3/16/17 – Student Loan Debt
This spring, about 13 million high school seniors will receive college acceptance letters.
Here’s what’s happening behind the headlines.
College debt has doubled in the past six years. At 1.3 trillion dollars it’s bigger than credit card and car loan balances.
There are many reasons for this. Here are three.
There are no incentives for colleges to keep costs in check. Often, money isn’t spent wisely: increased staff and faculty, fringe classes, and high-salaried administrators.
And, in most cases, student-loan debt cannot be discharged when someone declares bankruptcy. You have it for life. Lenders know they can literally pursue a borrower until the day they die.
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