This blog used to be about debt. Now it's about a few more things. But really, it all comes back to debt. Trust me.

Monday, December 4, 2006

Strong Words From Teddy

Wow, strong words from Teddy (I'm a Massachusetts native, so I can call him that) on the Student Loan industry.

"It's time to throw the money-changers out of the temple of higher education," thundered Sen. Edward M. Kennedy (D-Mass.), who is in line to become chairman of the Senate committee that oversees education programs.


This from an LA Times article. It looks like one of the Democrats' first priorities will be to reduce the interest rates on Federal Student loans. Not sure how it affects those of us who locked in a consolidation recently. Oh, and there is no word yet on how it will be paid for. The Dems promised not to increase spending without stating the source of revenue offset.

Look for one or both of these promises to be broken around Jan 30, 2007.

Here's the full LA Times article. A pretty good read.

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Sunday, December 3, 2006

Some More Facts

Over at DebtHitsHard.org they have some disturbing facts that backup the uneasiness we all feel.

I'll add some color to this. It doesn't matter where you grew up, or how you hold your fork, or what race you are. Congrats to the USA on that. Unfortunately, all of that equality has done nothing to prevent the good old American class struggle from making a grand comeback. Consider this from DebtHitsHard:

  • Student debt is outpacing the starting salaries of jobs in teaching and social work, making it virtually impossible for many debt-laden graduates to pursue careers in fields where they are desperately needed. Nearly one quarter of all graduates from public universities and almost 4 in 10 graduates from private universities have levels of student debt that would become unmanageable at the salaries of starting teachers.

  • More and more students are delaying major life decisions as a result of increased student debt. Thirty-eight percent of college graduates delay buying their first house because of debt, 14% delay marriage, 14% delay having kids. Compared to 1991, those figures have risen by margins of 52%, 75 % and 100%, respectively.



  • Let's all take a moment to mourn the idea that you can do whatever you want in life.

    Sorry. I know it's what everybody (like her) told you.

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    Saturday, December 2, 2006

    "Getting Creative"

    Well, this isn't exactly what I expected when the headline says students get creative about paying off loans. I guess I have a dirty mind, but you clean living folks might still want to take a look at this article over at MSNBC about creative financing to get rid of student loans, especially people who got stuck consolidating at a "low" rate...before those same rates proceeded to free fall.

    Meanwhile, for the more cynical among us, here's a mildly entertaining video about the "Whacked Jobs" some people get to pay off their student loans.



    Guess who's behind it? Yep, another darn loan consolidation company. Did something happen? Why are ther so many of them now?

    I'm going to look into this.

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