[DocTomoe]

I vehemently disagree that this is an information asymmetry issue. That woman has been to a private university for some time when she signed that 9.5% loan contract. She must have had basic calculus in elementary school and calculating with fractions a few years later. Even her working-class father realized this was a bad idea.

[marpstar]

A relative of mine is currently attending university who decided to blow a $50k college fund on TWO years of a four-year degree. I didn't even pay that much for four years (this was 10 years ago). A lot of the younger generation don't care because they don't have to pay anything now, so they'd rather go to a school they can brag to their friends about.

[ac29]

That isn't that expensive: $10k/year for tuition and books, $15k/year for housing/food/life expenses. Now if its actually $25k/year just for tuition, that's pretty expensive.

[mitchdoogle]

if you're going to a school worth bragging about (read: Ivy League) then those are actually the ones that provide pretty good financial aid to those less well off. If you don't meet the qualifications for financial aid but still find yourself unable to pay, perhaps you're parents are holding out, and/or living above their means.

[fspeech]

The high interest loan was for her last year of school. She has indicated that there was no alternative. Of course it would have been better to arrange for all financing before she started school but that would have taken some foresight. I wouldn't blame her for taking the loan in the senior year. It is not a matter of simple calculus as you said -- it is strictly worse to not take the loan and quit school at that moment.

Add: Please consider the possibility that not knowing when you start school that you may need a high interest loan as a senior in order to finish school is an example of information asymmetry.

[DocTomoe]

> She has indicated that there was no alternative.

Actually, she indicated that the alternatives were not attractive to her (especially the friendship thing is ravingly stupid).

> Of course it would have been better to arrange for all financing before she started school but that would have taken some foresight.

Yep. The ability to divide cost through four years, add a little bit for emergencies. This ain't rocket science.

Liferafts tend to cost a lot more when the flood is coming.

> Add: Please consider the possibility that not knowing when you start school that you may need a high interest loan as a senior in order to finish school is an example of information asymmetry.

I do not think anyone is served by abusing vocabulary to hide the true meaning you implied: it's stupidity and lack of planning, not information asymmetry.