By: Roshawn Watson
Student indebtedness has reached an all-time high, as student loans now exceed credit card balances by over $3 billion! Never have students and graduates been so burdened, and all of this is to obtain an education and to fulfill the American Dream. Unfortunately, in today’s employment market, secure jobs are even more elusive. Many graduates find that they have debt but inadequate means to repay, despite earning their degrees. I have long-advocated that costs must be a consideration when selecting schools. This is even more true today because the data is suggesting that student debts are only getting larger and the problem is getting very little press. I felt compelled to address this issue again. Today, my guest post at Generation X Finance has just been released entitled: The Educated Indentured Servant. In it you will find out why:
- Student Debt Represents a Bigger Problem Than You May Think
- The Impact of Recent Financial Regulations
- How Did We Get Into This Mess in the First Place?
- Why Student Debt is Akin to Investing In Reverse
I hope you will help me further the discussion of this very important problem.
I have a few questions:
1) Does guaranteed govt. student debt encourage colleges to raise tuition costs?
2) Does it matter much in the long run (notwithstanding ivy league level) whether you have a $25,000 degree or a $50,000 degree?
3) Is so much education really necessary, especially at the K-12 level where I would argue that students spend the most time at school, yet this time is used the least efficiently on courses and material that they will never refer to again? Could it be possible and even preferable for students to begin internships as young as 16 if not even younger, and do a combination of work study terms at different companies, interspersed with business and technical lessons?
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They can always join the military or become a Congressional aid and get some student debt forgiveness by the taxpayers. I believe some other Federal jobs might provide some student debt forgiveness as well as a perk.
Perhaps kids are just overpaying to get a degree from a name school, when their state university could have done just as well for 1/3 of the price.
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This is a very good point. There are many programs to get out of debt and hundreds of millions of dollars in unclaimed scholarships and grants available. Unfortunately, we often don't see these options because we are so conditioned to overpay for school.
I'm right with you on the state vs private school issue. Also, if you are going private for small class size, perhaps you can go with a less expensive one. Alternatively, you can bust your tail and work or start a business too.
Thanks for your comment and your insight!
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Hey Khaleef,
I never considered education to be a bubble. That implies that the costs cannot continue rising because it is unsustainable, which completely makes. Very interesting & insightful stuff. Thanks!!!
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