Culinary School Cooks a Graduate: Massive Debt
July 2, 2012
The tragedy of people who take on huge debts for college or specialized training schools is spreading across he nation.
Here is a man who, at age 28, dropped out of college and enrolled in a school for chefs. He is now 36 and has $142,000 in college loans.
He cannot declare bankruptcy. The law does not allow this for educational debt.
His story is told in a new movie, Default: The Student Loan Documentary.
His father refused to co-sign. His father was wise.
He saw commercials for the school on the Food Network.
He decided that he needed a degree. He did not apprentice with a master chef.
He signed up.
He took on $46,000 in private loans. Interest rate: 19%.
Then he took on another $14,000 in federal government loans.
He got a degree. He got a job that paid $10 an hour.
He gets called every day by debt-collection agencies.
He stopped paying. Interest rate costs took over.
He has a bad credit rating.
He lives in his ancient minivan.
His story is here:http://www.businessinsider.com/nick-keiths-student-loan-horror-story-2012-3?op=1#ixzz1zS41Esg2
If you have a child or grandchild who is considering college, talk with him about lower-cost strategies. They exist. Don't let this happen to anyone you care about.