Thursday, December 10, 2009

Here's why retailers and other industries ought to be mad as hell - the student lending industry has cornered their markets

Does this funny political cartoon remind you of your own not-so-funny world, one in which you can't buy things from retailers? Several months ago, I asked people to tell me what they'd spend they're money on if they didn't have to send half their paychecks (or more) to pay for student loan debts that will never go away. Here are a few things people shared:

-"If I didn't have to pay my student loan debt, I would spend money I don't have now visiting my elderly parents more often. So I'd be spending the money with Southwest Airlines. Not even having a job I don't know when I can see them again and they're in their 80s. People don't last forever and you never know when 'never' will come."

- "I'd spend at least $75.00 a month at Race Trac gas station so I could visit out of town friends.  These are items I don't get to purchase on account of owing so much to my lenders."

- "I would shop at Target more often, for curtains and items I am really in need of but simply can no longer afford.  Since the loan will take forever to repay, I will be curtailing spending for the [next] 20 years."

- [It would nice to buy] action figures and baby dolls at Toys R Us." 



Anonymous said...

I would also like to add that I would buy a real mattress since my back has been killing me lately from sleeping on an air bed. I am also starting to run out of patches to cover up all the air leaks!

lizacardona said...

In my case I don't own bedroom furniture which would be nice for a change :( I don't know what a real vaccation is. I am stuck in a rental house and my husband is still driving an old hyundai so I can have the "better car" to move around with the kids. I have to buy everything on discount or I don't buy it at all. I shop at ALDI instead of Publix and I clip coupons. Anything else?

Anonymous said...

but in all seriousness, what really upsets me is how young people are suppose to save money for their retirements? This is another untalked about MASSIVE pending problem. In 30-40 years, there will be millions of IRA's with a balance of zero since people were too busy paying interest on their astronomical student loan balances!

Anonymous said...

If we didn't have so many student loans we'd buy a house & furnish it. Currently we spend a lot to rent, and may end up renting for a very long time because of student loans. Basically we pay rent equivalent to what we'd pay monthly on a $250,000 mortgage, but can't buy a home due to the # of student loans on our credit.

Anonymous said...

They simply do not care. Maybe when the world completely falls apart then they will care. Who knows maybe they won't. Lending institutions exist for one purpose and one purpose only, to take your money. The sooner we all get this the better. And now universities are making it even harder for people who are working their way through college, and attending part time, but requiring that certain degree courses be finished in less than 5 years say for a 4 year degree. So you can forget going half time, and taking 8 years to get your degree, but having it paid for. Instead more and more people will have to get loans. Just the way they like it. Please don't tell me universities and lending institutions aren't in cahoots because it's painfully obvious that they are.