It is going to be such a multiplier effect as well. That entire generation has so much school debt, it will take them their entire professional lives to pay it off, if ever. If there are large defaults, that is going to have a huge negative impact on the economy, stock market, jobs, etc.

For the sake of the argument, lets say this generation does continue to pay off its debt (even if it takes a long long time), the other problem people are not talking about it is this entire generation will have NOTHING saved for retirement. I see this as a HUGE HUGE problem.

Some of my friends and colleagues will be paying off college and graduate school forever it seems. The interest rates vary for undergraduate and graduate loans. When I was in graduate school, the undergraduate rate was half the graduate rate around 3.2%, though now it looks like it's into the 4% range. It seems like everyone can make our money work for them, but there's no way to make it work for us.

A friend of mine had $40,000 in loans for his undergrad, and that was with scholarships. I couldn't imagine starting life under the weight of all that debt and these days you're not guaranteed a job even with working toward a job-motivated degree.

This thread is interesting. The interest rates charged for student loans and the collection methods used seem overbearing! The market place and opportunities for professional growth and the scoring of the one big job for life sure got kicked out the window. It is sad that the only stability in the employment world is the moment you are working and getting paid. Employer or Employee have lost loyalty. The good paying jobs such as manufacturing are gone and the service industry has always been viewed as lower in pay due to the image of requiring less to get into it. Coming from a different era when we used to believe in "Mom, Apple Pie and Chevrolet," was a good time in many ways ... from where I sit the fun is gone. What courses to take (too many colleges driving up the tuition costs at the for-profit level), how to pay for it (how you can work 20 to 40 hours a week, take on extra college activities and attend class as a 3.5 grade average is beyond my comprehension - I could not do it). Sorry for the rant but life as a college student used to be fun and it was not so much driven by a degree for a job, rather a Liberal Arts four year Degree and acquire the additional skills a s you went along was fine. How at eighteen do we all know where we want to go for a life time? Sure know I changed my focus and glad I did (life circumstances happen). Something that bit us older types is the old idea don't worry about repaying your government backed student loans as they don't collect on them and surprise at 65 years old drawing Social Security you get a levy on your benefits for the repayment of your college student loans from the 1970's ... hmm ... yeah! Glad I was required to put in time in the military where I was able to utilize the GI Bill and work for the college 10 to 20 hours a week ... I could get by and not owe anyone then worked for an employer that assisted with employment based college courses. Don't think I could do that today. Yeah ...

It can be worth it. I was covered for my undergraduate work but had to take a loan out for grad school. Luckily through my employment, I was eligible to get half of my tuition back each semester. Between that and smart planning beforehand I only had to take a loan the first year. It still took awhile to pay it back and the 6.8% interest rate was ridiculous.

If it's just for a course or something shorter term, it might be possible to get a personal loan. There's an online course I considered doing that with myself, but I put it off again.

Joker wrote: I had an employer send me to school and paid for it just so I could become their network administrator. I already had a proclivity for it but they wanted it official. I also insisted on a contract that stated if I leave before the note is paid, I'll pay it. But if they lay me off before completion, they pay it. The latter happened!

You don't hear companies paying for school much anymore. Sorry you got laid off, but glad you didn't get stuck with the bill.

I had an employer send me to school and paid for it just so I could become their network administrator. I already had a proclivity for it but they wanted it official. I also insisted on a contract that stated if I leave before the note is paid, I'll pay it. But if they lay me off before completion, they pay it. The latter happened!

Georgia has a great post high school program called Hope Scholarship. Basically if you can maintain a 3.5 GPA and get into a Georgia state school, your college is paid for.

A few states offer a free education to their citizens like Arkansas and Tennessee. I would also check out a trade school program where I could learn and earn at the same time.

I deeply regret borrowing money for school. I paid for undergrad with scholarships, work study, and grants so I didn't need to take a loan. Unfortunately, I borrowed a significant amount for grad school under the grad plus loan program. The standard advice at that time was to go to the best/highest ranked school that accepted you. I did exactly that and it was a huge mistake. I've found that the Department of Education doesn't follow the same rules that you'd expect. How much you pay can change on a whim. The public service loan forgiveness program is up in the air, even for those who had department approval when they first applied. The department outsources most of the work to the private sector which is a problem. The debt will follow you too as it's extremely difficult to have student loan debt discharged in bankruptcy. Employers routinely check credit information when considering new hires.

That's right Goldbug. Employers will sometimes pay for courses for their employees just to improve themselves and the quality of their work. However, if that's not possible, then why not borrow enough money for just one course, pay off the loan and then do it all over again. That way the debt will not accumulate. Do check with your employer for a stipend before taking the plunge.

I think it is a good idea. Depending on what you learn it is an investment as improved skills can always help your career. Some employers will offer help or interest-free loans to cover training, so if someone in work wants training, it is worth asking about them.

That is great to hear. I wish I could be as productive as you!

I think it is a great idea to further your education. You should always try to improve yourself. The cost should be worth what you will get out of it. I constantly am taking new classes to better myself.

What kind of degree you are pursuing should definitely have an effect on how much you borrow. Luckily, I was able to get most of my money through a grant so I didn't have to take that much out. I'm just worried what it's going to be like when my kids finally get to go to college in a few years.

I agree. I think you need to run an easy analysis to see what it will cost you and what your potential new income would be to see if it is worth it.

I think it depends on how much you'll be borrowing and how much you have the potential to make in a future career. For example, borrowing $150,000 to be a third grade teacher is probably not the best idea.