Slate News Slate Money | Money Talks: The Student Loan Paradox
Apr 15, 2025
Jillian Berman, Assistant Managing Editor at MarketWatch and author of 'Sunk Cost', explores the complexities of student loans and the challenges they pose. She delves into the impact of COVID-19 on repayment policies and how borrowers are navigating these changes. Berman critiques the evolving federal loan policies and highlights the shortcomings of for-profit colleges. The conversation also touches on the historical context of student loans, the disconnect between college promises and financial burdens, and what elite institutions mean for graduates in today's job market.
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Student Loan Debt Not a Choice
- Student loan debt is often not a choice, especially for those from lower socioeconomic backgrounds.
- They receive the message that college is the only path to success, regardless of affordability.
Predatory Marketing by For-Profit Colleges
- Some borrowers are steered towards for-profit colleges through aggressive marketing tactics.
- These schools often don't deliver on their promises, leaving students with debt and no useful degree.
Veterans Targeted by For-Profit Colleges
- Veterans have historically been targeted by for-profit colleges due to loopholes in funding regulations.
- These colleges often overcharge veterans, leading them to take on unnecessary student loan debt.