Would you sell your home, put off retirement or dip into your 401(k) to buy a Lamborghini or Hermes handbag for your teenager? Didn't think so. Then why do so many status-minded parents insist on buying their kids a "designer" education at an expensive private university? Plenty of accredited public schools offer a better value and a solid education.
A recent UCLA study said two out of three freshmen had "some" or "major" concerns about how they'll pay for college. In no way are public university students immune. Consider the recent case of the 35-year-old Illinois State University graduate student whose family said he killed himself because he couldn't pay $100,000 in student loans.
Consumer protections for those taking out loans have been watered down in the last decade, and big lenders like Sallie Mae made things more difficult by persuading Congress to remove bankruptcy protection from private loans.