A recent report by NBC News has cited that student loans, which are backed by the U.S. government, are crushing many families. An example comes via Aurora Almendral, who entered New York University in 1998. At that time and after earning scholarships and grants, Almendral still could not afford to attend NYU. Therefore, her mother applied for a federal loan in order to help her daughter go to college. For the first two years, Almendral's mother collected $17,000 in total loans. Now, after a dozen years of it happening, she still can't manage to pay the debt because of the weak economy. She owes over $33,000 in debt and her daughter eventually dropped out of NYU but still graduated from a far less expensive institution: Hunter College.
What's your take on all of this? Should lenders and/or the government provide a more in depth analysis as to whom should be approved for federal loans?
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