shameful

6:55AM EDT October 18. 2012 – 

It’s the latest snapshot of the growing burden of student debt and it’s another discouraging one:

Two-thirds of the national college class of 2011 finished school with loan debt,

and those who borrowed walked off the graduation stage owing on average $26,600.

USA TODAY

Loan Calculator

Loan Balance: $27,000.00
Adjusted Loan Balance: $27,000.00
Loan Interest Rate: 6.80%
Loan Fees: 0.00%
Loan Term: 10 years
Minimum Payment: $50.00
Enrollment Status: In Repayment
Degree Program: Bachelor’s Degree
Total Years in College: 5 years
Average Debt per Year: $5,400.00

Monthly Loan Payment: $310.72
Number of Payments: 120

Cumulative Payments: $37,285.87
Total Interest Paid: $10,285.87

I cannot think of anything more shameful than adding debt to innocent unadvised people.  Students are some of the most unprepared people to understand the long-term cost of a student loan.  The news released this morning is shameful for the future of our children.  The payment schedule above shows the bondage for a 2011 graduate for the next 10 years.  $310 per month for 10 years!  What does this mean for our economy?  These people cannot purchase a home, purchase a car and will likely default on their loans as they begin their career.

I have 4 children who will be college graduates.  Two have already graduated, one who is a senior and our last who is a sophomore.  Our goal was to allow them to graduate at ZERO.  No debt!  My wife and I received the gift of graduating with no student loans.  We were neither from families of privilege but families who were committed to paying for what they had.  Very little was purchased on borrowed money.  Our families were from a period where there were no loans for things like school.

No money…No school!  No money…. No car!

This shame was culminated for me during my third child’s registration when she was in her second year.  I was in the registration office with her as she was completing the torture of registering.  I heard a LOUD voice call out in the office.  Anyone need any MONEY?  I was shocked.  I went over to the window and asked for a bag of money.  I am slow but not stupid.  If someone was handing out money, I wanted some.  I’m THAT smart.  As you would expect, the voice was offering student loans.  An employee of our state offering student loans to innocent borrowers.  How shameful can you get?  No loan advice.  No bank appointment.  Fill the papers out and pick the amount you want.  That is how easy it is to mortgage an innocent 18 year old.

SHAMEFUL!

I had to rant for a few minutes this morning when I heard the news.