
Student loans turn into crushing burden for unwary borrowers - pg
http://www.latimes.com/business/la-fi-collegedebt27-2008dec27,0,4636992.column?page=1&track=rss
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Tichy
It enrages me a little that schools don't provide much of an education about
finances, or generally on the basics of keeping a life (nutrition as another
example). Maybe it is too much of a conspiracy theory, but I wonder if the
reason is that schools exist for the benefits of the corporations that are
looking for employees, rather than for the benefits of the pupils (a ka
"learning for life" is bullshit, it is really "learning to be a good worker
drone").

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apsurd
But that's EXACTLY why the education system was created in the first place...
literally to produce workers competent enough to work in factories, during the
industrial revolution. I would not call this conspiracy theory at all, it is
Capitalism in action. Schools are essential to the Capitalism engine, not for
enlightenment, but to produce and maintain a consistent flow of jobs,
industries, and commerce.

Note I am actually a fan of Capitalism. Though a prerequisite here is to learn
the rules of the game (to optimize personal success in a capitalistic
society), and apply them accordingly... a task that as you point out, should
be, but is not taught.

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tokenadult
"Most students have little experience in taking out loans, yet the federal
government doesn't require lenders to disclose the total cost of a student
loan and other terms upfront -- before signing -- as it does for car loans and
mortgages."

That's unconscionable, as the examples given later in the article make clear.

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quoderat
I wonder how these people spend so much for school, especially for low-payoff
degrees like photography.

Sure, follow your passions and all that, but don't spend $140,000 for a
photography BA. If you love photography, go out and take photos. (Said as an
avid photographer.)

My girlfriend recently graduated with a CS degree from a state university with
only $10,000 in student loans, all already paid off.

It can be done.

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Tangurena
Fortunately, none of my student loans are "private" ones as mentioned in the
article. I _am_ cutting back on expenses to pay off my federal ones early,
primarly because student loans can't be discharged in bankruptcy, and I think
that things are going to get _really_ bad by the end of 2009. If you're
unemployed, a chapter 7 bk is feasible, but very hard to get if employed. And
the way that the "reform" was passed a couple years back, less and less
chapter 13s are actually getting discharged at all.

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pmorici
How does someone living "frugally" on Ramen rack-up 140,000 in loan debt?
Thats $35,000 per year!

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gojomo
A 2004 forum post reported the tuition alone at Brooks Institute around
$20K/year. So 35K/year means only $15K/year in non-tuition living expenses.
And Santa Barbara is not an especially cheap area in which to live.

But also: seems like Brooks Institute has been accused of exaggerating the
post-graduation earnings its graduates can accept. See...

[http://ddunleavy.typepad.com/the_big_picture/2005/07/investi...](http://ddunleavy.typepad.com/the_big_picture/2005/07/investigation_c.html)

~~~
rsheridan6
That's typical of trade schools, at least. Watch daytime TV and you will be
inundated with commercials for expensive but worthless degrees for private
schools.

My solution - make it easy to declare bankruptcy for student loans, but
institute a student "dividend" program where, instead of getting loans,
institutions get a percentage of the student's future earnings above a level
which would be considered average for someone with the credentials that the
student has before enrolling. Lenders then wouldn't get paid back for loans
for rip-off schools, so they wouldn't make the loans, so the schools would
have to change or close.

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gamble
$140,000 for a BA in photography? Good luck paying that off...

