Students see loans as ‘easy money’

Community college students see student “loans as an easy source of money,” says Pat Hurley, a financial aid officer at Glendale Community College in California. Tuition is relatively low: Students are borrowing almost entirely to pay for living expenses.

Nationwide, community college students are more likely to borrow and default on their loans than in the past.

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  1. We do get that at my school. We also get people in incredibly difficult situations who really want to get out and are doing their best, but we also get the borrowers. Typically they will drop classes and keep the $$. A couple of years ago the school had to institute a rule that students have to have a goal on paper and show progress toward that goal in order to keep attending.

  2. Yep, happens here too. The plan is to walk away, just like they did on the houses they couldn’t afford a few years ago when the cost of the house mortgage in the first few years, before the balloon went up, was less than the rent on a comparable apartment.

  3. I’ve heard of students using their loan money to buy new gadgets or whatever. I’ve had students using far nicer cell phones and music players than I had complain that they “couldn’t afford” the $15 lab manual for one of our classes.

    I was also once aghast at a student who kept taking out loans, with no plan to ever pay them back – she spoke proudly of that, and said, “What are they going to do? Come and get me?”

    Of course, those loans are largely taxpayer money. But in the entitlement-minded, they never think of that or don’t care.

    • Michael E. Lopez says:

      Well, they will “come and get her”, but not quite the way she thinks.

      Those loans are non-dischargable, if I recall correctly.

  4. Student Loan debt cannot be discharged, even in a bankruptcy proceeding, thus it will follow them for the rest of their lives and have consequences on future employment, getting or keeping a security clearance, getting a loan for a car or a house.

    Walking away from a student loan and having NO plan to pay it back is a disaster (sounds like these students should listen to Dave Ramsey).