[ExI] the formerly rich and their larvae...

[PJ Manney]

On Feb 11, 2008 8:04 AM, Tom Tobin <korpios at korpios.com> wrote:
> A "bit" of debt?
>
> I'm in the hole to the tune of over $70,000 USD, and I didn't even
> finish my graduate-level education.  This is from a *state* school

When we sold our house in SoCal, do you know the very first thing we
did when the check cleared?

We fully funded our kids' college savings accounts.

We're considered rich by global standards.  But even we were concerned
about the expenses we'd incur sending two kids to college/grad school
in the 2010's-20's vs. the debt we'd/they'd incur if we didn't.  We're
looking down the barrel of a minimum of $500,000 to send two kids for
undergraduate degrees at private institutions.  When we analyzed the
numbers and observed the process involved in the college loan system,
there was really no argument.

http://www.forbes.com/2007/01/19/most-expensive-colleges-biz-cx_tvr_0119college.html

Note the Forbes prices are for this year and are only tuition, not
including room, board or expenses.  Figure inflation in the next
couple of decades into it and expenses, and... whamo!

And we've got smart kids.  Graduate degrees are not unlikely.  Now
we're talking in the millions.  Who has that kind of money to pay to
go to school?

Both my husband and I attended private universities in the 80's.  I
paid my full tariff (back when we thought $12,000 was outrageous per
year) because back then my parents were rich.  Eric had tuition
remission because his dad was a professor at his school, but he still
had a full time job while in school so he could afford the room, board
and expenses.  We both consider ourselves very lucky that we did not
incur debt at the beginning of our lives.  It gave us the freedom to
chose the line of work we wanted to pursue.  And I thought freedom of
choice was the point to everything.  ;-)

And to answer Amara's question about why we create a debtors' society
with our young people -- It's obvious.  It's good business for
financial institutions.  Get 'em young, keep 'em forever.  Our hamster
wheel of debt is their profit.

PJ