Managing Student Loans

It is hard to imagine that college students can be so naïve or uninformed that they can run up extravagant student loan debts which far exceed any potential benefit their degree can bring. Acceptance for college is unfortunately no guarantee against stupidity or ignorance. Smart students look into the financial implications of obtaining a degree and explore options which range from financial aid to loans as they consider if their choice of college is affordable. Others borrow to the hilt to obtain liberal arts degrees which fail to equate to earning power.

Kellie Space was the first member of her family to attend college and her family were unable to provide advice. Space believed she should go to the best school, and no consideration was given to the fact that attendance at the private college Northeastern was financially out of reach. During her four years at Northeastern Space ran up federal student loans of $12,000, and a further $189,000 of Sallie Mae loan debt. She included two summer semesters and studied abroad.

Space had no career in mind whilst running up these unjustified loans and couldn’t even decide on her degree course, moving from psychology to marketing before graduating with a rather useless sociology degree which was never worth its $200,000 price tag. Space describes herself as “a raging liberal who just wants to do good.” On graduation her loans continue to accrue even more interest debt as she took a two year deferment.

During a radio interview with Peter Schiffer she admits she does not use her degree in her job but that her college days helped her to mature. In an effort to reduce her student loan debt Kellie Space turned to the increasingly popular option of cyber begging and launched the site Two Hundred Thou, which is hosted by£££££underline site with link$$$$. She wanted to “try to crowdspace some of my loan payments” and hopes that complete strangers will contribute funds to decrease her debt. As of now Space has raised almost $10,000, as well as ire and sympathy.

The average student loan debt across the US is around $24,000 which is itself a large debt to carry. Student loan debt can be useful though if acquired in pursuit of a particular profession which will increase earnings potential. Space typifies the increasing number of college students with no ambition who simply pursue a degree which will leave a debt hangover for many years. Space admits her debt is her responsibility and hopes that her story will help others to avoid the same plight by informing them about student loan debt. Space says she was “pretty misguided as to what my salary would be upon graduation.”

Even with the publicity she has garnered Space remains uncertain of the actual costs of her education and told Peter Schiffer she thought her tuition was about $20,000 per annum and the rest of her debt was acquired paying for campus accommodation, a rented apartment, meal plans and books. She denies partying or buying new clothes and said she did work part time, but in other reports she said she didn’t work and took out more loans. She is happy to side with her radio interviewer to agree she was exploited by lenders.

Nevertheless Space is receiving donations from those who sympathise with her situation and her declaration that “I absolutely regret what I’ve done and realize all the options I had at the time.” Space has also received a great deal of vilification and anger by cyber begging through Two Hundred Thou as a way to bail herself out of the mess that her own decisions resulted in.

Sources: You Tube Peter Schiffer radio interview.