Student Debt Is Increasing, But Few Are Paying Full Price For College

The video discusses the prevalence of tuition discounts and merit aid in US colleges, noting that 90% of undergraduates receive some form of discount. It highlights how merit aid is often used as a marketing tool rather than a true reflection of academic ability. The video also covers the significant burden of student loan debt, which is the second-largest household debt in the US. It mentions President Biden's proposal to forgive up to $10,000 in student loans per borrower. Finally, it advises students to negotiate for better financial aid offers by comparing offers from competing schools.

What percentage of undergraduates in the US receive some form of financial aid or merit aid?

• 50%

• 100%

• 70%

• 90%

Which factor is NOT mentioned as a data point used by schools to determine merit aid?

• Speed of opening emails

• High school GPA

• ZIP code

• Time spent on the school's website

How much did the University of Alabama increase its spending on merit aid over a decade?

• $7 million

• $50 million

• $100 million

• $131 million

What is the second largest portion of US household debt after mortgage debt?

• Student loan debt

• Medical debt

• Credit card debt

• Auto loan debt

What strategy does Ron Lieber suggest for negotiating a better financial aid offer?

• Accept the first offer

• Compare offers from competing schools

• Wait for automatic increases

• Apply for more scholarships