<p>"Nearly 40 percent of Iowa State University students underestimated the amount of student loans they owe, while one in eight didnt realize they had debt, according to research by ISU faculty and staff released Wednesday.</p>
<p>The financial literacy study, which surveyed 801 undergraduate Iowans in fall 2010, also found 10 percent of students underestimated their debt by more than $10,000. Only 22 percent had not taken out loans.</p>
<p>The results show a need for additional financial counseling to help students understand their borrowing and how it will impact their lives after graduation, researchers said." ...</p>
<p>“while one in eight didn’t realize they had debt”</p>
<p>This does not surprise me in the least. When DS started at USC, we had him take out a small student loan[ 2500 unsecured, the max allowed] , just so he would have some “skin in the game”[ the rest was covered by a scholarship and $ he earned in the summer]. He was 17 when he started college and did NOT understand, and therefore pay attention to, the gobbledygook loan forms that he was required to sign during orientation week. 4 years later, he had his “what do you mean I owe $?” moment. Fortunately he had been awarded a large award upon graduation, and chose to pay off the loan. I feel sorry for the kids that HAVE to borrow $$ to go to college.</p>
<p>I’m not sure why you feel sorry for us. As long as it’s a reasonable amount of debt (Stafford limit or less) I feel as though it is a valuable investment in my future. </p>
<p>This doesn’t surprise me though. My boyfriend had no idea how much debt he was in until I made him look. His parents had approved the Stafford loans for him and did the necessary steps to get the loans without his knowledge. I’m sure this happens quite often. Luckily, it wasn’t too much, but it’s still terrifying that it can happen. </p>
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<p>I wish every high school in the country had this requirement.</p>