PROVIDED BY CNNNEXT.COM
ublished on Feb 6, 2016
A new study has revealed that when many young people are about to enter college they do not understand much, if anything, about the student loans they are signing up for.
They do not fully grasp the consequences of taking on that much debt and how long it will take to pay off.
Cenk Uygur and Ana Kasparian hosts of The Young Turks discuss.
“Handing an 18-year-old a loan for tens of thousands of dollars to get a college degree comes with many risks.
One is that the borrower may not understand anything about the contract being signed.
A new study suggests that young people with education debt don't know the most basic facts about their loans.
The survey, conducted in January by Lendedu, a company that provides information about loan refinancing options, adds to a growing body of research into the widespread ignorance among young people about debt that could follow them to their graves.
When Lendedu talked to 477 undergraduate and graduate students at three Bay Area campuses, it found that just 6 percent of them knew how long they would be repaying the debt.
Only 8 percent knew the interest rate on their loan.
(That could explain why loan collectors, such as Nelnet, need to broadcast on Twitter that federal loan interest rates are set by the government.)”
