US Students Often Clueless About Personal College Loan Debt
Published at
iStock/Thinkstock(WASHINGTON) — Getting a college education is a good thing. Getting socked with crushing loan debt is not.
Yet, for millions of people, the only way to go to college is by taking out loans, some of which take years, if not decades, to pay back. That is, if the debt is ever actually settled.
The Brown Center on Education Policy at Brookings took a survey recently of what college students know about the federal loans they’re taking out, specifically, the debt they’ve incurred.
The results explain why the problem is bigger than anyone imagined: about half believe they owe less than they really do while under a third can estimate what is owed within a few thousand dollars.
On the other hand, about one in four students say they owe more money than they really do.
According to study co-author Elizabeth Akers, students have a difficult time conceptualizing large dollar amounts because they’re not involved in family budgeting and financing.
Last year, the Institute for College Access and Success estimated the average student loan debt in the U.S. was close to $30,000.
Follow @ABCNewsRadio
Copyright © 2015, ABC Radio. All rights reserved.