Financial Illiteracy and (once again) debt...

Considering how complex the financial illiteracy problem still is as well as warnings about an "impending crisis" involving a mounting student loan debt, Mr. Hansen Clark (a representative from Michigan) introduced the H.R.4170 the Student Loan Forgiveness Act of 2012 in order "to increase purchasing power, strengthen economic recovery, and restore fairness in financing higher education in the United States through student loan forgiveness, caps on interest rates on Federal student loans, and refinancing opportunities for private borrowers, and for other purposes."

Even though President Obama as well as US Education Secretary Arne Duncan have stated the need to support students who have on their backs the burden of paying back those loans, on the other hand, despite their best efforts to prevent interest rates on those loans from doubling, those same students currently educating on many campuses, continue revealing a problem: a worrying financial (debt) illiteracy that makes them (in my modest view) unaware about the true problem of being indebted while they receive a higher education.

Let's consider the following videos where President Obama discusses the issue of student loans as well as some other college students trying to "describe" (LOL?) what student loan default is (funny yet worrying answers)...


  

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