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[quote]
Sociologists Steven Brint and Matthew Baron Rotondi interviewed students concerning their perspectives on the value of a college education and its relationship to debt. They argued that "students no longer think of student loans as a burden to be avoided or discharged quickly, but rather as a means of freedom, which opens up rather than limits behavioral options and particularly opportunities to enjoy 'the full college experience.'" Today's students "do not view debt exclusively as an investment, but also as a vehicle for consumption."
<p>Someone I know is puzzled and concerned about her podiatry classmate’s behavior. She’s taking out ed loans like there’s no tomorrow, going on lavish out-of-country and out-of-state trips, buying new car, etc., and says no worries, she’ll be making truckloads of money to repay. Attempts to reign in spending and warn about excessive debt have been blithely disregarded. Classmate is greatly enjoying consumption. I’m sure she’s not unique–in fact from other posts that have been made about graduating with tons of debt, seems that this is frighteningly common.</p>
<p>Even outside of that context, some people see a $150,000 per year household income (around 95th percentile in the US and three times the median) as barely middle class or some such.</p>
<p>There are a ton on CC bemoaning how they can barely make ends meet but earn varying multiples of the median income in the US. Have never liked owing ANYONE anything and am much more comfortable living below my means. Am glad my kids have absorbed that trait as well.</p>
<p>I think the kids are quite financially immature and the parents aren’t doing anything to help them learn. I heard a girl in the hair salon discussing her student loans that she was using a the time to pay her apartment rent for the summer. She was quite happy that she still had plenty of loans “still left to use”. It was like a bank account of free money the way she talked about it. I’m not sure where paying actual tuition fit into the whole plan. This is not a college town, so I guess she was at the community college nearby.</p>
<p>This is not new. When I was in college, a friend from a wealthy family told me he took out the CGSL (equivalent of Stafford) to buy a new car, because the interest rate on the student loan was lower than the car dealers were offering. (I don’t know how it worked logistically - whether he paid his parents monthly or received the loan money directly back then - I think it is paid directly to the college now(?)</p>
<p>DS’s student loans (Stafford, PLUS) have a interest rate of just under 2%. Shoulda borrowed more, but I thought that we should at least do a few $thou$and to meet our family contribution. I should have been more patriotic and borrow more to stimulate the economy, subsidize the banks, and stick it to the taxpayers :)</p>
<p>It was the best investment we ever made. Literally and truthfully.</p>
<p>Bay, the loan is paid to the college but the school then refunds any amounts in excess of billable costs to the student. It can be a fairly quick process, depending on the school’s payment schedule.</p>
<p>*This is not new. When I was in college, a friend from a wealthy family told me he took out the CGSL (equivalent of Stafford) to buy a new car, *</p>
<p>Yes…I worked with a guy who took out the old-style fed student loans and used it as a down payment on a small condo by his college (in lieu of campus housing).</p>