If you honestly look at this from a financial perspective, 6.8%-8.5% for an unsecured loan is completely reasonable. Mortgages have real estate behind them, as well as a down payment (hopefully). I'd love to borrow $100,000+ for 8.5% with no security, but I can't as I'd have no intention of using the money for education.

I think what it boils down to is whether or not the entire undertaking is worth it. If the education is a worthwhile investment in terms of income compared to cost and interest, great. If not, perhaps it would be better to find other options rather than try to force it to work.

I find it both sad and amusing that students complain about cost, yet still make the deal as long as they can pull the financing off. Sometimes in life there will be financing offered to you that you should not take! This is the same mentality that formed the housing bubble. If it's too expensive, just don't do the deal!

I feel that bailouts in general are bad mojo for our economy. Any bailout is simply a bandaid on a gaping wound. If the economy is fledgling, it needs to grow up on its own or become catfood. There is no reason to keep throwing money and hoping something sticks. A better plan to make life easier on students is REGULATE college textbooks. It should be considered deplorable that a teacher can contribute a tiny piece and therefore insist the colleges charge $350 for a book so they can reap the benefits of huge royalties for books sold.

-quote-
I've done as much as I can and if I don't get help I will be among thousands maybe millions that end up defaulting on their student loans..
-endquote-

I went to a low cost University with a tutition cap and still had to take out loans. Mainly because the cost of a credit went from around $90.00 a piece to over $190.00 a piece and we lost the cap in the two years I attended. While I did stop going after two years and was not able to get my degree, I racked up over $30,000.00 in student loan debt in those two years. How you ask, interest rates went through the roof, and I am not able to consolidate. It is not fair that students in the past were able to get government, loans with little to no interest, and my generation has to suffer with private loan providers that can do whatever they want with the interest rates, including pay employee bonuses. It is also not fair that students in the future will not have to face this as the cost of education and student loans will be overhauled in the next few years. (Crosses Fingers) I think students who have suffered these horrible rates should get help. I don't know about a bail out, but money to illiminate some of the interest would be great.

I was not for the earlier bailouts, so I'm not for this one either. Students should attend colleges they can afford-- bailing out students with lots of loans isn't fair to students who stayed home and went to community colleges rather than incur debt-- the same way that people who lived in little houses so they could pay down their mortgage made different choices than some of the people who were bailed out for mortgages beyond their means.

I have two daughters in college who based their choice of where to attend on a number of things-- one of which was being able to get an education without resorting to loans. I do not which my tax dollars to subsidize those who went to a school they could not afford.

I currently have student loans and I have no problem with the notion of paying back the money I borrowed, however, there is a problem with how student loans are dealt with.

Student loans are given out by private companies. Those loans are, however, secured by the government. This means if you default on your loan, the government will step in and make darn sure you pay that money back by either seizing your tax return, garnishing your wages, freezing your bank account, or even seizing assets. Essentially, if you don't pay your student loan, you are facing the same consequences as if you don't pay the IRS. So, these private companies endure little risk in handing out these loans. Despite this, they still charge very high interest rates.

Basically, student loan companies are fleecing the American citizens on these loans that are government backed. It's a crying shame they are allowed to do this, let alone they have the lack of integrity and honesty to engage in fair business practice. I don't necessarily want a bailout, but what I do want is the government to step in and tell these private student loan companies that the party's over and put a cap on the interest they can charge to no higher than 2%. At this time, I am paying $90 per month and $40 is going to interest. Rip off! But, whatcha gonna do? Nothing you can do! You can't turn around and say, "Hey, your interest rates are too high, I'm not paying my bill and I'm filing a complaint," because they'll just turn around and get Uncle Sam involved.

It's like getting mugged through the mail!