debt

Written by Lisa R. Pruitt This story, "Placing the Blame as Students are Buried in Debt," caught my attention when it appeared in the New York Times in May.   The report features Cortney Munna, a 26-year-old NYU grad who is buried under $100,000 of student debt.  Journalist Ron Lieber tells us that Ms. Munna would "struggle" to make her student loan payments if she had to, but she's been deferring them since her 2005 graduation, in part by taking night classes.  Lieber writes: "This is not a long-term solution, because the interest on the loans continues to pile up. So in an eerie echo of the mortgage crisis, tens of thousands of people like Ms. Munna are facing a reckoning. They and their families made borrowing decisions based more on emotion than reason, much as subprime borrowers assumed the value of their houses would always go up." This story, which also appears under the headline, "Another Debt Crisis is Looming, This One in Student Loans," discusses the range of stakeholders who could be blamed for the situation in which Ms. Munna and many others find themselves:  the universities, the parents, and--of course--the lenders.  At one point Lieber suggests a "shared failure of parenting and underwriting."  He continues: "How could her mother have let her run up that debt, and why didn’t she try to make her daughter transfer to, say, the best school in the much cheaper state university system in New York? 'All I could see was college, and a good college and how proud I was of her,' [her mother] said. 'All we needed to do was get this education and get the good job. This is the thing that eats away at me, the naïveté on my part.'”