Forum Post: student loan payment too high to work an entry level job.
Posted 13 years ago on Oct. 10, 2011, 12:12 p.m. EST by tnajma
(11)
from Boston, MA
This content is user submitted and not an official statement
My student loan payments are 1,100 a month. This is the interest only too! I had an entry level position that paid the rent but was not nearly enough to cover my ridiculous monthly bills to sallie mae. Now I've had to leave that job and be a full time waitress. It's the only way I can afford rent and most of my sallie mae bill (I still don't have enough to pay the full monthly payment). It's disappointing to me that this is the position I'm in. I worked so hard in college, graduated at the top of my class and now I'm not even able to put my education to good use. I'm sad to say I would be better off I hadn't gone to college. Is anyone else in this same position?
I'm curious ... did anybody warn you what this would be like when you graduated school? Parents? Guidance counselors?
I'm a parent and I know that I would sit my child down and go over how much of a debt (s)he would be accumulating and the steps necessary to pay it back. I know that when you started school the country was in different financial shape but I also know I would be raising the red flags to my kids about how difficult it is to repay this kind of debt, especially when you are first starting out.
Why do people do this? Even with what would be considered a reasonably good first job for most graduates, you'd likely still be in over your head. At least given where you'd really want to be anyway.
I won't give you the "back in my day..." speech, but does nobody these days sit down and figure out the cost and NPV and FV of dropping $100,000 on some general degree from a typical school and what can be realistically expected for payback on that investment? I mean it's a little different if you're going to a top engineering school or top-10 b school where there's a relatively good case to be made that it will pay off, but I'm assuming that's not the case given your post. You're right... you (and most others) WOULD have been better off not going to college and, rather, spending the same time developing some skill and/or business and investing the money (or at least avoiding the cost) into something with a better return.
I suppose to some extent it's not entirely your fault since blindly going to college is what's expected for most these days. Rather than the "evil corporations" I'd blame that as much on the "evil universities" and our own sheep-like behavior. There should be some requirement that people are made to do or presented with a hard cost/benefit analysis as a term of any education loans they apply for.
universities, corporations, wall street they're all the same thing. they're all profiting from us.
not going to college seems like perverse reasoning, and for most of us, not an option. What can be done with the rest of your life without a degree? Even minimum wage jobs in my town are horded by either people in the university or graduates. People with a degree might have monstrous loan payment but what is the realistic alternative you propose? Working at McDonalds for the rest of your life?
Let's see, why did you take out so much in student loans to begin with? I served my country and got a good education while in, then when I got out I worked while I furthered my education and paid for it while using my GI bill. For some reason you Fucktards thinks your entitled to free education?
Did mommy give you everything and never make you have to earn anything yourself? Go pound sand, your an idiot. I know how many of you party for four years racking up your loans, the rest of us were working our asses off to get where we are. Fuck You
you are an absolute sob to make that statement...you are mad because you signed up for what you thought was gonna be an easy ride with the army or whatever you did, and are now pissing and moaning because you had to actually go "serve"....you are lucky you are not being spit at and called baby killer like the nam vets......
You're dilutional. No mommy and daddy gave me nothing, hence why I'm in such debt. And no I did not party in college at all. I worked every single day including staying during holidays to study and work. I graduated magna cum laude, "fuck tard." Your user name suites you politically incorrect benjamin.
You should have to work for it like the rest of us. I spent years living in poverty raising a family while serving the US army. I paid my dues and after that I paid for my own fucking education while I worked. I lived off beans and rice for years to get where I am. This country is not a free ride, but it is there for those willing to do what it takes, yes Fucktards, you are the meek. In no way should my hard work and years of busting my ass do anything to support you and your goals, find your own fucking way or move somewhere else.
i do not consider hard work to be sitting around in a sand bunker drinking budweiser all day and carrying a gun to be a job....you protected nothing except the greed that is oil....attacking someone who went to college and is frustrated gives people who "served" a bad name
Funny, that's what people who are incapable of knowing what service is say.
well you were not drafted and made to do anything, again quit whining because you had to actually live up to your end of the deal
I am not whining, I did it and would do it again, killing babies part too. The point is I worked hard and we all have to work hard if we want to get anywhere in this life.
I was a non- college graduate whom busted my ass to make 6 figures a year, then I started my own company and have watched regulations destroy my industry in healthcare and have to cut my staff in half. I actually earn less then my employees because I let them take more of the work and profits, I get what I need but I used to be able to employ a lot more people with a lot more money. Owning a business has it's perks, but college does not necessarily help you get a job. My license requires a medical education and that is why I have it but anybody could manage my business if they just had the motivation and determination.
this girl is only stated how frustrated she is. Her post in no way shape or form asked for anything for free. You were the one who said "fuck you".....maybe you are frustrated with your own state of affairs and have chosen to vent on her?
Accept my apology, we are all frustrated.
amen to that!
you're not making any sense. I spent years living in poverty as a child, started working when i was 15, then since the age of 16 I have more then full time. I worked in college I work now, who isn't working? Who is asking for free school? I can't speak for everyone else but all im saying is school is much too expensive already as it is, not even considering the interest loan institutions like sallie mae's 11% average interest rate that accrues. No you shouldn't have to pay for anything, I didn't ask you to nor do I believe that anyone else has either. We need jobs, cheaper school, lower interest rates, and a cap on over the top bonuses to wall those on wall street. Don't flatter yourself I don't want anything from you except for you to stop posting your right wing bullshit.
I graduated the top of my class in military schools, tech schools, and college. I busted my ass to make sure I got straight A's because I needed to set the example for my daughters. Grades have nothing to do with it. Even when I was taking 15 hrs I had tons of free time to work and spend time with my family. If you can't afford the loans you have no business taking them to begin with.
We are all upset about not being able to find jobs, I have 5 people a day sending me resumes and I can't hire them because their is not enough work to give them a job. Fanny and Freddie started this crap and it was the Govt involvements fault, not the wall street bankers. What do you want them to do, start giving out loans to people who don't deserve them again, hell no?
I'm sorry you feel victim to the loan. Yes, the moment you take a school loan you are sunk. I just got done putting my kid through college and paid the $9K it took to get a degree with cash... now he makes rent no problem and has a good paying job. Dirty little secret no one wants to tell you... the moment you get your first job, no one will ever care about your college degree or where you went to college again. With one year on the job, a kid from ball state or southwest missouri state is just as good as a kid from Harvard and Yale... we in the business world DON'T CARE what college you went too. community college and small state school is really the best choice.
do you realize though that $9K is a ridiculously low sum for college. That and there aren't jobs. An entry level jobs very hard to come by. Large companies use unpaid college interns to fill entry level job positions. You're a very small percentage of people. You were able to help your child through college which is rare and you were able to find a school that was somewhat inexpensive that suited your child.
Just the standard state school, in state.. lived in the boys dorm on dorm food, did community college during the summers and got out in 3 yrs. I'll admit he doesn't have a job to be a career but he did find work in about three weeks and is off dad's payroll. And yes, I could help because I saved for college from when he was born.
I don't mean to be rude but you're not even in student loan debt you're speaking from the perspective of a parent who helped their child. Not from a child with no help.
I completely agree with you tnajma. Many of us worked very hard to a position where we could go to a good school, and even with our best and most cautious efforts, many ended up in student debt. Not everyone has rich parents to save up or fund us through college. From my understanding, when I came to the country, if you worked hard and got into a great school, and worked your way through, you could get a decent job and you could pay your loans. The American dream is long dead and corporate America (whether banks or universities) are responsible.
We have a choice on which school we will attend. The government gives us the option to go to at SUNY or CUNY school in close proximity to home at minimal cost. Unfortunately, I made the decision of paying for a private college and have upwards of $80,000 in dept, however, I have sat with my younger brother and convinced him to utilize the CUNY System and currently he is in his 3rd year with $0 in debt from school loans. We have a choice, so use it...
What kind of degree do you have?
My situation is not as bad as yours, but I do feel your pain. Unfortunately the Private Sallie Mae Loans are worse on the interest than Federal Loans. I set out to finish my degree after taking some time off and I feel like it didnt really make a difference either. I have student loan debt and am continuing to make the same pay I made while in school working full time. Every job you look at wants so many years experience, so having a degree will not do you much good. Its a catch-22. No one will provide the experience, yet all companies want experience whether or not you have an Undergrad/Masters in that field. :( Sometimes I really do regret going back and spending all that money for a useless piece of paper.
So what degree did you get? Come on...
This is intelligentsia enslavement. We should be able to be released. We are in what business lingo would say, a "value added" commodity. As college grads, we are adding to society. We should be able to negotiate this debt, and claim it in bankruptcy court at the very least.
You didn't have to go to school. So you paid for your own enslavement? Did you not ask once "How is this helping me?"
I feel for you. Unfortunately, we all are having to pay the price for trying to do the right thing. It is irrelevant what your major was. I know many with mbas, mseds, etc who cannot find jobs or whose salaries have been severely altered. The sad thing is that you cannot go back and change your choices and there are so many vicious people out to attack you and tell you to suck it up. You were 18 when you decided to take this on I assume, and it will be a burden for a lifetime. No rest for the weary.
I feel for you. Unfortunately, we all are having to pay the price for trying to do the right thing. It is irrelevant what your major was. I know many with mbas, mseds, etc who cannot find jobs or whose salaries have been severely altered. The sad thing is that you cannot go back and change your choices and there are so many vicious people out to attack you and tell you to suck it up. You were 18 when you decided to take this on I assume, and it will be a burden for a lifetime. No rest for the weary.
I sympathize with you in your predicament. I bet that you would do things differently knowing what you know now. There are several lessons that others can learn from your experience. Don't overpay for your education. Don't borrow to pay for your education, except in rare instances (medical degrees). Pay as you go. If it takes longer to get your degree, so be it. At least you won't be saddled with massive debt upon graduation. Consider going your first two years to a community college or junior college and then transferring your credits to a four-year college to get the four-year degree. Make it a full-time job to apply for scholarships your junior year of high school. (Check out Dave Ramsey for info on this.)
While your suggestions might offer some minute outs, its almost impossible to get out of college without debt unless (a) your parents are helping you or (b) you get help from scholarship or other free aid. Let's be realistic. Not every person can get aid, and if they do, it is really unlikely that they can get FULL aid to cover your expenses. Even if you do somehow manage to get and keep a part time job throughout college, its unlikely that you can be as competitive in your field as your classmates that are not faced with such a burden. Your grades will probably be lower, and you won't be able to take on any extra-curriculars or do an internship. But even if there are those few "virtuous" or lucky enough to get through college with scholarships and working a job while keeping up your grades and somehow still building your resume to your career, you're not thinking that systematically this is simply not possible. There is only a limited amount of aid and part-time jobs, so most people will still be stuck with ugly student loans regardless (especially with the increasing cost of education.)
Student loans are overall a systematic not an individual problem which is why free education should overall be a priority for this movement.
Don't make excuses. It can be done. No one ever said it would be easy.
I'll bet that there are very few students at the protest who are working their way through college.
You do realize that if you took out a private student loan, that loan was bought by the government and the interest rates were raised to help pay for the Obama health care bill right? All student loans are owned by the government now -- so if we're talking about student loans, why is the beef with Wall Street?
I do know that the loans were taken over by the government which is part of the reason why I'm so angry. Personally I can understand why people would be so angry with wall street, the government and wall street are not that much of separate entities. Don't even get me started with health care. In the state of Massachusetts it's a law that you have to have health care but for some reason I have been denied any kind of state offered health care and the plans I am offered at my job start at 200 dollars a month. I live paycheck to paycheck, how the hell am I going to find another 200 dollars a month to pay for healthcare that doesn't cover anything!?1
"but for some reason I have been denied any kind of state offered health care" in a state that has mandated health care... Sounds to me like you need to be raising hell with the state of Massachusetts.
What did you study? What level did you get to?
Have you ever considered a 2-yr trade school certificate?
It's a little late for that.
Have you ever considered a 2-yr trade school certificate?
I have two Bachelors degrees, and am working on my Master's. I have 15 years experience in retail, 3 of that as a store owner/manager. I have run several businesses successfully. I also have over 7 years experience as a bookkeeper, accountant and tax preparer, and excellent references. In the last two years I have sent out close to 800 resumes and applications, gotten three interviews, and worked a total of about 30 weeks at some of the crappiest jobs I have ever had. I have been required to lie, cheat and steal just to make sure I take home about 50% of what I was promised. If it wasn't for my student loans, I would be living in the street somewhere. I have no hope that I will ever be able to pay those loans back, but if I quit school, I will have no money. Welcome to the land of opportunity. We were all lied to, and we should be angry.
I hear Fedex Kinko's is hiring.
How much is your loan amount? Where sis you go to school? What do you have a degree in? Did you finance your college lifestyle with your student loan?
my loan amount is 115,000 dollars (20,000 of it is capitalized interestI went to school in Massachusetts. I have a bachelor of science in fashion design, when I decided to pursue this career there were a lot more jobs. I went to a relatively inexpensive school but in the 4 years your in school all of your interest is capitalized and added to your debt. I could have gone to school another year with the amount of interest that was tacked onto my already high debt. And no i did not finance my ramen noodle lifestyle with student loans. I worked full time to pay for my books, supplies and basic human needs.
You chose...poorly. My wife finished her degree from Terry Business school at the University of Georgia (a top 5 business school in the US) with a degree in accounting. Total Cost-50k, but I worked to make sure we had 0 debt (missed by 5k). She has a career now, one that is in demand. Fashion design? really poor choice.
You're wife is very lucky to have someone to help support her, but you should speak for yourself and not for others that support themselves on their own. Fashion design was a very good choice at the time. When I started college it was a very fast growing career and it had as much security as many other fields including a general business degree. But as we all know within the last 5 years the economy has severely plummeted causing a halt in companies employment growth in every field not just the apparel industry. I know many people whom I graduated with( we all have different yet relevant degrees) and we're all in a very similar situation where jobs are at a loss.
I am willing to bet that you probably went to a "for profit" institution, much like SCAD. I do believe that there should be wholesale changes to the educational system, no doubt about that. I would first start with these "for profits" and require that they guide each student as to the viability of their degree. How much will it cost? how many graduates from the school have been placed in their chosen field? How much is the average starting wage? What is the final payoff of the loan? What will the monthly payments be? I would then apply this to all other colleges and universities. I do feel for you, I sincerely do as I have a family friend who graduated from SCAD in a similar situation. This is not Wall Street, nor is it the financial institutions that caused this, this is Big Educations issue. The banks are in a precarious situation where if they deny a loan they may be setting themselves up with a lawsuit for discriminatory practices, they are a loser either way. You agreed to the terms of the loan, so you are liable for it and I cannot fathom that amount of debt so young. My house cost me 80k and I have something tangible at the end. Perhaps alumni and students of the institution you went to would be better served to protest at that location as their tuition is far too high and borders on exploitation.
I paid for college as I went, but it left me with no savings and every job advertised wants 1 to 2 years experience. I need to go to grad school and would love to, but no job, no savings means incurring massive debt. And then there is still no guarantee that I will get a job that will enable me to pay off the loans while remaining above water, like your situation.
I am trying to invent myself a career, now, as I simply am horrified at the thought of rejoining a corporate entity, with their mentality of use, abuse, discard.
You're definitely not alone. I was lucky enough to find a job and lower my loan payments enough to afford it for now, but I know that won't last forever (graduated payments are only alloted for a small time period, ya know?). Funny thing is, I got my job mainly based on what I did in High School. My Bachelor's does nothing but sit there and look pretty. Meanwhile, other people I work with who didn't go to college are getting by OK. It's a dead-end job, but it pays the bills. Isn't that what it's all about these days?
I hear what you're saying. I know so many people who didn't go to college and they get by wonderfully. Well may idea of wonderfully is pretty low, affording my bills, maybe have health insurance, be able to fix my car so that I can go to work, afford a lunch to eat at work is pretty much my idea of living wonderfully. Companies have so many unpaid interns replacing entry level positions that jobs are almost non existent and the ones that are available don't pay enough to live.
Perhaps you should have sought a summer internship in your field, which would have given you experience, and more importantly, a foot in the door. Another thing, when the economy went south, perhaps you should have reconsidered your major. At any rate, keep looking. I hope things work out for you.
I did do an internship I did 3 in fact. Changing majors means almost starting over, credits rarely transfer (another way for institutions to make money) by the end of it I would have had maybe 5 or 6 years of debt instead of 4. It's a lose lose.
Create legislation to have banks forgive all student debt. #OURBAILOUT