Student loan | The Road Often Traveled: My Story of <b>Student Loan</b> Debt | ED.gov <b>...</b> |
| The Road Often Traveled: My Story of <b>Student Loan</b> Debt | ED.gov <b>...</b> Posted: 27 Jun 2014 08:40 AM PDT  Dexter L. McCoy discussed college affordability and student loans with Secretary Arne Duncan and Dr. Jill Biden. (Photo credit: U.S. Department of Education) Bogalusa, the Louisiana town where I was born, is far from an example of economic success or upward mobility. With high unemployment and abject poverty, education is the only option for individuals who want to move beyond the community. I was born to a teenage mother who, despite having a child when she was still a child herself, worked hard to achieve more than was expected in Bogalusa. She was fortunate to have hard-working parents who supported her, and she earned a scholarship to attend Louisiana State University. Yet, my mom had to take on the burden of significant student loans. My stepfather, son of a schoolteacher and an electrician, found that he, too, had to take out sizable loans. Years later, I was fortunate that my parents made sacrifices that took me away from Bogalusa to Houston, where I had exposure to more opportunity. Going to college was seen as mandatory in my family. But, when they looked at just how much higher education would cost, their zeal for sending me to get my degree was dampened. Simply put, the $52,000 in tuition and fees at a university in Boston — a school I loved and wanted to attend — were too much for my parents to pay. Even with a partial scholarship, the education I sought was unaffordable for us. Like many middle-class Americans, my parents did not make enough to pay for my school, out-of-pocket, but earned too much for me to get enough financial aid. So, I had to take out student loans. I was blessed with parents who helped pay for my education, despite still paying off their own student loans. I was also fortunate to work at on-campus jobs that helped ease the financial burden on my family. It was a lot to manage on top of being very active in campus leadership and having a rigorous course load, but somehow we found a way to make it work. My time in college did not come without its share of problems, though. I had medical issues arise that required test upon test and numerous hospital visits in search of answers. Perhaps unsurprisingly, the mounting financial burden became huge: my family was forced to decide if I would get the treatment I needed or continue paying for school. This choice is not one that any family should have to make. We are told from an early age that college is the commodity necessary to have a stable, solid lifestyle and to be contributing members of society. The reality is, though, that college expenses are so great that many, including me, will have to work that much harder for years to get ahead of the tens of thousands of dollars we've had to take out in loans. It is a sobering thought, but one that we must face. What other choice do we have? Dexter L. McCoy graduated from college in May 2014. He recently attended a conversation on college affordability with Sec. Arne Duncan and Dr. Jill Biden, where he discussed his experiences with student loan debt.  |
| College Still A Good Deal For Graduates - Business Insider Posted: 25 Jun 2014 11:48 AM PDT Despite record student debt, the benefits of a college degree still outweigh the costs, according to a new report from the Federal Reserve Bank of New York.
But the real message to students — especially if you are borrowing is: stay in school. The study, published by Jaison Abel and Richard Deitz, found that the return on a college degree has remained at 15%. (As a point of comparison, Abel and Deitz note that since 1950, investing in stocks or bonds have yielded annual returns of 7% and 3%, respectively.) And though college graduates now make less on an inflation-adjusted basis than they did a decade ago, wages have fallen for all workers regardless of their level of education. In short, you get about as much of a leg up, wage wise, now as you did a decade ago.  Federal Reserve Bank of New York  Federal Reserve Bank of New York They find that the while "sticker price" of a bachelor's degree has increased from $4,600 per year in the 1970s to about $15,000 in 2013, "net tuition" rose from $2,300 a year in 1970 to about $6,500 per year in 2013.  Federal Reserve Bank of New York "Significantly, our rate of return estimates pertain to those who complete a college degree; the estimates do not account for the risks associated with not completing the degree and dropping out of college. Indeed, while college dropouts incur at least some of the costs associated with going to college, they enjoy far fewer benefits." This message is an often overlooked part of the debate about student loan debt and the effects it will have on our economy going forward. In addition the Fed's report, yesterday The New York Times discussed a recent study by the Brookings Institute that found debt burdens from student loans have not risen sharply. Among Brookings' findings were that the mean — or simple average — of student debt held has increased over the last decade; however, the median — or midpoint — of all debt held actually decreased from 2007-2010. In other words, there are more outliers taking on massive amounts of debt, but not enough to lift the average  Brookings Institute Brookings fellow Matthew Chingos, one of the authors of the Brookings study, told The Times' David Leonhardt, "We are certainly not arguing that the state of the American economy and the higher education system is just great. But we do think that the data undermine the prevailing sky-is-falling-type narrative around student debt." Leonhardt also noted the problem with dropping out of college after taking out loans, writing that, "The vastly bigger problem is the hundreds of thousands of people who emerge from college with a modest amount of debt yet no degree. For them, college is akin to a house that they had to make the down payment on but can't live in." There is no denying that there are lots of students taking on lots of debt to attend college. But where some see a growing burden that will hamper the economy long-term, others see a clear message that college is still a sound investment. At the very least, finish your degree. |
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