Student Loan: Growing Problem

Student debt is a growing problem. Fortunately, not yet with us, but in the United States.

Although there are public colleges and universities where it is much cheaper to get a diploma, people tend to pay more for the cost of expensive paid universities, hoping to get a much better start (their children) in life.

The cost of higher education has long been rising

The cost of higher education has long been rising

Taking advantage of this, the cost of higher education has long been rising well above average inflation every year.

As a result, while in 1993, only 46% of college graduates were on student loans with an average of $ 9,320, in 2015, 75% of them were on a student loan with an average of more than $ 35,000.

As of 2012, student loans exceeded all types of credit, such as credit card debt, car loans and more, with mortgages alone being the largest in the country.

The big question is, is a diploma worth it?


Mark Kantrowitz sought to answer this in a study. In his view, this can only be achieved if half of the extra income from the diploma is sufficient for the borrower to repay the student loan in full within 10 years. Otherwise, the diploma was not worth the price.

An average graduate earns more than $ 10,650 a year by the age of 34 than a non-graduate, half of which is roughly $ 5,000 a year. The average student loan comes out of this, but the average covers a lot of things.

In fact, more than a quarter of borrowers do not earn enough to pay off the loan on that basis. These include the majority of theologians (64%), law graduates (43.1% may be too expensive for law school?), Educators and designers. Unsurprisingly, engineers and IT workers are the ones who earn the most from the cost of their diploma.

(What the study ignored was that graduate students were working at university / college and were earning money, meaning they didn’t take into account the opportunity cost of missing out on a 3-5 year opportunity. high school diploma.)

Although we are not here yet, in a few years or a couple of decades, if the state does not bear the lion’s share of the cost, we will also have to reckon with whether the diploma is worth the money we spent on obtaining it or not. our child.

There is no need to go to big and big universities at home


As I see it, there is no need to go to big and big universities at home. I was also a graduate of one of the biggest financial universities, and all I had to do was sweat blood before I went through all the exams and I was sucked into coal for all sorts of unnecessary things for years. While what I know about the profession, 90% of it I have not learned there, and what I have learned there, I will never use 90% of it in my life.

And if someone starts their career, the first year or two will matter which school they graduate to, but after 10 years, everyone is just interested in what work experience they have and what they learned in real life, no one looks at where they got their diploma . If I were to start my studies again, I would certainly be studying at a deserted rural college for correspondence, where it is easiest to complete, and in a few years I will not be interested in where my diploma is.

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