University of Virginia

Moodys Downgrades College Students

With all the talk about debt downgrades and ratings agencies, we thought it would be timely to consider what one of them has to say about student loans.  From Moody’s recent report, Student Lending’s Failing Grade:

“Unless students limit their debt burdens, choose fields of study that are in demand, and successfully complete their degrees on time, they will find themselves in worse financial positions and unable to earn the projected income that justified taking out their loans in the first place.”

Borrow less and study smarter or you’ll risk default.  Remember, you can’t walk-away from student debt.  Take it seriously.

So what do you do if you have to borrow?

If you are a high school student, take a realistic, cost-based approach to your college selection.  The conventional notion of reach and safety schools is not your current reality.  What will college cost you?

If you are a college student, pursue courses and activities that will lead to productive careers that are in-demand.  Learn what majors matter.   How can you stand out from the crowd?