Student Loan/Graduate Debt (01:45)

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In this overview of the student loan crisis, we learn that many college graduates are overcome by staggering debt. The student loan system is lucrative for colleges, and many of them are in the education business for the money.

Families Borrow for College (02:58)

Americans now owe more on their student loans than they do on their credit cards--a debt fast approaching $1 trillion. Parents of 4 children aim to send all four to college; like many American families, they will borrow money to do so.

Loan Repayment (02:12)

Two-thirds of American college students will graduate with an average of $24,000 in debt. Many students do not consider the onerous responsibility repayment will be. Student loan defaults have doubled in the last 5 years. Every default leaves taxpayers on the hook.

Student Loans: Predatory? (01:20)

Unlike most other forms of debt, student loans carry almost no consumer protections, little ability to refinance, and by law they generally cannot be wiped out in bankruptcy. Is the student loan system a predatory one?

Student Loans: Tragic Story (01:04)

A young man with a master's degree borrowed heavily to attend college and graduate school, and he carries $72,000 in debts. He was unable to start teaching because of an accident. He weeps as he tells his story.

Debt Outlives Student (01:49)

Student debt can outlive the student. When parents lose their only son just weeks before his graduation, they ended up with student loan debts of $81,000. Their personal tragedy is compounded by the prospect of financial ruin.

Student Borrowers: Social Problem (01:27)

A more educated nation is a more competitive nation, says President Barack Obama. Is America creating a new class of borrowers?

True Cost of Student Debt (02:28)

The true cost of the explosion in student debt is hidden. The official student loan default rate is 7%, but that doesn't count those who are not in default but strapped with a lifetime of debt. An unemployed couple with three young children has debt of over $250,000.

Unscrupulous Colleges and Universities (02:44)

Though student borrowers can get short-term deferments on loan payments, interest charges continue to accrue. Schools themselves are not in jeopardy. Default management has become a growing industry. Many schools are simply in the game for money.

College: An Industry (02:37)

In 2009, the University of Phoenix generated close to $4 billion in income for its parent company The Apollo Group. Of this income, 86% came from government financial aid. Phoenix defrauds students into loans they did not apply for, and the students are unable to get out from under them.

For-Profit Schools (01:47)

The University of Phoenix and other universities deny any wrongdoing regarding financial aid.

College Admissions Counselors: Pressure and Lies (03:13)

The GAO sent undercover agents to 15 schools. In each case, admissions counselors make false statements, and some wildly overstate the value of their school's programs. A former admissions counselor testifies before a Senate hearing on deceptive business practices and fraudulent behaviors at one for-profit college.

Private Sector Colleges and Universities (02:35)

A representative from the Association of Private Sector Colleges and Universities insists that these schools are in the business of education. He claims there is a 70% placement rate--he fails to mention the types of jobs many of these students get.

Soaring Tuition Costs (01:51)

Calvin College, a private liberal arts college, recently built a $50 million field house. The cost of tuition and books is about $33,000 a year. Nationwide the cost of college is rising 2-3 times the rate of inflation.

College Administrators: Wine Tasting Conference (02:34)

A large group of college administrators and financial aid officers across the country attend a wine-tasting conference in the Napa Valley. Do these people have the best interests of students in mind? Higher One, a payment services company sponsored the "conference."

Payments Company Offers Debit Card (03:45)

Higher One, issues the portion of student loans that exceed tuition to students in the form of a debit card. Higher One attaches multiple fees to the card. Administrators support the Higher One system as a win-win situation. The winners are the schools and Higher One.

Big Money in Student Loans (01:52)

In 2009, Sallie Mae, one such company, collected $1.723 billion interest on student loans, and $295 million for servicing the loans. In 2010, President Obama cut out the middle-man, saving taxpayers $68 billion.

Private Loans (01:16)

Private loans to students and parents are a risky financial product. The growth of private student loans could inflate the student loan bubble even more, pushing students and their families even deeper into debt. Private loans cannot be wiped out in bankruptcy.

Alternatives to Private Loans (03:24)

Students and parents have options that are less risky. Perkins loans and Stafford loans help low-income students. An indebted young couple suggests that a college degree is not necessary for the jobs they ultimately found. Parents who now must repay their dead son's debt suggest taking out life insurance on children.

Credits: Price of Admission: America’s College Debt Crisis (00:09)

Credits: Price of Admission: America’s College Debt Crisis