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Student loan delinquencies growing Date published: 11/22/2009
BY BILL FREEHLING
Jessica Patrick entered one of the worst labor markets in decades when she graduated from the University of Mary Washington in December. Patrick, whose bachelor's degree is in studio art, applied for just about every retail job she could think of, but until recently nothing panned out. Patrick, 23, paid for college on her own. To do so, she took out private student loans from Sallie Mae and ACS that now total almost $40,000 including the interest that has accrued. Six months after graduating, she had to start paying back the loans. She's been able to make the $300-a-month payment, which will go up in a few years, but it hasn't been easy. The Massaponax High School graduate lives with her mother and stepfather in Stafford County, doesn't have health insurance and puts just about all her dwindling savings into the monthly loan payment. "I don't spend on anything else," Patrick said. She's far from alone. And unlike many Americans, Patrick is making her student loan payments despite the brutal labor market. The percentage of people who are at least 90 days late on their student loan payments is significantly higher than the percentage of people behind on their mortgage payments, though the latter has received far more media attention. The student loan delinquency rate ranges from 5.8 percent to 14.5 percent for localities in the Fredericksburg area, according to data from the Federal Reserve Bank of New York. In each area locality, that rate is higher than the seriously delinquent mortgage rate, often two, three or even four times higher. That higher delinquency rate is partly due to the fact that student loans are unsecured credit given to people with little income and no credit history, said Patricia Nash Christel, a spokeswoman for Sallie Mae, which is the country's largest student loan lender. Christel said Sallie Mae helped 1.4 million customers resolve their past-due status in the 2008-09 academic year. The company offers online resources to help people estimate the cost of college and the income needed to repay various levels of debt. It offers financial counseling to students while they're still in school.
Date published: 11/22/2009
And the college president and the vice presidents and assistant vice presidents, and the helpers and accountants etc etc...In europe and asia smart kids go to college free...and then they come over here and make the big bucks..
I do know that UMW pays their landscapers: minimum wage with annual 5c per hour raises. That was a story in FLS a couple of years ago.
I recently graduated from a four year college, and I paid for my degree on my own... and by on my own, I mean I had to take out $40,000 in federal and private loans. I totally understand what this girl is going through. It's awful knowing that you're going to be paying $300/mo for the next 20 years of your life. I was lucky enough to get a job quickly after graduating but I know many people that are STILL looking, even in "high demand" fields.
getting a free college education. So someone else has to pay..it is simple accounting. That's why they call it a "balance sheet"
I am used to my PC correcting me when I type that I sometimes forget how to spell. I have my BS and still need help.
Students get the Shaft & Banks got the options. Students should be allowed to work their debts off by working in Nursing homes, Public Schools, VA Hospitals, Indian Reservations, or Military for 4- 6 years so they can pay the debts off . Then we also need to get the Banks & Sallie Mae OUT of the student loan business, they are nothing but PARASITES. Some loans go 30-40 years because of Interest the Banks charge...
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