Colleges and Student Loan Payback: Suicide and Prostitution Are Not Alternatives
There was a time not long ago when a college degree meant success and financial independence. You graduated from an accredited American college and got a professional entry-level position in the field you wanted to pursue. But today too many students graduate and find themselves awash in a mountain of debt with no way to pay it off.
Few American College Graduates Can Start Their Careers
For these graduates the American dream has disappeared. In fact, the students who will most likely start a professional career after college are often only those who graduate from one of a dozen to two dozen top-tier American and foreign universities. MORE>>
College Students and Loan Payback: Lending Agencies Make Profits Preying on Students and Parents
Student lending organizations and collection agencies make money various ways. One of the most profitable is to convince graduates, who have already borrowed to pay tuition and fees for four years, to take out further loans for advanced degrees.
The agencies defer interest payments on the original loans until the student graduates with his or her new degree. Then they add the amount of the interest deferred on the original loans with the interest deferred on the graduate school loans to the principle on both the first four years and the advanced degree to arrive at a massive amount of money owed by the graduate.
Jorge Was Such a Student
I sometimes write about a wonderful young man whose name was Jorge. He was the first of his family to attend college. To do so Jorge had to take out student loans. He could not get a job after his four years so a representative from a collection agency suggested he earn an advanced degree. Although the lending agency deferred his original loans, they accrued interest and, along with his new loans for graduate school, came to an extraordinary amount (over $150,000).
Jorge, as with most students, could not get a professional entry-level position after he earned his graduate degree. MORE>>
College Graduates and Student Loans: Cry Me a River
We all once believed that graduation from most American colleges meant success. Now, most graduates realize that four years of college means little more than unemployment and thousands (sometimes hundreds of thousands) of dollars in student loans to pay back. Their stories are real and their stories are sad. They are about broken dreams, destroyed lives and destitution that requires sacrifice so great that many of them see no alternative but to withdraw totally from society. MORE>>
College Admission and Selection: Recruiters and Their Great Sales Pitch
Like most sales people, college recruiters are responsible for selling their business. And it is crucial, when making the college decision, that you do not fall for their sales pitch.
You might attend ceremonial affairs hosted by the university such as fundraisers and commencements. At each affair the President of the college is responsible for selling his university the same way a CEO is responsible for selling his business. He has a sales pitch also.
In almost every case the sales pitch is education. This is generally seen as the primary role when “selling” the university to us. The education role is obviously one that is also a priority to students, parents, and benefactors. There is nothing wrong with that. Education is important and we have seen what an excellent job elementary and secondary schools have done in educating our sons and daughters. But when it comes to higher education…
Don’t be fooled… MORE>>>
Colleges and Education: Are Students Really Being Educated?
My associates in the financial service industry acknowledge that college graduates from United States universities are generally unprepared for entry-level professional positions. They have particularly noticed a drop in basic skills. Students who were once hired from accredited second-tier universities can no longer be relied upon to meet even minimal standards in many professional entry-level positions. (Note: I refer to top-tier as only one to two dozen colleges across the nation. These are Ivies and several select colleges such as MIT and Johns Hopkins.)
A business executive may hire a graduate from what he believes is a top-performing business school that also boasts a nationally ranked football team into a marketing or customer service assignment. (Colleges that sport nationally ranked teams are characteristic of second-tier schools.) He must spend valuable time coaching and monitoring the new employee as the graduate lacks the most basic core skills. But executives today just do not have the time to do this in a time-stressed high-pressured corporate environment.
Managers are shocked… MORE>>>
College Careers After Graduation: Where Have All the Corporate Recruiters Gone?
More and more colleges are finding that fewer and fewer corporate recruiters are seriously interested in hiring students from their college. In fact many second-tier colleges have no major corporate recruiters coming on their campuses to hire students. (Top-tier for our purposes refers to only one to two dozen colleges across the nation who can most likely meet career expectations. These are Ivies and several select colleges such as MIT and John Hopkins. Second-tier schools represent 99%+ of the colleges and universities across America.)
The problem for the students and graduates is that they are spending an exorbitant amount of money for an experience that their parents and grandparents shared. But this has not carried over into today’s world. We believe that corporations will return to our campuses soon after the economy heals and all will be wonderful again. This is in fact nonsense. Corporate recruiters left the college campuses ten to twenty years ago.
Why did this happened and who is at fault? MORE>>>
College Admission and Selection: Will Your College Meet Your Own Personal Objectives?
Do not be misled into believing that the role and functions of a college align with your own career needs and aspirations. When justifying higher education, Presidents and deans of the universities often cite one or more of the following roles as essential in the four-year college experience:
-our role is to educate
-our role is to teach students to communicate
-our role is to make students think critically
-our role is to teach students how to learn
-our role is to help students become good citizens
These are what I call the golden platitudes of higher education. They sound wonderful. But do these platitudes really fill your need? MORE>>>
College Careers After Graduation – Gain Experience and Expand Your Resume
Most prospective college graduates today will find themselves in the unenviable position of having no career prospects and no entry-level professional job. Even though they have paid $200,000 for four years, they will find that the task of career implementation rests solely with them. The college placement office is, in most instances, useless.
You must begin to prepare for your career now. And, as a general rule, work in your field as soon as possible after you graduate. The next class of graduates will be right on your heals. I hate to put it so bluntly but no one wants to hire the unemployed. Most supervisors in most fields want bragging rights to the best people.
OK, so lets begin. There are three main points that you must agree to if this is to work: MORE>>>
College Student Loans – Bad for the Financial Health of College Graduates
When making the college decision, graduating high school students must focus more of their attention on how they will afford the cost of college education. The easy way is to take out student loans. But loans you take out today, you must pay back tomorrow. And when the time comes to “pay the piper,” the graduate meets the stark reality of monthly payments, poor career prospects and loan default.
Think of it this way. Suppose you graduate from college after advanced studies with an outstanding debt in excess of $100,000. At a very conservative 5% interest rate over a ten-year period you will need an annual salary of $128,000 to afford the monthly payment of over $1000 (10% of your gross monthly income).
Based on career prospects, your ability to get a professional level job upon graduation that will enable you to pay back your debt is not very good. If you decide to take out student loans today and you are unable to make monthly payments after you graduate the consequences to you will be severe. MORE>>>
College Without Debt: You Can Pay for a College Education and Still Have a Future
I often counsel college-bound high school students and their parents about the dangers of being stuck with an exorbitant amount of student loan debt to pay back after graduation from college. Graduates cannot find entry-level professional employment and are unable to pay their loans. Many are now dealing with high-powered collection agencies.
Creditors send reports of their default to all major credit bureaus and they find it difficult to secure loans for automobiles, credit cards and home purchases. Lenders garnish their salaries by court order and they cannot make major asset purchases or sales. They attempt to declare bankruptcy, but the system does not allow them to discharge their student loan debt. It will be with them for life.
I have included here a list of the most important approaches to take that will keep you away from accumulating debt while you get your degree. MORE>>>