Then I think a first step should be changing those rules. Somehow they remind me too much of the income-stated loans for houses…How about documenting all that?
I understand even if family helps them it may not be enough, but, then loan amount should be correspondingly less. I guess it is impossible to know how much the familly helps.
But anyhow loans for living expenses should really cover bare minimum – like for housing an average rent in student housing or half the rent (you get 1 roommate) of a 1 bdr place close to univ; for food – just the equivalent of 2 meal a day at the cafeteria. A small transportation allowance if not living on campus. Really, if he needs more, then the student can take odd jobs or tutoring. or help from family.
Actually the first thing the high-school students should be taught is the compound interest calculation and how much debt they would acquire in college and how long it takes to pay it off, and how long it takes to save for retirement (I know, who think about that at 18?) – so they are not completely duped and avoid college loans like the plague they are.
