STUDENT LOANS AND THE AMERICAN DREAM
(In response to Ben Karris’ Oct. 26 column, “Waking up from the ‘American Dream’ part II: Student loans — the next credit bubble.”)
Sallie Mae is one of the worst offenders. My friend has tried for 3-4 years to qualify for forbearance because of medical conditions that leave her unable to work. The interest she pays on a $17,000 (student loan) debt was about $200, and they ask for $300 a month minimum.
But that’s the thing everyone is being sold on … Go to school now! It doesn’t matter if you have the cash or not. Borrow, borrow, borrow. It’s OK. But the interest rates are ridiculous, and so are the monthly payments. Or when you have to start payments. For some, I hear it’s a month after you graduate. With federal loans, it was a year.
The American dream is really outmoded. It made sense in post-World War II ‘50s America. In today’s global economy, driving long distances from a white picket fence home to local factory jobs and cheap schooling are a pipedream.
But still we cling because our parents did it. Time to grow up and find a new dream in the face of a dynamic and somewhat perilous economy.
Jonathan Labez
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