Every year, millions of 17- and 18-year-olds stare down the prospect of taking on thousands of dollars in debt without knowing much about it. It isn't uncommon for those same students to regret the decision as 20-somethings as they struggle to pay of the loans they took on as teens.
Personal finance expert Adam Carroll is hoping to give today's high schoolers the benefits of some of that hindsight through a film called "Broke, Busted and Disgusted."[1] (Although it could just as easily be called "The Graduates.") The movie, released last month, includes interviews with recent graduates reflecting on their debt, including one veterinarian who works a side job at Target to cover the more than $200,000 she owes in loans.
By sharing those stories, Carroll, who wrote and appears in the documentary, is hoping to inspire high-school students and their families to think through the financial consequences of college before taking on loans to attend. Carroll says in his experience, co-workers and friends rarely discuss their student debt, even though for many "it hangs over them like a dark cloud."
"College today is a business decision" Carroll said, noting that before students decide whether to attend and where to go they should think about if they're going to get a return on their investment.
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The documentary not only includes interviews with college students and recent graduates who regret their debt, it also highlights routes to employment and success that don't involve a four-year degree, such as gap years, apprenticeships and attending two years of community college before transferring to a four-year school.
Much of the film is focused on encouraging students to take personal responsibility for the debt they plan to take on. Carroll wants to screen the movie at high schools across the country in hopes it will encourage students to consider their options before taking on large loans to go to college.
While students could always use more information about their loans and the cost of college, focusing too heavily on financial literacy as a route to curbing student debt "overcomplicates the discussion," said Mark Huelsman, a senior policy analyst at Demos, a left-leaning think tank. College graduates are struggling with debt in large part because it simply costs a lot more to go to college these days, a fact of life students can't get around even if they're armed with more information, he said.
"Advocating for better financial literacy implies that students right now are making bad decisions, but as I see it the issue with student debt is almost exactly the opposite," Heulsman said. They're taking adults' advice and going to college.
Carroll's movie does include a nod to some of the structural forces that have contributed to today's college students leaving school with record debt levels. The film spends time discussing the state disinvestment in higher education that has taken place over the past several years as well as increases in spending on administrators and capital improvements. But it ultimately advocates more financial education as a key to curbing student debt.
"We have neglected to teach 18-year-olds what the impact and ramifications of having $30,000 to $100,000 in debt really are," Carroll said. "Is it their responsibility? Yes. Could we do a better job in educating them about it what it means? Yes."
For students and families who want to use the power of knowledge to avoid college debt, Carroll has a few tips:
• Try to earn as many scholarships as possible
• Load up your high school schedule with classes at a local community college so you can build college credit. Many high schools have partnerships with local colleges to make this possible.
• Consider alternatives to a four-year college.
• Attend a community college for two years and then transfer to a four-year university.
• Take a gap year to figure out what it is you really want to do before deciding to attend college.
Watch a trailer for the film below:
References
- ^ "Broke, Busted and Disgusted." (www.brokebusteddisgusted.com)
