According to FinAid.org, the average cumulative debt for 4-year undergraduate students who applied for federal student aid was $24,651. Gawker has a profile of one of the outliers, a 23-year-old Northeastern graduate who has racked up more than $200,000 in student loans.
You might want to sit down while she explains what her monthly payments will look like for the next 20 years.
From Gawker:
I am actually forced to live with my parents (forced = I am lucky! But…) as the monthly payments for just my private loans are currently $891 until Nov 2011 when they increase to $1600 per month for the following 20 years… attached is my payment plan. I also mentioned I have a job – which is great! And I probably have my college education to thank for that!
Ouch. Just… ouch. If you’re a high school senior investigating your financial aid options, please educate yourself. We’ve compiled a Big-Ass List of Student Loan Resources to help.
Please remember that student loan debt is serious, serious business. Student loans are difficult, if not impossible, to discharge in bankruptcy. Check out Student Loan Borrowers Assistance from the National Consumer Law Center for more information.
What $200,000 in Student Debt Looks Like [Gawker]
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I have 2 undergrad degrees and only owe about $30k. Bad choice on her part.
I spent 2 years at a community college hammering out my general eds and picking up an associates degree in Computer Info Systems before taking the plunge and transfering to a private 4-year school. The community college proved to be a good decision, as I left that school with 2 years of accredited coursework and very little debt. I have accumulated some debt since graduating from my private school, but it’s a drop in the bucket compared to my friends who went to a 4 year private school right from the start.
Except for Texas, the state legislature basically guarantees acceptance to any state school if you did well enough in High School (forgot what the exact criteria was), or at your previous college if you’re a transfer.
One of the problems is that college kids are young and idealistic when making such important decisions. I have a 16 y.o. who is starting to think about college. My husband and I were both laid off in May (I was part-time at the same company and they closed the local office). He found a job, after six months, at a local, private university. Things are very touch financially and we have no savings for college which my daughter knows. She is insisting that she wants to either go far away or go to a college in NYC. She can go to the university where my husband is working tuition free. She is moaning and complaining about that because she wants what she wants and can’t see the bigger picture. This is a nationally recognized university with a good reputation. We might even try to let her live on campus the first year so she has that experience but she’s still complaining (if she continues to complain, that won’t happen). If my husband hadn’t gotten this job, she would be going to county college so this is a wonderful opportunity.
I’m hoping her disconnect from reality as far as college goes will end as she matures. Many young people might think the way she thinks and not realize the consequences of taking on so much debt for a college education especially if their parents aren’t up on all things college.
Put a positive spin on this wonderful opportunity of free tuition- that after getting her nearly free degree, your daughter can get a job in NYC and enjoy living in that city for the rest of her life if she so chooses, while kids saddled with debt from pricey colleges will be stuck living at their parents’ homes for, well, possibly forever.
And what 16 year old relishes the thought of spending their adult years with their parents?
With no debt, your daughter will have the real freedom!
For what it’s worth, kids can make a responsible financial decision about this stuff. I got into a very good private university with high name recognition and good networking opportunities, but they offered very little in the way of financial aid. I ended up choosing to go to my safety school, which was a good state school but not on the level of the private school. They gave me a ton of scholarship money and I graduated without any loans. People can say what they want about needing a private school’s name on your degree to get a decent job, but I work in a competitive job now with plenty of state school grads who are doing just fine for themselves.
If a kid even thinks they want to go to graduate or professional school, they should go to the least expensive school they can and get the best grades possible. If you do well your first year and still want Harvard or wherever, transfer. But ultimately, law schools care more about an A from anywhere than a B or a C from Yale.
Also don’t do what my stupid ex did and think you can just stop paying the loans. You WILL have your paychecks garnished.
There needs to be a mandatory class taught in high school on consumer finance with one topic being College Expenses. Public schools, private colleges, loans, grants- kids need to see the figures. They might be better off with 2 years of community college and then transferring to a state school.
People are now receiving degrees in Economic Ruin.
Debt-consolidation loan?
“The total was boosted by summer classes, books and miscellaneous expenses, and a year spent studying abroad.) “
Well Miss 23 year old Kelli, I hope that you enjoyed your year partying overseas.
Also – she has set up a donation website. I am horrified to see that it has received about $2,000.00 so far. NOBODY should donate ANYTHING to this fool. She should have known exactly what she was getting into. Her new update still plays the “oh, I know, it’s my fault… but donate to me anyway and thanks for your support” card. Just like that ‘save karyn’ idiot from a few years back.
“She’s so desperate that she’s set up a website soliciting donations from the public, [redacted], with the vague hope that it might go viral like that “Million Dollar Homepage” “
Please don’t let this happen.
Gotta agree…no one should donate anything. The only reason for this story is to get more publicity and try to get more donations. The OP needs to work her ass off and advance in her job and make more money to pay it off herself rather than relying on the public to bail her out.
Years ago a young lady had her debt paid off by online donors. She even admitted all her CC debt came from shopping expensive stores in Manhattan while she had a small salary but worked fulltime. For someone payinig attention she could have lived on what she earned. People even sent her gifts to “help” her. She was a real snot about it too, bragging how proud her parents were of her and of course crapping on people who critized her.
I’m sitting on just under $40k in student loan debt…making the payments every month. Unfortunately I got into a crap job with a cheap boss and no real advancement opportunities. So my pay remains low and I remain just barely able to afford the loan payments every month.
Yeah I’m looking to get out of the job.
Hope the OP has a decent job and some advancement opportunity that doesn’t rely on getting a PhD or something.
I graduated from Northeastern in 2008. Yes, I had the option of going to a state school, but I got a nice scholarship, so I chose NU. Still, borrowing $2,500 per semester turned into $25K over 5 years.
I suppose I should have sympathy for Ms. Kelli, but I don’t. After my B.A. and my law degree, my total debt will be about $105K. Is a degree from NU worth $200K? Hell no! Looks like someone lived beyond her means and is now whining about her massive debt. Welcome to the club.
Nobody in my family had gone to college before me, but my parents and I had the common sense to sit down and calculate what kind of payments we could afford (my parents are done paying off my college education, law school is all on me). I lived at home and commuted all 5 years. Yes, it sucked, and yes, I feel like I missed out on a big part of the “college experience,” but luckily I only owe NU $25,000. Ignorance of the true cost is a poor excuse.
I also am a graduate from NU. I went to school on almost all student loans, and received a job directly out of school. I have approximately $150,000 after 5 years of school there. (That’s right for all of you that posted that can’t do math, or don’t know, NU is a 5 year university)
I agree that this is a lot to pay for school, but the connections I made through Northeastern University’s coop program and other resources have far out weighed the costs. I make enough money to live on my own, pay my debt, and afford some luxuries. I attribute all the advantages I have used to find a job to NU. Seeing as how the job market is so bad, and even grads in industries like Medicine and the Tech fields are having trouble finding work. NU’s resources were priceless. It isn’t unlikely for Engineering or Computer Science graduates to make 70K a year directly after graduation from NU. They have the skills and the experience to skip entry level position because of the Coop experience.
I’m sorry you live with your rents, and I feel your pain. Some foresight into what you were getting yourself into would have been nice, but look at what you have. A job, an education, and likely a prosperous career.
I think EVERYONE getting a student loan should read THIS:
http://www.collegescholarships.org/research/student-loans/
The US Government is no better than the payday / title loan companies, and in some ways, worse. Mobsters envy the scams the USA supports: Student loans, the Social Security Ponzi scheme, etc.
“The US Government is no better than the payday / title loan companies, and in some ways, worse. Mobsters envy the scams the USA supports: Student loans, the Social Security Ponzi scheme, etc.”
Are you mental? 300+% usury is the same thing as subsidized 6-8% student loans and social security?
um, let me see, you can declare bankruptcy and walk away from 300 percent payday loans. NOT Student loans. And the fact that our trusted government is the one pushing this on students (many of whom, at 17, are not even old enough to enter a binding contract, mind you!) and in the process pushing up tuition…
“And the fact that our trusted government is the one pushing this on students”
They’re not pushing private loans.
I think EVERYONE getting a student loan should read THIS:
http://www.collegescholarships.org/research/student-loans/
The US Government is no better than the payday / title loan companies, and in some ways, worse. Mobsters envy the scams the USA supports: Student loans, the Social Security Ponzi scheme, etc.
up here in canuckville, there was a brief window when student loan debts could be included in bankruptcy proceedings. my husband took advantage of that. i chose to keep paying mine off… i had received $40,000 in loans, which translates to payments of $600 per month… for eternity…
I feel the school loan pain. I’ve been paying mine off for 10 years now and hardly a dent because of the great locked in interest rate. I know, I know….mail in more than the payment. Well, If I could, I would.
Due to unforeseen circumstances though, I’ve become permanently disabled. I called my student school loan company and they said they might discharge the loan. The loan goes under a 3 year review and, ultimately, they decide what happens.
I’m crossing my fingers.
She updated her page 2 days ago: http://twohundredthou.com/
And her donations are up to $2413.00
Why do people keep on giving her money??
Stop whining. Nobody forced you to sign for a loan. Period. You did, you owe, now you must pay. I completed three degrees and each time I graduated, I was debt-free. Why? I use the OPM method. Other Peoples Money (OPM). If you are in the military or a federal civilian, the government pays your tuition. Learn the system, use it, and be happy. Until then, stop whining, because you haven’t learned a thing except your monthly payment for the next 20 years. BTW, even if you file for bankruptcy, some federal student debt can not be erased.
NO student loans cannot be discharged in bankruptcy. Zero.
If I’m not mistaken, if your student loans equal more than a certain percentage of your income, you can get a reduced payment plan. The person could also bundle them together for 30 years to get the payments a bit smaller.
That is just Crazy. I just finished an undergrad program at a private, non-profit school last week that cost 30,000-40,000 a year (if your staying in the dorm or not). Granted I had FASFA (federal) help, I still owed the rest on my own. I don’t have living parents that can help pay my money but I made the choice rather than have 150,000 in loans for 4 years I would work and go to school at the same time. My Jr. year I worked a full time job – nights, a part time job for the university (not work study but close in pay) and did school. I don’t owe a penny in loans and have a credit rating of 747 last time I checked. So it is NOT necessary to have that much debt.
Anyone that gets themselves in that situation was not thinking and for their sake I truly hope learned more about money management from when she signed up for the loans.
I graduated from NYU in 2009 and I have roughly $200,000 in student loan debt as well. The problem with these loans is that the vast majority of them are private loans through Chase and Citibank, and neither of these companies are willing to work with me on an affordable payment plan. Citibank alone is demanding $850+ a month and Chase is asking for $500+ a month, which means I owe $1350 a month without even taking into account my $130 Key Bank payment and $100 federal loan payment. I’m grateful to be employed full-time but my entry-level salary means I can’t afford these payments. I would be 100% willing to pay if they would give me an income-based payment schedule, but the fact is that if I want to be able to pay rent and buy food, I can’t make these payments so now these loans are in default and I’m probably going to be taken to court in the coming months. I even have a lawyer who told me that it’s not worth just paying what I can, because if I make less than the minimum payments, I’ll still be in default. He advised me that my best option is to wait until they take me the court because at least then the judge will appoint me a payment plan that’s in line with what I can afford (even though I’ll be destroying my credit in the process.) Perhaps I didn’t understand what I was getting into when I signed up for these loans, which is my own fault, but I also made the assumption that I would be able to consolidate these loans once I graduated, like my older brother did. I couldn’t have predicted when I first started applying for these loans in 2004 that with the economy crashing, the option to consolidate my private loans would be thrown out the window.