Student Debt on the Rise
Nowadays college tuition continues to rise and rise (We all have seen this at Marietta). With college’s rising tuitions more and more students resort to loans to get the education they want. But now Congress has cut back on the amount of student federal aid they will be providing. Interest rates on loans are rising by 1.84% or more, and currently 62% of undergraduates borrow this money. After graduation, students are expecting to get their dream jobs, make lots of money, and provide for themselves and future families, not be in debt as soon as they get out into the real world! This increase in interest rates is going to cause the graduates to continually be in debt until they are well out of college. So what can be done to try to help this student debt issue that is on the rise?
1 comment:
There can be no doubt that a college education is a pretty good investment. Most studies that have estimated the rate of return on a college education peg the return around 10-12% per year...that's a lot better than you can get if you invest in the stock market. It's no wonder to me, then, that the demand for a higher education has been increasing over the last couple of decades. And, of course, what would you expect to happen to the price of a college education (i.e., tuition) in the face of growing demand?
I will venture a prediction that, given the increase in interest rates that the government will now charge for student loans, incoming students will choose majors that will yield them a better payoff than, say, sociology or history. That is, students will look for majors that will generate greater returns on their investment (in the form of higher wages).
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