Answer: Students who don't complete college are THREE times more likely to default (not repay) on their student loans than those who graduate. 

Questions:

• Why do you think it's more difficult for people to repay their student loans if you don't finish college? 
• Do you think that people with college degrees earn more than someone who starts college but doesn't finish? Why? 

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (NPR): 

"The people having problems with their debts are those who dropped out of school after just a few courses or a year," Dynarski says. The default rate among borrowers who didn't complete their degree is three times as high as the rate for borrowers who did complete. When these students stop taking classes, they don't get the wage bump that graduates get that would otherwise help them pay back their loans.

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Play PAYBACK on our Arcade page and learn about strategies to minimize student debt while balancing connections, happiness and focus. 

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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