Study Shows Student Loan Borrower Igorance
https://news.ycombinator.com/item?id=11022310While only 477 undergrads were interviewed (at 3 universities in the Bay Area), the stats leave little mystery as to why Student Loans have spiraled.
Highlights:
- 72.95% thought Sallie Mae was a person, not a company
- 92.87% do not know the difference between subsidized and unsubsidized loans
- 97.90% do not know which loans accumulate interest in-school or during deferment
- 71.07% do not know the basic risks of a cosigner
- 75.89% with private student loans do not know the major differences between private and federal student loans
- 7.90% know their current interest rates
- 6.10% know their repayment terms
- 58.90% thought the total amount of outstanding student loan debt was in the millions (not billions or trillions)
- 96.02% did not know that student loan refinancing was an option after graduation
---
Source: https://lendedu.com/blog/January-student-loan-survey