Known what? Well, perhaps that those student loans were not such a good idea, that's what.
They could have used their prodigious interweb skills to research the ROI on the desired degree and make it a cut and dry financial decision. Let's pause for a working definition of financial, as clearly these debtors and soon-to-be debtors likely have no clue: pertaining to monetary receipts and expenditures; pertaining or relating to money matters; pecuniary. Yep. It's all about the money. And this has become increasingly and painfully important. A recent article (originally Fortune) posits
"The government is poised to take a bath on its student loan portfolio over the long term, even as that portfolio expands in size every year as the higher education system sucks up more federal funding."
And this is because the ignorant were allowed, nay encouraged, to take out very ill-advised loans.
"What we’ve considered to be economic prosperity of the last 10 years, prior to the pandemic, was in fact economically punishing to younger cohorts forced through the wringer of increasingly costly higher education and into a labor market characterized by stagnant wages and deteriorating job ladders."
Then consider that in the before times borrowers were having trouble repaying loans. What is hard to imagine is parents suffering the burden of loan debt not recognizing their mistake and instead encouraging their children to go down the same path.
And we know this how?
Well, that darned interweb again. There is a rather interesting site with data on Student Loan Debt by age group. Turns out folks in their 30's and 40's (the latter most like of the newest debtors) are carrying an average of $40.5K in debt. To be fair, those in their forties represent less than half of the total debt held by those in their thirties and half of that held by those in their twenties, indicating that this debt has gone from being a useful tool for some to an addiction for many, many more. Simple math: there are well over two times as many debtors in the 30-39 age bracket as in the 40-49 as the average debt is virtually identical. For the 20 year olds it is even worse as their average debt is one half of the forty-somethings so there are four times as many debtors in this age group, hence the pandering to that voting demographic.
As a parent you might want to encourage your budding debtor to research salaries based on college major, and make sure they look not just at the widely touted highest paying but at those majors they are most interested in or most likely to acquire. They might start by searching for lowest-paying majors. Acquire a real idea of what you are getting into. Look at the monthly cost of piling on $40K of debt. Online calculators will tell you that will set you back over $225/month for 20 years. And that is if you get a 3% rate. And it took you at least 4, most likely 6 years of no income to achieve this wonderful life.
Then investigate the options, perhaps a skilled trade. Look into starting and average pay. Check out the cost of preparing yourself to be an electrician, plumber, welder, HVAC technician, auto technician, project manager, etc. You may be surprised at the economic viability of what seems to have become an alternative career.
Unfortunately this would require that someone considered to be smart enough for college be smart enough to determine, for themselves, whether or not college is right for them.
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