Monday, June 7, 2010

A New York Times profile last week described Courtney Munna, a 26-year-old graduate of New York University with nearly $100,000 in student loan debt — debt that her degree in Religious and Women’s Studies did not equip her to repay. Payments on the debt are about $700 per month, equivalent to a respectable house payment, and a major bite on her monthly income of $2,300 as a photographer’s assistant earning an hourly wage.

Glenn Reynolds: Higher education’s bubble is about to burst | Washington Examiner

There should be some kind of open disclosure whenever anyone is trying to get education loans. The sad thing is that if you were to show them a simple summary sheet that says “this is what you are paying for this semester, and this is how much you will end up paying if you make the monthly payments” they still would not be able to grasp that on graduation somebody with a bachelors degree in basket weaving studies may have some trouble scoring a job that will bear the brunt of a $100,000 loan amortized over 30 years.