Ethan Winsby considers himself in financial ruin at age 27 -- but not because he lost at gambling or risked everything on a startup that went bust.The law of diminishing returns applies to everything.At some point,going to college doesn't pay because the jobs might not be able to pay off the loans.You will not hear this from the powerful education lobby.
Like a growing number of young adults, he had to take out private loans to attend college.
He graduated from the California Culinary Academy in San Francisco in 2005, but he said his subsequent low-paying job as a cook has made it nearly impossible for him to repay the $35,000 he borrowed.
As the 18 percent interest rate compounded, his debt has soared to $50,000. The monthly payments, if he made them, would be two-thirds of his $1,200 monthly after-tax salary.
With no prospects of paying his loans off quickly, Winsby sees his debt spiraling out of control.
"At this rate, I'm going to be in default," he said. "Default means you have no options. It's the main source of stress in my life. It shouldn't be. I was trying to make a career for myself. I wish I hadn't even gone to school."
Wednesday, October 25, 2006
The San Francisco Chronicle reports:
Posted by Steve Bartin at 9:33 AM