Thinking of borrowing for college? Don't do it: It's far too risky, far too expensive and, in many cases, a waste of money.
These are strong, unexpected words coming from a college professor and economist. To be clear, I'm not saying anyone should give up>Parent PLUS loans are burying families in college debt
Outstanding student loans now total $1.7 trillion — larger than credit card debt. Some $100 billion constitutes borrowing by parents>How to attend college and not go into excessive debt
It's more than possible to get a college degree without directly or indirectly borrowing potentially crazy large amounts at crazy high rates.
There are thousands of colleges and universities. Find>Do your research
If you're from a low- or middle-income family, colleges with high prices may end up being cheap because the net price they would charge you is very low. It's important to comparison shop to understand each school's net price.
Parents need to take steps early to limit at least the specific assets, if not the income, that will raise their children's net college price given what enters the government's needs-based formula.
And applicants must for their own research-based rankings of the departments of interest in the schools to which they apply. National rankings lists are popularity polls; they aren't serious comparisons of research excellent — which, in the end, is the basis of outstanding teaching.
As for Uncle Sam…
It's time for Uncle Sam to stop exploiting America's youth for trying to get a higher education.
I believe that students should be allowed to borrow on the same terms as Sam lends long-term (i.e., at the 30-year Treasury bond rate). And student loans should be treated the same as other I.O.U.s when it comes to refinance and discharge through bankruptcy.
Yes, this will mean lower proceeds from bleeding students dry. But Uncle Sam can content himself with helping destroy our children's climate and leaving them official and unofficial fiscal obligations far beyond their capacity to pay.
That's surely sufficient malfeasance and malevolence for any good uncle.
