April 20, 2009

THE BRUTAL BURDEN OF STUDENT LOANS: I think they’re the worst debt you can get — huge, at unattractive interest rates, and non-bankruptable. “Perhaps seduced by the idea of graduating from a well-respected university, many students tend to overlook the consequences of graduating with debts that are likely to far exceed their starting salaries. And as many borrowers have learned, student loans are among the most ironclad debts, on par with child support, alimony and overdue taxes. They stick with you no matter what.” I discourage students from borrowing, but as more people look at the results, we may see a lot of pressure on higher education, where overly-high tuitions have been propped up by easy credit taken out by people who don’t really know what they’re getting into, and who universities aren’t eager to educate on that subject. This quotation suggests that people are catching on:

“You often hear the quote that you can’t put a price on ignorance,” said Ezra Kazee, who has $29,000 in student debt and has been unable to find a job since graduating from Winona State University in Minnesota last May. “But with the way higher education is going, ignorance is looking more and more affordable every day.”

It’s also worth noting that when it comes to consumer exploitation, higher education has no room to strike moral poses vis-a-vis the for-profit sector.