Students borrow for living costs

“Some Americans caught in the weak job market are lining up for federal student aid, not for education that boosts their employment prospects but for the chance to take out low-cost loans,” reports Josh Mitchell of the Wall Street Journal. They use the loans to pay living costs or to avoid paying back previous student loans.  An unemployed retail clerk with an unmarketable bachelor’s in communications has gone deeper into debt to take theater classes. He hopes to find work as an actor. Meanwhile, it pays his bills. 

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  1. Yep, I had a friend back in the 1980s who used student loan money to spend a student-style summer in Europe on the proceeds of his medical school loans. He paid the loans back, though, so I guess no harm was done.