Wednesday, April 25, 2012

1 trillion $ student Loan.

Student Occupiers plan Nation wide protests as Loan Debt hit's 1 Trillion Dollars.

When the Consumer Financial Protection Bureau announced that student loan debt had passed the $1 trillion.Students are just buying into all the hype and can’t manage money, and that is the bottom line. I suppose they should have been taught better in high school, about economics.On Wednesday in Manhattan, street performers will enact mock trials of bankers, says Ross, who will be playing one of the lenders in a skit. “Once the debtors are released, I’m not sure what our fates will be,” he says with a laugh.Other plans are also afoot for Wednesday. Groups such as Occupy Student Debt and a coalition pushing to pass the Student Loan Forgiveness Act of 2012 (HR 4170) plan to use the day to raise awareness, says Robert Applebaum, a lawyer behind the website, which officially launches Wednesday. According to the College Board, the 2011-12 published total cost for tuition, fees, and room and board at an in-state four-year public institution averaged $17,131, but the actual cost for the family is much higher.  According to the Business Insider, there is nearly $70,000 in additional college costs that aren’t included in these estimates including college tour costs, computers, transportation, laundry, cell phone, etc.  Even with our very thrifty (even frugal) college student, there were calculators needed for calculus, and last quarter a suit for job interviews.  None of these hidden costs are included in tuition estimates.With the cost of college increasing at an average of 8% per year, even at a base rate of $17,131 per year, parents of a two-year old starting a college savings plan would have to save about $925 per month at 4% earnings growth to pay for four years of college.  Even if they were able to earn an 8% average growth rate on their savings, they would still need to save around $600 per month to do it. Parents need guidance around paying for college and we’ve written recently on scholarships for average students or those looking for high-award scholarships as well as ways to get Uncle Sam to pay for your MBA or your kid’s college education.


The result of three decades of state governments’ (of both parties) shameful behavior: a debt of 90 BILLION dollars to the five state retirement funds and a chronic underfunding of state universities while maintaining the fiction of adequate appropriations. At the moment, Northern Illinois University is still owed 45 MILLION dollars of THIS YEAR’S appropriated funding (fiscal year began on July 1, 2011). At the same time, state Republicans are making ready to try to repeal the already too-low tax increase of the last year. Those with enough $$ will go to private schools where their worries are affordable. The rest of us? we either do without — and the effects on the Republic have yet to be fully felt — OR we’ll sign up at a for-profit school and borrow $$ on what the British call the “never-never.” School Debt generally in the US now exceeds total credit card debt“Trillion Dollar day is a reminder that private banks are still very much in the predatory lending  business; this time it’s students not homeowners,” added Professor Andrew Ross, another organizer with the Occupy Student Debt 1TDay campaign..

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