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Yaya
Joined: 25 Feb 2003
Location: Seoul
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 Posted: Sun Feb 24, 2008 11:22 pm Post subject: The coming student loan crunch |
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College students heading off to campus in the fall will face a radically different student loan situation than they did just a year ago.
The credit crunch that rattled mortgage lenders has spread to the education lending market, with dramatic results. If the situation doesn't ease in coming months, student lending experts say, borrowers can expect:
- Higher loan costs.
- Fewer lenders, which could mean tens of thousands of college students scrambling at the last minute to find money.
- Tougher standards that could prevent some students from borrowing at all.
http://articles.moneycentral.msn.com/CollegeAndFamily/CutCollegeCosts/TheComingStudentLoanCrunch.aspx |
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Rteacher
Joined: 23 May 2005
Location: Western MA, USA
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| Posted: Mon Feb 25, 2008 2:53 am Post subject: |
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It figures to be a significant election issue though, and if either Democrat wins (especially Obama) I think borrowers would likely get some kind of relief.
However, some experts think the likelihood of widespread student loan defaults may be at least as troubling to the economy as the sub-prime mortgage fiasco.
That's why there's pressure to reduce loan risks.
Maybe they'll require graduates to teach EFL in Korea until their loans are paid off. 
Actually, I didn't get my bachelor's degree until 1996 and kept deferring for about five years without even making interest payments (which significantly increased my debt.)
For the past six years I've made regular payments of $175 a month, and I still owe about the same principle ($23,000.)
At this rate, I probably won't get it paid off till next life ... |
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Juregen
Joined: 30 May 2006
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| Posted: Mon Feb 25, 2008 4:28 am Post subject: |
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Free education, that is all I am saying.
Something as crucial to the welfare of a state can not be left in private hands. |
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cdninkorea
Joined: 27 Jan 2006
Location: Seoul
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| Posted: Mon Feb 25, 2008 4:49 am Post subject: |
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| Juregen wrote: |
Free education, that is all I am saying.
Something as crucial to the welfare of a state can not be left in private hands. |
I disagree- many things are crucial to the welfare of a state, yet remain out of public hands. The trucking industry is critical for the shipment of goods. Shoes are necessary for people to walk outside. Housing is required for shelter. Farming is essential for surivival.
I think the more essential a good, the more it should stay in the private domain. Especially something like education; shouldn't we desire a diversity of ideas?
Your idea does appeal to me; as someone still paying off a significant amount of student debt, I would love it if I didn't have to make payments and could start saving for retirement instead. But deep down I know it's better this way. |
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Khenan
Joined: 25 Dec 2007
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| Posted: Mon Feb 25, 2008 7:05 am Post subject: |
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| cdninkorea wrote: |
| Juregen wrote: |
Free education, that is all I am saying.
Something as crucial to the welfare of a state can not be left in private hands. |
I disagree- many things are crucial to the welfare of a state, yet remain out of public hands. The trucking industry is critical for the shipment of goods. Shoes are necessary for people to walk outside. Housing is required for shelter. Farming is essential for surivival.
I think the more essential a good, the more it should stay in the private domain. Especially something like education; shouldn't we desire a diversity of ideas?
Your idea does appeal to me; as someone still paying off a significant amount of student debt, I would love it if I didn't have to make payments and could start saving for retirement instead. But deep down I know it's better this way. |
Easy words for someone who hasn't had to pay for their own grad program. I mean.. I assume, anyway. |
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aarontendo
Joined: 08 Feb 2006
Location: Daegu-ish
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| Posted: Mon Feb 25, 2008 7:27 am Post subject: |
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| Eh I sorta think education should be free. My country spends a lotta money on bullshit, I'd rather see it go to something useful. |
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nicholas_chiasson
Joined: 14 Jun 2007
Location: Samcheok
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| Posted: Mon Feb 25, 2008 7:45 am Post subject: |
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| why has the cost of education increased faster than inflation? hmm. My University is $2000 more a year then it was(it started at 4k and is now pushing 7k). Anybody get a 50% raise in 4 years? |
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Zutronius
Joined: 16 Apr 2007
Location: Suncheon
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| Posted: Mon Feb 25, 2008 4:41 pm Post subject: |
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| What will this mean for those who are now paying back loans (me)? |
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