Student Debt - Who is to Blame?

478790_loan_applicationCollege Board® recently found in a recent study that the average student debt from a private school for bachelor’s degree was around $22,380.

In another study, according to the research and advocacy organization Project on Student Debt, in Oakland, California, 10 percent of 2007 and 2008 graduates had accumulated over $40,000 worth of student loan debt. They gathered this data per calculated Federal statistics.

While the students are burdened with the debt, in my opinion, the responsibility also falls upon the financial loan providers and the colleges who connect the students with their loan sharks.

In reality though, prestigious universities are not likely to discourage student loans to afford their hefty tuition rates.

“I think that would be completely inappropriate,” said Randall Deike, the Vice President of Enrollment Management for New York University, “some families will do whatever it takes for their son or daughter to be not just at NYU, but any first-choice college. I’m not sure that’s always the best decision, but it’s one that they really have to make themselves.”

I do see the college’s point, namely that the institutions are not always aware of how much debt their students are acquiring, making it more difficult to offer good financial counseling services and support.

So the continued debate of “how much debt is too much?” and “what is a reasonable investment in a student’s future?” continues on.

One thing is for certain though: It is imperative, now more than ever, that students, lenders and the university are aware of all the facts and figures of tuition costs before a student enrolls in that school.

Via Yahoo! Finance

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4 Responses to “Student Debt – Who is to Blame?”

  1. Damien Chadwick says:

    Debt negotiation seems to be increasing as a realistic solution for individuals stuck with credit card debt. Over the past year I have been oberserving the debt settlement quite closely and it is very difficult to to define what you receive for the money. I am personally aware there are some service providers in today’s market that offer superb services and the clients honestly receive great benefit, but I also know there are a group of debt comnpanies on the web that are focused on collecting customer payments and signing up new members. No doubt this is why we see new fed regulation covering the debt consolidation industry. My cousin worked with a debt consolidation service provider and was very very very happy with the overall outcome.


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