Thursday, January 21, 2016

Make Sure Your College Kids Understand Their Student Loans

Today’s fantastic family finance article is:

Clueless Loan Application

Here’s a video you definitely don’t want your college kids starring in. A few highlights:

  • What is an interest rate? “Something that you do in finance.”
  • What type of student loans do you have? Subsidized? Unsubsidized? “Ummm...not clue.”
  • Do you know what FAFSA stands for? “Federal...And...State...ahhh no.”
  • Who is Sallie Mae? “Sounds familiar. Is she hot?”
  • What is a co-signer? “I have no idea.”
  • What is the total amount of student loan debt in the US? “$2 million.” (Just a few zeros short. Try $1.2 trillion.)

Funny? Frightening? Yep. These kids might want to brush up on their answers here:

Make sure your college age kids understand their student loans, or they’ll be in for a very painful financial “education” down the road.

No comments:

Post a Comment