The lenders who **SELL** these exorbitant loans to students, are WORKING ON COMMISSION.
The more debt they sell, the higher their earnings.
Consequently, they’ll tell the naive young student, Oh, yeah, great major! You’ll be earning $100k right out of college! No problem! You’ll pay this loan back in no time!!
Parents (like myself) often have a hard time convincing an 18 year old who is anxious to prove his “maturity” and independence— that he’s making an awful mistake.
We need legislation requiring:
1. Students under age 25 will need a cosigner, with established good credit & collateral, such as family home.
If parents are required to cosign, that would out a stop to most of this crap. Most college kids dont have established credit & should not be allowed to take on these unsecured loans, then expect a taxpayer bailout.
2. Borrowers must be INFORMED when loan officers are earning commissions.
3. Borrowers must be INFORMED of alternative options to high-dollar private colleges, such as community colleges and state universities, where the same course credits can be earned at much lower cost *per unit* or *per semester.*
If borrowers are informed, and they still choose poorly, no excuses, no bailout. Refer to #1, cosigner.