Minnesota AG Wants More Transparency in Student Loans
If college students truly understood the enormity of the debt they were taking on, many of them wouldn’t take student loans.
Ashley Dobson of Red Alert Politics reports.
Minnesota Attorney General fights for more transparency in student loans
College tuition costs have skyrocketed over the past decade, leaving students with tens of thousands in student loan debt and not many options. $20,000 in debt, $30,000 in debt, $60,000 in debt — this is a story repeated over and over.
Well, Minnesota Attorney General Lori Swanson has had enough.
She is calling for changes to be made in the student loan process in her state that she hopes will reduce the number of outsized loans graduates can’t pay back.
Swanson said that her staff has searched for answers about student loans to no avail. She wondered, if the attorney general can’t get answers, how can a 20-year-old?
Swanson wants the State Legislature to pass two bills, NBC affiliate KARE reported.
One would require private lenders to be more transparent about the true terms and costs of their loans, including any future jumps in interest rates and re-payment costs.
The second bill would require for profit colleges to be upfront about the value of the degree. This would include the “transferability of credits earned and accurate information about the percentage of graduates who obtain the desired employment,” KARE reported.
Minnesota Attorney General fights for more transparency in student loans (Red Alert Politics)
Comments
I’m not so certain that is true. From my perspective, most college students have a very distorted view of their future earning potential vs their future cost of living. Further, most college age students’ brains have not fully transistioned from relying on the amygdala to relying on the frontal lobes for weighing the risks and rewards of behavior, they may well consciously understand the risks and costs but may be unable to fully appreciate what those risks and costs mean to them personally. This is the very same reason why drunk driving and binge drinking and sexual experimentation/promiscuity predominate in that age group as well. Emotion and the need for instant gratification has not yet yeilded the floor to logic and the ability to fully weigh the risks vs the rewards in a mature detached fashion.