Student Debt Crisis

[NoMoreWhiteWoman2020]

The Weight & Reality of Student Loans In The Black America



$400k.

Reminds me of that other thread in which we talked about how little support Black students get from their immediate and extended families.

@Slang Dussain Ali

Link to that thread? It's the fukking truth they will help nikkas in jail before nikkas in college smh

 

[mamba]

Black America is really getting shafted by this shyt. We really need to have some serious conversations about this.

Because of a lack of intergenerational wealth, our graduates are walking away from school with a shytload of debt. On top of that, we don't have the economic infrastructure to absorb them. So, they are at the mercy of cacs and other non-Blacks to give them jobs to pay down the debt.

Even Well-Off Black Students Carry More Loan Debt: Study

College Debt Is Crippling Black Graduates' Ability To Gain Wealth

Blacks Face Disproportionate Amounts of Student Debt—and Steeper Paths to Financial Security

Study Shows Blacks Are More Likely To Take On Student Loan Debt And Default Than Whites

Black, First-Generation Graduates Take Out More Student Loans

African American students are more likely to take on debt—and more debt—than white, Latino, and Asian American students," Cummings said at the event. In 2013, 42 percent of African American families had student loans, compared to 28 percent of white families, according to the Urban Institute, a Washington, D.C., think tank.

That racial gap is driven by an enormous wealth disparity, Cummings said. The average African American household has a total net worth of $11,000, according a Pew Research Center analysis. That's not enough to pay for even a single semester at Howard, and it's barely enough to cover a year of tuition at a public university like the University of Maryland-Baltimore County. In contrast, the average white family has a net worth of $141,900.

 

[Heafcliffe]

What methods did you use to pay it off? I have about $20K right now myself that I'm trying to get down.

Breh, I looked at that debt as it HAD to be paid (i.e. involuntary like breathing). No excuses....and I had plenty of them.

I've always been frugal so the frugality helped me to pay even when I was unemployed. Savings pulled through in the clutch.

During the 7 years and 2 stints of unemployment, not only did I continue to pay but I paid an additional 20% more with each payment to expedite.

When I became a little more stable financially, I upped that 20% to 30%.

After awhile, the payment became second nature as the goal neared.

 

[ℒine ☈acks]

well it looks like college is properly preparing them for their future...by having them spend more than they have...america is the best at programming/educating its young folks to be exactly what it wants/needs...consumers/spenders...

 

[mamba]

Link to that thread? It's the fukking truth they will help nikkas in jail before nikkas in college smh

http://www.thecoli.com/threads/a-lo...ant-financial-help-from-their-parents.378266/

 

[mamba]

This thread needs to be stickied so the young brehs coming out of high school don't make bad financial decisions.

 

[Morose Polymath]

nikkas better learn to start fukking wit they local community college...got my associates degree, no debt and am making $27 an hour...

These people talking about they 80k in debt @9% irp

Thats an L thats gonna last you for the rest of your life

And then get on at a company and sign up for their tuition reimbursement , a lot of those high profile degrees mean nothing being unemployed and no related job experience...

This right here is the cheat code to getting educated without going into deep debt.

 

[BrehWyatt]

Unless you're getting government assistance, your salary potential is unlimited. Just because the field you got your degree in supposedly isn't lucrative, doesn't mean you can't make money.

I'm aware, and I'm taking steps to improve that. But I'm just saying, I've never been flush with cash and while I've always enjoyed what I do ... loving your job don't pay the bills, so I need to make new/better moves in my professional life.

 

[NinoBrown]

Unless you're a medical doctor or lawyer how can you get so much student loan debt?

Easy, private colleges w/out-of-state tuition, ParentPlus Loans, and rising costs of facilities spirals out of control pretty handily. Academia has demonized the working class/blue collar worker in the States for at least the last 50+ years. I have friends who did Med School and Law School who have mortgage-sized loans combined (200K+)....they realize they won't be balling out of control until they hit their 40s or make partner/etc.

This is modern-day serfdom at its finest, the common folk are sold the allusion of a middle-class lifestyle by merely completing a 4-year program (really now Grad too in many cases). Undergrad 30K + Grad 30K + Interest + Deferment easily puts someone from 60K to 80/90K due to interest. Government/Banks provide the loan, college gets 100% profit from the loan, and the student gets stuck with the bill. Can they pay it off? Maybe, but not likely as many will go into the grist mill of the current workforce without any prep or XP. From there they will go to the trap of Grad School to gain a further academic advantage and tack on more debt....

So, we are painfully learning your average 18-year old is opting to do Grad School and come out with 100K worth of loans, in their late twenties, with no realistic job prospects outside of being in the service industry (Starbucks, Micky D's, etc)...Schools don't see you as "new leaders of the world", they see you as a SSN and $$$.

The real crux of the problem are parents encouraging their children to attend colleges no matter the cost for "the experiences we had in our day", but they often forget college tuition in the 70s, 80s, and 90s, could realistically be paid working part-time at a hotdog stand.

This ultimately has a devastating effect on the new generation as they will unable to:
- Pay back 40K-200K worth of loans within a reasonable timeframe
- Begin their careers in a field relative to their major
- Have spending power
- Be completely independent
- Begin or support families

You thought Bernie Madoff was bad? Huh, he's got nothing on colleges....

 

[CrimsonTider]

This thread needs to be stickied so the young brehs coming out of high school don't make bad financial decisions.

 

[MJ Truth]

People's mindset needs to change, imo, not the student loan process. People out here really feeling like victims when they willingly signed up. Nothing about a student loan seems like a good idea but we move forward anyway and blame everything else. It's crazy. You don't need a student loan in order to get a college degree.

That's easy to say, but the people that are signing up for these life altering debts are usually people who still live with their parents and have had everyone making their decisions for them for their whole lives. If most people signing up for student loans were 22 or 25 or 30, I'd agree with you.

 

[PrnzHakeem]

Student debt crisis is going to lead to another recession. Educated folk w decent jobs are paying off these loans instead of buying homes, new cars, and going on vacations.

All bad

 

[mamba]

That's easy to say, but the people that are signing up for these life altering debts are usually people who still live with their parents and have had everyone making their decisions for them for their whole lives. If most people signing up for student loans were 22 or 25 or 30, I'd agree with you.

I agree. We're asking 17-18 yr olds to fully understand the implications of interest and how that shyt can snowball!

All debt isn't bad debt. But, most people have more than just student loan debt.

A lot of people are working with the following:

Student Loan Debt: $30,000
Car Loan Debt: $15,000
Credit Card Debt: $10,000

That's a low estimate for most young, Black professionals. On the high end, you have people working with:

Student Loan Debt: $100,000
Car Loan Debt: $30,000
Credit Card Debt: $20,000

A lot of people are literally out here one paycheck away from being ruined! But, they are keeping up with the Joneses!

 

[MJ Truth]

I agree. We're asking 17-18 yr olds to fully understand the implications of interest and how that shyt can snowball!

All debt isn't bad debt. But, most people have more than just student loan debt.

A lot of people are working with the following:

Student Loan Debt: $30,000
Car Loan Debt: $15,000
Credit Card Debt: $10,000

That's a low estimate for most young, Black professionals. On the high end, you have people working with:

Student Loan Debt: $100,000
Car Loan Debt: $30,000
Credit Card Debt: $20,000

A lot of people are literally out here one paycheck away from being ruined! But, they are keeping up with the Joneses!

Let's not even get into the psychological damage that comes from the stress of owing that much money.

But that's how the system can keep everyone in check.

 

[Box Cutta]

I won't say my number.

What I will highlight is this Income Based Repayment plan : FinAid | Loans | Repayment Plans | Income-Based Repayment

Keeping me afloat for now....

Oh but I'll be paying for 25 years....

I have no credit card/car/house debt...probably not a good thing.... But I feel comfortable knowing that all my shyt is federal government.