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Suckered: How Colleges Suck in Students on College Loans

Written by Gary North on September 17, 2012

The old line, “never ask a barber if you need a haircut,” needs an update: “Never ask a college career counselor if it’s wise to take out a loan.” The answer in both cases is “yes.”

One student borrowed $150,000. His excuse: “I did not fully understand the extent of what I was getting myself into,” one former student, who took out $150,000 in loans, told the researchers. “All I knew was in order to pay tuition, I would need to take out private and federal loans. I was also repeatedly told by several people that I would easily be able to pay off the amount, even though it seemed pretty steep. When I graduated and fully did the math, I knew I was in trouble.”

I would call this student a victim of a poor high school education. I would also call him a victim of the college.  “According to the survey, 80 percent of borrowers either learned about their loan options from a college counselor or website. These schools are already providing information. They may just need to provide better information.” On the contrary, they are providing excellent education: for the college.

Parents say nothing., High school counselors say nothing. College counselors offer help: lots of debt to pay high tuition to the college.

The students should look out for themselves, but they don’t.

“Gee, why didn’t someone tell me?” Because they refused to ask.

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3 thoughts on “Suckered: How Colleges Suck in Students on College Loans

  1. Everybody's just going to switch to income-based repayment.

    Which means the taxpayers will get stuck with the bill for nearly all of the outstanding balances.

  2. The universities, banks and government are all in the high education racket together. This also proves that everyone suckered into crushing debt by a college counselor is not just a deadbeat who wants to get out of paying back his loan, but is being misled by these institutions. These predators don't care if every one of these students becomes a debt slave for life. Some preparation for the real world.

  3. Texas Chris says:

    The slavery continues. It used to be chains and whips… But that was too bloody and violent. Slaves could run away.

    Then it was credit cards… But the limits were too low and the lesson learned too early. People learned to be frugal.

    Now it is student loans, unforgivable in bankruptcy, the victim trapped early, before they know any better, and given little hope of ever digging out of the debt pit.