Here is a horror story.
“I took out private loans because I did not know any better. I went to a public university but my tuition did not cover my room, board and other things that I needed for school. By the time my grace period was over, I owed so much. I do have a job but I live pay check to pay check. I am not married and I had to move back in with my parents.
“I’ve called Chase, Sallie Mae and American Education Services to see if there were any other payment options. They all told me that the only option I had was to pay the interest for 2 years, but in time, my payment would only go higher. So if one of my loans were $369 a month and I choose to pay the interest option then by the end of that 2 year period my monthly payment could be well over $600. That’s just one of my loans. I can not afford that option, so I have no choice but to pay all my loans.
“I have never gone in default but I live pay check to pay check. I struggle just to put gas in my car or even pay my credit card. I can not get any loans due to the amount of my debt compared to how much I make a year. Even though my credit is perfect, that does not matter.”
He concludes: ” If I would have known all of this, I would have never went to school. I have a masters degree and I’m a public servant getting paid close to nothing.”
He could have earned his degree for under $15,000, with no debt. But no one told him.
If you can only get a lousy government job with an expensive degree, why pay more than $15,000?