I did essentially the same thing myself many years ago - went to a community college where I got a lot of general ed. courses out of the way (with better teachers), and later went to the University, after a spell in the Army. Used the G.I Bill benefit to pay my costs, plus worked during the summers. Paid for it all myself with no loans.

Today, it is possible to work as a paid intern with some larger companies, depending on your major. Even in these tough times, one can find a way to get it done.

On my first day of college I was in Mechanical Engineering courses. Beev, you must be talking about liberal arts.

In this particular story, it sounds like just another case of someone going to a school that was more expensive than they needed to. Only a very select few individuals actually need to attend a specific high priced school to get the degree that they want. In most cases, state college is perfectly fine. No one held a gun to his head and forced him to go $110k into debt to get a degree that wouldn't get him into a high paying job. Also, $50k in Indiana provides a comfortable living. If you're only capable of earning $50k/yr maybe you should live in an area where that will go far enough to pay the bills.

G_Rock I had a Business major and my first two years was pre-requisites. Didn't see a major course until the end of my sophomore year.

For one person to pile on $110,000 in student loan debts in four years is INSANE. I hope, whatever degree he got was well, well, worth that $110k. I have seen a lot of people get these loans and spend the refund check on everything other than their studies. What you do, financially, in your college years will determine your whole life no matter what degree(s) you've earned.

Here's another thought. If they can't afford it, why did they have a kid? Yes they are married, but are now complaining about the $800/month in day care? Did you not think that through before you got yourself pregnant. My wife and I married right out of college at 23 & 21 years old. We made about $50k combined and had much less student loan debt. We knew we could not afford to start a family at that time and had to wait 7 years before we began trying. We didn't want to wait that long but we aslo wanted to make sure we could afford having a family and afford the required day care. These two are only a few years out of college and certainly could have waited to have a kids a few more years. Poor planning on their part.

We knew we could not afford to start a family at that time and had to wait 7 years before we began trying.

You can never afford children you can make having hem cheaper but to raise a child to 18 is over 250K for each child.

Picker is right. I'm a non-traditional grad student who has 15 traditional students working in the same research lab by my side. Even with the stipend that we are paid (22K) which is not a bad income for students in their early 20s, some students also have student loans. They use these loans to buy state-of-the-art computers when their older models fulfill every need that they have, flat panel TVs, pickup trucks, the most current smart phones, etc., etc., etc. Many of their problems originate from the fact that they have reached the ripe old age of 23 without ever having jobs and expect the world to be given to them on a gold platter with no effort on their part.

As for the couple in the article, why didn't they plan carefully and wait a while longer before having children? That monthly daycare payment would go a long way toward paying down his student loan debt. If they live three miles from work, why don't they walk or cycle to work and own just one car rather than two? From the looks of it, they could both use the exercise. I know Texas can get hot, but how miserable can one get when cycling three miles? (I was born and raised in Florida. I can appreciate hot, humid and sweaty.) This couple is still in their 20s and making enough that they could repay his loan fairly easily if they had planned accordingly. MSNBC, try interviewing people who might actually have a reason to complain and with whom the reader can empathize.

Huh. Well, I worked in high school, and all throughout college, and paid for my degree without any loans.

But, I'm hearing that can't be done in today's world.

Colleges keep raising tuition.. but what about those new sports stadiums and athletic full rides? What about the salaries and benefits of the staff and professors? Don't see them suffering, do we?

I wish them luck, but to be honest they're doing it wrong. They should have the kids out of wedlock and that way she can collect all the great entitlements and benefits and then they could afford to have more kids!

You know I'm right.

Well, either that or she could have.. I don't know... waited to have a child for the measly 5 years it would take to pay off the loan and build up some reserves.

Hmm... maybe I'm right there too!

What most of you people who are so high and mighty don't understand is how much the price of college has gone up. When I went in the early 80's it was only 50.00 dollars per credit hour at a State College. You probably went to college around the same time I did.

I have got news for you rocket scientist who are so willing to judge other people, the price to go to that same college is now 1500.00 dollars per credit hour. I was able to work and pay for my college back then but who in the hell could do it at today's prices?

The Beev is right. Get a job with a company that will pay the tuition. To take on $100,000 and NOT have a job and then HOPE to get a job when you graduate is silly. I have no sympathy for anyone who takes on $100,000 on a wing and a prayer. Unless they're going to be a doctor or neuro-scientist.

I have got news for you rocket scientist who are so willing to judge other people, the price to go to that same college is now 1500.00 dollars per credit hour.

Joe - you need to get your facts straight. No state college charges 1500 dollars per credit hour for instate students. At 1500 dollars per hour, one semester with a 15 hour credit load would cost 22,500 dollars. No way. No state college charges that rate for state residents. Private school, perhaps, but not state schools.

PeteMT,

It's not that working full time and going to school full time can't be done. It's very difficult and i wouldn't wish that on anybody.

A very realistic and unselfish view! My father paid for my and my brothers' college educations and I paid for my son's. It's not easy, and it takes sacrifice, but he didn't have to take out student loans. He was very fortunate.

However, it's not like it didn't cost us. We paid over $100K out of pocket for my son's education, net of scholarships. Everyone has to pay for the education one way or the other. I'm sorry that some have to take out loans to get through college, but it's their decision and it's a financial decision. My decision to fund my son's education rather than lettign him take out student loans is going to delay my retirement, but I accepted that fact when I made the decision.

To those who took out studen loans, I feel for you, but I don't feel sorry for you. It's the cost of getting an education and we all have to pay for it in one way or another.

Why pay $550 per month in student loan payments, especially with a variable rate. I consolidated my student loans, now I have a 3% fixed rate and am paying about half as much per month.

I can't believe someone would pay $110k for education at a state school. I can only guess that he was out of state. Whatever state he was living in at the time, he should have attended one of those state schools. Tuition would have to be less than $35k a year. That's tuition and board at several name private schools.

Personally if I were them, I would look for cheaper babysitting (is it really the cheapest in small town Texas?), bike to work (it's less than 3 miles) and cut the cable to pay down those loans as much as possible while interest rates are low. the 'wish they'd saved before the baby' should have been 'wish we'd put every available penny to paying off the loans' so they can start saving for their retirement and their baby's college. As it is now, at $500 a month, it's going to take a total of 30 years to pay off the loans and that'll only leave around 20 years to save for retirement. Not a good plan for the future. That poor baby is going to end up saddled with loans and trying to support her parents if they don't get the finances on track.

Plano is not small town Texas. It's a huge suburb North of Dallas. It's an expensive town to live in. Also, they will more likely than not get creamed by a car trying to ride a bike in Plano. It is extremely dangerous in certain parts of this country and you are literally taking your life in your own hands. They'd likely lose it all if one o them was hit by a car. These people are trying hard. I've been in their same shoes (only my student loan debt is around $25K with 2% interest). I would say that at $800/month for daycare, that seems about right. We payed $1000 for our son at that age in a higher cost of living state. When money got tighter, we were able to change our schedules so that we could drop the price of daycare and now that he's FINALLY in first grade, I work 6-2 so I can get home to watch him with zero daycare costs. We also host International English Students through our local University for $800/month income and all I have to do is set an extra plate at the dinner table. Our base gross salary is $60K, but the extra income really, really helps. That extra money goes to retirement, savings, etc. That way, our lifestyle is based on our salary and if we don't get a roommate, we aren't worried. I can say I agree their apartment looks awfully nice. Our house is furnished with nothing new (except the mattresses). Everything was given to us or bought at used stores or on craigslist. We don't have cable (Netflix is a lifesaver) and our splurge is to go out to dinner once a week.

It's easy to say these people are idiots, but life throws curveballs all the time and they are doing the best they can. Hopefully, they will read suggestions from us readers to help their situation. It takes making mistakes to learn. My suggestion to this couple is to read everything here, don't take anything personally and LEARN from our mistakes and successes and you will go far!

I know that if he is a mortgage banker or broker, he doesn't even need a degree for that! He can make over 100k per year.

The late X Gen or Y Gen apparently weren't taught Economics 101 in Jr. High (remember "compunding interest"?) nor lived with Depression era parents so they hadn't developed a deep understanding of important financial principals or lessons---like they say "Those who forget history are doomed to repeat it". Too many X Gen parents took the "I want my kids to have more than I did" Great Depression mentality way too far, whereas they actually had it pretty darn good compared to their parents and grandparents! Unfortunately this warped mentality allowed them to easily borrow on credit and/or take out loans far beyond what their income could support so it's not surprising the "entitled" Y Generation would do the same. I'm truly hoping this recession will be the WAKE UP CALL or SHOT IN THE ARM America has needed for a very long time to get back on track and restrain itself enough to "Live within one's means, save for a rainy day, and invest in their retirement" which served the post-Depression generation much better than it will X or Y Gen's--many of whom will be working till their 80 because they weren't financially prepared.

three years at law school, I have that much debt. Waste of my time. I will never be free of debt.

That's how much it costs to go to a 4-year university these days guys... Read a little.

@Spry, you realize that 'Gen X' is people born from, roughly, 1965 to 1980. People that are now in their mid-thirties to mid forties. This article is not about them. We Gen Xer's are the ones who are trying to care for aging parents, along with school age children, facing a tightening job market, outsourcing, the housing crisis, and trying to balance saving for our children's college education and our retirement.

No, that's not how much it costs to go to a four year university, at least not all of them. I'm pretty sure the state school I went to was $12K a year, and with scholarships and grants most of that can be covered.

My oldest child was accepted at Penn State Main campus, tuition alone was 26k/year in state, would have added 6K more for room/board. He's going locally to a private college, total package is 28k/year, he's got some scholarships and loans, wife and I are helping about 1K/month. It's tough, but doable. And he had classes in major freshman year, forget who said something above about electives only for the first two years. He has a double major, will have a BS degree in Actuarial Science, and a BS degree in Computer Information Systems when he graduates. Thinking back 30 years, I went to a private liberal arts college that was 70% more/year than the state schools, but the education was much better. Anyhow, I, too, had courses in major right away. From what I hear, people taking two years of electives don't know what major they want, or aren't that strong and need to learn how to study before hitting the real courses.

RABE-844253

What the hell did Sam do at the University that incurred $110,000 in debt?!?!?!??! All he learned from that spending spree was that the "mortgage industry is poised for growth???" What about work in his field? Obviously that was a terrible investment and hard to sympathize with. Also, anybody can "own a car." Does that mean they are paid off? Notice, ALWAYS the cable, no mention of Internet and cellphones. The cheapest cable I can find is $57 / month, and that's BASIC. Why not Netflix and Hulu for entertainment? That apartment is nicer than anything I've ever lived in, wonder what the rent is? If they're paying $800 / month for daycare, I'm sure it's more than that? Without her grandfather's help this couple wouldn't make it. I wish I could offer more suggestions. DO NOT buy new cars, stick to used. Make friends with a shade tree mechanic.

Work in his field ? We don't know what that is. You have heard we are in a bad economy. Right now people are just happy to be employed let alone working in their degreed field.

I agree. When you borrow money (student loans or mortgage or credit cards) YOU are the one making a choice. It is not a burden, it is a responsibility that you signed up for.

They are spending way too much on child car and entertainment to be carrying that level of debt.

20 years from now they will still be saying "I wish we had saved money when we had the chance....".

Do you not realize child care is not cheap. No matter where you leave, it is a very costly expense. CC expenses often happen because we are making more purchases than we have income to cover.

People don't realize that you can basically take the first 2 years (General Ed classes) at a local Community College and then transfer to a big university for the degree program. Doing this saves a TON of money, and you still get the prestige of the big name school.

But honestly, I went to an out of state college with no reciprocity and still didn't get anywhere close to 100K. This dude must have been repeating courses or taking a bunch of worthless credits. No way U of Miss is that expensive.

110K of debt is only 28k/year, that is completely reasonable for a state school, when you factor in tuition/room/board/books/fees. When my son was looking at schools, universities like Notre Dame and CMU are over 60K/year. Imagine what those student loans are looking like!

Eh...the thing is that the Prime Rate is so low, and will probably be low for the foreseeable short term. It's why I kept my loans (Class of '11) as the lower rate adjustable for now, because I really don't see the rates going up any time soon.

One thing that does make me raise a brow, is how can you get a $500 per month payment on $100,000+? of outstanding debt? That's a ridiculously low rate.

Speaking of 'contingent' with his income...$50,000.00 and $20,000.00 may not seem like much.

But I would like to see a story about the families who have to live on $12.000.00 a year...or less.

Stories about people who live on S.S. only that is less than even $1,000.00 a month.

How they stretch their dollars would really be eyeopening. Try that on for size MSNBC. Please...I would really like to see how these others are doing it. The ones who really have so little that stretching a dollar means it must be made of rubber or salt taffy in order for them to live.

P.S. Plano ain't no 'small' or 'poor' town in Texas. Look it up. Ya'll 'll find it butt up against Dallas...and sharing many of the benefits of living in the better parts of Big D.

I accrued no debt during my undergrad years, I accrued $100k during my three years of law school. I needed that money to live on, the workload is too intense to work full time to support my family and still study. If you haven't been a student, don't criticize. I just wish I'd been content with less, as I am worse off now as a self-employed lawyer, than when I was a self-employed beekeeper and school bus driver.

HOly sh*t, man, since at elast the late 1980s, undergrads CANNOT get student loans in their own name with a check to spend. It is directly signed over to the tertiary institution...SO, as you claim and rant, undergrads are NOT spending their student loans on food, entertainment and rent UNLESS is it fully covered and billed by the university/college financial departments.

Graduate students do have the option of taking out student loans for housing, food, etc.

Stop the bull, FAFSA is in fact sent to students directly and is often in an amount exceeding the actual cost of tuition. My neice as received almost 50% more than the cost of her tuition. The first year she received it she blew the extra going out to eat and treating her friends to lunch. When my brother explained to her that he is not helping her pay the wasted portion back she learned a valuable lesson. There are no free lunches. The next time she received the check she paid the tuition and sent the remainder back to be applied to the loan.

Big banks are to blame for the financial crisis, but big banks didn't force anyone to take out loans. People mad about loan interest rates have nobody to blame but themselves, they should have read the legal contract they signed.

Oh, by the way. I am a current payer of significant student debt.

Lusitania-

Your post sank to ridiculous. You think someone should be able to unilaterally change the terms of a contract for convenience? That would be the same as if the bank unilaterally decided to double the interest rate or demand immediate payment.

That's what most people think banks should do for mortgages. Unfortunately that what people think. Others should be flexible about their bad decisions.

The problem with mortgages, is that people think that they own the house (and the bank doesn't) from the instant they take out the mortgage. Then they whine about the bank "taking their house" from under them when they miss mortgage payments.

If i take out a loan to buy a car I have a product for my monies worth,

an education is nothing without a Job..there has to be amends..But that isn't what I'm talking about..Deferment is taking advantage of someone in need !

Nick: I agree, they do need financial counseling. They can begin by getting rid of cable. If they are spending $50 a month on cable, that is $600 a year. They could use that money to start an emergency fund since they don't currently have one. Second, they need to stop borrowing money (i.e., using credit cards). Rather than rely on credit card for emergencies, start saving for an emergency (use the money they are saving from not paying for cable). Thus when the emergency (i.e., car repairs) comes along, they can use money from the emergency fund and not the credit card. I wish them well.

This is why people need to research their majors before taking out loans.

I was just thinking the same thing. What is his degree in? How did you get into $110k of debt and combined with your wife, you only make $50k?

Even so, they need to get rid of their cable (and probably iPhones). They are probably spending $800-1000 per year to watch tv when they can't afford it.

Shark, I had a full ride scholarship to a large college and graduated with a degree in Mechanical Engineering with a good GPA and a couple years Co-op experience... and could not find a job in my state (Michigan). The only jobs that even interviewed me were just temporary work (for a particular project), and none of them offered me a position. Not a shock considering that I was competing against those who had my same degree with 20+ years experience that had lost their jobs and was happy to work for entry level pay. Eventually I did find a job, but I had to move across the country to do it. Not everyone is single (their spouse may have a job in current state) or have the funds to be able to pack up and go like I did.

As for splurging, for all we know they are talking about going to a dollar movie theatre and basic cable ($30/mo). They said they are tight, but getting by so as long as they are able to pay for those splurges, then I dont see the problem. I dont know why you would assume they have Iphones, where did that come from?

I wish I could recommend this many times! I have a degree in physics and have never had trouble finding a job. I also paid for it myself with no loans. A lot of people get crap degrees because they can't hack the math, IME.

Honestly, the alternative of CC for your general ed classes, then transferring to the university for the core degree program is often overlooked. I know I overlooked it, and it would have saved me $20,000 easily.

Then there's the issue with government loans and grants. These put money into students' hands. The problem is that often times grant money is not spent on education. There needs to be some reform and regulation of federal grant money, because at the moment it is highly exploited often times by students that don't graduate.

The sad part is these people are paying interest for money that is created out of nothing. Why is that bad? Let me explain.

Availability of loans push the prices higher and require more people to borrow. This cycle puts the entire population into debt for money that is created out of thin air! If we all refuse to borrow at interest, prices will be lower and many of us can afford cash down payments.

Banks create money when we borrow. This new money inflates the money supply and forces more people to borrow. Google for "HOW DO BANKS CREATE MONEY" to understand how the debt based monetary system works. Hardworking white collar, blue collar, honest Americans are in debt for money that is created out of thin air. Had they not borrowed in the first place, prices would be lower and they would afford things cash down. It is a con game and the real owners of this country do not want you to know it. They call it the American dream because you have to be a sleep to believe it.