In this video, finance expert, Suzie Orman blows the lid off student loans. Parents and students are placing their financial futures at risk when they take out a loan to pay for school. Let’s rethink our post secondary educational decisions. Bigger is not always better.
In most educational disciplines, all the training is the same. I went to a smaller college (City University of New York – York College) to study accounting. When I completed my education there, I met accounting peers who had gone to more prominent schools and I found out that we all learned the same thing. Accounting is accounting whether it’s taught in New York City or Kalamazoo, MI. The experiences of education may be different, but the information is all the same. Watch the short video below and be inspired to make the right choice:
Shortly after the housing bubble burst a few years ago, many financial experts predicted that the bursting of student loans bubble would be the next financial storm America would face. Many colleges have severe financial struggles due to enrollment numbers plummeting, debt increasing, while endowment is relatively high. The National Center of Education Statistics enrollment at public universities, which are usually less expensive than private schools, increased at a higher rate than private universities from 2000 – 2014. That means more people are enrolling in public universities rather than private.
The banks are capitalizing on our bad choices and these bad choices now can be disruptive in the future. Student loan debt throws of your debt to income ratios. When you are seeking to obtain an asset that you need financing for, that ratio and others will come into play. Let’s rethink some things.