The Huge Costs of Student Loan Debt

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In this segment on HuffPost Live, DailyFinance Senior writer Bruce Watson discusses the economic consequences of the country's huge student loan debt crisis: fewer people to able to buy homes, buy cars, start businesses, and create jobs, to name just a few. For the full story, watch the video below.


The Huge Costs Of Student Debt

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vlady1000

If you have not started to make payments yet and might be applying for a mortgage in the future, make sure you notify your student loan lender you want the 20 year amortization schedule. If you do not, the mortgage underwriter will automatically use a 10 year amortization schedule (much higher monthly payments for the student loan). And this higher student loan payment may put your Debt to Income Ratio to high on your mortgage loan application and be rejected. Nothing to loose going to the 20 year schedule, but you need to be disciplined and still pay that student loan off faster.

May 08 2013 at 12:39 AM Report abuse rate up rate down Reply
conrad.kennedy

What about the fact that whether you dropout in 6th grade or get a worthless college degree you still can only get low paying jobs.

April 29 2013 at 2:11 PM Report abuse rate up rate down Reply
Jeremiah

"Bruce Watson discusses the economic consequences of the country's huge student loan debt crisis: fewer people to able to buy homes, buy cars, start businesses, and create jobs, to name just a few."

Sorry Bruce, but I really don't see any solid connection of the "loan debt" being the reason fewer people are able to buy homes, cars and start businesses and create jobs.

In my personal opinion, it seems high taxes, as the Obama Administration has foisted on America, is more adverse to people being able to buy home, cars, start businesses and create jobs.

April 29 2013 at 1:49 PM Report abuse rate up rate down Reply
BIG KELL

These lizards in DC can allow banks to pay nothing for deposits, but allow them to charge usurious rates to kids that will strap them for perhaps the rest of their lives.

April 29 2013 at 1:32 PM Report abuse +1 rate up rate down Reply
1 reply to BIG KELL's comment
setanta54s_back

what we WENT THROUGH with the morons of sallie mae.and the loan was finalized as well--THEY KEPT IT OPEN and running.
and their fees/rates were WORSE THAN A LOAN SHARKS.
i went to my senators etc etc and they ALL acted dumb and dumber.
and this was more than 12 years ago.
they should be outlawed/

May 01 2013 at 9:58 PM Report abuse rate up rate down Reply
tarracing

The current administration is in Bed with the college system.............the college makes "Big" money from the kids they educate for jobs that are not there and OB gets there vote for getting them something they never needed..........and the tax payer gets to bend over when the loans are never paid off and go into default!.............great system just about everyone gets there fix!

April 29 2013 at 11:53 AM Report abuse +2 rate up rate down Reply
smaselli13

Watch all the academic elites start promoting student loan forgiveness............... Those student loans are putting huge amounts of cash in the academic elite's pockets, at a huge cost to those, who can least afford it.............

April 29 2013 at 11:52 AM Report abuse rate up rate down Reply
1 reply to smaselli13's comment
setanta54s_back

agree 100%
and we will bail out the banks based on this too-

May 01 2013 at 10:02 PM Report abuse rate up rate down Reply
jlaba2

Because of government financed student loans, colleges are able to increase their tuition rates at a higher rate every year which is pricing a college education beyond what people can afford. It's not about the needs of people. It's all about money!

April 29 2013 at 10:59 AM Report abuse +3 rate up rate down Reply
1 reply to jlaba2's comment
setanta54s_back

same as the crappola with the housing market--artificial pricing,outrageous pricing etc back when THEY were giving it all away to UNQUALIFIED people.
unqualified students here with the same outcome. they don't belong in the college setting but are in there the same.

May 01 2013 at 10:05 PM Report abuse rate up rate down Reply
abcadams1

It looks like the author of this story is too lazy to type the story. Hey, HP, we don't want to watch videos with your stupid commercials, we want to read the story. Right now, only 10 comments. I wonder why. And this could have been an amazing topic to write about since so many people have student loans.

April 29 2013 at 10:48 AM Report abuse +1 rate up rate down Reply
Sherrie

I DON"T WANT TO WATCH VIDEOS, I WANT TO READ THE STORY!!!!!!!!!

April 29 2013 at 10:44 AM Report abuse +3 rate up rate down Reply
Bick 1

Colleges sure are taking advantage of it. Quite a few have endowments put away that if used could help slow this debt crisis for KIDS that just don't get it about borrowing money. Pay professors moderate 6 figure salaries, give them incredible benefits, build expensive buildings, student centers, and housing and it all adds up. More kids need to go into skilled professions and just skip the debt caused from going to college but our society will be critical of them and consider them outcasts...... How stupid is that?

April 29 2013 at 10:32 AM Report abuse +3 rate up rate down Reply