1. Beginning adulthood without debt is worth far more than a designer diploma.
The authors’ No. 1 rule for parents: Don’t let your child go into debt for college. In 2010, almost two thirds of undergraduates borrowed money, and student-loan debt outpaced credit card debt for the first time. The College Board likes to say that a typical senior graduates with “only” $24,000 in debt, but with interest, collection charges, and penalties for postponed payments, the amounts owed can exceed $100,000. If you ever default on a federal student loan (and the rate of defaults is rising), you’ll be hounded for life. Lenders can garnish your wages, intercept your tax refunds, and have your professional license revoked. You can’t work for the government or collect your social security. “People have been sold this propaganda: ‘The rates are so low; just get a loan,’ ” Dreifus says. “The long-term effect is to cripple your children.”
Well said. I’m glad this author finally acknowledged this “fresh-out-of-the-gate-deep-in-debt” phenomenon publicly. I’ve been saying this for years and have been looked on like I’m some kind of a “substandard” parent :=(
