At the time, student loans were tied to mortgages and in that bizarro Reaganomics world, for a few years they counted a Mortgage as an ASSET rather than a liability. Mortgages are NOT assets unless you are the bank. Anyway, that part of the loan screwed a lot of folks including me. The parents mortgage counted as an ASSET but they were not responsible for the loan; the student was 100%. they corrected their institutional mistake probably at that point where you see the graph drop and changed that part of the loan calculation.

At the time, student loans were tied to mortgages and in that bizarro Reaganomics world, for a few years they counted a Mortgage as an ASSET rather than a liability.

Mortgages are NOT assets unless you are the bank.

Anyway, that part of the loan screwed a lot of folks including me. The parents mortgage counted as an ASSET but they were not responsible for the loan; the student was 100%. they corrected their institutional mistake probably at that point where you see the graph drop and changed that part of the loan calculation.

 

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FAFSA is a requirement for students to receive aid.
“One of the biggest myths about financial aid is that you shouldn’t apply if your family makes too much money. But the reality is that there are no income limits with the Free Application for Federal Student Aid (FAFSA); any eligible student can fill out the FAFSA to see if they qualify for aid”
lol early 90s: ; 22.4% – 1/5 of people whose loans are from that era defaulted on their student loans.
That was me – 1 out of 5 is statistically significant. I didn’t know I was at the height of a defaulting trend lol
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