Student loans: 'Higher education is worth it but not the loans,' expert says

But at the same time, the cost of attendance — tuition, fees, room and board — has tripled in the past four decades such that even with financial aid, many lower and middle-income families can't afford it, creating a "funding gap," according to a"It's a difficult financial product for people to take on and there's so much dishonesty that goes on the back end," Abrams said.

One reason education is worth it has to do with job prospects.

Fortunately, as of July 1, the Department of Education has eliminated the interest capitalization for borrowers in most income-driven repayment plans, except the IBR plan due to statutory regulations. Unfortunately, that doesn’t help borrowers who for years had interest capitalized, turning a small principal balance into six-figure debt.

"In the documentary, Scott was the first person in his family to ever go to college and got a master's degree to be a teacher," Zeff said. "Scott initially was $35,000 in debt, but is now over $100,000 in debt due to interest." When borrowers start repayment, it is the loan servicer that typically tells them about their repayment options.

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