Lenders Get Burned Betting on Ivy Leaguers
. . . at the elite universities some students are making good.
More below the fold!
The outcome here is predictable, and it makes the student loan problem much clearer. The students in the elite universities are able to obtain lower interest rate loans, and then with their higher earnings potential they are paying these loans back much more quickly than the bulk of students.
I have previously written about a friend who paid off approximately $200,000 in student loans here:
Higher education is not always worth it . . .
This is a great story of success, but it is not the story most people with student loans tell. This actually makes the general story even worse. The people most hurt by the student loan debacle are the very people who cannot afford to take the financial hit. The people most helped are the ones who can.
The real problem in higher education is the massive inflation of administrators in these institutions, and the massive building boom which is driven by the need to create fabulous facilities to continue to attract new students. These two things have caused the costs of tuition to skyrocket since the early 1980s.
I intend to write more about his issue soon.
Good for the elite students for finding a way to make the student loan racket work for them, now let's find a way to lower tuition rates, and make the higher education system work better for everyone.