On Demand
Students' Aid
Stephen Burd, senior research fellow in the Education Policy Program at the New America Foundation and Anya Kamenetz who writes for the Village Voice and is the author of Generation Debt: Why Now Is A Terrible Time to Be Young (newly out in paperback) discuss the student loan scandal and reform efforts.
Stephen Burd’s webpage at New America Foundation
Anya Kamenetz’s website
- About the Brian Lehrer Show »
- Staff Bios »
- Contact Us »
- Tapes and Transcripts »
- Latest Episode »
- Show Archive »
Features & Series
Podcast
Stay up to date.
Subscribe to the Podcast
YOU PRODUCE The Brian Lehrer Show
Be a listener-producer with facts, questions and people you'd like to hear on the air.
More
The Brian Lehrer Show Scrapbook
Visit the scrapbook for daily photos and miscellany from The Brian Lehrer Show.
More
Shop at Amazon!
The Brian Lehrer Show picks
Start your Amazon shopping on WNYC.org and a portion of your total purchase goes to WNYC.
More
Comments
Refresh
I have $90 K in student loans. Why can't the Stafford Loan limit be raised to match what tuition actually is instead of 18,500? That way we would wouldn't have to take out private loans?
I don't blame universities for the high tuition costs, but I do blame students for wanting above and beyond luxuries. Schools, are trying to atract the "best and brightest" and that means, haveing the best rec centers and dorms.
Also, as someone who works in fundraising, I would encourage Alums to give back more to their Universities, and high schools counselors to tell their students about scholarships and grants that exist, a lot of money just goes unclaimed.
Attended Montclair State University (State funded school in New Jersey) late 90s through early 2000s. When I had applied to my university for financial aid, I was only granted a small pell grant... and then offered a loan from Sallie Mae through my university directly. I didn't know any better then. I didn't know who Sallie Mae was. I didn't know there was a monoply and that this should probably be illegal. I hope my university's financial aid officers really enjoyed all those cruises they undoubtedly attended.
I am currently carrying $18,000 in debt and work in non-profit.
Shannon
When I got my undergrad left with a $74K of debt, now my fiance` and I are trying to buy an apartment but even with my great credit score I can barely get 100K mortage...is there anything that I can do as a first time home buyer?
I have over 100K in loans after graduate school for architecture. I see the problem and Im glad people are looking for a solution or for people to be responsible for lack of regulation. I don't want to dwell on the debt, what is done is done. Hopfully this will be fixed for others. What I want to hear is what do I do now that im in this situation? I have consolidated federal loans, but the private are not. There doesn't seem to be a resource for people who have no financial education. There are private loan consolidation, but they don't look very good. Im not sure if i will be paying on my balance and not interest rates for years. What should happen first is to help the people who are in the hole as well as the people about to leap into it.
What exactly is loan consolidation? Can it really reduce my interest rates? Why then is Sallie Mae so intent on me doing it? (I am getting junk mail about it almost every day!)
Should the Fed gov't perhaps refuse to grant loans destined to pay tuition at schools with excessive tuition inflation?
I'm also interested to know why the Stafford limit is fixed at a lower level than the cost of education.
I am a person who has student loans and went bankrupt a little more than a year ago. I have lowered my payments to $10.00 a month. How does the gov't expect me and people like to pay off these loans?
I will finish graduate school with a large amount of student loan debt (in the six figures) but a central part of the calculus in taking out student loans is a) the reputation and reliability of the lender, b) interest rates and consolidation opportunities and c) future wages and level of commitment to work in a certain position for a set number of years. If students consider all this, I don't see a problem, nor do I regret my debt. However, had my parents not counseled my siblings and me on the importance of considering future wages and willingness to give up flexibility of job choice, I never would have thought of this (and potentially made a decision I would regret). Schools do need to do a better job of counseling students precisely what they are signing on for (lifestyle, income, obligations, etc) when they accept private loans. For some, it is a great choice, but for others, it can turn into a straightjacket. This needs to happen in high school, before students can irreversibly determine their financial future.
Suck it up! My wife went through 4 years of school with NO out of pocket money. It took us more than 10 years to pay it off, but our credit at the end was strong enough to land us in our first home with only 10% down (which we earned by working multiple jobs). Life is tough. Get over it.
Long ago we decided that high school education was so important that we would provide it free--supported by our own taxes. Isn't it time to do the same for a college education.
When I was a high school student in California, there seemed to be an attitude that any student was entitled to attend any college he/she desired without first evaluating the financial impact. As a California resident, I was amazed that many of my peers opted for private institutions when California has a first-class public university system. As a Berkeley alum, I received a splendid education for the affordable price of ~3,500/semester.
Perhaps we should start encouraging students to attend public universities rather than private ones?
BEWARE to those considering consolidation of their loans: A company claimed to have authority over my defaulted loans on behalf of NYState. But as I looked into it, they began by slapping a 5,000 $ fee at the outset, which they did not tell me about. So, I haven't signed any of the dozens of letters they have sent -- and my representative in DC is looking into it
In addition to reforming the student loan industry, the U.S. needs to concentrate on lowering tuition, especially at public universities.
I went to a public law school and graduated with $55,000 in debt even though I paid in-state tuition. (And I still had $17,000 in debt from my private undergraduate education.)
It's ridiculous to expect young people to handle that much debt.
I suspect that one consequence of this will be that fewer students will take nonprofit or public interest jobs because they just don't pay enough money.
I don't understand how anyone can default on a federal student loan. I have $138K in federal loans and have been out of college since 1989. I've never made more than $45K. I'm on my third round of graduate school and have kept my loans in good standing while living on less than $20K a year. The federal government is more than willing to work with you if you're having financial difficulties -- either via hardship forebearances or deferments. At one time, I needed to lower my payment, and they granted my request without batting an eye. So I see no excuse for defaulting.
I took a year off of school in 2000 and started back up in 2001. I just graduated in december of 2006, and i am now starting to pay back my loans. At one point my credit score was in the high 700's. When I attempted to consolidate my 50k of federal loans and my 50k in private loans, i found out that my credit score has dropped down to 525. This happened because I took a year off, which used up my defferment period. I was never aware of this, and AES is saying that i am 160days past due. Because of this, my interest rate is near 12% for my private loans. As a young architect, we only make about 38k average(starting)....I can't survive....please help me!!!
I graduated from Rutgers (a state university) with manageable loans ($10-$15k). All my loans were subsidized Direct Loans, meaning my loans earned no interest while I was enrolled as a full-time undergrad. I'm not going into my second year of a masters degree, again at Rutgers. Though I have nearly enough money saved up to pay some of my tuition in cash (I took four years in between degrees), I've opted to take out more subsidized loans and save my money to eventually buy a home/condo. Am I making a mistake? I've approached it with the mindset that my direct loans are at a fixed interest rate and my minimum monthly payments are very very low, so much so that I often overpay.
I consolidated my student loans over a decade ago with citibank at an interest rate higher than what is available today. I also didn't have money to pay at first so I deferred my loan without realizing completely that interest would keep piling on. I am going to have to pay for at least another ten year which seems so ridiculous. Is there anyway to lower my interest rate?
I paid for college and now I'll be paying for graduate school on 0% and >3% credit cards because the rates were lower then the Federal Loan Programs. While it's been a bit of a game paying for it between doing the transfers I've already paid off college and find that this will probably be the best and most cost effective way.
Why don't Federal Loan Programs have the same competitive interest rates?
I have taken this past year off, after high school, to work full time and save for college. Unfortunately, there were absolutely no savings for me prior to this towards furthering my education. Since the fall I have only been able to save $6,000. Therefore, I will have to take the fall off again, and hopefully go to a CUNY school in the fall. It is such a shame that financial aid gives so little (in my case my father is homeless and my mother is raising two younger siblings on a low teacher salary)... I have been accepted to all my tops schools, but there is no way I can go without burying myself in loans.
But, if, which I probably will, have to go to loans. Who should I go to? What is the best service for loans?
I'm a grad student at NYU, 37, single, I own a modest home in the suburbs. I returned to school a few years ago to get my undergrad degree, then my masters... I am trapped because I have too many assets, even if I have no income now... I have some debt from undergrad, some from grad, and I'm scared to death of what will happen when I graduate. And I refinanced my mortgage to get cash to live while in grad school. I've been trying to turn my life around and have a successful second career in life, but between student loans and my increased mortgage, I can't see myself getting a job that pays enough for me to still be able to eat. What do your experts suggest?
My name is Chris and I am an architect in the city. First of all, architects don’t make very much money. I have roughly $80,000 in student loans from undergrad and graduate school.
In addition to the problem of student loans having increasingly high interest rates, consolidating loans depends on your credit rating. And if your credit is being affected by the financial burden of school and student loans, it is really hard to get your loans consolidated. At this point, I have to pay 3-4 different companies to pay off my loans. It is like a full time job just keeping track how much I owe to each company. At this point, I can’t even consolidate my loans because my credit is being affected by the student loans. Catch 22!
I am the parent of 13-year old who will go to college in 2011. We've already started going to college seminars at our HS. Recently at one where the financial aid officer from Sarah Lawrence spoke, we were told that undergraduates were NOT permitted to take out these huge loans! I don't understand this. What's going on? Also, I think these heartbreaking stories you've been discussing just shows how out of control the whole college cost situation is. This industry needs a complete investigation. There is so much waste (and probably fraud). In fact my in-laws live in a community in NC where a retired Duke professor still has an office and secretary on campus even though he's been retired for many, many years!! And the poor students now there are paying for it. It's not right.
Thank you.
My one year + a summer at Harvard cost more than twice my NYS undergrad & UNC Law School tuitions combined . . . Is a name worth this much?
Not all need college education for their employment needs? But who does not need another two years of general education courses--more study of global political history (how we ended up in such tragedies as the Vietnam and Iraq wars) or just courses to broaden our minds--Shakespeare and Aristotle?
I have 140k in IV league loans. And I am amazed that most colleges do not make basic personal finance a required course and part of the freshman core. Even after school most people don't know how to manage credit cards loans etc.
CONSOLIDATION ADVICE!!!
The Safest way to consolidate is through the Federal Direct Loan program here: https://www.dlssonline.com/borrower/BorrowerWelcomePage.jsp
DON"T trust those enticing offers you get in the mail even if you see the words FEDERAL all over them. They are private lenders and you will never get away from them.
There is a group you should all be aware of: www.studentloanjustice.org. Read the horror stories of those who are late on a payment or default. Doctors who had their medical licenses pulled away, threatening phone calls, suicides etc. Companies that will not let you change lenders even if they have a better rate.
I consolidated my $50,000 useless art degree through the Federal Program. Since I probably won't make much money ever in the non-profit world I work in, I pay affordable income contingent payments and will have my remaining debt forgiven after 25 years.
Something radical needs to happen...
We leave school hoping to join and contribute to greater society but so many of us have this giant anchor tied to our legs.
I fell like I am drowning.
So many of my friends have become so holed up and depressed. A huge part of it is this huge debt whcih stands infornt of them doing anything. I am mean REALLY doing something...
I took out $11,000 in private loans from Citibank at one school, then another $9,000 in direct loans at another school. When interest rates started going down, and the refinancing boom was happening, I started getting inundated with junk mail from private lenders offering consolidated loans at fixed low interest rates. I called Citibank and they told me that I couldn't consolidate my loans while still in school. So I pretty much forgot about it. Shortly before graduating, I looked closely at the direct loan statement from the government, and it said something about consolidating my loans. I called and it turns out I could have consolidated my loans with the federal government while still in school, and locked in 1% interest rates forever. Instead I locked in 5%.
Not sure what the relevance of this is to the scandal, other than to say (1) private lenders don't necessarily offer a better deal and (2) I think some loan officer should have made me aware of this either at my current school or my old school.
what are my options for consolidating two substantial private loans I have?
I have consolidated my govt loans, but not the private ones because I cannot find any place that will do it? is this normal or???
I so feel for everyone here - sadly, it sounds like we are all in similar sinking boats. I have about $80k with undergrad & grad. I work part-time & am a single mother. My federal loans have been in forbearance for a while. The only loans I pay back is an evil collection agency loan (for $20k). I get help from friends for food & utilities when they can. Loan counselors have no clue what to suggest. What can be done??????
i too have 90k in student loans and pay $900 a month which hasn't seemed to make a dent over the past 2 years; that's a rent payment. i can't even afford my rent now of $350/month...i feel like i'm drowning.
It's outrageous how un-regulated debt in general is in USA, trillions gained targeting the financially weak.. it's usury wrapped in deceptive advertising: prosecuted in most western countries.
Another gloomy indicator of how bent politics are to finance.
In the current loan debate, no one seems to talk about the parents' contribution to college costs.
The financial aid office figures parents' contribution based on parents' income.
What parents & students seem to forget is that parents can meet their contribution requirement on their present income--provided that they make sacrifces in their present lifestyle.
If students are required to take loans over and above what is offered by the financial aid office, it means that their parents have not made the contribution that was expected of them.
If parents will not pay their share, then the student must go to a less expensive college--or take the loans and stop complaining!
As a parent I paid my share. I see no reason to spend tax money to bail out the children of parents who did not pay their share.
Lest this seem harsh, please recall that parents are supposed to sacrifice to put their children through--ask any Financial Aid Officer.
I got Higher Interest After Consolidating!
I spent an hour with a company called Erie Consulting, discussing my consolidation of my Federal Loans, in tears over my debt. They reassured me that they could offered the lowest rate issued by the Gov. I finally decided to go with them because I was exhausted, scared and wanted to do what was "responsible." Over a month later, I got a invoice from Sallie Mae with a higher interest rate than my Federal Loans initially offered. I called Sallie Mae and it turns out that Erie does all the "footwork" for Sallie Mae. Now I have a higher interest rate after consolidating!!! I have $148,000 in private and gov't loans. I wish I had been advised before I took out all this money. They make it too easy for you to go to a website, fill out an online form, and sign your future away.
I don't know where to start or who to talk to to get my finances in some kind of sane order.
Please help.
Where is the regulation? MY HORROR STORY.
My combined debt as an undergrad and grad student was $96,000 through a federally guaranteed loan issued by USA FUNDS and Sallie Mae. I went through a few years after I graduated unable to deal with the minimum required payments and foolishly avoided dealing with the loan, which led to default. About one year into the default i was fined $50,000, just under half of the loan. I contacted the loan agency to negotiate, but they initially would not accept anything but the minimum payment required to pull me out of default (I think that was $1,200 at the time). After further negotiation they agreed to accept a "good faith" payment but proceeded to fine me $5,000 a month for 2 additional months (without informing me that that this penalty was going to be applied). It was only when i was able to borrow the capital to pay their full minimum for a period of months that they put me out of default and allowed me to consolidate with the Federal Direct Loan Program. They had initially suggested they would remove the fee once i returned to good standing but refused any such action once I was in good standing. It also took SERIOUS work and time to get them to remove my default status from my credit report.
A few accepted deferrments and 10 years later, my loan now sits at just over $200,000 and grows about 16,000 a year in interest. The FDLP does not allow you to readjust your interest (although they do reduce it slightly for steady payments). I actually hope, one day, to make a decent income, but even with the lower approved payments I get now, through the income contingent plan, the interest in climbing so fast that when I can afford to pay more, the loan will be well beyond what could pay. I would be better off continuing to make a limited salary - talk about a disincentive to succeed.
I've contacted several lawyers about negotiating the fines off and just paying the original loan plus accrued interest but the only advice i've received is that it's not possible. We wouldn't allow a credit card to do this to a consumer, why are we allowing such egregious fines to exist on our students?
Leave a Comment
Please stay on topic, be civil, and be brief.
Back to EpisodeEmail addresses are never displayed, but they are required to confirm your comments. Names are displayed with all comments. WNYC reserves the right to edit any comments posted on this site. Please read the WNYC.org Comment Guidelines before posting.