College Debt Bubble Teaches Regret
College isn’t the real world, it’s the final playhouse. The multi-year experience away from parents is a time for learning and making the usual mistakes that come with growing up, but recent graduates are regretting their participation in the student debt bubble.
With student loans being handed out like candy, borrowers across the nation are struggling with their decision to fund college through debt. The majority of borrowers did not expect to have such a difficult time paying back student loans, and 60 percent have at least some regret, according to a new survey from the American Institute of CPAs. Only 39 percent said they fully understood the consequences of taking on student loans.
“As the pomp of graduation fades, many college graduates become keenly aware of their financial circumstance: ‘In debt,’ ” said Ernie Almonte, CPA, CGMA, chair of the AICPA’s National CPA Financial Literacy Commission. “They start out with an anchor that slows their progression toward future goals. It’s a difficult reality confronting a growing number of people, one that will come into sharp focus in the coming weeks as the nation’s colleges and universities produce a new crop of graduates.”