money. They are the ones who, were it not for huge student loans, would be out starting families, buying homes, contributing to the economy. But as it is, they are inundated in loans because that was the only way many could go to college, and now they can't even THINK about buying a home, or even a car. Help them!!!!n That will help all of us.

I think where government intervention needs to come in on student loans is looking at where loans are being given. Some professions obviously don't provide the same opportunities as others, and the opportunity to extinguish the loan debt just is not as great. In a way just as banks allowed people to borrow way beyond their means to buy homes, the government and other student loan bodies have allowed students to borrow far beyond their means as well.

Also the way tax credits work with student loans is completely laughable. The government allows you a tax credit of $2,300 (I believe this goes up soon) on interest you pay on your loan yearly. The amount of people who pay FAR more than this yearly is very high. Why is there not a tax credit for a percentage of what you pay in interest or have the credit be graduated based on your tax bracketing?

Lastly with the change in bankruptcy laws it makes no sense that the interest on student loans is as high as it is. Essentially student loans are now as secure of a loan as there is. Lowering the rate to match that of the banking industry might be a bit extreme. However if this administration wants to be serious about future education it has to address the issue of the continually rising costs of college education, with loan interest being a part of that cost.

The reason this issue will not be addressed is that the people holding the loans are trying to do better for themselves, getting an education and trying to establish a career. They want to be self sufficient. Help is for those who expect the rest of us to take care of them.

I KNEW in high school that my parents couldn't afford my college tuition, so I purposely chose a school (not my first choice) that offered me a scholarship. What I DIDN't know was that my dad would suffer several strokes, rendering him completely disabled, and that my family would plunge into financial disaster as a result.

So I now have student loans. Alot of them too. I pay them faithfully every month, but I would be willing to do volunteer work on the side or something for some gov't forgiveness. Now, I'm facing a probable lay-off, and I'm thinking of switching careers, but am loathe too because I don't want more loans!

I don't think it's fair to criticize people who do the so-called "right" thing and ask for a little assistance when those who had no problem screwing the system are getting handouts. I appreciated this article and agree with it.

Imagine being at the other end of the spectrum, Samatha. I am 59 and lost my teaching position. I have faithfully paid my student loan for 22 years and now have no income. I'm also three years short of social security. I had planned to work until I was 65 (or older if I was still healthy). I live in a rural community and there are no hourly jobs available. So, for those who say we shouldn't have taken out a loan if we couldn't pay for it, I had every intention of it and have been caught in this recession with no recourse. Thank you for speaking for all of us!

Kimberly;

What???? I've been reading most of these posts and not very many are spouting jealousy over her getting into a top college. Their just saying you made a decision now your stuck. This good college bad college stuff is rediculous. The only difference between colleges are the business contacts and job networking at certain schools. State schools tend to be lacking in this aspect.

Colleges charge what the market will bear. If the government gives more aid then the colleges raise the tuition. If enough people turn them down then they will have to lower costs. Simple economics. The problem is the feds don't deal in economics they deal with lobbyists. Yes, the colleges have lobbyists.

Now did Samantha get her job because she went to said school. maybe, maybe not. She is in her field, what else got her her job. Her articulation, her presence/demeanor, her looks, yes even though that's not PC. Will her education propel her to make as much as money as Katie Couric. But wait Katie is an alumus of Univ. Of Maryland. Bill Crosby Univ. of Mass.

To everyone: If your the type of person to succeed you will. The school doesn't make you. You make the school. Do not overpay.

I am torn in my response. As an employed person, with a bachelors degree, I sympathize in the repayment of loans. I walked out of college with about 20k in student loan debt, subsidized and unsubsized federal loans. My payments are small(about $300 a month) and I have off about 8k in 3 years. With that said, I am currently in graduate schoo, working full time, and have an employer which is covering about 90% of my masters degree.

The student loan system is screwed up. There is no denying that. However, you made a choice to go to private school and work in an industry with low starting salaries. Whether you were educated about those choices is another matter. My parents told me early on they would help where they could and that I would taking out loans to cover the remainder of my college bill. I chose a state school for both undergrad and graduate school, so I would not be in your situation.

Since finishing undergrad, I have gotten married, bought a condo(with my husband), we paid off his student loans and his car loan. It is possible to do, its called not borrowing what you can pay back, and not expecting the government to help you out.

The students today are paying for the sins of those who attended college in the 1960's and 70's. How many students racked up huge student loans and tnen defaulted or had them discharged through bankruptcy. Student loans are one of a very few financial obligation which can not be discharged through bankruptcy because of past abuse. I understand the author's feeling of entitlement and her need to have someone else pay for the benefits she has received. My daughter will be financing he education the same way I did–with the G.I. Bill.

I couldn't agree more. I have been out of school since 96 and still owe a little less than 20k on my loans. Unfortunately, I consolidated my loans about 1 year after I graduated and consolidated at almost 8%. In the past few years new loans were being given out at a rate of 2.9%. Do you think I could refinance my loans? No. Once you consolidate, you are screwed. You can refinance homes and other loans but not your student loans which is so unfair.

You go girl!!! My husband & I are well over our heads in school debt. None of our parents or older siblings went to college. Yes, we did choose to go to a private school, but we had no idea what we were getting ourselves into. No one explained on how these loans would effect us and put us in so much debt right away. Had we known things might have been different. We are both not currently serving in our fields due to the high school loan payments and interest. Its very frustrating and it seems like no one wants to listen.

Unfortunately many of our nation's young are being told they can do anything. Reach for the stars and all that. When choosing what to do after high school, their dream and their finances often to not match. We must teach them fiscal responsibility before they leave the nest so they do not enslave themselves to the government loan programs!

Young people, find a school you can afford, or a dream you can pay for. Do not ask taxpayers to fund your education. We are working hard for our money and will use it as we see fit. I hope you do the same.

Your article really hit home for me. After years of working dead end jobs I decided to go back to school and complete my BA. I could not get into UW-Milwaukee because my math scores were too low on the entrance exam, so I was forced to pursue other options. After choosing a private university, I completed my BA with a 4.0 (and yes, there were many math classes), and I went on for my MBA. I graduated, again from a private university, in Dec. of 2008 with a 3.83 GPA. Now I'm 52 years old and looking at $90,000 of debt. The job market is terrible. I will die long before I pay off my student loans, and having that reality hanging over my head is disheartening to say the least.

I'm contemplating just paying them what I can afford each month and let them take my tax returns until I die.

It's nice to know that others share my predicament and are sympathetic.

I just did the math, so I would have a better perspective. I'm a parent about to send my son off to university. He is interested in the school I attended which is an out of state university for him (as it was for me).

If I look at what I paid my senior year for tuition & apply a handy inflation adjuster I found online, annual tuition at that school should be approximately $10k for an out of state student.

Actual annual tuition? $20k.

The fundamental problem is that we have lost control of the cost of education. And that we are encouraging our students to take on debt to obtain an equivalent level of education that we got without educating them on the implications of that debt.

Our country needs an educated workforce. If we don't recognize that, we will quickly descend into a third rate economy. And we are strongly discouraging our students from getting that education that they need to compete in a sophisticated economy.

great points by the author,

i am married with two daughters. my wife stays at home to care for the children, because day care is so outlandish in price. my wife has over $50K in student loans that we cannot to afford to pay off. we are trying to pay mine off as i type.

many people are in this situation, have one parent stay home to ensure a quality of life for the children or both parents work and fork over an entire salary for day care. even if both of us work we can't afford to pay off both student loans due to child care expenses.

this system is broken. it is almost impossible for the middle class to survive in today's America.

Samantha -

Thank you so much for finally really voicing an issue that affects millions of Americans. What some of your readers don't seem to understand is that this type of debt can't be refinanced once loans have been consolidated, even if interest rates are decreased! I pay over 8% interest on my school loans, because of when I graduated (interest rates were high). Some other people are paying 2%. The system is not set up to take reality into account. I also work a public service job. While I make a good living, I don't make a fortune and I can't seem to decrease the principal on my loans. When did we become a country in which only the wealthy are able to afford college? It's a shame that the cost of college and the woefully inadequate loan system is causing such trauma to people across the country. I think I can speak for most people in my situation by saying we weren't greedy and over-grasping when we went to school and took out loans. We simply wanted a better life for ourselves. It's terrible to be penalized for dreaming big and working hard to get somewhere. And by the way - it's not just students who attend Ivy League Schools who end up with a mountain of debt. State schools aren't cheap, either!

I think students should be advised on loan terms and conditions with full disclosures like how much it is going to cost them a month or total time period to pay off the loan. During my master program, I worked 50 hrs a week while attending school in the afternoon. Got schoalrship in final 2nd year and paid off my loan in 3 years. I never took a loan and glad that I didnt. Never ask my parents either for loan.
You have the freedom to make choices and pay for the consequences. You got to do a simple cost benefit analysis. Paying off loan for the rest of your life is like being a slave for creditor for the rest of your life.

What this speaks to is a deeper issue that has developed over the last 40 years in this country. And that is the commodification of education. A rash of "colleges" and technical schools have sprouted up the last few years offering quick and easy bachelor's degrees and skills training. People flock to these schools because they've been told that the only way to get ahead in America is to have a college education or some valuable skill like computers or nursing. I'm not saying that those aren't growth areas in the economy but what ends up happening to a lot of people is they go into debt with little to nothing to show for their ROI. Even most of our more legitimate education institutions are little more than factories running students through the motions so they can take their money in return for a piece of paper. The quality of instructors and curriculum in these factories is appalling, and we are paying the price for our constantly lowering standards and blind worship of the dollar.

Ultimately the goal of most of these so called institutions of learning is to take your money and put you into the cycle of debt so that you have no choice but to become another whore to the system. Hyperbole? No, it's not. And God forbid people actually attend higher learning to, gasp, learn. But that was destroyed when the powers started selling a degree by itself as a means to financial success. Make no mistake about it, it's all about the money in this country. Greed is good. Isn't that our mantra now? If a college education is a way into a better life than most people will run to mortgage their future away for a fantasy.

Ah, I see that the most valuable lesson for real life must not have been taught or did not sink in – that lesson of taking responsibility for your own decisions. I do feel sorry that you are struggling under financial burdens, but as others have pointed out, they are totally due to your own choices.
I also had some student loans after school, but I chose to take responsibility for my own choices and "dream" within realistic limits. I chose to drive used cars rather than going into high debt, and chose to purchase a home that was aproximately a third of what the realtor told me we could afford, (that was back when mortgage rates were 18%) Because I have chosen to take personal responsibility for my decisions, I am both mortgage free and credit card debt free now 30 years after graduation. (I still drive used cars.)
Why does the world always OWE us everything when it is us that makes the bad decisions?

This story illustrates what a sham a college education in this country has become. The cost of education is ridiculous. When I was growing up my teachers and parents said go to college so you can have a good job someday and make money. That was what was preached at me all through my high school years. The colleges sucker you in by telling you of all the money you will be making with one of their degrees, so you reason it is OK to borrow student loan money now, I'll be making so much in the future that it won't be a big deal to pay off. (Look into the statistics on graduates and how much they make and ask the school how they get those figures. The average for my degree was extremely skewed by one person who reported making $78,000 right out of school. The rest of us, lucky to make more than $30,000. These numbers are all self reported and there is no verification.) For many when you graduate you are lucky to find a job, especially in this economy. Then you land that entry level job, and are just happy to be employed in your field. The pay level for some entry level jobs is pathetic, just barely over jobs that don't require an education at all. Try paying off student loans when you barely make enough money to cover the basics. The truth is for many people these days, they are better off without a college degree and massive amounts of debt.

I waited to go to college a few years after graduating high school. I was 27 years old and had the dream of becoming a fashion designer. I was married at the time and had a young son. I started art school and then came the separation of my marriage. I had to work full time and take care of my son. I made it through 1 year of college with a $4000.00 loan. Now you are probably saying that is a small amount compared to others. Well in 1994, I filed a chapter 13 and made payments on the student loans of over $1000.00. I converted to a chapter 7 in 1996. Student loans could not be discharged unless due to undue hardship. Well, I struggled over the years with payments and kept the loans in forbearance. Well today the $4000.00 loan has become $14189.00.

I hear where you are coming from with on student loans, honestly. I have one myself, but it was only 15k, and that was after the federal student aid I received. I chose an instate public school as it was cheaper.

The big question with school cost is "Was it worth the name and the place you went to?" I started out as a public school teacher with 15k debt, a person who sat next to me during the same teaching orientation for the same public school system had 80k in debt as she went to an out of state school. We were both starting the same career, same pay check, yet I was better off financially because of the school I chose. I have since left teaching because I got burnt out, and was able to have my loans differed as I was in grad school. A friend of mine gloated that she got a really good rate on her student loan repayment when she consolidated them. Then it turned out I had made the better decision to not consolidate as she could not get her loans deferred when she went back to grade school, but I could. When going through grad school I didn't have to pay for my loans, but she did each month.

No my parents didn’t help me get through school, I paid for it 100%. I was just lucky enough to have parents who taught me the real value of a dollar and how to spend wisely.

Is the money you will be spending on the student loan worth what you are going to get after you graduate? If not, chose another school or another career.

Graduated in late 2000 with $60,000 debt. Consolidated loans with government. Have been paying interest on loans for 8 years and now owe over $61,000. Will never be able to retire. Govt. will have lien against any social security benefits, I think. The rub comes in that because of hiring freezes, I'm being asked to train someone who has no education other than high school to do some of my job.

It's not really fair to criticize Samantha and others like her for "choosing" to go to an expensive private school. I'm slated to graduate in June with my master's degree. I went to a cheaper commuter college for my first three years and then to a state university for the rest of my education and I have still amassed $68k in student loan debt (by comparison, our home is valued at $102,000). My husband, who went to ITT Technical Institute, accumulated $24k in student loan debt in earning his two-year associate's degree.

Despite the fact that I graduated cum laude with high honors, was financially independent and earning less than $10 an hour and came from a working poor family of six who could not contribute to my education, I received only one $500 Pell grant in the entire seven years it took to earn my undergraduate degree. I received a standard scholarship covering 70 percent of my tuition for graduate school, but lost it when the demands of attending school and working full-time required me to drop to a part-time course load. Meanwhile, some of my fellow graduate students tutor football players at our university who are certifiably illiterate yet enjoy an all-expenses paid scholarship. Am I bitter? Absolutely.

I've worked full-time throughout my college career so I was fortunate in that I landed a great position as a journalist before I even earned my bachelor's degree. It was difficult enough when I was in the position of job-searching four and six years ago. I can't imagine what it's like for new graduates now. I'm also fortunate in that my husband paid off his loans last year, so we can apply those funds now to mine. Still, considering that I turn 30 this year, we will most likely be paying on those student loans for the better part of our lives.

I think its important to point out that when my husband purchased our home (before we met), he had to sign off on dozens of documents that took the better part of an hour to complete. Yet accepting financial aid takes only a mouse click even though the loans can accumulate to the point where funding an education is as steep as purchasing a home. No wonder students and even their parents don't fully understand financial aid, how it works and what to expect come repayment time.

College is an investment in yourself. You would you buy an equity of property investment with a loan knowing the return on investment is going to be very low if any return at all.

The author states "chose to go to a private school and I chose to work in a field where the starting salaries are low. Does that mean that I chose to live a life of struggle". Sorry no sympathy here, the author freely admits she choose this career path knowing the salaries would be low.

I attended private college with student loans to match. However I choose a field of study with strong starting salaries and paid off the equivalent of two years of college in only 5 years. Additionally my company paid for my part time graduate school education.

As I review education choices with my children a main concern is the starting salary level versus the cost of education. Low starting salaries may require a local community college or technical school. Larger starting salaries support education at more expensive institutions.

Stories like this one, actually help get the point across to my children. Thank you.

Since student loans cannot be discharged in bankruptcy, the interest rate should be at the most 3.0%. I agree with Samantha that somethings needs to be done. I have written my senators and congressman, but they only gave minor lip service to this problem.

Sam: thank you for putting this out there and sharing your story. I felt like I had to comment on this because I too am in the same exact boat. And those who think we CHOSE this path for ourselves let me clarify that there is not enough education available to students who dream to pursue their degree. We should be given a fair chance at higher education just as those who have the finances available to them. I am a first generation college graduate and if there were programs available to teach me how to manage my finances then I would have absolutely CHOSE a different road to avoid swimming in debt. I have to think about the amount that’s stacked on my shoulders before I can even dream of getting my Masters. Graduates such as you and I, are the only ones who can educate through our experience to my younger brother and others who will be starting college this fall. A legitimate financial aid program needs to be developed. Hang in there SAM!

In response to Stacie's comment I am not questioning your intelligence or dismissing that your comment has some value, but going to college should be about merit and not about "financial responsibility." If someone is intelligent enough to be accepted to a top academic institution, they should not have to accept a lesser academic institution for financial reasons. If the most intelligent people in our society sell themselves short in terms of intellectual challenge and career ambitions, this country is going to deteriorate.
The issue of student loans is therefore an entirely different animal than the issue of Americans buying 4,000 square foot homes when they only need 1,000 square feet of living space.
If you Stacie, or someone else, passed up going to a top notch academic institution for community college based on economic reasons, then on the one hand kudos to you for your fiscal responsibility but on the other hand shame on our society for forcing that decision.

To everyone with the attitude of "you chose the best schools, live with it", etc. Just where does it say anything that only the wealthy shall be entitled to the best educations, and the rest of the struggling masses have the community colleges? Seems to me that in America, everyone is "created equal" and entitled to "life, liberty, and the pursuit of happiness". An American oligarchy is not what the founding fathers had in mind.

My husband, friends and I agree. Among us are teachers engineers and doctors. We all significantly contribute to society and pay our bills and taxes and do what we are expected to do. Where is our bailout? I guarantee if all the money we pay in loans was forgiven, that money would be put back into the economy.

Wow. People are really rubbing your nose in it for going to a good school. Unfortunately, the current employment situation is as follows: it's very difficult to obtain a stable, well-paying job outside of the trades unless one goes to college. Yes, one can choose a community college, however, there are intangible and tangible benefits in going to private schools as well. Think about networking prospects, ability to get a better job, and an educational background that resonates across regional lines. Education is a good investment. It's not similar to someone who bought a house knowing that they couldn't afford it. It is, to some extent, a gamble on how much you will be paid when you come out of school. Better schools mean more money.

Also, I think it should be remembered that kids are making this decision at 18 years old. From what I remember, teenagers are not the most fiscally savvy people– in fact most have never had bills before. I think the point of this article is compelling. Why aren't we investing more in our nation's future– which depends on education? Instead we are penalizing those that attempt to attain their dreams- private school or not.

I agree with Stacie, the first commenter. I worked myself to the bone, holding two part time jobs during my undergraduate career. I chose not to go to a private school because of the costs, but attended a top public university. I graduated with just over $10,000 in debt, a number that easily could have been 5 times as much if I didn't work for scholarships and make payments during college. I'm not saying the anyone's situation isn't hard as well, but how is it fair that anyone can make choices that have bad consequences and expect someone else to bail them out? If that were the case, should I have attended a top 5 private university, studied what I wanted, and expected someone else to pay for it?

Another thing is there are resources out there available to people. Financial aide officers are fully capable of explaining loans and implications. Parents are a good source of advice (not bailout). Friends/family that have gone through the same situations,and of course, the endless amount of information available online count as well. The point is people can educate themselves if they want to. People making uneducated decisions shouldn't be the responsibility of the government, or the taxes I pay.

That being said, I think the idea of making student loans could do with a restructuring. Lowering the interest rates and reworking the conditions of the loan term is a seriously needed endeavor.

I might be able to sympathize with her, if she'd gone to a community college or regular four-year institution instead of a private one. She should have thought of the "low-income entry-level position" versus the cost of private college tuition before she took out the loan. I too have a student loan to repay, I just graduated this past December. I received pell for half of it, and am responsible for the other half. I was aware that I would have to pay back my part, which is partly why I chose the school I did – it was affordable. I didn't decide it was private institution or nothing.

I was in grad school when a divorce, job layoff due to downsizing, and a brain tumor hit, causing me to drop out of school for a while and live off meager savings I had. Student loan, already consolidated with Sallie Mae, was deferred and then went into forbearance for a while. This racked up unbelievable capitalized interest and penalties. Sallie Mae was unforgivable and wasn't always forthcoming. The interest, 8.75%, was not allowed to be revised because part of the consolidation agreement is that you cannot renegotiate interest. I couldn't even declare the loan as part of bankruptcy if I wanted to.

Here's the thing: I'm past 60 and while I'm back at work and have been paying on the loan for 10 years, I will never be able to retire for they will attach my Social Security benefits, which I need.

So don't shrug your shoulders and say that all people who borrow are deadbeats. My story is just one of many that includes circumstances beyond my control and dealing with a corrupt system.

In the end, my $24000 loan will have cost me over $88000.

I couldn't agree with you more! With today's ecomony, we also have to worry about if we can't make a payment toward our student loans, if we DO have a job, are they going to garnish my wages? I have had my tax refund taken from me, my wages taken from me, and I don't even use the degree I graduated with because of the downward spiral this country is headed in. Where is our bailout?

As a parent of a student in college and a student graduating High School I'm terrified. How do I co-sign a loan for my daughter to go to an anyway college when the term of the loan will be ending when I'm 75. All the SUNY colleges received more applications this year then they know what to do with. My daughter has a 3.5 grade average and couldn't get into the SUNY schools of her choice. We want to make the right decision for her future, but can we afford too? No! And that doesn't even mention her poor bothers loans.

Many of the people on here talking about not attending the best schools or "settling" for public or local colleges, I've noticed, graduated a decade or more ago (one person said 15 years ago). Back then, a college degree was only beginning to become vital for career prospects; today, it's an absolute necessity for most professions, and schools become name brands. The better the school you go to, in most cases, the better chances you have at getting a job (and especially when jobs get harder to find in bad economic times). So to blame someone for choosing the best school they can get into ignores many realities. Additionally, most average citizens could not have foreseen the economic crisis coming, so to invest in education via loans didn't seem such a bad idea when job prospects looked great.

Sam's best point here, though, is that student loans have ridiculous demands placed on them as far as payback, many of them far more strict than most of our ordinary loans. This is another case of misplaced priorities in our country, with few people having the long-term foresight to understand the investment of education. Sadly, if it's not going to make money right now, most people aren't interested in it, even policy makers. It's sad to make loans that fund education so impossible to pay back for so many people, and if it doesn't change, we'll just get dumber as a country.

I sympathize with you but there were alternatives available. Such as going to a community college for the first 2 years and then transfering to
the college of your choice for graduation. With the money saved by going to a local school for the first 2 years and lower tuition you could have saved some.. but it still would not solve the problem.. Maybe if community college was free people would be able to save enough money to attend years 3 & 4, then graduate from the 4 year college of their choice. Good luck and try to control your stress the best you can.. be sure to still take some time out to enjoy yourself everyday.

Nice article! I am hoping it brings light to this awful situation. I attended a state college, worked 2-3 jobs during college, and still had to take out loans. At 44, I am still making monthly payments that will probably continue thru retirement...thats if I am ever able to retire. I have been thru hell with the student loans. I graduated during the last recession and there were no jobs in my field. I continued to waitress and bartend to make ends meet. A terrible car accident left me unable to work, but the student loan payment and their ever escalating interest and fees just kept adding up!!! I still pay 9 Percent interest with no end in sight. I had to declare personal bankruptcy several years ago to end the 20 percent wage garnishment that was enacted by the Education department. I owed so much money for the basics...my phone and electric were nearly shut off every month..i was behind on my rent..the doctor and dentist bills were piling up...I had no choice. I was not able to get rid of the student loan debt, but they were finally willing to work with me. They got me into a program where I was able to rehabilitate my loans. Why wouldn't they do that before the bankruptcy???
Now my oldest child is getting ready to enter college...oh, you are not eligible for government aid, but we are thrilled to offer you a loan to cover your cost of attendance...30K X 4 = 120K. I told him not to do it!!!

Boo Hoo. This is called capitalism. Loan companies aren't there for your benefit they are trying to make a profit, besides all you have to do is write a few more sob stories and you can become another CNN celebrity that makes way more money than the service they supply (such as sob-story cult articles like this one) is worth, and you'll pay of your loans in no time.

Everyone thinks that the "American Dream" should be given to them, and when it isn't they decide that it is "only for the rich" and other nonsense. The "American Dream" is that someone can WORK HARD and better themselves and their social standing, not that a poor or middle class person can magically transcend to the top of the food chain, it doesn't work like that, it takes hard work and sound decision making, such as not biting off more than you can chew.

I have about $80k in student loans. $59K in Federal subsidized loans at an interest rate of $2.65% and $23K in private loan from Sallie Mae at a rate of 9%. The federal loan is ammortized over 20 years and the private loan over 10-years.

In total I pay around $600 a month in Student loan payments. Becouse of my income none of the interest expense is tax deductable.

Here are the problems as I see it.

1) The cost of education in this country is way to high. There is no reason a private institution should cost $30k per year to attend. Look at the dorms and dining halls at many colleges...they are way to nice.

2) Student Counselors perpetuate a myth that it will be easy to pay off loans in the future and with your big salary. The truth is tha many people will never make enough to justify $100 – $125K in student loans. To top it off...Student aid counselers tell you that the interests is tax deductable...which is not at all true.

3) They need to allow for default on these loans. That way the lending standards would increase and the flow of easy money to every Private U would stop. A bank would then say...ok you going to be a doctor...I will loan you $100k...but if you are going to be an photographer then no...I am not going to loan you money that you will have no reasonable chance at payong off.

4) There is an education asset bubble caused by baby boomers thought process that every single stupid kid needs to attend college and the easy access to student loans. Cut these off and the price of education will go down.

First of all, I would like to say that it is very inspiring to hear stories such as this, and many of the comments posted. However, not many know of the grief and pain involved with having over 100K in loans, so most who commented of having around the average of 20-30K cannot begin to understand the financial woes of paying for a piece of paper in the amount that would purchase a house. With that being said, I am in the same boat, and have over 100K in loans; and as much as I'd like to sit here and complain and tell you I regret it all, I do not. The real issue here is education. Not only education as in secondary education, but education for the youth that will attend these institutions. To an 18 year old, a college education seems like a ticket to a very stable life making a very stable wage. Unfortunately, this is not the case; with unemployment at an unbelievable high, and the competitive nature of any position that requires a college degree, financial stability is hard fought. Students should be able to understand these responsibilities and be continually educated and informed into what they are getting theirselves into when they sign for these loans. In my case, my parents, along with myself, were even misdirected and miseducated in the amount that would be owed per month and in the terms of the loans in general. Yes, these are choices that one makes and should and must take responsibility for, but when a click of a button and a signature is all that is required for a $20,000 loan, isn't there a problem there. To purchase a house of any worth is a very substantial and tedious process. Where is that within the student loan industry? My main suggestion to all, to the industry, which means little in this forum, is to at least assign an individual to anyone with, say, over 50K in loans. I would think that there is an astonishing profit being produced from the undertaking of these loans, so to think that simple and low cost steps such as education and personal attention would not be that much to ask for.

That is solely one example, but there is an infinate amount of ideas I could put to a comment regarding student loans. Although, I will end with, this is certainly a very good direction: that someone with as much prestige and note as Anderson Cooper publish stories like Samantha's. It is very appreciated to those of us living these struggles, and hopefully, to those that are in the cusp of choosing such responsibilities as student loans require. Thank You and Regards to your work.

Education is the main tool against this capitalistic society that has gotten so out of control most only survive, if that.

My loans were a mess. I ended up having to leave the 4 year school I had signed on for because of a paperwork jam that left me aid-less when I was to be starting my sophomore year. Also, it left me in a 3,000 dollar balance lurch that I had to pull 2 jobs to pay off before I could even consider trying to go back. After getting an AA degree from a local CC, I had a huge mess of financial debt (around 25K) and with lenders selling their loans all over the place, I lost track of who I owed what to. The loans ended up in default, even after trying to rehabilitate them. Basically, I ended up letting the government attach my tax returns for 5 years. The debt's paid off now.

I'd do what my husband did when he found himself in this mess. Pay what you can, consistently, every month. Use your tax returns to make payments each year. As long as you are making an attempt to pay, they can't do anything to you.

Oh, and I agree that the government needs to stop putting the screws to students!

Amazing, folks. We are all looking to our government for a handout.

Samantha, I feel sorry for you, but the situation is of your making. You went through $115,000 in four years of college? My math says that was nearly $30,000 a year. Did you not work to contribute to your education? Did you not ask your family for help? Had you not put anything aside for school beforehand? What did you do during the summers? Why did you pick such an expensive school? Why did yo not stretch out your education so you could pay for it as you went? Why is it MY problem now?

Why is it government's responsibility to clean this up? They already "helped" by making loan guarantees available to students. Maybe that was the mistake. (Or maybe SOME students used loans more carefully, went to cheaper schools, worked part time, and stretched out their educations to reduce their dependency on the government.)

As to the inequity of help for corporations but no (more) help for those with student loans, the argument is flat. The problem isn't that the government isn't doing enough with student loan forgiveness. The problem is that government has no business bailing out corporations or banks.

We have become a "gimme" nation. What a shame. This ISN'T what government is for!

Great article! I was 18 years old with no credit (not bad, or good, no credit) and I was forced to take private student loans with interest rates of 16%...

16 PERCENT!!!! That is total robbery.

Worry, stress and fear ? Welcome to life as an adult. Why would you take on so much debt for a career that doesn't pay? A community college would have provided the same education at a much more affordable rate. I suspect the debt you now carry is the cost of attending a prestigious university. This is the situation you created.

For those of you on your high horses because you went to public schools & worked, consider that everyone isn't as lucky as you. I was raising a daughter by myself with no public assistance and I could not work while I was in college trying to make a better life for the two of us or I would never have seen my daughter. I was trying to be responsible by raising my own daughter to be a good person rather than leaving her with some person I did not know all day. I took out loans at a public university. And guess what...I couldn't get a job in my field – English. And before you start criticizing my choice for English you should know that college counselors told me that was a wonderful choice to get a job. I believed them. I had no relatives who had ever gone to college, so I did not have any guidance other than that of counselors. I was a young girl. I was trying to do the right thing. Unfortunately, I could not get a job so I went back to school for computers with the same result – suddenly no one needed computer techs and I could not get a job. Tried another time, for Ultrasound – suddenly no jobs. For each of these, I needed loans. I was trying to get a good job so I would not have to be a burden to anyone. In the end I owe more than I can pay. I have gone to school for 3 different things and have been unable to get a job in any of the fields. And if you think it's irresponsible to go to school and take out loans, then provide a solution to those of us who cannot get a job and had no guidance, financial or educational. We were trying to do our best and the college/loan system just dragged us right in. We do deserve a bailout just as much as some person living beyond their means. We were just trying to live normal lives, not special ones. Unfortunately, circumstances did not allow that. If you think that we should not be helped, then get ready to start paying a hell of a lot more when we all refuse to pay the loans back because there is no point if we will never be able to pay them off. Applying everyones circumstances to yours creates a fallacy because you are applying a general to a specific circumstance. Not everyone was able to get a job in college without experience, and not everyone was able to do it because they had other circumstances that prevented it. If you don't want to lower student loan interest (which does not entail YOU paying anything), then you will also suffer the consequences of the poor economy because none of us can buy anything. All our extra money goes to loans. You're selfish and I hope you learn what it's like to think you are doing the right thing and then to be penalized for the rest of your life.

Ah student loans. I would agree with the grippers that people should not get educations they can't afford if there were any, ANY living wage jobs that did not require a college degree. However, since the state of reality is such that a college degree is absolutely required to be able to just apply for any job that pays enough for one to move out of their parents' basement; anyone with student debt was, well, forced into that situation.

Really Stacie? Work first and save up money to go to college? Do you know how much it costs a semster to even go to a state college. How do you expect someone who doesn't have an education yet to save up the 40,000 a year they need to attend college on $12 an hour. Do you really think this is possible. It's not about living beyond your means, its about being overcharged for an education. It's impossible to attend college without loans if you aren't already well off. Sounds like you need a reality check.

In response to many peoples' arguments, I understand that some people have the choice between private/public schools. Some programs, however, are only available to everybody via private schools.

Social workers, counselors, and many others in social service sectors are subject to private school tuition rates, and usually require masters level degrees. Most people in these positions make very little throughout their careers compared to other popular professions. Do we really need to be penalizing our social service people with loans of 50,000; 75,000; 100,000+ ??

Yes, they may have had the choice to not go into this profession, and to have chosen something available at a community college or state school. But really, what would our communities look like without these people?? Not everybody affected by private school tuition is in a rut because of an MBA..

There are severa dimensions to this. First of al, id be somewhat nervous going into a field with low prospects knowing I wouldnt find anything in my field that would even pay my basics let alone $100K in student debt. Students really need to start doing "real math" ergo, a balance sheet – one for now and a pro forma 10 years from now to ask "can I really make it work". If you cant alternatives should be considered.

BUT sure seems some others want to bash the students – sorry but we DO need new engineers and doctors and so on. We also ought to be asking why does it cost that much in the first place, why do other countries – with higher education rates – get free university education when were stuck with a $100,000 bill?

Anyway, what is the alternative, working at Walmart till you too can become Assistant Manager of the linen section – Ummmm No.

Due to a loss of business in 2000 I defauleted on my student loans and have tried very diligently to work with the current holder of my loans to get caught up. They have been extremely difficult to work with, sometimes calling my home and even threatening me. They refuse to accept what I can afford to pay to help me get out of default and insist I pay over $800 per month for nine months in order to get the loans back into a non-default status. With rent, utilities, food and transpostation I have very little left over but have offered all of it to them. They continue to refuse and have virtually ruinined my credit.

I say President Obama should insist that penalties and interest be forgiven and that the loans be reorganzied so people like myself can get caught up. There's an idea that would really help many, many Americans.

I'm getting tired of all these people saying go to a state school/public universities. THEY ARE STILL EXPENSIVE, I went to one, in fact it was cheaper for me to to a state school in another state then to a state school in Indiana (my home state). So I chose to go out of state to save money and I'm still in student debt. I'm not asking other taxpayers to pay off my loan, but I think that the government should at least tax fresh college graduates with at a lower rate than everyone else, for at least 5 years. Reward us for the education you insist we get, but at not the expense of those who chose not to.

For all who say that people like Samantha should have to suffer their consequences, because they chose community college or worked thru school...I saw it is clear what a university, like Samantha's, does for individuals...it educates them.

Mortgages cannot necessarily be compared to student loans. Yes, I believe we are in a mortgage crisis, but those in that position bought out of perhaps greed, or selfishness...too much for what they could afford. Those students, whom took out loans, did it to further themselves financially, socially, and to gain a better education.

If I cannot afford a car, I can ride a bike or walk. If I cannot afford a house, I can rent for cheap or live with someone else. An education is something to be valued, and is highly necessary in all aspects of life. If I cannot afford to go to college at that time, then the options are limited. Could I work until I can afford college? Absolutely, but under the circumstances, that could take years and years. At that point, I would never enroll in a university. Although some will argue that a community college and trade school are just as good, and although I would not necessarily disagree, I will say that the things a university provides are more substantial!

I think the government absolutely needs to aide students with a better loan process, and repayment. As a proud graduate, and as a person paying back her loans month to month, I undestand the situation facing these students, and workforce members.

It is time to bailout those people who will be most benefial to our futures – college graduates.

I graduated in December 2008 with a degree in Engineering Physics and a 3.4 GPA. I have 23K in student loans (I chose to go to an inexpensive, in-state school) but had no clue when I started college that the economy was going to come to this. My parents do not have a lot of income and are unable to take care of this debt.

I am unable to get a job and have sent out more than 150-200 applications since December for entry level engineering positions. So what am I supposed to do? Am I at fault for taking out student loans assuming jobs would be available? Should I have just joined the military and fought in Iraq, hoping that I would make it back alive to go to college?

You'll get no sympathy from me. I didn't have loans to pay off, as I went to a more affordable state school and my parents paid for my college.

But I also didn't live in New York. So when I tried to break into the same industry I found that most students from my college were extremely lucky to land jobs at AM radio stations in the middle of nowhere or third tier TV stations.

Your post-college job is at CNN! Many people struggle for years. I had to work at stupid jobs out of college to save money to move to New York.

This is the paying dues part. You just chose a shortcut with your loans and are paying for it now.

I pay that in school taxes for my district every month. NOW I have to pay your bills also ? What about me and MY NEEDS.

Maybe you should have taken some math courses first before you bought into the stupid profession you selected.

Don't you understand that $115,000 is a lot of money ?

You have just been taught a valuable lesson early in life. You better start listening to the more conservative aspects of living and accountability. Something lost on all liberals.

Thank you for bringing this topic to light. I am going to end up with $50,000 in loans when I am done with graduate school in June.

For those who say the military helps – it does, to an extent. I've been in for 17 years and there are caps to the GI Bill and loan repayment. Every little bit helps, but don't fool yourself into thinking the military will pay all of your loans off and pay for school. It's usually one or the other, not both. To the gentleman who brought up OCS for our author, don't do that. Officers make less bonus money than enlisted. You would have to go through basic training, mind you, but with a college degree you enlist as an E-4 rather than a Private. Enlisted Soldiers not only get more loan replayment, they also get a signing bonus (based on the job they choose) and if you go into the National Guard you can receive state benefits as well.

I used four years of GI Bill and am currently using the Student Loan Repayment Program. That pays 15% or $3,000 a year on one loan (not all, just one), and only a loan that existed prior to me signing up for the program. Of that $50,000 I will owe, only $6,000 existed before grad school. That's going to leave me $44,000 that isn't eligible for military loan repayment.

I'm better off than most but don't fool yourself into thinking the military is a way out. It helps, but won't solve it all.

I am in the same situation as many other recent college grads. After graduating in 2007, I was lucky enough to be able to secure a job right out of school. Despite this, I still struggle to be able to pay my bills on a month to month basis, because my college loan payments are eating up so much of my salary. I cannot imagine how tough it is for those people who are unable to find steady employment. I've recently toyed with the idea of getting a second job at night just to have some sort of additional income.

You are right, I did make the choice to go to a private school, where the tuition was more expensive. However, had it not been for my eduicational background and opportunities provided to me by my school, I certainly would not be in the position I am today. I'm in no way saying the government should bail people out and pay for their loans, as they chose to take these loans on. I am however, in agreement, that something must be done in order to make it more realistic for young college graduates to repay their loans.

Nice article. I've lived through the range of emotions when it comes to student loans. I'm 39 and still have about $42,000 worth of student loans to pay back. I'm finally making a decent salary, trying to save for retirement, and trying to retire these loans.

By taking out loans for my education, I bet on my own success (and won). My present perspective is one of resentment from having to pay ever increasing taxes to at least in part subsidize those who didn't have the vision, courage or work ethic to make their own way.

I graduated in 2005 at 22 years old from a very good private school with $60,000 in student loan debt, I planned on becoming a High School Teacher until I realized I could never pay back my loans and live anywhere but with my mother on a starting teacher's salary. So I gave up that dream to take a job pushing papers I don't really care that much about. I'm making way more then I would be teaching, and I am able to pay my loans but I can't make a difference like I wanted to in the lives of young people unless I am willing to live in my mom's basement for the next couple years. I am not willing to do that. The "man" will get his money back. If I had known at 18 that going to the best school I got into was going to mean having a job I hate so I can pay back my debt instead of being able to teach, I would have just gone to Comunnity College.

Perhaps the government should take into consideration that assisting those with student loans will only help spur economic growth. The money being spent to repay student loans would be spent on consumer goods. Instead of helping the auto manufacturers out by showering them with "free" money baffles me. Give it back to those individuals that put hard work into education to one day be able to afford the luxuries in life.

So... to all of you who don't have student loans.... good for you. But don't you dare look as us loan holders as choosing this debt. As an 18-22 year old, you can't possible understand the extent of the loan burden until that comes to bare. Public schools are bursting with applications and even highly qualified students can't get into public institutions.

I owe over $200,000 in student loans. By the time they are paid off, it'll be over $400,000 in payments, my daughter will have graduated college and I'll be 67 years old!!!! It's almost not worth the education. One month of Iraq costs would pay for us ALL to go to school. And can you believe I pay taxes on my student loan payments. Add that to the inability to save any money and I figure my $150,000 tuition will cost me over a million dollars in my lifetime. AAAHHHHH! Tell me you understand that as an 18 year old!!!!

I can empathize with Sam but completely disagree with her. While the higher education funding system needs to be overhauled, Sam made decisions along with her family – she choose to go to a school she really could not afford and asking or even suggesting that the taxpayers bail "her" or other students out is wrong. The word "accountability" seems to have fallen off the cliff these days – people need to take accountability for their actions including the debt they choose to rack up.

Sam could have gone to a public school (like me) and worked to pay off the tuition as I went along. Instead she chose an expensive private school in one of the most expensive cities in the world. There is a price that she was made aware of BEFORE she started and hence needs to accept and figure out.

To that end the banks and auto industry should not have been bailed out either. When government tinkers too much with the free markets like they have been (since Bush) it only spells trouble. Congress should have stuck with improving and implementing new regulations, taking banks into receivership and sending individuals who knowingly defrauded investors etc. to jail.

We need to wake up and start taking accountability for their actions and the decisions we make if we are ever to move forward as a nation.

Let's put this in the prespective it diserves. The current total federal student loan debt is about $550 bilion. AIG and TARP bail out money equals what about $2 trillion. Obama is making the wrong decisions in office. Why not forgive ALL of the federal student loan debt in this country? This would increase consumer spending dramatically. The increase in spending would stimulate growth and finally get this economy back on track. What would you do if you had an extra $500 a month for the next 15 years. You would spend it on cars (no bailout necessary), appliances, tvs, HOMES, big ticket, economy driving items. Or we can continue down this path of providing golden parachutes for executives at huge corporations who drove us into this nightmare to begin with. I pay $900 in student loans a month. That is more than some peoples mortgages. Think about that.

My husband and I both come from working class families, I was the first person in my family to go to college. And, even though we both went to state schools and scrounged up as much grant and scholarship money that we could, we still owe around 100,000 dollars. We looked at those loans as a necessary evil – the only way out of the paycheck to paycheck existence of our parents. Today, we do not live outside our means – our mortgage is not in trouble, our children our clothed and fed, our bills are paid – and that's it. I look at the 800 dollar check I write each month and see my kids' college dreams slipping away. What frustrates me the most is not that I owe this money. What frustrates me the most is that 2 people with masters degrees, working in their chosen fields have to live paycheck to paycheck.

Well – I commend Samantha on her article simply because, I think student loans and education is the next time bomb and sharing that kind of information with the public is not so easy.

Let's talk community college – I took CC classes coming out of high school in order to try and reduce the amount it would cost once I went to a public state college. However, the main problem with CC programs is that if you plan to enter into a public/private university or other sponsored program, sometimes those credits you took at the CC level do NOT transfer.

The other issue is that the field I went in to is Engineering. At the CC level, there is RARELY any program in this type of field (at least for Civil Engineering) so I did not have a choice of trying to pursue this field on the CC level. Yes, there are CC with engineering programs but the one thing you HAVE to make sure of is whether or not the program/courses are accredited by ABET or another recognized authority. I HAD to go public..and even so...I HAD to get student loans as my parents did not make enough and trying to work and attend school at the same time is difficult on your studies. Additionally, with the ever changing interest rates (especially these days) even trying to drag it, work part time and take loans to cover the rest...........sometimes...there is no choice.

Then often times, there are those that have to go out of state for their degree, whether public or private. When I left KS, the instate tuition had increased almost 15%-25% every year! In the end, I owed $72K for a masters but was able to consolidate back then at 2.25%. I'm lucky...

For those even in repayment – at the end of the year you get up to $2500 for student loan interest in your taxes, but when you paid 4-6 times more in interest during that year it can become unbearable even when those who are responsible in paying their loans as they see no reduction in the principal because the rates are 8% and higher. Plus these days – you are LUCKY to find an institution even willing to give out consolidation loans.

Just like all these credit card companies (where student loans are also tied in to them) jacking interest rates significantly higher, even for those of us who have paid on time and never missed a payment to try and make up for all the money they are losing on those that are failing to pay because THEY made poor decisions offering credit to those who couldn't afford it. Considering they are getting all this bailout money – why am I paying more?

Point – there isn't one...for those lucky ones...congratulations...for the rest of you in the same boat as Samantha....time to find a bigger bucket!

I graduated from a public university in 2007 with about $20k in student loans. I knew I would probably end up with loans going in, but once I got into college, I realized that things were going to get worse than I ever anticipated. Why, you might ask? Because every year of the four years I was there, tuition was raised by a minimum of 10%. Keep in mind, this is a STATE FUNDED school. By the time I left in 2007, tuition (just to enroll, does not include living expenses, housing etc.) was at $4500 a semester. My sister started at the same school in 2000. At the time, tuition was only $2100 a semester. Cutting state funds to public universities was the direct cause of this....so it is a FEDERAL issue. I have made the statement to my friends, if someone bails me out of the $20k I owe on student loans, I will buy a house the very next day!!!! No exaggeration, I'm an engineer and I am lucky enough to have been employed by the same company since the week after I graduated. It seems like so many people are expecting only the rich to get an education.....continue thinking like that and we'll never get out of this hole!

Although I feel sympathy for the writer and have a huge student loan myself, I have to admit that I am guilty of expecting to live a lifestyle during school that I had not yet earned.

Lower interest rates would be great and consolidations are definitely needed, but only I am responsible to pay for the choices I've made.

At 8% interest I have been paying my loan (with several deferment periods) for almost 15 years now. I still owe $10,000 over the original amount of $50,000. In the recent virtual town hall that president Obama held the second favorite question under education was about student loan; but, the President didn't touched that question. A reduction on the interest rate will be very helpful.

I am soooo glad someone touched on this issue. I am in the same boat with private loans. Let tell the people who say you made your bed now lie in it. My parents made too much money so I couldn't get financial aid to go to school. I had no choice but to get private loans. Now I have 90,000 dollars worth of student loans to pay back and GM is getting a bailout. Are you kidding me???? If you haven't notice most of these people with bad mortages are the ones who have student loan debt. I don't understand how it is okay to bail these people out and here I am a grad who is struggling to make ends meet because I wanted to go to a STATE funded school who still put me in debt. I also work while in school too and it did me no good. So I wish negative comments would cease because you don't know what someone is going through before want to point fingers. I have to get a second job to pay these loans because I can't afford to pay them with the one I have. Something needs to be done, because I am plain SICK AND TIRED of struggle when I feel like I wasted my time going to school and can't get a decent JOB!!!!!!!!

I'm glad this was written but you forgot an important part of going to a good, private school – that is what helped you get that job right out of college. For everyone that thinks we brought this upon ourselves, put yourself in an employer's shoes for 1 minute – they want the students that did well in great schools – usually private and very expensive. I had 7 scholarships in college and I went into finance where a lot fo money can be made and I still am having a hard time with my loans. My parents couldn't afford to pay for my school. if we wait – we are seen as slacking off, if we go we are irresponsibly getting into debt and if we go to community college or a school that doesn't specialize in our desired area, we suffer in our future becasue employers only want the people from those schools. It isn't a choice anymore for many career paths – we have to get into debt to get the kind of job we want. I know i would never have gotten my job if it hadn't been for my school, network and experience. I don't regret going to the university I did – it gave me the job I wanted and comparted to a lot of other 25 year old, I am doing great. i have a lot of debt and I was lucky enough to consolidate. but someone needs to put a cap on tuition and help out people. it's no way to start your life, that far in debt. And we shouldn't have to choose to always be at the bottom by not going to a top notch school or being in life long debt. Thats not fair.

I agree w/ Samantha on most points as far as the government helping. However, I believe you do have to live w/in your means also. We would have never allowed our daughter to attend a school where the loans would have totaled that much. Part of our current economic problem is that people have lived way above their means for a long time. We as parents have a loan and she has Stafford loans. The totals on both are $500 per month for 15 years. This was something we knew we could live with and were capable of paying off without much hardship. Good luck!!! I wouldn't be able to sleep at night knowing I had that much to pay off. Our mortgage balance isn't even that much!

Stacie, I wish it were as easy as "assuming personal responsibility". I feel for Samantha because I am a similar situation, and do not doubt for a second that there are many, many more YOUNG graduates out there who were asked to sign on the dotted line by their Financial Aid officers at their schools just to get them enrolled in their schools. I thought I had it as bad as it gets, because I am approaching 50, finished my graduate degrees in the late 80's and still have nearly 100,000.00 in student loan debt and payments that only get to the interest, so my balance goes UP instead of down because of what I am able to pay each month. I will never be able to own a home, and my prospects of increasing my earning potential are next to nil. What were we supposed to do when we were in college, choose not to follow our educational goals, settle for a less expensive career or choose a more lucrative one in spite of our vocation? I am certain Samantha is a responsible person who wants to pay back her student loans. We are not crooks. We are victims of a flawed system.

YES!!

I can sympathize with your position and agree that the PRICES of school and the loans needed therefore to go to school are outrages. But, you have several major choices of degree categories when choosing a career. Sciences, Business, Arts, and Medical. Generally some of those fields pay much better than others. I'm sorry, but it's a poor decision to pay top dollar for a degree that will not make you top dollar. Thats a bad investment in yourself, just like all the bad investments on Wall Street. Yes, our college education system needs an overhall.

Everyone wants to do the things that they love, and they want to make a lot of money, sometimes the two aren't the same. When they aren't, then you need to find a career that will balance between the two, or allow you to make enough money, that you can do the things you love on your own time, but personal responcibility needs a comeback!!

I attended a state college and though cheaper than an ivy league school there was no practical way to afford paying for it without student loans and 18 years old I was very willing to take loans that I barely understood because public school guidance counselors recommended applying for them. I commuted to school, I packed a bag lunch and I lived very modestly and at no time have I ever thought I was taking advantage of any system. The federal student loan system is broken and it should be fixed for people now and in the future. I find it ridiculous to have to pay loans for an education for 20 or more years, aren't I doing enough by having a good job in the government that I was able to get with a 4 year college degree? I would say that my education has already paid off as far as this country should be concerned.

What a pity that so many are so callous to the plight of young professionals struggling to make ends meet because of the burden of student loans. The fact is that college tuition and fees have risen exponentially in recent years without sound reason. I attended a state school on scholarship, paid in-state tuition, and still graduated in 2003 with over $20,000 in student loan debt. Luckily, I was able to lock in a ridiculously low interest rate, and have a long repayment period, so I should have no problem paying it back.
To those of you who brag about attending community colleges and living at home, congratulations to you. However, my college experience was something that I will cherish forever, and would have been profoundly different had I spent it sleeping in my childhood bedroom.
College is about much more than going to class. It's about living in a dorm or an apartment, building new relationships, paying your own bills, learning to be responsible for yourself, making decisions, both good and bad, and learning from them.
I just don't see how the solution to our student loan problem is going to be forcing all our high school graduates to attend the school closest to home, spending another four years with good ol' mom and dad. Not that this isn't a viable option for many, but it's not a fix-all cure.
As with purchasing a home, students need to be realistic about the cost of higher education, and they need to do so before they enter into a loan agreement, not the day they graduate. They should look carefully at their potential schools, career path, and the salaries those careers actually pay. All of these things should factor in when a student wanting to major in 17th century French poetry decides to attend a $50,000 a year school. Just be realistic, people.

Hi Samantha,
I understand your pain but there was a workaround during your term. I made the same mistake and had to go through financial aid at the time. I had a 4.0 GPA for 6 semesters and got denied scholarship so many times. I was so mad that I couldn't afford to pay my student loan. 6 years has passed and I'm barely half way through the loan.

Here are a few suggestions for HS students or undergrad students attending a university.
1) Take your gen eds (minor subjects) at a community college. An $8000 course could turn into a $50 course at a community college. But before you start doing this, ask your adviser if the course your taking at a Community College can be carried over. A lot of people has done this and saved them almost half they tuition.

2) After you graduate, depending on your credit rating, you can start applying for 0% APR credit cards and transferring some to these cards but always watch out for a balance transfer charge. Look at the ones that say's max $75 fee for a balance transfer. After doing this, you can consolidate your balance to a different company by getting a simple interest. There are some for 3-5% but caps you on the current balance and not the initial loan amount.

3) Avoid spending on unecessary useless things. Focus on necessities (i.e. food). It's a sacrifice you have to take but after you pay off this loan, you can do whatever you want. I would recommend saving the money and placing it in a money market. =)

Hope this helps!!!

Sam,
How does a person be smart enough to go to a private college and not understand the loan requirements. I do feel sorry for you and others in your situation but the general public should not be responsible for everyone's errors. I am out of college for many years and probably would not have made it into the IVY league schools but did understand money (with my parents assistance) so chose junior college while working 40 hours per week for a year, then the Uof I for BS and MS degrees. I was fortunate to pick a field that the university paid most of my graduate costs but still took out a small college loan and repaid it. Maybe I should have taken out more loans and defaulted or had a large mortage that I couldn't affordso I would get assistance but I chose to the prudent approach. Don't make all of us pay for others lack of knowledge.

I feel your pain. I have a decent job now, 4 years out of college, and have about 50k left in student loans to pay off. It pisses me of to no end to write that $800 check every month. Something I should be saving for a house (i don't own one), a car (mine's falling apart), or just to protect me from losing my job (it's not looking good).
I thought goign to a good school would be worth it, apparently not yet.

I am disgusted by the self-rightous attitude shown by some of you. The students who are admitted to top private or public colleges & universities are the leaders of the future. The last thing they (or their parents) should have to worry about is how to pay back the loans that might be needed to finance this education. There is a portion of our society who feels that a good education is something to be ashamed of.
For now, the best economic stimulation that could be provided would be to lower interest rates on student loans – both for students and their parents who are frequently helping those students pay back loans. Our country must find a way to invest in education for everyone.

Great article. I have been out of college a long time and will be paying back my student loans until I die. I was lucky that I was able to consolidate them and got a good interest rate. However, I did not do this until many years after graduation and in the meantime I could not pay them back so I kept deferring them and now I owe DOUBLE my original balance due to interest. I best advice to anyone with student loans-DO NOT DEFER THEM it may seem like a good idea in the short term but in the long run, it hurts bad.
I agree something needs to be done. I have two kids who will both go to a state university but will need to take out loans or get scholarships (which are VERY hard to get) to help cover the cost.

I just want to say one thing about the student loans. They should be paid back. I graduated in 1983. Finally got a job in 1984. I spent 10 years paying back the money that I borrowed to fund my education in a field that I liked where I thought that I could make a living. Those 10 years of payments were a burden that I accepted by taking the loans. I was not a burden on my parents. I paid for my education myself. I paid back my loans and I was very happy when I made that last payment and could then keep more of my money that I was earning. I went to a state university where I was a resident to minimize the cost. I worked on campus, in the summers, did not take trips to spring break or spend money that I did not have. There were two groups of students when I was in school. The first group Mom and Dad were paying for 4 years of parties and fun. The second group had the loans and worked to pay for the education to prepare for themselves for a job. I find it sad that people today want the government to bail them out of the problems that they caused. As a taxpayer I say that has happened enough. Stop raising my taxes to pay for people who do not repay their loans. I worried about paying back my loans until I got a job. I then made sure that I paid the loans back. People need to understand that there are consequences for actions. If you choose to go to an out of state private school, or expensive state private schools, then you need to accept the consequence of having large loans to pay back.

In response to all of those who have criticized students for attending schools "they cannot afford" I strongly disagree. America's future prosperity will rely largely upon the students who attend the very best, most challenging schools they are admitted to, regardless of tuition. If those students are forced to pursue careers in only traditionally high paying jobs (lawyers, doctors, etc.) simply to pay off student loans at excessive interest rates, our nation will face a severe shortage of bright talent in crucial sectors (teaching, research, law enforcement, etc.)

If you chose to attend community college because it was the right decision (and price) for you, bravo. I am recently married and have just begun a four year graduate program at an ivy league school and am amassing huge amounts of debt. The field I am pursuing will make paying this debt off extremely challenging, but it is important to me to have the very best education possible in order to make a difference in this world. I do not expect to be 'bailed out' but I also do not wish to be criticized for not choosing the cheapest school possible or working night-shift jobs that will limit my focus on school.

I do believe that if our government is serious about investing in the future much more attention should be focused on severely limiting interest rates on student loans. We are the infrastructure of the future.

"Bill – March 30th, 2009 9:06 am ET

I’m sorry but I can’t sympathize with people who took student loans they could not afford to pay back. Nor home loans they couldn’t afford. I worked while going to school. And I went to a school I was able to afford. I never used student loans. I’ve also never bought a house because I never made enough money to save for a down payment that would have qualified me for a regular loan. We should not bail out homeowners or student loans. Those who took advantage of the system should suffer the consequences. I shouldn’t have to bail them out."

Finally something out in the public eye. My son has a mound of payments well beyond his ability. Sallie Mae is relentless and uncooperative. They also harass me because I co-signed on his first loan. He's trying to pay but it's unrealistic. There's no way to consolidate them into something reasonable. I've seen so many horror stories on the web. Education is necessary for individuals and the nation so give people the chance to make it. If you can bail out the lowlife financial predators, why not decent people?

WOW!!! Rev. Jesse Jackson please go to Obama and explain to him we are the people and we are trying to improve ourselves and in so we are making this a better nation. I am working on my master’s degree and still paying off my undergrad degree. Can I get some help too! I did not over pay for my house and pay all my bills on time. Why are we giving billions to companies and people that don’t’ represent the American dreams and values. Yet we give nothing to the people trying to live the American dream and up hold American values.

I truly feel for anybody struggling with debt – many of us are in the same boat.

But, the plan put forth to lower interest rates doesn't reflect the financial reality of the risk involved in student loans. Basically, the people who pay their loans back – in any form of debt – are helping to pay the costs of those people who default and the interest rate needs to reflect this in order to make the entire business of providing loans profitable. If you disconnect the financial instrument from reality, believe me somebody will be paying for it – and when we talk about the government, we're talking about fellow tax payers.

So, try this argument out – walk up to your nearest hard-working tax payer, in the grocery store, at the mall, whererver, who is supporting a family on modest means and sacrifices his/her own wants in order to make ends meet, and ask them to help pay your student loan to go to a school that their own children can't dream of attending. Because, frankly, that's exactly what you're asking here.

I knew my life wouldn't be easy because I chose to follow my dreams of being a fine artist. I was also aware that being a fine artist is an incredibly competitive field, so as a result I knew I not only had to go to New York City but I had to go to a very good school. I'm looking at about 60,000 in debt when I get out. I don't think many parents don't understand what it's like today, my fathers tuition and repayment would be vastly different now. As a high school student the colleges information was misleading and I had no parents or adults to lend wisdom, it was go to a good college or die in a gutter. Education I feel is not only important for our economy but our civilization. I'm glad the crisis has brought to light for young people how very difficult and unrealistic the American dream is, but this shouldn't be. I don't agree with a bailout but I do agree with much of rev. Jackson's idea.

I think a lot of these commenters are failing to understand how most of us were basically DUPED into making these loan decisions.

Do you honestly think I consciously walked into college and thought "wouldn't it be fun to have $100,000 in student loan debt?"

I know in my own circumstance, it was an issue of "sign this loan or you don't finish school." I was in no situation to be singing any sort of loan, and given the economy that we are now in, I'm in no position to make repayments in excess of $500 per month. This isn't a situation where I bought a car, or racked up a credit card. I went to college. I wanted an education. I wanted to better myself. And now, I find myself on the phone every single month for hours and hours trying to figure out a way to pay those loans. I have to make the decision every month whether to eat, or to pay my loans. It's un-American to tell us that we can be anything we want to be, and do anything we want with our lives if only we go to college, and then once we get out, to tell us that our interest rates are not fixed and are now as high as 10%!

We need HELP! We're drowning in debt that we had no concept of when we got into it. And now, what are we supposed to do? It's not like we'll ever know what this mortgage situation is like, because we'll never be able to own a home! Someone has got to fix this!

A lot of people here like to say, "If you couldn't afford it, you shouldn't have done it." That is such an easy way to dismiss the problem. We're not talking about people who went out and bought new cars and homes. We're talking about KIDS who were told that if they went to school, they would have unlimited career options. They were told that if they succeeded, employers would be scrambling to grab them before someone else did, and that they'd be getting much higher salaries than their non-college educated peers. They were also misled to believe that student loans were beneficial and EASY to pay off.

I'm in college now and have been for too long. I feel that I have been misled, lied to, and taken advantage of by schools and student loans. No one ever tells you the reality. You figure it out later when they start sending you bills, and that's when you realize how far in over your head you are.

You have to remember that we are talking about naive young adults. I, for one, did not receive any guidance when it came to my finances, and a lot of my peers didn't either. You can't expect someone that has no real life experience to make the same decisions as a 40 year old adult. It's not realistic. You can't dismiss this issue by saying "they should have known better." How could we have known better? No one was telling us the truth.

A agree but disagree with this. I agree it seems unfair everybody and their brothers are getting help, but at the same time, had you planned on this being a problem 4 years ago? You knew the costs ahead of time, and you knew what the average starting salary was in your field. How much has the average salary gone down in your position since you started college? Probably not enough that you knew how much you would owe on the student loans and how much you would make and how affordable this really was. My wife and I have monthly bills of around $1000 in student loans and $1400 in mortgage, property taxes, and insurance and we just make sure to budget correctly. No Starbucks for us, very little eating out, and did I mention we have 2 kids, both in daycare so we can both work? Is it tough? You bet it is, but with a little planning you can get through it just like everybody else did 20 years ago.

On a side note, you can't give everybody $50,000 like one poster mentioned. Supply and demand...ever heard of it. Now more people can demand cars and suddenly the supply isn't big enough so costs will go up meaning what $50,000 is today may only be $35,000 tomorrow.

You have raised a very germane discussion and one that I hope continues beyond this blog. One of the most important points was in your acknowledgment of not appreciating what these loans meant in financial terms when you signed up for them. Typical students in their early 20's can't be expected to understand how student loan debt translates into monthly payments later on. Unless you have had a job and a monthly budget, it is difficult to appreciate what a burden these monthly payments become. It is irresponsible lending and I believe criminal. I hope that Rev. Jackson's plan goes far.

Top US institutions should be educating the best and the brightest, not only the brighest who can afford to pay for it. With tution costs reaching undeseriable levels for MBA students, 80-100K for two years at most schools, we may find ourselves losing the best and brightest to other countries. A form of arbitrage if you will, where students will search for good schools in Europe or elsewhere that cost less. Just as we have reached a housing bubble due to the availability of credit, so is the case for all other asset classses, including student loans(tuition). Specifically for MBAs, 30-50% of graduates were obtaining jobs in finance, some of which on wall street, that could justify the loan amounts due to the outrageous salaries. If you have 100K in debt, but are obtaining a 50-60 K bonus a year as an I-Bank associate, you can afford to lever up. This could be one of the main reasons behind 5-10% increase in tuition every year. In the new world we live in, we will have to reexamine the costs of schools, or 20-30 years from now, we may find ourselves at a significant competitive disadvantage.

For the people who say she has to live with her choices – I find it ironic that we allow grown adults to go to bankruptcy court to clear their debts, don't criminalize foreclosure, and dump bailout money on huge corporations, but you demand that enormous financial decisions made by 18 year olds must stand. When I was 18, I made $6/hr working part-time after high school. What college choice should I have made based on that income? What would have been "living within my means"? Of course, this means the majority of teens are dependent on parents who may have themselves been in excessive credit card debt, or buying too much house, or even getting rich off subprime mortgages to make college choices. Now that the system has collapsed under the weight of all those poor adult decisions, why are student loan debtholders excluded from bailout resources?

Yes, I owe about 50,000 myself. And it keeps getting bigger due to interest rather than lower due to payments. I have come to grips that it will be the black cloud that hangs over my head the rest of my life. I will never be able to pay it off.

The problem comes in the age in which these decisions are made. I thought that i'd get some great paying job and make a lot of money and pay it off soon after i graduated. I was a stupid kid. If i had really understood what I was getting myself into, I wouldn t have done it. It wasnt like i was lazy, i was working a fulltime job while going to school when i decided to do it.

College kids making these types of decisions just doesnt seem logical.

As someone who has student loan debt, I understand your situation. But as someone who dreamed about going to a private university in New York, but decided to go to a less reputable state school closer to home because of the cost, I can't entirely sympathize. Yes, it would be great if policies changed to help us out, but then again we're not entitled to go to fancy schools or pursue low-income careers without paying the price of those decisions (which a lot of us have had to learn the hard way)...

This sort of relief would be an excellent stimulus, it would place enormous resources in the in the pockets of working people.
Our current system of educational funding can only discourage students from attending our best universities. Something must be done!

Thank you for drawing attention to this prominent and pressing issue. As a 23-year-old college graduate who has 65K in student loans, I can sympathize with Samantha's situation. I was fortunate enough to have full financial assistance during the beginning of my college career which significantly influenced my decision to attend a private university. However, family circumstances quickly changed and I suddenly found myself signing loans for tuition, rent, food, books, etc. I did begin to work to relieve some of the burden–not that it helped much. I am now forced to take a job I'm not happy with. My dreams of pursuing higher education?? Hmmm

I didn’t go to a fancy school and I worked most of my way through college as a bartender and research assistant and I still walked out 55k in debt.

Its honestly good to know that there are some people on here that had support, either financially or had the reality bestowed upon them by their parents/community that loans need to be taken in moderation. Or perhaps you were just naturally money savvy or had more common sense then the rest of us greedy morons.

I would venture to say that most people in our situation are not greedy people, but that we really had no idea what we were getting into until it was too late. I figured it out eventually and realized that I could not do what I went to school to do because I had to pay back the loans for the rest of my life and I cant go on to get a Masters with loans so I am doing it through my employer.

Whether some of you like it or not its tempting for people that grow up with little financial and/or emotional support to want to do well in life by going to a good school and getting the job of their dreams and basically striving for more then what they had as a child (which is what we are told is possible here). I’m not sure that makes them a bad person. Perhaps we should stop telling our children that they can do whatever they want to do when they grow up. I think that it is also up to the providers to give out accurate information and qualify people so a little reality can be put in their face, which is that we can’t all get what we want, only wealthy people can.

I think the key word to your student loans problem is that you "chose" the loans and private school. Why should I bail out those who chose to live beyond there means? The American dream never meant that. You can become anything, you can do anything, but some choices have consequences you have to live with. It's a part of life. I too, have a student loan, all though it is much smaller because I chose to work, saved ahead of time, and took out a much smaller amount to cover the necessities and not my desires. I can easily repay it, so why should I help repay yours too because you chose another path?

Seriously,
No one seems to realize that the governments job is to bail people out of the debt they get in! If Samantha can't afford to pay the mortgage for her private college, she should not have to. It's not her fault she signed this loan. It's not her fault she chose to go to a school that would leave her in debt like this. It's not her fault she chose a low paying career either.

Also something to consider. I didnt go to college. If the government is giving Samantha money to pay off her loans, I should get a bit of that for not going to school. I have a right to be reembursed for not adding weight on the system. I could use that money to start up a business. Did I choose to recieve no education? Yes. Did I choose to not go to school? Yes. Did I choose to have a life of poverty and debt? NO!