Almost two-thirds of U.S. student- loan borrowers misunderstood or were surprised by aspects of their loans or the student-loan process, a study shows.
About 20 percent of the respondents in an online survey said the amount of their monthly payments was unexpected, according to the study released today by Young Invincibles, a nonprofit group in Washington that represents the interests of 18-to-34 year-olds. The respondents had an average of $76,000 in student debt.
That’s because the lenders, financial aid “officers” and counselors, all the way down to High School level all are vested in not making sure those terms are well-understood.
After all, how many college students would you have on your campus if you fairly and fully disclosed the likely earnings (not the “best possible outcome”) for a given major and degree and then amortized out the cost of that education and, along with the expected tax burden on that graduate, showed them exactly how much they’d have left to live on?
The answer is this: The campus would be empty.
Deception is therefore necessary, either through omission or commission, in order to “sell” the product. If you fairly disclosed, for example, that this much debt would basically destroy the graduate’s ability to buy a house for ten years after graduation would they still sign up?
One point those of you who have been involved in this little scheme ought to keep in mind — it will be these graduates who will, in 20 or 30 years, determine whether you get Medicare and Social Security, not to mention what your tax bracket looks like.
I hope they throw you all under the bus and then back over you, just to make sure that they didn’t miss the first time.
You deserve it.