Students at ISU unaware of cost of learning

[CyFan61]

Nobody would go to college if they knew how overpriced it was. The last things colleges want is higher financial literacy among young people.

That's an oversimplification. College grads make 84% more than those without college degrees over the course of a lifetime.

A college education is an investment in yourself. I agree that its ballooning price is bad over the long term, and it is overpriced. But people still go and for good reason.

[Buster28]

I'm stuck somewhere between "how can they NOT know" and "somehow I'm not surprised"

Yup. The cluelessness is amusing and appalling at the same time.

[Clone5]

That's an oversimplification. College grads make 84% more than those without college degrees over the course of a lifetime.

A college education is an investment in yourself. I agree that its ballooning price is bad over the long term, and it is overpriced. But people still go and for good reason.

I agree that most go for good reasons but a lot of people go to college because everybody else is and never consider the alternatives. A lot of those alternative careers that don't require any college education would put them in a much more stable financial situation than going to college.

[Agkistrodon]

I always wondered how people could not know they had to pay back their loans. Then, as I was finishing up my undergrad degree at CSU about 4 years ago, one of my coworkers showed up at work one day (a 19-year old) waving around her financial aid letter that she got from a local community college. Judging by the comments she was making, I had the impression she thought college loans were equivalent to scholarships. I said something like, "So you know you have to pay those back, right?"

Turns out she thought that subsidized loans were just free money that she didn't think she would ever have to pay back.

[IcSyU]

I'm shocked the numbers aren't higher. The number of college students who actually understand how student loans work has to be in the single digits percentage wise. A buddy of mine took out $30,000 of loans and can't figure out why he has to pay back over $40,000. Apparently the concept of interest is a foreign term.

[LindenCy]

If you don't know you have to pay back college loans, you shouldn't have a college degree. Embarrasing.

[VeloClone]

As a high school business teacher, I absolutely agree with both of these points. To add to it, I think a lot of parents need to have the converstaion with their kids about paying for college and where that money is going to come from. I cant even begin to tell you about the discussions we have in class about who is paying for college. We do a lot of budgets and researching college prices, loans, interest rates, so that hopefully the kids that walk out of my class at least have some sort of idea of not only how much money they will be spending, but also where that money is going to come from.

There is no excuse for parents not educating their children about this. Our education system is supposed to supplement not replace learning about life at home. Neither of my parents had a chance at a college education, but they made sure that we all learned a lot about money management and the reality of our economy. There are a lot of highly educated parents that are doing a lot less for their kids.

[huntt26]

The same is true everywhere. I work in Higher Ed and it's amazing how oblivious people are when taking out loans. Student loans are a big deal!

[isufan]

Parents are the problem with kids these days, not the education system that everyone tries to blame it on.

[WhatchaGonnaDo]

I weep for my generation.

That is all.

[KnappShack]

There needs to be a lot more education in high schools about this issue. Colleges should start requiring at least two years of financial literacy classes.

You don't have to look long at this very site to realize financial illiteracy is a real thing.

Teach it as 'Financial Self Defense' to jazz it up if needed.

[IcSyU]

Parents are the problem with kids these days, not the education system that everyone tries to blame it on.

Both things are the problem. I would love to see Iowa State require financial literacy courses for all students before you're allowed to take upper level classes (unless in special circumstances). HD FS 183 and 283 would be a hell of a lot more beneficial than the waste of time library 160 was.

[cy1010]

Here is a pretty interesting take by Mark Cuban that was posted on a financial investment website that I use quite frequently. The long and short of it is that student loans are too easy to obtain, which is creating a massive bubble sure to burst.

The Coming Meltdown In College Education - Seeking Alpha

[benjay]

I'm shocked the numbers aren't higher. The number of college students who actually understand how student loans work has to be in the single digits percentage wise. A buddy of mine took out $30,000 of loans and can't figure out why he has to pay back over $40,000. Apparently the concept of interest is a foreign term.

The loan process is so smooth and easy I doubt many 18 year old kids are paying much attention. Then with deferred payments, a student does not have to think about it at all except twice a year. Out of sight, out of mind.

Those of you throwing stones probably have parents to thank for your attention to detail regarding your college loans. (that, or your parents paid for your schooling altogether and you have no experience in the matter)

[VeloClone]

The loan process is so smooth and easy I doubt many 18 year old kids are paying much attention. Then with deferred payments, a student does not have to think about it at all except twice a year. Out of sight, out of mind.

Those of you throwing stones probably have parents to thank for your attention to detail regarding your college loans. (that, or your parents paid for your schooling altogether and you have no experience in the matter)

Yes, that is why I was throwing stones at irresponsible parents.