Mineral Wells Index, Mineral Wells, TX

Online Only

July 13, 2012

Rising student loan debt causes growing concern

Students who took out student loans four or five years ago are graduating into a weak job market with a mountain of debt, posing an increasing worry to both policymakers and bankers.

Earlier this year the Consumer Financial Protection Bureau reported that total student loan debt exceeded $1 trillion. It's even higher now and Eduardo, of Lakehurst, NJ, is part of that staggering total.

Eduardo says he took out student loans in 2005 to attend Full Sail University, a for-profit arts school. The loan was divided into four loans – two federal and two private. He says each has a different interest rates with one as high as seven percent. The debt quickly multiplied.

$80,000 in loans

“Originally, I only owed approximately $40k, but with interest, it has risen to $80,000 -- pretty much double,” Eduardo wrote in a ConsumerAffairs post.

Kathryn, of New York, NY, is pretty much in the same boat. She said she turned to Sallie Mae for loans because she had no co-signer and she considered them the only source of funding.

“The rates are ridiculous,” Kathryn writes. “They make it actually impossible for people/students to actually get out of debt and even make a living after they graduate.”

All of this is deeply worrying, not only to federal regulators but is also getting bankers' attention. A report from Barclays Bank shows the average debt burden for students attending a public four-year collage have risen by only $2,000 per borrower over the last 12 years, the trend is not encouraging.

And of course debt levels for students attending for-profit colleges are much higher, with those enrollments increasing sharply in recent years.

Both young and old affected

The report expresses the worry that these rising debt levels are imposing hardships on both the young, who are graduating without adequate jobs, and retirees, who have co-signed for children or grandchildren and now well past their peak earning years and, in some cases, forced out of jobs.

Text Only
Online Only
  • Why a see-through mouse is a big deal for scientists

    A group of Caltech researchers announced in Cell Thursday their success in making an entire organism transparent. Unfortunately, this isn't any kind of "Invisible Man" scenario: The organism in question is a mouse, and the mouse in question is quite dead.

    July 31, 2014

  • Lindley, Tom.jpg Grandstands feel a little empty at NASCAR races

    Two decades after NASCAR started running at Indianapolis Motor Speedway, the crowds have thinned considerably. It's probably no reflection on the sport's massive following, which stretches from coast to coast, but it surely doesn't NASCAR's image help when the cameras pan across all of those empty seats.

    July 31, 2014 1 Photo

  • Comiskey.jpg Sterling not the only bad owner

    As the Donald Sterling era in with the Los Angeles Clippers looks to be winding down, many are calling him the worst owner in sports history. From being cheap with the players to his most recent racist comments, it's hard to argue against.
    Yet, there are a few owners of athletic teams who can give Sterling a run for title of worst in history.

    July 31, 2014 1 Photo

  • lockport-police.jpg Police department turns to Facebook for guidance on use of 'negro'

    What seems to be a data entry mistake by a small town police department in western New York has turned into a social media firestorm centered around the word "negro" and whether it's acceptable to use in modern society.

    July 31, 2014 3 Photos

  • wd saturday tobias .jpg Stranger’s generosity stuns Ohio veteran

    Vietnam War veteran David A. Tobias was overwhelmed recently when a fellow customer at an OfficeMax store near Ashtabula, Ohio paid for a computer he was purchasing.

    July 30, 2014 1 Photo

  • CATS-DOGS281.jpg Where cats are more popular than dogs in the U.S.-and all over the world

    We all know there are only two types of people in the world: cat people and dog people. But data from market research firm Euromonitor suggest that these differences extend beyond individual preferences and to the realm of geopolitics: it turns out there are cat countries and dog countries, too.

    July 30, 2014 1 Photo

  • Rodden, Danny.jpg Sheriff accused of lying about relationship with prostitute

    The sheriff of Clark County, Ind., faces an eight-count federal indictment that accuses him of lying about paying a prostitute for a sex act and giving her a badge so that she could claim a discount rate at a hotel.

    July 30, 2014 1 Photo

  • Medical marijuana opponents' most powerful argument is at odds with a mountain of research

    Opponents of marijuana legalization are rapidly losing the battle for hearts and minds. Simply put, the public understands that however you measure the consequences of marijuana use, the drug is significantly less harmful to users and society than tobacco or alcohol.

    July 29, 2014

  • linda-ronstadt.jpg Obama had crush on First Lady of Rock

    Linda Ronstadt remained composed as she walked up to claim her National Medal of Arts at a White House ceremony Monday afternoon.

    July 29, 2014 1 Photo

  • Lindley, Tom.jpg Sideshows involving Rice and Dungy stain NFL's image

    Pro football training camps should be all about, well, football. But the talk around the NFL is about Baltimore Ravens running back Ray Rice's two-game suspension, Tony Dungy's indelicate remarks about Michael Sam and Jim Irsay's largesse. What kind of league is Roger Goodell running?

    July 29, 2014 1 Photo

Featured Ads
Mineral Wells Index


Click on a photo to visit our SmugMug page

Front page
Seasonal Content
AP Video
Renewed Violence Taking Toll on Gaza Residents 2 Americans Detained in North Korea Seek Help US Employers Add 209K Jobs, Rate 6.2 Pct House GOP Optimistic About New Border Bill Gaza Truce Unravels; Israel, Hamas Trade Blame Raw: Tunisia Closes Borders With Libya Four Rescued From Crashed Plane Couple Channel Grief Into Soldiers' Retreat WWI Aviation Still Alive at Aerodrome in NY Raw: Rescuers at Taiwan Explosion Scene Raw: Woman Who Faced Death Over Faith in N.H. Clinton Before 9-11: Could Have Killed Bin Laden Netanyahu Vows to Destroy Hamas Tunnels Obama Slams Republicans Over Lawsuit House Leaders Trade Blame for Inaction
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Stocks
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Must Read