Ask Terry Questions Student loan debt (Column response)

Student loan debt (Column response)

By Terry Savage on July 16, 2019 | Wild Card

The mean debt for student loans, using the values published in your column, is $40,000. That’s about the price of a new car, and an automobile loan has a much higher interest rate. Isn’t the student loan “problem” just whining from folks who think things should be given to them, combined with universities raising their prices to the max the feds will allow on student loans?

Terry Says

I’ve received so many comments on my Student Loan Debt column that I decided to post a few of your responses.   In this case, I’ll have to disagree.  It’s not the initial cost of the purchase of an education vs a car — it’s the fact that interest rates are so high and the repayment is structured over such a long time that makes them a burden. Plus, you know the car is going to depreciate — but your education should add value over time!



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