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BUSINESS Friday 15 March 2019
A25

Why college students take on loans they can't repay

By TEDDY NYKIEL But student debt isn't good consume over 10 percent
Assocaited Press when your degree doesn't of take-home pay. By that
Students take on college lead to a job that earns standard, someone ex-
debt with the best of in- enough to repay it. pecting to earn $50,000 a
tentions. They've been told This is the case for 36-year- year could afford a month-
that a college degree is a old Jennifer Atkins of Jack- ly payment of about $279,
ticket to success. That they sonville, Florida. A first-gen- according to NerdWallet's
should pursue their dreams. eration college student, student loan affordability
That student debt is good she believed a university di- calculator . At the current
debt. ploma would help her get undergraduate federal stu-
But how do smart students ahead. dent loan interest rate of
wind up with debt they "I had the mentality back 5.05%, that payment would
can't repay? Here are three then that I was doing what I support college debt of
reasons, plus ways to avoid was supposed to do in life," about $26,000.
these financial traps. says Atkins, who earned THE LOANS DON'T FEEL REAL
THEY'RE TOLD IT'S 'GOOD three degrees, including a Some students are willing to In this May 17, 2018, file photo, new graduates line up before
DEBT' master of nonprofit man- take on large amounts of the start of the Bergen Community College commencement at
In high school, students agement in 2014. college debt because they MetLife Stadium in East Rutherford, N.J.
hear that they should earn Now, Atkins has two kids, don't connect with the re- Associated Press
a college degree to have over $100,000 in student ality that they'll eventually
a well-paying, successful loan debt and is unem- have to repay it with inter- increments throughout 10 'accept' on those student
career. ployed. She quit her job in est. This aligns with what years of higher educa- loans."
"We as a society kind of 2017 due to complications behavioral economists call tion — $3,000 here, $5,000 In hindsight, Atkins says she
have this compulsory high- with her second pregnan- "present bias," the idea there. She worked through- wishes she had had a man-
er education," says Daniel cy and hasn't found a job that people often make out school, but the loans datory career counseling
T. Kirsch, author of "Sold My lucrative enough to justify choices that benefit them were crucial to making session to walk her through
Soul for a Student Loan." paying for child care. in the short term and over- ends meet. the numbers and under-
"We're encouraging every- AVOID THIS TRAP: Limit look future consequences. "None of it was real to me stand her debt in the con-
one to take out debt and borrowing so that future Atkins remembers accept- back then," Atkins says. "I text of her future earnings
calling it 'good debt'." monthly payments don't ing student loans in small had no problem clicking and expenses.q

Stock edge higher in midday trading after a wobbly start

By DAMIAN J. TROISE second deadly crash over to the rest of the world, he Wearhouse and its Jos. A. data-sharing practices are
Associated Press the weekend involving its said. Bank stores, but is facing a now under criminal investi-
NEW YORK (AP) — U.S. 737 Max 8 and safety con- "We're still the lead sled tougher retail market. gation.
stocks were edging higher cerns stunted the compa- dogs here, we're pulling the DOLLAR DIP: Dollar General The investigation into how it
in midday trading on Wall ny's stock gains. global economy along," he fell 8.4 percent after the sells data is the latest in a list
Street Thursday, putting the Investors are also still wait- said. company's fourth-quarter of privacy scandals the so-
market on track to extend ing for more details on BAGGY FIT: Tailored Brands, profit fell short of Wall Street cial media company faces.
the week's gains. trade negotiations be- which owns Men's Wear- forecasts. The discount- Its privacy practices have
Communications stocks led tween the U.S. and China. house, plunged 23.1 per- store operator also gave already been scrutinized
the decliners as Facebook Media reports had stoked cent after giving investors a investors a weak full-year by The Federal Trade Com-
fell 2 percent amid reports hope that a summit would surprisingly weak first-quar- profit forecast. mission. The company and
of a criminal investigation take place this month, but ter profit forecast. The com- OVERSHARING: Facebook its CEO have also faced
into its data-sharing prac- no concrete announce- pany has been trying to in- fell 2 percent after the New Congressional inquiries.q
tices. ment has been made. crease sales at both Men's York Times reported that its
The losses were offset partly KEEPING SCORE: The Dow
by gains in banks and tech- Jones Industrial Average
nology stocks. JPMorgan rose 21 points, or 0.1 per-
Chase and Apple rose. cent to 25,723 as of 12:40
The market had been ral- p.m. The S&P 500 in-
lying throughout the week dex and the Nasdaq com-
and reclaiming some of the posite rose slightly. All three
momentum it had in Janu- started the day lower and
ary and February. Inves- turned higher around noon.
tors have been weighing ANALYST'S TAKE: Investors
a mixed bag of economic are still waiting for some
data while keeping a close more news on U.S.-China
watch on global trade is- trade negotiations be-
sues. The markets have fore they feel comfortable
mostly brushed off the cha- pushing the market much
os surrounding Britain's exit higher, said Scott Wren, se-
the European Union, its key nior global equity strategist
trading bloc. for Wells Fargo Investment
Boeing started to level off Institute.
after falling throughout the Despite some softness over
week as nations and air- the last few weeks, the U.S.
lines ground its newest 737s stock market is still consid-
over safety concerns. A ered a safe haven relative