The student loan bubble is starting to burst

anotherone, BSN, RN · Sep 8, 2013

Esme, Glad to be in a conversation with you again.
I'm really sorry about your RN friend. That's a horrible circumstance and very rare.
I'm still unsure how that relates to student loans.
As for the credit checks, I've never had one for a job and wouldn't consent for one. North Dakota has jobs, great paying jobs. I live in an area that has jobs, sure it may be at Starbucks or bed bath and beyond but it's a JOB! In fact In 2008 I was living on my own 2000 miles from any family (still do and have since I was 18) and I didn't have as many hours as I needed, not even close and I needed it to support myself. I applied everywhere and ended up getting a job at bed bath and beyond. I was happy because I was a JOB!! I worked there even though it sucked until I got a better job and continued the progression. Defaulting on bills was not an option. There are jobs, it may not suit ones desires but OH WELL. If I can make ends meet in the height of the recession in PHOENIX which was hit very hard by the recession than anyone can minus the few have legitimate disabilities.

Good for you. The situation esme described is not rare. Now imagine a nurse lile that with student loans.... one neck or back injury ( even in your 20s ) and you become useless to the field. I think the point is not everyone who defaults is lazy and too good to flip burgers. How fan someone like that get to north dakota? i guess they can walk if they really want a job. I do, so i consent for credit checks.... yes, there are a lot of lazy people or people who think they are too good to srub toilets, work in night clubs, fast food etc...... but that isn't always the case. i am young and I see pts everyday who lost it all.

Sugarcoma, RN · Sep 8, 2013

I know quite a few people in my area who have defaulted on student loans, car loans, mortgages, etc. Most of these people are professionals of one type or another whose jobs have been lost to out-sourcing, corporate layoffs, and in some cases, an entire segment of the economy drying up (construction). It is beyond scary. I cannot tell you how many teachers, accountants, engineers, architects, and lawyers I know who have lost everything and cannot find jobs for anything.

Many of them are working part time as cashiers, burger flippers, telemarketers, etc. They will do any job they can. Heck my own cousin, highly educated with both a law and international finance degree is currently cleaning houses. In the past 5 years she has moved 9 times to various states in order to pursue work in her field. This is a woman who was earning a 6 figure salary for many years. It is all GONE! Houses gone, her saab, benz, and bmw...gone. She now drives a fiesta. She has sold the brand name clothing and shoes, she has pawned the jewelry, she has drained her savings and her retirement trying to pay a mortgage and student loan debt that is now both in default. She lives in her mothers basement and spent the last of her money to send her daughter to college in the hopes that she could spare her the misery so many Americans find themselves in.

I am seeing 40 year old stroke patients because they lost their benefits or jobs or both and cannot afford the meds to keep their HTN in check. These are scary times and for anyone to assume that many of these people are not pursuing work because they think it beneath them is unrealistic. Maybe some, but the majority of the ones I know will cut grass, rake leaves, clean up dog poo, or anything else they can to feed their families. They have cut their expenses to the bare minimum and will do anything to keep afloat. Gone are the days when a college education was a golden ticket to a middle class life. Walk onto any college campus and see the number of 30, 40 even 50 and older students walking around. I am truly scared for my two college aged sons and have already counseled both of them to be prepared to change job fields more than once during their working lives. I am working two jobs just so I can have a cushion to help them should they need it.

I predict we will see more and more defaults on student loans and the previous poster who stated that it will ruin people financially is absolutely right. You cannot discharge this debt and your credit score will be ruined quite possibly forever.

BrandonLPN, LPN · Sep 8, 2013

This all just baffles me in the sense that there are jobs maybe menial but a ton of jobs nonetheless and there are still people who feel they can just default? My generation namely. If only these people knew the damage at such a young age they are doing to their credit and essentially lives. As for the rest of us who pay our bills and work our butts off to do so, no need to worry about a thing.

Yeah, and if the poor people are running out of bread to eat, why don't they just eat cake?

Amnesty · Sep 8, 2013

This all just baffles me in the sense that there are jobs maybe menial but a ton of jobs nonetheless and there are still people who feel they can just default? My generation namely. If only these people knew the damage at such a young age they are doing to their credit and essentially lives. As for the rest of us who pay our bills and work our butts off to do so, no need to worry about a thing.

Esme, Glad to be in a conversation with you again.
I'm really sorry about your RN friend. That's a horrible circumstance and very rare.
I'm still unsure how that relates to student loans.
As for the credit checks, I've never had one for a job and wouldn't consent for one. North Dakota has jobs, great paying jobs. I live in an area that has jobs, sure it may be at Starbucks or bed bath and beyond but it's a JOB! In fact In 2008 I was living on my own 2000 miles from any family (still do and have since I was 18) and I didn't have as many hours as I needed, not even close and I needed it to support myself. I applied everywhere and ended up getting a job at bed bath and beyond. I was happy because I was a JOB!! I worked there even though it sucked until I got a better job and continued the progression. Defaulting on bills was not an option. There are jobs, it may not suit ones desires but OH WELL. If I can make ends meet in the height of the recession in PHOENIX which was hit very hard by the recession than anyone can minus the few have legitimate disabilities.

Your statements are painfully ignorant at best and just plain offensive at worst.

I am 24. I got a BBA in Accounting. It cost me right at $30,000. I got good grades, had a good GPA, and worked my way through college doing things that I thought would further my career. I worked for accounting offices and worked the tax season for the two years I was finishing my BBA. I did everything right, and guess what? I still couldn't find a job after I graduated. I applied everywhere, all over the US. I went as far as signing up for various google accounts so that I could have a "local" telephone number for the different areas I was applying in. I spent a good 6 months applying for jobs, believing I'd find something somewhere, before I started to doubt it. 2 of those months were dedicated solely to interviewing and applying. At the 6 month mark, I decided I'd better find another job doing whatever I could, because those student loans were coming due and I had bills to pay. I picked up waitressing, and then cashiering.

Now you tell me, how is anybody supposed to make it on what a min wage job pays them? I don't have a house. I don't have a car payment. I don't have kids. I don't have any chronic illnesses or injuries that would keep me from working or require medical attention. And I still couldn't make ends meet getting just 25-30 hours a week as a cashier and picking up shifts at a restuarant. That's without any kind of health insurance premiums being taken out of that check and everything at bare minimum. I was spending literally less than $30 a week on food and still scraping the bottom of the barrel to make ends meet, and often coming up short.

Please do yourself a favor and get rid of your "if I can do it anyone can do it!" attitude, because you have no idea what others' situations are and your implication that people who can't hack it just aren't trying hard enough makes you look bad. There are a lot of people out there who are doing everything they can and still can barely stay afloat. When you have to decide whether you're going to eat and keep your electricity on and your rent paid vs. pay back your student loans, you don't choose the student loans. These aren't bad people, and they aren't always lazy. I know my situation is definitely not rare or unique. It's simply reality for a lot of new graduates.

MrsStudentNurse · Sep 9, 2013

Your statements are painfully ignorant at best and just plain offensive at worst.
I am 24. I got a BBA in Accounting. It cost me right at $30,000. I got good grades, had a good GPA, and worked my way through college doing things that I thought would further my career. I worked for accounting offices and worked the tax season for the two years I was finishing my BBA. I did everything right, and guess what? I still couldn't find a job after I graduated. I applied everywhere, all over the US. I went as far as signing up for various google accounts so that I could have a "local" telephone number for the different areas I was applying in. I spent a good 6 months applying for jobs, believing I'd find something somewhere, before I started to doubt it. 2 of those months were dedicated solely to interviewing and applying. At the 6 month mark, I decided I'd better find another job doing whatever I could, because those student loans were coming due and I had bills to pay. I picked up waitressing, and then cashiering.
Now you tell me, how is anybody supposed to make it on what a min wage job pays them? I don't have a house. I don't have a car payment. I don't have kids. I don't have any chronic illnesses or injuries that would keep me from working or require medical attention. And I still couldn't make ends meet getting just 25-30 hours a week as a cashier and picking up shifts at a restuarant. That's without any kind of health insurance premiums being taken out of that check and everything at bare minimum. I was spending literally less than $30 a week on food and still scraping the bottom of the barrel to make ends meet, and often coming up short.
Please do yourself a favor and get rid of your "if I can do it anyone can do it!" attitude, because you have no idea what others' situations are and your implication that people who can't hack it just aren't trying hard enough makes you look bad. There are a lot of people out there who are doing everything they can and still can barely stay afloat. When you have to decide whether you're going to eat and keep your electricity on and your rent paid vs. pay back your student loans, you don't choose the student loans. These aren't bad people, and they aren't always lazy. I know my situation is definitely not rare or unique. It's simply reality for a lot of new graduates.

First of all, why would you go $30,000 in debt? That would have alleviated your Issues. Im currently going to a CC that costs $1100 for 14 credits. I understand you have to transfer university but even here its $6k a year which can be easily earned over a few years. So yes anyone can do it! You can move to North Dakota and make $15 an hour at Sears! My friend didn't even have a car and worked there while going to college.

Also you may want to read back to my post because I never once said anyone was "lazy" nor was it implied.

LadyFree28, BSN, LPN, RN · Sep 9, 2013

i am young and I see pts everyday who lost it all.

THIS.

I have seen pts who has good paying jobs suffer a major medical set back and LOSE everything.

I had a major medical issue 5 years ago where I almost lost my house to foreclosure...twice-as recently as 2 years.

One of my life lessons that has either kept me in good graces, or good karma or something, is being compassionate because we don't know ANYONE'S back story...I have met irresponsible people, but those who have had major changes FAR outweigh those who are irresponsible.

Amongst it all of my setbacks, I took out a federal loan to advance my education for the BSN...I almost died; the most I could OWE to myself is to invest in my education, and be able to contribute to the profession, and the patients I advocated for when they were starting from ground zero...

And I do have a job I enjoy where I can afford my mortgage and pay my student loans and bills, and enjoy my life. :yes: It is possible...it may take longer in this market for a start in a career, but education is still a good investment.

And I agree with the point from another poster...a GOOD education should not be as pricey, and available to ALL...not talking IVY, but at least private or public colleges credit hours shouldn't rise every year...even community colleges credit hours can seem out of reach to plenty of individuals. :yes:

LadyFree28, BSN, LPN, RN · Sep 9, 2013

First of all, why would you go $30,000 in debt? That would have alleviated your Issues. Im currently going to a CC that costs $1100 for 14 credits. I understand you have to transfer university but even here its $6k a year which can be easily earned over a few years. So yes anyone can do it! You can move to North Dakota and make $15 an hour at Sears! My friend didn't even have a car and worked there while going to college.
Also you may want to read back to my post because I never once said anyone was "lazy" nor was it implied.

I'm sorry, but not everyone can and lives in North Dakota...and uproot everyone, including children and sick family members to do so.

And 30,000 in debt to secure a career for someone at the time was a wise investment, due to the previous market, not too bad for that person.

Again, you don't know what you know...and in his case, YOU don't know.

It's easy to Monday morning quarterback one's life...especially when it isn't yours...

twigszoo · Sep 9, 2013

First of all, why would you go $30,000 in debt? That would have alleviated your Issues. Im currently going to a CC that costs $1100 for 14 credits. I understand you have to transfer university but even here its $6k a year which can be easily earned over a few years. So yes anyone can do it! You can move to North Dakota and make $15 an hour at Sears! My friend didn't even have a car and worked there while going to college.
Also you may want to read back to my post because I never once said anyone was "lazy" nor was it implied.

If you read back to her post you would see she went for an Accounting degree, not a nursing degree at a community college. So that was 4 years of college. Depending on her state of residence, that number is probably not unusual to hear from a college graduate.

Also why on earth would anybody want to move to N. Dakota? That would cost me actually more money than I would save, with moving expenses, and then the months of job looking, and then having to take out loans to live by myself because nobody is going to want to move with me. The whole entire U.S. population cannot live in North Dakota because you are singing its praises.

Sorry, but the rest of the U.S. doesnt have the same situation as North Dakota. The rest of the U.S is making $8 an hour and getting barked at by people like you with the whole "pull myself up by my own bootstraps" story.

That bootstrap theory does not fit on everybody's feet.

Amnesty · Sep 9, 2013

I'm sorry, but not everyone can and lives in North Dakota...and uproot everyone, including children and sick family members to do so.
And 30,000 in debt to secure a career for someone at the time was a wise investment, due to the previous market, not too bad for that person.
Again, you don't know what you know...and in his case, YOU don't know.
It's easy to Monday morning quarterback one's life...especially when it isn't yours...

If you read back to her post you would see she went for an Accounting degree, not a nursing degree at a community college. So that was 4 years of college. Depending on her state of residence, that number is probably not unusual to hear from a college graduate.
Also why on earth would anybody want to move to N. Dakota? That would cost me actually more money than I would save, with moving expenses, and then the months of job looking, and then having to take out loans to live by myself because nobody is going to want to move with me. The whole entire U.S. population cannot live in North Dakota because you are singing its praises.
Sorry, but the rest of the U.S. doesnt have the same situation as North Dakota. The rest of the U.S is making $8 an hour and getting barked at by people like you with the whole "pull myself up by my own bootstraps" story.
That bootstrap theory does not fit on everybody's feet.

Pretty much both of those. I don't even need to say anything else.

$30k to get a degree in an established field from a reputable school isn't that unusual. A good chunk of that went to doing things like getting a computer, buying my educational software and textbooks, gas money to get back and forth, keeping my phone on, car insurance, etc. My paychecks paid the rent and my portion of the bills, but not much else.

No, we can't all live in your state in the middle of nowhere and find magical menial labor jobs that pay $15 per hour and give you enough hours to get by. Your "solution" is not viable or even applicable to most of the people stuck in this hole.

Mandy0728 · Sep 10, 2013

I'm a pre-nursing student & I already owe $40,000 in loans. Once I'm done with nursing school I'll owe about $60,000. I'm not too worried about it, because I'll be making decent money

IrishIzCPNP, MSN, RN, APRN, NP · Sep 10, 2013

I'm a pre-nursing student & I already owe $40000 in loans. Once I'm done with nursing school I'll owe about $60,000. I'm not too worried about it, because I'll be making decent money[/quote']
You might make decent money of you can get a job. Around here...you won't make decent money if you can get a job.

MrsStudentNurse · Sep 10, 2013

Pretty much both of those. I don't even need to say anything else.
$30k to get a degree in an established field from a reputable school isn't that unusual. A good chunk of that went to doing things like getting a computer, buying my educational software and textbooks, gas money to get back and forth, keeping my phone on, car insurance, etc. My paychecks paid the rent and my portion of the bills, but not much else.
No, we can't all live in your state in the middle of nowhere and find magical menial labor jobs that pay $15 per hour and give you enough hours to get by. Your "solution" is not viable or even applicable to most of the people stuck in this hole.

No 30k is not unusual but with that financial burden comes responsibility. Look I have had student loans and I'm not saying they're horrible and all bad but that one should take ownership for their choices. No we can't all move but if it comes between paying the bills and moving to "the middle of nowhere" as you state it's obvious what the responsible choice is.

Most of the people stuck in this hole are just as the title states those who have student loans and don't pay them. The banks don't care the circumstances and neither do the credit agencies, they just need their money and if they don't get it and realize its not a a smart market to give loans to they'll stop. It's the brutal reality. My heart goes out to those who have situations and I'm sure we could all come up with 10 stories about people who lost it all but the title is about the student loan "bubble" bursting and the fact that effects students today that are trying to obtain loans. For every action there is a reaction.