<p>Another problem is that the true magnitude of the crisis is “hidden”, especially for graduates of top schools. Default rates are only part of the picture. You also have to consider what people are giving up (opportunity costs) in order to pay off their college debts. People accept a lower standard of living, stay in bad or stressful jobs, and delay home ownership and starting a family due to college debt.</p>
<p>50k per year schools like to brag about their low default rates, but their graduates also tend to be conscientious people who make big sacrifices to be able to pay off their debts. Also, they tend to be less likely to be unemployed. As long as you’re employed, it’s very hard to default on unsecured college debt (knowing you have a whole life ahead of you, lenders will just re-schedule your payments rather than agree to give up on what you owe them).</p>