Student Loan Debt Cycle: Breaking Free from Its Grasp

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4 Responses

  1. jumpstartfromscratch says:

    Interesting post. Something has to give eventually.
    A forth guilty party is missing from your description of the cycle. It is no longer only banks lending all of the money. A large portion of the loans are now straight from the federal government. When/if a crash happens, it will be the government losing billions of dollars, and the money is now in the hands of universities, their employees, and the contractors that built all the glorious campuses.

    • Chris says:

      You’re right. And the government is essentially us – taxpayers. Something has to happen you would think.
      I still think the onus is on the borrowers to educate themselves on the ramifications of their decisions though. And hopefully we can continue to spread good financial info to help those in entering that phase of life.
      Thanks for the comment.

      • jumpstartfromscratch says:

        There are at least 4 different groups.
        My family is in the responsible group trying to pay cash and avoid borrowing.
        A second group will borrow lots, and pay their debts, but have a serious burden for 10+ years.
        A third group will borrow lots, and work government loan forgiveness programs that reward borrowing lots, repaying little, and low earnings.
        A fourth group will borrow lots, and then default.
        The bad news is I pay for group 1, and pay taxes to support groups 3 and 4.

      • Chris says:

        Unfortunately I know people on groups 2 and 3, and while we were in group 1, that seems by far to be the exception to the rule. Most don’t realize you can go to college without borrowing. 😀

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