Student Loan Debt: Why The Decks Are Stacked Against Parents And Students

With the student loan industry in crisis, many people are casting about for a scapegoat. It's easy to blame the rise in regular tuition, a faltering economy, and federal assistance ceases to follow the increase in enrollment. However, some pointing the finger at parents and students themselves.

As a student, no one is allowed to go to college. No one forces you to take on so much debt. And older, no one forces you to sign on the dotted line of your child's student debt. But parents and students are really treated in a fair decision-making?

Here's a look at why parents and students, usually rational people, intelligent as they often fall into the trap of student loan debt.

Because colleges don’t make it easy for you to choose based on cost

The truth is harder than you do not know what I personally have to pay the university to which they have been entered and passed through the funding process.

And you can not count on the idea that in a prestigious Ivy League school will cost more than a community college at that time. Stanford, Harvard, Dartmouth and all regularly waive tuition only for families making $ 60,000 per year (at Harvard) to $ 100,000 per year (at Stanford).

Community college, but you can not get state subsidies as much as you would with a private school, even though the sticker price of membership is less. According to the College Board, average college game bonuses only $ 3,600 compared to $ 9,600 in private institutions. You could wind up paying much more than a local community college would be at Harvard or Stanford, where financial support for the chips are down.

Because parents and students can not compare the price before getting emotionally invested in a school, it is difficult to make clear decisions based primarily on price.

Because you’re encouraged to ignore the finances

In our culture, education is always promoted as a punishment, regardless of cost, the important thing is to get into a good school. The counselors tell students that the finances will be resolved. The parents approve the registration if students are entering a prestigious school. Often students are optimistic about their prospects, and not realistic. Of course, the cost of the same degree programs at the same school, regardless of job prospects dissociate reward students and parents consider the cost.

Because you’re asked to make a major financial decision—with zero experience

High school students are seldom given exhaustive classroom guidance in financial decision-making. It’s a bit unfair that, with zero experience paying off a loan of any kind or making any kind of financial decision larger than whether to buy the stylish sneakers with their babysitting money, students are asked to make debt decisions that will affect them for plenty of years after college. Some students get more help from their parents than others—and plenty of parents don’t do to shield students from massive debt lots.

Because financial aid officers won’t give you the bad news

College admissions and financial aid counselors are often highly unwilling to give students the bad news—or even report in relatable terms exactly how the loans will affect the student three times he or he's graduated. plenty of universities don’t ask the difficult questions about whether students and their families can actually afford the kinds of debts they’re signing up for—or advise students to look in to a more affordable school when it’s clear they can’t.

Sure, you could choose not to go to college. But in our culture, that’s usually not a call that people approve of. Students are facing disapproval from their parents, and parents are facing disapproval from their peers, if they don’t send a student to college. and without a college degree, candidates are shut out of plenty of career paths before they even start—even if a degree isn’t technically needed to do the job itself.

Because college isn’t optional

It’s elementary to assume that a degree from a prestigious school will get you a job that will make your student loans affordable. But this isn’t always the case—and plenty of students get hit with a harsh reality check after college. Still, with student loans so often in the news, hopefully tomorrow’s parents and students will demand more answers about their financial aid packages and possibilities—and collect the knowledge to make better financial decisions in the future.