Just got the latest edition of CR, which features this story originally reported by Reveal from The Center for Investigative Reporting. Hoping it’s more nuanced than most of the click-bait out there.
http://www.consumerreports.org/student-loan-debt-crisis/lives-on-hold/
Sorry, no sympathy. Maybe these students should have learned some math in school, like compound interest of the loans, before going to college? Please, look at the tread that discusses the usefulness of math.
There is an ancient proverb about free cheese in the mouse trap. The system is not broken. The mousetrap works.
@californiaaa, no need for your condescension, and many would disagree that the system is not broken.
Still the primary purpose of that issue of CR is to prepare families of high school students so they don’t make the same mistakes. If it’s not relevant to you, don’t read it. Nobody is asking for your sympathy.
This is such a disaster for young people.
Thanks to the OP for posting this. Watching the video should be required for anyone signing up for student loans and no clear re-payment plan.
Even a required pop-up chart of “here is the total $ of loans you have taken so far, here is the monthly payment you will have, check this box to show your understanding that these loans must be re-paid even if you do not graduate, loan repayment will begin at this time…” would be helpful, if it showed up every semester a student registers.
It is way, way, too easy to take out a student loan without understanding it. And generally the people most likely to take out loans are the least likely to really understand compound interest. Most people don’t even do the math when they take out a mortgage for a house.
Buyer beware is a terrible attitude to take when the consequences of taking a student loan are so permanent.
I showed the Consumer Reports article to a couple of college students yesterday, before I read this thread. They were shocked at the monthly loan payments compared to what the people in the article were earning.
It was a great learning moment.
I think the article was kind of ignoring the fact that the borrowers WERE able to borrow this $ without collateral, despite having little or no job history. Many students do choose to go to community college or not to go to college at all. I have no idea why it would be necessary for anyone to have $130,000 in loans for undergraduate.
I read most of this article and the common thread seem to be that these students had no concept of what these loans meant. When my daughter took out her federal loans, she was required do a online loan counseling before signing the master loan agreement. Although not perfect, the counseling did a fair job explaining the loans and repayment cost and options. It even had you input a budget to help you determine if the loans were reasonable. Is this new?
I did find it alarming that you only do this once. It really should be required every year.
One of real issues seems to be that most students have no concept of how hard it is to pay these loans back. Without a parent/adult guiding them, I can easily see how these kids get in over there heads. Many of the examples given in this article seem to indicate that this was missing.
Basic economics education in the US would need to improve a lot to be just awful. Should start in kindergarten and run through 12th grade (and into college as well). One issue though is a lot of adults suck at it as well. Would help a lot in the situation of student loans. And a whole host of other finance related issues that people have. And added bonus is that much of the garbage spewed by politicians (on both "teams) would go by the wayside as well.
“All of our students will make it to college”
“We are starting a new program to make college accessible to those of lower economic status”
“Education is the key to social advancement”
“College is the key to financial success in life”
“New study reveals that college graduates make $1 million more over their lifetimes”
Person goes to college
@californiaaa: “How could you think going to college was worth it?!”
“I have no idea why it would be necessary for anyone to have $130,000 in loans for undergraduate.” They’re outliners. Most students graduated with only $28110 debt (in 2014)
I think the med school and law school grads are the ones taking significant amount of loans for school.
I wish there was some way med students could get some reimbursement for their med school loans.
Ok, I left my country, when I was 19 years old. I never had any business education. Never. I had no bank account, no credit card, and I didn’t know how to use an ATM. I never, not even once in my life, had a counseling about the importance or repaying loans. I had no money, BTW 
Probably, $100 that my parents gave me in cash.
Where do you find these snowflakes? ??? I mean … in the third-world countries if you take money and refuse to repay … you may be killed. Any street kid knows the importance of paying back what you owe.
Could you show me a way to a planet, where you get free money? I want to live in this carefree universe.
<basic economics="" education="" in="" the="" us="" would="" need="" to="" improve="" a="" lot="" be="" just="" awful.="" should="" start="" kindergarten="" and="" run="" through="" 12th="" grade="" (and="" into="" college="" as="" well).="" one="" issue="" though="" is="" of="" adults="" suck="" at="" it="" well.="" help="" situation="" student="" loans.="" whole="" host="" other="" finance="" related="" issues="" that="" people="" have.="">
Somebody needs 13+ years to learn that there are no free money? That any credit has to be returned? That banks work for their profit, not your satisfaction?
Where do people get an idea that they can borough $100+K and don’t even think about paying it back?
You mean in addition to the really high salaries that most doctors make?
<and generally="" the="" people="" most="" likely="" to="" take="" out="" loans="" are="" least="" really="" understand="" compound="" interest.="" don’t="" even="" do="" math="" when="" they="" a="" mortgage="" for="" house.="">
Good luck! no sympathy.
Soon they may learn about other disasters as well: it is not easy to find a job, you can loose your job, you are not forever young and healthy, you need money for medical expenses, your parents will get old and need your help. And don’t even go into the family staff: pregnancy is not always rosy, children may be sick, even the most perfect and healthy child requires time and money, the world really doesn’t care about your personal problems, etc.
Life is not always full of flowers. What a disaster for young people to learn!
Why fix anything when instead we can just let people learn they’re screwed?
I would be happy to know the colleges, where students take $100K+ loans, but have no idea that money have to be returned. Where students don’t know what compound interest is. Where students have no idea what kind of job they are likely to have and how much would money they may earn (approximately).
The list of colleges would be very, very handy!
Are these LACs? Does anybody knows, where these snowflakes are located?