I do think a large school loan is very risky for many reasons. Some years engineering doesn’t have the openings (this happened a couple of years before H graduated, and we learned about it from some of his co-workers).
Being in the top 10% of a law class is more likely for getting a job out of law school. Don’t know if getting a law degree from a pretty well rated school but being in the bottom half of the class will hurt on the job search.
What happens if the student can’t or doesn’t finish?
Loans mean RISK. Many minimize the true level of the risk, until they get bitten.
Many of our S/D have had a growing up lifestyle pretty good - and they think that parents’ salaries (which are maybe at peak by the time the student is a teen) are going to be what they jump into after college.
DD’s college off campus apt and amenities are nicer than the apt H and I had with our professional salaries - and colleges are putting in big rec centers etc to attract the student mix they want. As anything, colleges compete for the students and provide the amenities and services demanded to a certain level. That does help drive up the college costs.
The other DD’s college dorm style apt (for two) was as big as our first apt after getting our degrees, and it had a full kitchen with full size refrigerator (including oven and cook top). I know that was unusual, but all their public school dorm situations and amenities were better than H’s and mine - and we both were at private schools for UG.
Emergency funds are for emergencies.Many young adults never discipline themselves to have savings because it may not have been modeled at home. Or perhaps some think mom/dad/grandma/grandpa will bail them out financially. That does happen for some for many, many years.
Loan repayment is necessary if one has a decent paying job or not.
Due to identity theft, elder abuse etc, some older people cannot and will not risk taking in a boarder (kitchen privileges type with a bedroom). Sometimes can match up with a room-mate - usually can get more apt with paying less by sharing - and for a gal, if the room-mate is also careful, there is safety for two gals sharing an apt IMHO.
One element of maturity is to be ‘satisfied’ while living within one’s means. Learning how to earn, save, spend, and give with discipline. That means saving up for important things and budgeting so as to not have money be spent in areas not important (food shopping within a budget for example - may splurge once in a while there too, but learning how to shop smart).
How many times has a teen wanted something but once they realize they have to spend ‘their own money’ decide not to buy an item?
We as parents have managed pretty well, and it seems DDs plan to continue to learn from us as they handle their taxes and make future financial decisions. They both feel great that they will complete their UG degree with no debt, and we as parents have a great relief about that too.
Parents and students early in HS do need to learn about colleges etc - often a good source of info besides CC is other parents and students that are a few grades ahead - so learn from their college ventures.