I long for the day when the
Student Loan Bubble Update
is good news.
Let’s lead with the surprise:
According to the survey of 500 college students by LendEDU, a private firm that connects students and their families with student loans and loan refinancing, almost half of those responded that they believe they would be able to receive federal loan forgiveness on their student loans after graduation.
Are you kidding me? Why apply for a scholarship if the “loans” are free?
Basic economics should be taught in middle school. And this is a survey of college students.
It does explain things, like my clients borrowing 100,000 or 200,000 dollars for a degree or two.
If you do not think you have to repay the loan, who cares how much you borrow?
One more gem from the survey:
- What is the current interest rate on new undergraduate federal subsidized and unsubsidized student loans?
80% of college students could not identify the current interest rates on undergraduate federal subsidized and unsubsidized student loans.
Hey, why would there be interest, if it ain’t a loan to begin with?
What Happens When The Student Finds Out
Student Loans Have To Be Repaid?
Like I say, the ones making student loan payments are living in their parents’ basement.
Brad Tuttle in Time writes about millennials still being, at least partially, supported by their parents.
According to a new analysis done for the /react-text New York Times 40% of people in their early 20s get financial help from their parents to cover living expenses like rent—and the average payout is around $3,000 per year.
This study says the kids think the parents should keep shelling out until they are 27.
I guess I sound like an old fart, but my father had 3 kids of his own at 27.
You are an adult at 18, and you need another 50% of your life, 9 more years, before you are weaned?
No surprise here:
Some millennials are more likely to get help than others: 53% of young people who studied art and design reportedly receive financial assistance from their parents, to the tune of $3,600 a year, on average. By contrast, 30% of millennials in the military or blue-collar job fields have been getting help with the rent from their parents, and they receive $1,400 per year.
Of course, the blue collar and military do not have to deal with the student loan bubble.
But they are paying the taxes that finance student loans.
Think about it. At 18 or 19, you set out on your own, and part of your reward is to subsidize art students who want to freeload until they are 27?