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(ABC Local)   The student loan debt crisis has reached $1 trillion, and only one man is brave enough to blow the lid off this scandal: KABC's very own Ric Romero   (abclocal.go.com) divider line 198
    More: Followup, KABC, Ric Romero, Consumers Union, loan debt, debt crisis, student loans, personal loans, Kristen Mercado  
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4340 clicks; posted to Main » on 23 Nov 2013 at 1:49 PM (21 weeks ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-11-23 01:55:22 PM
How's the water, Ric?
i.imgur.com
"Still wet."
 
2013-11-23 01:55:53 PM
Ah geez not this story again.
 
2013-11-23 01:56:57 PM
For profit education is basically a subtle form of gambling, and now a lot of unsuspecting people who were trying to better their lot in life are in deep with the college loan-sharks (the bookies of today).

This is a racket that, unsurprisingly, the government is hip deep in as well.
 
2013-11-23 01:58:55 PM
Marry me, Ric Romero!

/serious offer
 
2013-11-23 01:59:07 PM
Ric Romero: If you already know about it, Ric is there for you.
 
2013-11-23 02:00:29 PM
Other ways to minimize student debt:

Consider attending a state school.
Submit the federal loan application, called the FAFSA, as early as you can.
Borrow only what you really need, not the amount you qualify for.
Reconsider that Basket Weaving degree from an Ivy League University
 
2013-11-23 02:00:55 PM
I truly wished I could see the problem here.
 
2013-11-23 02:01:44 PM
Get 'em Ric! You the MAN!
 
2013-11-23 02:02:25 PM
If you believe the industry propaganda and follow the herd into university right after highschool with no clear idea what you want to do with your life, or the same idea as many other people, then you deserve the harsh lesson of being buried in debt. You can reflect on why following the herd might have been a bad idea as you work a job that doesn't even require highschool to pay off that debt.

Or you can whine about it not being fair, like someone put a gun to your head and made you take out the loan.
 
2013-11-23 02:03:50 PM
Wait... she paid $100k to become a social worker?
 
2013-11-23 02:05:54 PM

J. Frank Parnell: If you believe the industry propaganda and follow the herd into university right after highschool with no clear idea what you want to do with your life, or the same idea as many other people, then you deserve the harsh lesson of being buried in debt. You can reflect on why following the herd might have been a bad idea as you work a job that doesn't even require highschool to pay off that debt.

Or you can whine about it not being fair, like someone put a gun to your head and made you take out the loan.


THIS

Why is smart/funny disabled on this thread?
 
2013-11-23 02:07:22 PM

Ivo Shandor: How's the water, Ric?
[i.imgur.com image 432x305]
"Still wet."


Good thing that's a wireless mic, or else we'd get a story on electrocution. "Hi I'm Ric Romero and BZZZZTZKHBZZT AAAAUGHHH!"
 
2013-11-23 02:08:00 PM
Got my student loans. Will pay off my house with a 30 year mortgage before I finish paying the loans. If I only pay the base. If I can make a double payment somewhere it'll cut the time frame by quite a bit.

//not unhappy about my education.
 
2013-11-23 02:08:54 PM
Income sensitive repayment.
As my age approaches infinite, the chances of repaying any of that student loan approach zero.
 
2013-11-23 02:09:25 PM
The day they offered a single post graduate degree to a person who paid ruined the system. Post graduate work should only be done when they pay YOU because you are among the best.

Also, when they convinced everyone they needed a liberal arts degree to get ahead it destroyed it as well. So many young kids come to me now with their bright and shiny degrees from a university and I have to say, "well, you can start at the bottom, just like the guy with a GED".

Why? Because the 2.9 GPA with a liberal arts degree means your slightly smarter than a squirrel. Hell, I had one person say they were on the Dean's list 2 times... wow. My response, you majored in "insert liberal arts" right? Why were you not on the Dean's list EVERY TIME?
 
2013-11-23 02:09:41 PM

DrSansabeltNoShiatSlacks: I truly wished I could see the problem here.


Yeah.  Students are constantly biatching about their loans - at a State Democratic Party Convention once, a student actually proposed a party platform plank that called for forgiving all student loans from state schools.  Jesus, you entitled little asshole - I'd like someone to pay off my mortgage for me, to, but it's not going to happen.

I aid my loans off fair and square.  I borrowed it, I paid it.  It was hard, yes.  I didn't get to party alot.  At all, really.  I ate alot of beans and rice.  But if you decide to go into debt, you have to pay the loan.  That's the agreement.

So, yeah - pay farking attention, assholes.  Don't borrow money you can't pay back.
 
2013-11-23 02:10:06 PM
It's not like the housing bubble, it's not going to "collapse". But, what it IS doing is handcuffing people from moving up rapidly and buying big ticket items and helping the economy grow. We really need that right now.
 
2013-11-23 02:13:11 PM
Somewhere along the way, US college tuition costs became subject to skyrocketing inflation compared to tuition costs elsewhere in the world. Not exactly sure where it started, though.
 
2013-11-23 02:15:01 PM

rurdy: Other ways to minimize student debt:

Consider attending a state school.
Submit the federal loan application, called the FAFSA, as early as you can.
Borrow only what you really need, not the amount you qualify for.
Reconsider that Basket Weaving degree from an Ivy League University


I would completely disagree with your last point. If you get in to an Ivy League, or a top-10 school in your chosen field, you should do whatever you can to attend. Graduating from an ivy almost guarantees that there will be an analyst job passing a nice high-5 or low-6 figure job available for you upon graduation, no matter what your major was.
 
2013-11-23 02:15:27 PM

MadAzza: Marry me, Ric Romero!

/serious offer


you can do better

Trust me I went to the Ric Romero school of matchmaking
 
2013-11-23 02:17:41 PM

J. Frank Parnell: If you believe the industry propaganda and follow the herd into university right after highschool with no clear idea what you want to do with your life, or the same idea as many other people, then you deserve the harsh lesson of being buried in debt. You can reflect on why following the herd might have been a bad idea as you work a job that doesn't even require highschool to pay off that debt.

Or you can whine about it not being fair, like someone put a gun to your head and made you take out the loan.


I didn't buy into the propaganda, I didn't bury my family in debt. But, you know who did buy into all the propaganda? Every single business I've applied to, outside of retail.
6 years of retail and I need to do something.
The thing that burns me the most is the complete lack of respect from my peers. I have zero debt but I'm being looked down upon by dullards, thousand upon thousand in the hole.

What do? What do?

I have tons of skills and no one cares because I didn't spend tons of money to prove it...
 
2013-11-23 02:18:26 PM

J. Frank Parnell: If you believe the industry propaganda and follow the herd into university right after highschool with no clear idea what you want to do with your life, or the same idea as many other people, then you deserve the harsh lesson of being buried in debt. You can reflect on why following the herd might have been a bad idea as you work a job that doesn't even require highschool to pay off that debt.

Or you can whine about it not being fair, like someone put a gun to your head and made you take out the loan.


Industry propaganda? I suppose, but I can't blame them for not knowing their options. For most high school students, literally, everyone is telling them that they need to go to college immediately. If you have the slightest shrewd of intelligence the only option presented to you is you go to college. The idea of life success is presented as impossible if you don't go to college, and the kids literally have no one to tell them otherwise.
 
2013-11-23 02:19:30 PM
A) State funding for education has been cut significantly in recent decades, almost to the bone. It used to comprise up to 80% of the cost of tuition, but as that funding has been cut, the slack has had to have been taken up by the students.

B) Wages are shiat. 30 years of stagnant wages did not paint a pretty picture to begin with. An employers' market combined with foreign competition (including H1B's) has especially devastated wages recently. In many cases, wages aren't enough to pay back a loan and have any sort of reasonable standard of living, let alone saving money for traditional purchases like new cars, houses, or saving money for a family.

C) It is not due to a glut of humanities or liberal arts majors forced to serve coffee due to their worthless degree. Such majors account for only 12% of graduates. Art History, a perennial target that actually exists (opposed to Basket Weaving), is only 0.12% of graduates. It's a problem all graduates face, and even STEM is feeling it. STEM may still be ahead of the cost of college in terms of expected wages, but they're perilously close to losing that, and their earning power is still greatly diminished from years past.

CSB) Used to work for a company making cell phone interfaces. Had well-paid internships, defined career paths, great benefits, and experience in the industry since cell phones looked like bricks. Out of the blue one day, the dept. manager comes in and says we're shutting down, laying everyone off. Save your work, get out. Didn't even have time to finish my coffee and left my lunch in the employee fridge.
Some VP got a look at our balance sheet and thought he could get a bonus by outsourcing the department. He probably did. Sent the operation to Hungary.
Didn't work out so well. My contacts with the company said they were going to onshore some operations. Except they were hiring an all intern workforce. What I used to get $21/hr with bennies to do, they were getting part-timers to do for <$10/hr. Time passes, and that number creeps up, more full-timers are brought in. I start to get interested, that I might actually be able to go and get my old job back.
You know what happened yesterday? They laid everyone off, AGAIN. Must have got a new VP.

Facing shiat like that, what the flying hell are you supposed to do? Businesses demand education, experience, and qualification they won't pay for, neither in wages or taxes. The money lost in idiotic churn for stellar business decisions like "Let's get non-English speakers to make English cell phone interfaces and technical support software. What could possibly go wrong?" has to be mind-boggling.
 
2013-11-23 02:22:31 PM
My thing is all the basket weaving degrees. I managed to pay off my student loans (2 year degree), buy and pay off a house, and go back to school all in the course of 15 years (and 2 incomes).

I guess I was lucky though, I got my degrees in both what is in demand and what I wanted to do.

/gotta love it when a plan comes together
//computers
///THANKS OBAMA!
 
2013-11-23 02:24:03 PM
The usual dipshiats are out in force who think people who were "dumb enough" to not know at age 17 that going to college was a bad deal "got what they deserved". Yeah, we get it. You didn't go to college. I'm sure it was because you crunched the numbers and not because you failed high school.
 
2013-11-23 02:24:43 PM
Facing shiat like that, what the flying hell are you supposed to do?

Choose wiser.
 
2013-11-23 02:24:45 PM
seems like everyone on fark is born wealthy. buncha dirckbags here
 
2013-11-23 02:24:51 PM
The scariest thing you can hear uttered in a business setting. "I have a BA in business administration. I'll handle this."
 
2013-11-23 02:26:17 PM

studebaker hoch: Ah geez not this story again.


And the kids still can't read (their loan statements) or count (to penury).
 
2013-11-23 02:27:34 PM

Sergeant Grumbles: A) State funding for ... ...


Beat me to it.

This is not only a problem faced by current graduating students, it is a problem faced by their parents and the parents of future students.

If you are being paid barely enough to support your family, then how do you save for that special college education for your children?  Answer: you can't.

There WILL be defaults and there will be massive defaults.
 
2013-11-23 02:27:58 PM
The stupid I hear today is that you either go to college, get a job at a fast food place or join the army so you can go to college.

That isn't true.

Stop wasting time on useless college degrees and get an apprenticeship. If you are out of high school, most of you don't know what the hell you want to do with your life. Its not the time to get into debt. Don't join the army if your only motivation is money. You will not like it, they may not even take you or give you a terrible position because you don't know how to negotiate with the recruiters whose only job is to fill a quota.

If you are smart, you can become an electrical apprentice and get an associate degree (2 years) to make from 150,000 to 200,000 dollars while learning a trade that can basically take you anywhere in the high tech industry (fiber optics, telecommunications, security etc.) and it has a great cross with both engineering and IT, not to mention construction.

You will always have access to a job because the laws of electricity work the same everywhere and if you want to retrain yourself and go to a proper university in the future, you already have the prerequisites to finish it in 2 years.

You wont be in debt, you will have a good skill set and experience and you will never have to be afraid about making a decision to go to school because you will have a good, employable skill to fall back on.

Apply for union apprenticeship for best result because they will contribute to your pension, provide health care and will guarantee pay and raises.

Try to get into a pre-apprentice training program so they don't put you on the waiting list. The best part is that there is no cut off date to do this. There are people in their 50s being apprentices right now.

Good luck out there.
 
2013-11-23 02:28:37 PM

Sergeant Grumbles: A) State funding for education has been cut significantly in recent decades, almost to the bone. It used to comprise up to 80% of the cost of tuition, but as that funding has been cut, the slack has had to have been taken up by the students.

B) Wages are shiat. 30 years of stagnant wages did not paint a pretty picture to begin with. An employers' market combined with foreign competition (including H1B's) has especially devastated wages recently. In many cases, wages aren't enough to pay back a loan and have any sort of reasonable standard of living, let alone saving money for traditional purchases like new cars, houses, or saving money for a family.

C) It is not due to a glut of humanities or liberal arts majors forced to serve coffee due to their worthless degree. Such majors account for only 12% of graduates. Art History, a perennial target that actually exists (opposed to Basket Weaving), is only 0.12% of graduates. It's a problem all graduates face, and even STEM is feeling it. STEM may still be ahead of the cost of college in terms of expected wages, but they're perilously close to losing that, and their earning power is still greatly diminished from years past.

CSB) Used to work for a company making cell phone interfaces. Had well-paid internships, defined career paths, great benefits, and experience in the industry since cell phones looked like bricks. Out of the blue one day, the dept. manager comes in and says we're shutting down, laying everyone off. Save your work, get out. Didn't even have time to finish my coffee and left my lunch in the employee fridge.
Some VP got a look at our balance sheet and thought he could get a bonus by outsourcing the department. He probably did. Sent the operation to Hungary.
Didn't work out so well. My contacts with the company said they were going to onshore some operations. Except they were hiring an all intern workforce. What I used to get $21/hr with bennies to do, they were getting part-timers to do for <$10/hr. T ...


I am sorry, I need a cite on this. I have taught at a major university for 17 years, 80% of majors here are for what  I would call liberal arts. Maybe we are using a different definition, but I will rephrase it to this: What is the percentage of engineering, nursing and other hard skill kids? No, not business, no not pre-law, no not pre-med, no not psychology, no not english, no not teaching, no not sociology, no not human service, no not art, no not humanities... etc...

I mean hard skills learning. Look, I hugely support education, but the moment we made a college degree something less than it was (being elite), we made it worthless.
We SHOULD have encouraged post secondary training and learning yes, but not like this.
 
2013-11-23 02:28:45 PM
I really wish the mentality of "you'll never go to school if you take a year off" would die. I wanted to take a year after I graduated from high school and do 60 hour work weeks at the airport to build my savings (my brother could have gotten me a job that allowed it) while living with my family. Instead, I worked a part/full time job in college while taking classes, doing research, and trying to manage a meager social life. Why? Because my parents wouldn't "give me a cent or a roof" if I didn't get a degree right away. I could have done so much better in school. The sad thing is, I'm in the minority for this position. Most of my peers frittered their savings money away on nonsense. Sometimes, I think this country needs a harsh lesson in the workings of money...
 
2013-11-23 02:29:16 PM

bibli0phile: The day they offered a single post graduate degree to a person who paid ruined the system. Post graduate work should only be done when they pay YOU because you are among the best.

Also, when they convinced everyone they needed a liberal arts degree to get ahead it destroyed it as well. So many young kids come to me now with their bright and shiny degrees from a university and I have to say, "well, you can start at the bottom, just like the guy with a GED".

Why? Because the 2.9 GPA with a liberal arts degree means your slightly smarter than a squirrel. Hell, I had one person say they were on the Dean's list 2 times... wow. My response, you majored in "insert liberal arts" right? Why were you not on the Dean's list EVERY TIME?


I have a liberal arts degree, had a 2.91 GPA, and was on the Dean's list twice (seriously). I got poor grades my first semester of college because I still lived at home and commuted 3 hours by bus every day. My grades improved quite a bit after I started living on campus.

I also worked 30 hours a week.

Not everyone is cut out to major in subjects that involve a lot of math.I do know the difference between "your" and "you're," though.

/graduated $14,000 in debt
 
2013-11-23 02:30:30 PM

studebaker hoch: Choose wiser.


Funny how that's always the stock asshole answer, even as the requirements for choosing wisely increase.
You'd think that getting the education and a job in cell-phone technology, working with the biggest names in the business, would be one of the wisest choices someone could make with the way they permeate the lives of nearly everyone living today... but I guess you just set the bar a little higher.
 
2013-11-23 02:32:22 PM
Debts that can not be discharged with bankruptcy does not a bubble make.
 
2013-11-23 02:32:30 PM

Benevolent Misanthrope: DrSansabeltNoShiatSlacks: I truly wished I could see the problem here.

Yeah.  Students are constantly biatching about their loans - at a State Democratic Party Convention once, a student actually proposed a party platform plank that called for forgiving all student loans from state schools.  Jesus, you entitled little asshole - I'd like someone to pay off my mortgage for me, to, but it's not going to happen.

I aid my loans off fair and square.  I borrowed it, I paid it.  It was hard, yes.  I didn't get to party alot.  At all, really.  I ate alot of beans and rice.  But if you decide to go into debt, you have to pay the loan.  That's the agreement.

So, yeah - pay farking attention, assholes.  Don't borrow money you can't pay back.


How old are you/when did you go to school? Do you think giving what are functionally still children an agreement to loan over 100,000 dollars as the only correct step in life, without any guidance (because face it, parents didn't have that debt at their age), is good national policy?
 
2013-11-23 02:32:36 PM

bibli0phile: I am sorry, I need a cite on this. I have taught at a major university for 17 years, 80% of majors here are for what I would call liberal arts. Maybe we are using a different definition, but I will rephrase it to this: What is the percentage of engineering, nursing and other hard skill kids? No, not business, no not pre-law, no not pre-med, no not psychology, no not english, no not teaching, no not sociology, no not human service, no not art, no not humanities... etc...

I mean hard skills learning. Look, I hugely support education, but the moment we made a college degree something less than it was (being elite), we made it worthless.
We SHOULD have encouraged post secondary training and learning yes, but not like this.


Not going to bother. You've already made up your mind. There is not a thing I can say that will sway you from your opinion that students are morons for choosing anything other than the increasingly narrow set of skills that make money.
 
2013-11-23 02:32:53 PM

dmon01: If you are smart, you can become an electrical apprentice and get an associate degree (2 years) to make from 150,000 to 200,000 dollars


LOL
 
2013-11-23 02:34:31 PM

Piizzadude: My thing is all the basket weaving degrees. I managed to pay off my student loans (2 year degree), buy and pay off a house, and go back to school all in the course of 15 years (and 2 incomes).

I guess I was lucky though, I got my degrees in both what is in demand and what I wanted to do.

/gotta love it when a plan comes together
//computers
///THANKS OBAMA!


'Lucky' is probably somewhat right. It's hard/impossible to predict what will be in demand in 3-5 years. Chasing what is in demand NOW is usually a bad idea.

/Computational chemist
//Finish undergrad just as financial crisis hits
///Gets PhD just as sequester & funding cuts hit :(
 
2013-11-23 02:34:37 PM

o_blah: J. Frank Parnell: If you believe the industry propaganda and follow the herd into university right after highschool with no clear idea what you want to do with your life, or the same idea as many other people, then you deserve the harsh lesson of being buried in debt. You can reflect on why following the herd might have been a bad idea as you work a job that doesn't even require highschool to pay off that debt.

Or you can whine about it not being fair, like someone put a gun to your head and made you take out the loan.

I didn't buy into the propaganda, I didn't bury my family in debt. But, you know who did buy into all the propaganda? Every single business I've applied to, outside of retail.
6 years of retail and I need to do something.
The thing that burns me the most is the complete lack of respect from my peers. I have zero debt but I'm being looked down upon by dullards, thousand upon thousand in the hole.

What do? What do?

I have tons of skills and no one cares because I didn't spend tons of money to prove it...


Not sure if tripling, but if you have 'tons of skills', you should be able to find tons of jobs outside of retail. There are whole industries where what you've done or can do is way more important than having a degree. You sound like you have a horrible overestimation of your own abilities, or you're just lazy and not trying very hard.

/don't have a degree
//work a sexy job in a sexy field
 
2013-11-23 02:34:42 PM
"Kristen Mercado is proud of her college and graduate degrees, but says the $100,000 in student loans is crushing her.
"I'm sitting here sometimes wondering, 'Oh, can I afford to go do food shopping today or do I need to wait until my next paycheck,' and I'm sitting here feeling like, What was the point?" said Mercado.
Mercado says the loans take a quarter of her take-home pay as a social worker, leaving her barely enough money for living expenses."

I think I see the problem.
 
2013-11-23 02:34:56 PM
Subby should have used the Obvious tag.
 
2013-11-23 02:36:47 PM

Lusiphur: /don't have a degree
//work a sexy job in a sexy field


Porn?
 
2013-11-23 02:38:54 PM
Just a comment to the 'personal responsibility' acolytes out there.

Just like some of the financial crisis, this can be somewhat blamed on people making incorrect decisions. However, when enough people do so it can have serious consequences to everyone. So just because a problem is due to 'poor choices' at a personal level doesn't mean it should be ignored when the problem grows.

To rephrase, when enough people are making the wrong decisions there is an underlying systemic problem that should be dealt with.
 
2013-11-23 02:39:50 PM
If anyone had told me about the level of poop in higher education when I was younger, I would have gotten a technical degree the first time.

The community college in my area actually teaches useful things for even the liberal arts sections. Compared to the university that I went to, it was worth 10 times as much per hour of class.
 
2013-11-23 02:40:11 PM
Probably been said already, but here goes.

Kids coming out of high school generally don't know what they're going to do with their lives.  Everywhere they go they are told that if they don't go to college, they will never succeed in life.  Parents buy into this and force their kids to either go to college (without helping with tuition of course) or they lose the roof over their heads.  But no, it's the kids that are the problem.  I'm not advocating forgiving their debts, but I'm advocating fixing an obviously broken system.  I'm lucky I had a full scholarship the first stint in college.  I got a degree I didn't really want with grades that showed it, but I had no debt and was able to go back later on and get a degree in something I actually wanted to do.
 
2013-11-23 02:40:31 PM

Mugato: dmon01: If you are smart, you can become an electrical apprentice and get an associate degree (2 years) to make from 150,000 to 200,000 dollars

LOL


What are you lolling about, tard? It's a 3-5 year program where you are paid to learn the trade. That amount is over your apprenticeship, not yearly.
 
2013-11-23 02:41:17 PM

gozar_the_destroyer: If anyone had told me about the level of poop in higher education when I was younger, I would have gotten a technical degree the first time.

The community college in my area actually teaches useful things for even the liberal arts sections. Compared to the university that I went to, it was worth 10 times as much per hour of class.


But did the lambskin look sexy on your wall? That's really what it's all about.
 
2013-11-23 02:41:25 PM

dmon01: Apply for union apprenticeship for best result because they will contribute to your pension, provide health care and will guarantee pay and raises.



This is the one point of yours that I might disagree with.

Yes, there's some security and benefits that a union shop offers early on in a career, but it's with the small operators that a young tech can grow the most quickly, getting his hands on all sorts of technologies right away, if for no other reason than they dont have anyone else available at the moment to pull Job X out of the fire.

The young guys in big union shops tend to not grow at nearly the same pace and dont see nearly the variety of projects until much later on (if ever).
 
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