Student Loan | Student Loan Stupidity Can’t Be Ignored
March 24, 2012 – 7:54 amIf a four-year degree can’t guarantee college graduates a basic understanding of their student loan debt, then it’s time to require remedial courses in personal finance during the freshman year.
This should significantly reduce the number of student-loan borrowers who admit to being surprised by their debt come graduation day.
Almost two-thirds misunderstood or were surprised by aspects of the student-loan process.
Young Invincibles, a nonprofit group that represents the interests of 18- to 34-year-olds, conducted the study. About 20 percent of the respondents in the online survey said the amount of their monthly payments was unexpected.
The average student participating in the survey had $76,000 in debt.
Students are taking out bridge loans to make up the difference that other loans, grants and scholarships don’t fulfill.
More than two-thirds with private loans said they didn’t understand the main differences between those loans and their federal student-aid options.
The White House and members of Congress have complained about the soaring cost of college education. Last fall, both groups criticized poor counseling when it came to fulfilling requirements for their major.
This survey narrows in on the problem more succinctly when it comes to necessary curriculars.
However, college is an adult venture. That’s why most students enter around age 18, when they are officially declared adults. That declaration can’t make up for a lack of immaturity about personal finances.
A required “College Debt and Post-graduation 101″ course can.
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Tags: Student Loan
