Student debt bomb hobbles the economy
NY Times:
I suspect that many of today's students are there because they cannot find a job in their chosen field. They are running up bills they may not be able to pay.
The education establishment is still clueless in many cases. Recently the University of Texas administration sought another increase in tuition despite substantial support from taxpayers and the Permanent University Fund which draws on income derived from oil in the Permian Basin. The Regents denied the request and the President of the University did not take it well. Instead of looking for ways to cut expenses he complained and soon others were complaining rather than looking for ways to make education more affordable.
In the past Universities have sought ways to grow their budget. That needs to change. Students should not be put in the position of piling on debt so the administration and faculty can live like the one percent. We have come a long way from my undergraduate days at UT when tuition was $50 a semester. By the time I went to law school after I returned from Vietnam, building use fees had been added to the charges, but it was still reasonably affordable. That is no longer the case. That is a shame for the current generation of young high school graduates. If they are not exceptional athletes or part of some favored group they are likely in for a long difficult struggle just to pay off their debt years into the future.
No one seems to be doing a cost benefit analysis in making these loans. Students are clearly not sophisticated borrowers for the most part. But the loans have also distorted the market for education. The cost of education has climbed at a much higher rate than inflation yet the product being pushed is not resulting in students with better jobs. About half of the recent graduates are unemployed or under employed and living with mom and dad. This delay in household formation is a drag on the economy.As Costs Soar, a Generation Is Hobbled by College Debt
Nearly everyone pursuing a bachelor’s degree is borrowing money, and as prices soar, a degree often comes with an enormous financial burden.
I suspect that many of today's students are there because they cannot find a job in their chosen field. They are running up bills they may not be able to pay.
The education establishment is still clueless in many cases. Recently the University of Texas administration sought another increase in tuition despite substantial support from taxpayers and the Permanent University Fund which draws on income derived from oil in the Permian Basin. The Regents denied the request and the President of the University did not take it well. Instead of looking for ways to cut expenses he complained and soon others were complaining rather than looking for ways to make education more affordable.
In the past Universities have sought ways to grow their budget. That needs to change. Students should not be put in the position of piling on debt so the administration and faculty can live like the one percent. We have come a long way from my undergraduate days at UT when tuition was $50 a semester. By the time I went to law school after I returned from Vietnam, building use fees had been added to the charges, but it was still reasonably affordable. That is no longer the case. That is a shame for the current generation of young high school graduates. If they are not exceptional athletes or part of some favored group they are likely in for a long difficult struggle just to pay off their debt years into the future.
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