"A 22-year old student graduating this year who consolidates their $40,000 loan at 6.125 percent will need to pay $243 a month...until they're 52."
This morning's nonsense about a student loan being "a life sentence" has got my back up.
I grew up middle-class in Middle America, but then starting in about fourth grade my family went through very hard times for about ten years. We had periods with no electricity or gas and even, ocassionally, little food. We lost our home, lived with relatives for awhile and moved every year or so to adjust to our changing (mis)fortunes.
We certainly didn't have money for college.
So I paid my own way, with a combination of Pell Grants, student loans and work. By the time I graduated (in 1989) I had about $17,000 in loans and took on a monthly payment of $217 for ten years to pay them off.
Making that payment was hard in 1990 dollars for a first-time worker making $23k. And while I recognize that the costs have risen since I graduated, it was not a 'life sentence' for me and it's not a life sentence for anyone else.
In fact, a quick search of Google yields the true results of what people willing to take on debt can expect from their investment in a college degree:
Just to pick one comprehensive source:
College graduates earn 73% more than High School graduates (page 11).
They are half as likely to be unemployed as High School graduates. (page 16)
They are more than twice as likely to report good or very good health after age 45 (page 18).
Their children start school better prepared (page 21).
All that for $243/month until I'm 52? Sign me up. Again. The investment still makes sense by any reasonable measure and doesn't make one an 'indentured servant.'
Flame away.