To the People

The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or TO THE PEOPLE.

Tuesday, June 01, 2010

Give This Sinkhole of a Blog Credit: We've Been On the Student Debt Beat for Over 4 Years.

It's time for another "I really shouldn't have taken out $100,000 in student loans to pay for a shitty degree in woman studies" story.

Aside: This is a serious problem that is most likely going to require you to pay a lot of money for really bad decisions made by a few. Sound familiar? Our only hope is that this bubble doesn't burst until we hit Weimar level inflation and no one really gives a fuck about unpaid student loans when they are pushing a wheelbarrow full of cash to pay for milk and bread. Yay for the future!

I should note -- all joking aside -- that I do feel bad for the large majority of these people mired in bad debt. All of them have made some questionable life decisions, bordering on idiotic in some cases, but who hasn't?

One time I clicked off the tranny filter on my favorite porn surfing site. Big mistake. Still paying for that one in scary fucking dreams. Have you ever seen a tranny bone a preggo? I have. Not as sexy as it sounds. So far be it for me to spend too much time judging individuals.

Of course the difference between my disturbing viewing choices and some half-wit taking on more debt than s/he can afford, is that due to the current "let's give other people's money to morons" political climate that we are in, it's only a matter of time before someone has to pay for the half-wit's poor decisions.

That blows for the rest of us working two jobs (without student debt) trying to get ahead in a poor economy. But whatever, life sucks. Let's have some fun with this chick from the Times story before I go to the office bathroom for a sympathy jerk lubricated with my own tears.

Like many middle-class families, Cortney Munna and her mother began the college selection process with a grim determination. They would do whatever they could to get Cortney into the best possible college, and they maintained a blind faith that the investment would be worth it.
That's how I handle all my investments. With a blind faith that they will be worth it. I've found actually doing research into the current and future value of investments is highly overrated and only done by men with small penises. Not for me!
Today, however, Ms. Munna, a 26-year-old graduate of New York University, has nearly $100,000 in student loan debt from her four years in college, and affording the full monthly payments would be a struggle.
OK, she might not be able to make the full payments, but at least she's trying to pay off some of the debt instead of just sitting there and watching it grow.
For much of the time since her 2005 graduation, she’s been enrolled in night school, which allows her to defer loan payments.
She started college at age 17 and borrowed as much money as she could under the federal loan program. To make up the difference between her grants and work study money and the total cost of attending, her mother co-signed two private loans with Sallie Mae totaling about $20,000.

When they applied for a third loan, however, Sallie Mae rejected the application, citing Cathryn’s credit history. She had returned to college herself to finish her bachelor’s degree and was also borrowing money.
Doubling down. I like it. Cathryn (the mom) would fit in well with my group of degenerate friends at the roulette wheel.

I can only win $100 by betting $100 on red? Well than, MAKE IT $400 SIR.

Over the course of the next two years, starting when she was still a teenager, she borrowed about $40,000 from Citibank without thinking much about how she would pay it back.
Well that's the only way to do it if you're going to borrow large sums of money. It's like buying a beer at a strip club. Hand them the credit card and don't look at the receipt.

The financial aid office often has the best picture of what students like Ms. Munna are up against, because they see their families’ financial situation splayed out on the federal financial aid form. So why didn’t N.Y.U. tell Ms. Munna that she simply did not belong there once she’d passed, say, $60,000 in total debt?
Yes...I have no idea why the University that is making $20,000+ a year off of the Munna's tuition didn't tell them to go to a cheaper college. IT MAKES NO SENSE.

The balance on Cortney Munna’s loans is about $97,000, including all of her federal loans and her private debt from Sallie Mae and Citibank. What are her options for digging out?
Well, she could sell her soul to devil...Or whore herself out at a truck stop...Well now I'm just being mean. But the only way that I know of to dig yourself out of debt is to pay down the debt. FINANCIAL ADVICE. Hi-yo! Look out Dave Ramsey!

She recently received a raise and now makes $22 an hour working for a photographer. It’s the highest salary she’s earned since graduating with an interdisciplinary degree in religious and women’s studies. After taxes, she takes home about $2,300 a month.
Holy shit. $22 an hour? That's a lot of money. Especially since she got her degree in religious and women's studies. Which make you wonder what the fuck her plan was after school that would allow her to leverage that bullshit degree for any kind of decent salary if she thinks $22 an hour is chicken shit. If you ask me, making $22 an hour taking pictures is a pretty good return for a degree in biblical studies.

She may finally be earning enough to barely scrape by while still making the payments for the first time since she graduated, at least until interest rates rise and the payments on her loans with variable rates spiral up. And while her job requires her to work nights and weekends sometimes, she probably should find a flexible second job to try to bring in a few extra hundred dollars a month.

Ms. Munna understands this tough love, buck up, buckle-down advice. But she also badly wants to call a do-over on the last decade. “I don’t want to spend the rest of my life slaving away to pay for an education I got for four years and would happily give back,” she said. “It feels wrong to me.”
I think she ended it quite nicely for me.

Past student loan/tuition inflation blogging, dating back to 2006 here, here, here, here, here, here.

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