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Even as Pres. Obama proposes steps for student loan debt relief, real wages for college...

Even as Pres. Obama proposes steps for student loan debt relief, real wages for college graduates continue to drop, Mike Mandel observes. In Q3 2011, full-time workers with a bachelor’s degree and no advanced degree earned 3.5% less Y/Y in real wages, continuing a long-term trend. And because real wages are declining, it’s much harder for grads to pay back their loans.
Comments (9)
  • Duude
    , contributor
    Comments (3358) | Send Message
     
    I certainly don't want to tell people what to study but borrowing $200K to get a degree in sociology, philosophy, anthropology or English is the type of decision-making I wouldn't want in someone I hire.

     

    Aside of that, I'm appalled at this blatant buying of votes using taxpayer money. His proposal is to cap the rate at which a borrower must repay a loan 50% lower than the current standard (15% of income reduced to 10%) and further changing the cap for the length of time that loan payments must be made (reducing it from 25 yrs to 20). The administration says this won't cost taxpayers anything but the fact is it will cost taxpayers hundreds of billions over time in reduced proceeds.
    26 Oct 2011, 11:40 AM Reply Like
  • Cincinnatus
    , contributor
    Comments (3355) | Send Message
     
    Here's an example of the $200k in debt for a garbage degree in sociology. If we're graduating folks with garbage degrees, particularly those that typically would have gone into government jobs at a time when governments are being forced to cut growth in spending and employment, then it seems logical real wages would be declining for these grads.

     

    http://yhoo.it/sosfPC

     

    Kelli Space, 23, graduated from Northeastern University in 2009 with a bachelor's in sociology — and a whopping $200,000 in student loan debt. Space, who lives with her parents and works full-time, put up a Web site called TwoHundredThou.com soliciting donations to help meet her debt obligation, which is $891 a month. That number jumps to $1,600 next November.
    26 Oct 2011, 12:27 PM Reply Like
  • Hubert Biagi
    , contributor
    Comments (689) | Send Message
     
    Unbelievable.

     

    My son, who we joke is a professional student, has just received his EE PhD, with dual masters in EE and Math, and dual undergraduate in Physics and Math.

     

    All with a total accumulated debt of $30K, for approximately 11 years of academic pursuit.

     

    These enormous debts being racked up by college students is for the full "resort" experience, not for the education.
    26 Oct 2011, 12:41 PM Reply Like
  • davidingeorgia
    , contributor
    Comments (2713) | Send Message
     
    "Even as Pres. Obama proposes steps for student vote buying on a grand scale, real wages for college graduates continue to drop."

     

    There...much more accurate now.
    26 Oct 2011, 11:43 AM Reply Like
  • Hubert Biagi
    , contributor
    Comments (689) | Send Message
     
    When I went to college, I didn't expect to walk into a good job because I now had a piece of paper. I knew my dual major of Physics and Math didn't necessarily lead to good money. I knew it was still up to me to make something of myself. I went to college to get an education beyond the high school level, nothing more, nothing less. I managed to incur little debt by securing scholarships, working, and going part time. That was thirty years ago.

     

    What has changed? Media hype. Students today have been led to believe you go to college to 1) make more money, so therefore, 2) it is acceptable to go deep into debt, but if you don't make more money, 3) there something is fundamentally wrong with the "system", and therefore, 4) you deserve debt bailout.

     

    Substitute home ownership, stock market, public employment, or any number of the other financial issues facing this country right now.
    26 Oct 2011, 12:01 PM Reply Like
  • Mad_Max_A_Million
    , contributor
    Comments (1175) | Send Message
     
    We just need someone in the WH that has experience as a community organizer or welfare beggar (same thing) who can use executive orders to write off all these big student loans. It means more vote in 2012. And he doesn't have to worry about demonstrations and sit-ins on Pennsylvania Ave.
    26 Oct 2011, 12:59 PM Reply Like
  • davidbdc
    , contributor
    Comments (3141) | Send Message
     
    Government programs for people living large for 4 or 5 or 6 years in the frat house...... drinking beer, chasing women, partying (all things I support)..... and don't worry its subsidized by the government.

     

    Total and utter nonsense. Whats next? The government program that pays down your gambling debt for you? How about some money to visit strip clubs? Where does it end?
    26 Oct 2011, 03:24 PM Reply Like
  • bonehead69
    , contributor
    Comments (212) | Send Message
     
    I know where it all ends! The problem is, most people do not. They won't be prepared for that rude awakening any more than their fictitious vision of what tomorrow brings. It's a shame......
    26 Oct 2011, 05:10 PM Reply Like
  • Trader Monk
    , contributor
    Comments (130) | Send Message
     
    It is my understanding that the repayment schedule will be based on discretionary income not gross/net income.
    26 Oct 2011, 05:19 PM Reply Like
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