Submitted by Hardscrabble Farmer
More student loan borrowers carry six-figure balances
Elisha Bokman has been out of school for eight years. Still, her student loan balance is half a million dollars.
Today, for her doctorate degree in naturopathic medicine and master’s in acupuncture from Bastyr University, she owes $499,322.69.
She and her husband struggled to buy a house because of her debt. Eventually, the financial stress led them to a divorce. “He felt like he couldn’t live his life or do the things he wanted to do,” Bokman, 38, said. She wanted to open her own medical practice, but she said her student debt prevents her from getting a business loan.
“It really effects the remainder of your life,” Bokman said. “There’s no out.”
The average college graduate leaves school $30,000 in the red today, up from $10,000 in the 1990s. Yet much larger balances are becoming more common.
Around 178,000 graduate students owed more than $100,000 in the 2015-2016 academic year, up from 51,000 in 2003-2004, according to Mark Kantrowitz, the publisher of SavingForCollege.com. In the first quarter of 2019, over 6% of all student loan borrowers owed more than $100,000, up from 5.4% in 2017.
Recently, Democratic presidential candidates Elizabeth Warren and Bernie Sanders have proposed forgiving student debt. Warren’s plan would reduce people’s tabs by up to $50,000, whereas Sanders’ would erase it all.
Rebecca Grable loves her job as a pharmacy manager at Walgreens. But to study at the University of Oklahoma to become a doctor of pharmacy, she borrowed more than $310,000, and said the debt has limited her options. A few years ago, when she tried to buy a car, she said, more than 11 banks denied her a loan.
“I feel like I’m stuck under it,” Grable, 27, said.
Balancing other bills is a challenge. “I just never imagined being a professional who still lives paycheck to paycheck,” she said.
Bokman’s and Grable’s financial records were reviewed by CNBC.
Borrowers with huge balances should make a budget to get their spending under control, Kantrowitz said: “It’s a good idea to assign each expense to a category like ‘need’ versus ‘want.’”
Then he suggests paying off your loans with the highest interest rates first, to save money in the long run.
“The name of the game is paying the least amount over time,” said Betsy Mayotte, the president of The Institute of Student Loan Advisors, a nonprofit that helps student loan borrowers with free advice and dispute resolution.
At studentloans.gov, she said, you can figure out the best repayment plan for you. For example, income-driven repayment plans cap your monthly bill at a portion of your earnings.
“This tool not only tells you what your payment will be under each repayment plan — but how much you would pay over time and whether anything would be forgiven,” Mayotte said.
Forgiven student loan debt is considered taxable income, so Mayotte recommends putting aside money for that eventual bill. “If the tax owed is unaffordable, the IRS offers payment plans,” she said, adding that, in some cases, the amount owed is even forgiven.
The IRS also allows student loan borrowers to deduct up to $2,500 a year from their taxable income.
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I imagine her family, who are still very proud of her accomplishments, are wonder what the fuck she is doing in the basement all day long.
“it’s very hard being a professional victim, there is like, no money at all, I should have studied chemical engineering, then I could be making Ecstasy in my folks basement, and I would be able to pay the bills”
Ummmm these two just need to look in the mirror,and ask. Who took the loans!!!! In any event Sanders just roped those two votes in.
Since, we paid off the little bit of student loans we took out, will we get retroactively reimbursed if any of these commies actually puts one of their idiotic ‘forgiveness’ plans into effect. Or better yet, if they want to give the math challenged Dr. a half a million, and they always talk about trying to make things fair, they should just give me (and everyone) $500,000.
I am not being serious, but would like to hear Sanders or Warren answer such a question.
It is just like the mortgage debacle in ’08. Those who made poor decisions will get bailed out and those who were prudent will get to pay for the stupid ones. Does that make us smart or stupid for doing what is right?
The chick with the “degree” in naturopathic medicine should probably borrow more to study homeopathy. If you’re going into bullshit, go all the way.
Homeopathy. Is that a doctor for queers?
She and her husband struggled to buy a house because of her debt. Eventually, the financial stress led them to a divorce.
Who in the hell would loan someone $500,000 with no income, no collateral? To become a quack doctor. For that amount of money she could be a real doctor, – if she’s smart enough.
Saw her photo on Zerohedge – her looks didn’t help her marriage either.
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That was the last photo found on her soon to be ex-husband’s iphone, taken while strolling back to the car after taking out a half million insurance policy.
Who would loan $1/2 Million to a student with no job and little prospect of paying it back? Who else but the taxpayers of the United States.
I was going to suggest she get a job on the streets, but the picture changed all that.
Solution: garnish every penny of Congressional salaries for as long as it takes to repay the ~$1.5T.
I am sure Bernie and the Squaw would be first in line to help out.
I know she would find this unbelievable, but I actually turned down loans I couldn’t afford. I thought it through a bit. Common sense is in short supply out there.
Common sense seems to be in shorter supply than student loans.
Me too–although they make it tempting. Kraft mac n cheese 3 boxes for $1 and Tuna at 50c each made for 3 meals…. I even learned the recipe for “ketchup packet” tomato soup. Just grab a handful of ketchup packs and “complimentary” pepper packs…put about 6 in a cup of water and heat–top with pepper and some “complimentary” cracker packs and at least my stomach had food in it.
I won’t touch the stuff now, but it was cheaper to hit the “dollar menu” at fast food and loads of extra condiments/napkins etc… than to buy healthier foods.
I’m going to be seriously pissed if these Professional Students, who stayed in school well into their 30’s, get forgiveness of their loans. Eight hours of classes/labs, 4 hours of study/papers/presentations/projects etc, 5-6 hours of work and 6 or 7 hours of travel and sleep for several years– then time as fellow/resident.. I owned a mini van I got for $800 and no back glass- had to tape a plastic sheeting across it but still could smell exhaust ( drove with the windows down year round to not die from poisoning.
Many here also made these sacrifices, and we’re better for it and value what we’ve earned.
Remember, they didn’t borrow it from the government ( the government has no money and produces nothing) they borrowed it from their fellow American Taxpayers–
When I was a student, I would wait until the Kraft Mac & Cheese went on sale 6/$1 and would buy a couple of cases. A box and two slices of buttered white bread were lunch on a LOT of days. Never tried the Ketchup soup, but saw it in a movie.
Common Sense is not as common as it was a few decades ago.
College has become only an extension of adolescence. Why is a loan needed in the first place? Because every Tom, Dick and Harriet go to College. Not everyone should have or need an advanced degree. Just ask Epstein. Or the barista at your local Starbucks. But this is a convenient way for The State to conscript an army. Loan forgiveness for mandatory service…..sounds better than Draft.
https://mailchi.mp/wealthresearchgroup/america-is-losing-ground-fast-533929?e=4462514d92
A good read from Brandon Smith. One of my fav’s.
Just need to undo the Clinton’s bidding of the Banksters that forbid including your student loan debts in a personal bankruptcy. Bankruptcy is not a free ticket. You must liquidate all your assets to pay toward your debts, with the exception of a single personal vehicle and your personal residence if you are not a renter. Then for 7 year plus years, you are a pay as you go – cash only life. The price of schooling would decline reflecting true demand for schools and degrees that actual produce an income stream relative to the loan amount. Retarded worthless schools that peddle retarded worthless degrees would all go bankrupt and disappear… Interest is paid for any loan, because there is a RISK to loaning $ for any endeavor. Now it is a federally backed non – dis-chargeable risk free loan for the lenders.
Total BS that the only non dis-chargeable debts are student debts and medical debt. One is peddled to ignorant youngsters, the other is accrued by a predatory monopolist non price disclosing emergency rooms.
The fact that this is brought up by NO politician (that I no of) only tell me that they’re all:
1. Stupid as fuck.
or,
2. In the pocket of the banksters.
or,
3. Both 1 and 2.
Put the schools on the hook for the debt. They are the ones who benefited from charging exorbitant tuition for worthless degrees. If they were co-signers on the notes, I bet a lot of degrees would go buh-bye very quickly.
Hate to be harsh “BUT” too fucking bad for those in deep shit debt for their education . I am certain an advisor / counselor and a student loan finance coordinator we’re all there cheering you on to sign on the dotted line convincing you how quickly you will be out of debt because of that fabulous job that awaits you upon graduation . They were bull shitting you ! They had no fucking idea how well you might do but they did know if they get enough young ignorant skulls of mush to sign they get a kick back bonus !
Oh and Obama , remember him ? He helped assure the school got payed the bank got payed and the IRS comes after you till death !
Since my wife and I scrimped and saved , drove old cars deprived ourselves of goodies after paying our house off secured cash for our daughters education do we get reimbursed or are we the tax paying working stiffs about to be tossed under the bus for your bad financial decisions !
We watched others we know with children going on cruises buying cars , boats or beach condos while their kids had to work and borrow for their education to bad they put themselves ahead of their children however “ NOT MY PROBLEM”
I’m to old and worn down to be screwed again financially for any reason by my self serving bullshit government and their parasitic minions !
Do not push to much further , should government tax me from my home I will become someone with nothing left to lose and will become dangerous ! I have no delusions about winning a fight with government however pushed far enough I can again be a small force capable of damage before I am taken down !
In 1972, I got a $150 scholarship to a Junior College. It paid all my tuition, books, lab fees and I had about $5 left over (plus I got to sell some of my books at semester’s end).
Times sure have changed since the government got into the student loan business. is there anything they have gotten involved with that they have not screwed up royally?
In 1972 I was standing on the deck of an oil tanker working full time at 18 at 26 I had been married for 5 years and selling my first house and buying the home we live in now . Funny nobody gave a rats ass how my wife and I covered the debts incurred to be where we are now married 44 years . We worked and paid them off including our child’s college in full . If you or any other millennial think I should pony up for your debt that you were gullible and ignorant to the forces at work against you please tell me where I can get reimbursed for financial mistakes I made in my late teens and early twenties ! Put your head down and got to work , pull extra shifts or a full and part time gig and no you cannot have the shiny new car or go out with friends and spend for fun that comes later after you fulfill your obligations you took on DING DING DING time to grow up !