Reply to I owe $125,000 in private student loans to one institution. How to get them to settle?

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Reply to "I owe $125,000 in private student loans to one institution. How to get them to settle?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous] Educational loans are such a horrible racket. We will be paying off my husband's loans (he was an immigrant whose family lost everything to a nasty revolution elsewhere) until our oldest is ready to go to college. I'm glad he has his degrees, but I think it is criminal that there is a huge effort to help people who spent more than they should have on houses, but not a single care about those who are saddled forever for school loans. I'm pretty sure the public service programs that the PP mentions are only very recent, and don't apply to any of us who have been out of school for awhile.[/quote]

The problem is not the loans.  You signed on the dotted line and chose to keep going for more degrees.

The real crime is the over inflated cost of tuition.  The universities do not need to charge what they charge.  Just look at the size of their endowments.  How much do the spend on fitness centers?  On making the huge common areas look beautiful?  On administrative costs.

The cost of college tuition is the issue here, not the loans.  One can assume that if you are smart enough to earn multiple degrees that you are smart enough to do the math to see how much you are borrowing vs the earning potential of your career vs the price between some overpriced ivy or a reputable, less expensive school.[/quote].

I work in higher ed and I agree with you on the fancy health centers and other "amenities.". But endowments are not just some money you can use however you want -most of the overall endowment is smaller funds that are restricted by the donor.  Plus, you only spend about 5% each year so that principal stays intact.  There's a reason why even the mighty Harvard went on hiring freezes on 2008-09 - because their budget relies heavily on their endowment, and she the market collapsed, so did their endowment income and therefore, their budget.

The real problem for public schools is the ever shrinking.portion contributed by the states.  And all schools, public and.private, have ever growing administrative staffs, and the highest among them are often grossly overpaid.

That said, there is also something to the notion that we need to counsel students and prospective students more wisely before they tale on these crippling debt loads.[/quote]

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