Sunday, November 25, 2012

Is a college degree worth the cost? You decide.

You really have to wonder about what we are being sold as a people.  I've been an engineer for over 30 years now.  I got my degree in 1980 using a mixture of private money, a single student loan and grants from the Federal Government.  It took me a while, but it was well worth it.  But at that time the risk/reward ratio was very  low.  My first semester in college back in 1974 was a whopping $350 a semester.

I've got two things I want to share.  The first is a Peter Schiff youtube video where he goes to Burbon Street to ask workers if they got a college degree.  The answers are shocking.

The next is an article on Yahoo! 9 Unbelievable Student Loan Horror Stories:
...I am currently a public school teacher with an income of $50,000, barely enough income to pay the interest-only payments. I have never missed a payment in over ten years ... and my loan balance stands at $105,000. To date, I have paid over $40,000 in loan payments and because my income restricts me to interest-only payments, and the 7% daily capitalized interest rate, I now owe $15,000 more than I borrowed....

My student loan situation has nothing to do with a lack of financial responsibility.

I have never missed a student loan payment and I have paid off $20,000 in credit card debt and a $10,000 car loan since graduation. I have no mortgage or any other outstanding debt, just my student loans. I have a credit score of 820. However, because of the usurious interest rates, capitalization of interest and the sole option of interest-only payments, I will never be able to pay off my student loan. It’s just not possible, unless I win the lottery."
I just can't believe the interest rates these kids are getting charged especially in this day and age of record low mortgage rates. It's just incredible.

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