On this episode, we talk to Adam Carroll who created the documentary about the current student loan debt crisis called Broke, Busted and Disgusted.

We get a lot of questions about student loan debt but we didn’t understand just how dire the state of things was until we spoke to Adam.  It’s so much worse than you can imagine.  When BB&D is released it will be a wake-up call for a lot of people.

For many people starting college, they have no idea what it means to take out massive amounts of student loans.  This is especially true for first-generation college kids.  Some of them are leaving school with $70, $80, $120,000 of debt.

So, why is college so expensive now?  Federal funding for education has been cut. Bankruptcy laws were changed in the early 2000s to exclude student loans from being discharged in nearly all circumstances.

That was carte blanche for the lenders.  There was nearly no way they would lose money and they opened their coffers accordingly.  There is now $1.2 trillion in outstanding student loan debt.

 What can you do to avoid the crushing debt?  You don’t have to go to the most expensive college that will have you.  Take some classes at a local community college.  Not only are the classes cheaper but you can live at home to save on living expenses as well.

Get as many grants and scholarships as you can.  Choose your major carefully.  Make sure that your degree is in a field that is in demand and that your salary will be enough to live on and pay back your loans.

A college education is still a good investment for most people but we have to redefine what college means.

Show Notes

Broke, Busted and Disgusted (Documentary): A pro-education documentary exploring traditional and alternative higher education institutions, and the rising costs of getting a degree.

Winning The Money Game: A Rule Book to Achieving Financial Success for Young People (Book): The book by Adam Carroll which is a guide to being debt free and gain financial freedom.

Inequality For All (Documentary): One of the best ways to help people understand the challenges we face, is with a movie that can grab an audience and move them to action. And this movie will do exactly that. — Robert Reich

Is College Worth It? (Book): A Former United States Secretary of Education and a Liberal Arts Graduate Expose the Broken Promise of Higher Education.

Debt Reduction Snowball Calculator via Vertex42.com: A site for excel spreadsheet nerds. Debt elimination spreadsheet.

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