How does this happen? According to the NYT, a young woman named Kelsey Griffith is graduating from college and will have $120,000 in student loans. She’s only 23 and it will take her forever to pay this off.
This should not happen IMO. No one should lend this much money to a 23 year old kid. They have no idea what they are getting themselves into.
I’m not against student loans. I took something like $10-20k in loans. I don’t remember how much is was, but it took a long time to pay off. But that seems like a reasonable limit. It’s about what a new car loan would be. A decent job should be able to cover that much debt, but it will not support $120k in loans.
It should not be allowed to happen. It’s like a form of predatory lending, if you ask me.
In DC, they’re arguing about the interest rates on new student loans. It’s like they’re arguing about how many deck chairs the Titanic needs. They should start by capping student loans at $5k per year. I bet you would see colleges adjust pretty quickly if the student loan gravy train stopped inflating tuition costs.