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April 18th, 2011
01:59 PM ET

Perry's Principles: The burden of student loans

It's that time of year...when the college acceptance letters are in and those first tuition checks will soon be going out. As college costs continue to sky-rocket, a new report finds that student loan debt has now topped credit card debt for the first time.

CNN Education Correspondent and founder of Capital Prep Magnet School Steve Perry talks with CNN's Alina Cho about the huge burden of loans facing students.

Filed under: Perry's Principles
soundoff (4 Responses)
  1. Julie

    Not only debt to begin with is dang outrageously high but interest charges are exorbitant.
    Then, faced with bad credit because you cannot get a job. My poor daughter owes over $250,000. After ten years, she can only get spot jobs. Sometimes teaching science in some schools, when she never even took a science class, way away from her major or minor.
    My son however, learned German and went abroad to college. At the time before Bush ers of downing dollar, only cost 300 EU a semester.
    After working his butt off he got his doctorite and owes nothing.
    My son with high IQ did not qualify for student loan, scholorship, or grant because a judge that allows sexual harrassment of women by lawyers allowed my ex to never divulge his income. This is what happens to abuse of women and children in the courts.
    Whoa and behold, we have a nearby college here, that mostly has aliens paid for by the United States free to them great education. They go not only on welfare, but food stamps, free medical, free housing, free dental. Last year alone over 50% of graduated students going into engineering were paid for by American tax dollars. While our our children are kicked to the curb.
    My son now living in Europe has had a son, he is guaranteed at birth a free education, free health care, free dental, his mom is paid to stay home with him. Yes, taxes are high, but income level is 500 EU which is like 750,000 in american dollars. They have little crime, as everyone is entitled to a great life.
    What's wrong with American dream. Lawyers Judges and corrupt corporations hiring aliens now for high paying jobs that American tax dollar paid for their education.
    Want an affordable education? Go somewhere else. Learn German or Spainish, or what ever.
    Who gets scholorships in U.S? I sat as my duaghter getting some award, This doctor's kid got over 21 scholorships, Not that bright a student, but politics play roles in who gets scholorships and grades here and special treatment. His father is even not that good of a doctor. Just a title. Educated again with foreign education.

    April 18, 2011 at 7:29 pm |
  2. Walter Lobo

    The significant increase in college loan is attributed to the Federal Interest Rate of 6.8% fixed for the life of the loan, at a time the federal lending rate to the banks is 1%. The 6.8% fixed rate is hurting students so bad that it forces them to file for chapter 13 protection to get out of the debt. Student loan interest must be reduced by the federal authority. Federal government is hurting our younger generation and depriving education with the high interest rate of 6.8%.

    April 18, 2011 at 7:01 pm |
  3. Newt

    The idea that you have to go to a "good college" after high school is antiquated. In the 90s a college degree ensured a job, it doesn't any more. The debt is being taken on due to an unrealistic expectation of securing good employment. We don't live in an era where higher degrees equate to careers. We have maddening academic inflation and our degrees are worth less. Students, and more importantly parents and teachers, should be more honest about expectations and guidance; it's not a easy as going to college. A college degree does not ensure a job, a career or a good life.

    April 18, 2011 at 6:20 pm |
  4. Deb Burr

    Mr. Perry sited that the reason tuition is getting higher is because students demand wifi in their dorm room. Come ON! I can believe that because of the empty houses and home values going down that state subsidized colleges and universities need to make up the difference in funding by raising rates. However, the rate hikes over the last 30 years are way more than the cost of living. Even during the good times. I want to know where the money goes. Does anyone have a graph with what percent of every dollar and what does it pay for?

    April 18, 2011 at 5:38 pm |