Pew Social & Demographic Trends: About one out of five (19%) of the nation’s households owed student debt in 2010, more than double the share two decades earlier1 and a significant rise from the 15% that owed such debt in 2007, just prior to the onset of the Great Recession, according to a Pew Research Center analysis of newly available government data.
The Pew Research analysis also finds that a record 40% of all households headed by someone younger than age 35 owe such debt, by far the highest share among any age group.
5 comments:
The constant argument of the role of college in our society is so delicate and complex. The economy worsens - fewer jobs are available - causing the value of a college degree to be absolutely necessary to obtain any sort of substantial position - directly skyrocketing the price of college to unreasonable heights - now one can afford it - now students work through college - this hinders their educational experience because they have the financial burden - and everything just sucks. Everyone knows this is a problem.. and no one really does anything. College loans are great... but they only postpone the crisis of paying the bill. Society itself has made the college degree so valuable - which caused it to cost so much in the first place. The higher educational experience is no longer a luxury or a positive thing - its a requirement. In order to even begin to chip away at the situation to find a solution, the idea of a degree has to shift back to an achievement, rather than a minimum.
I think the numbers of indebtedness are no longer shocking. The statistics have been continually getting worse and worse the red line plunging further and further due to variable or high interest rates. Everyone realizes that the price of college is too high but nothing is being done. Students as well as parents are stretching themselves thinner and thinner to try and get out of college debt. College jobs can help in this regard but are not an immediate solution.
As Rane said the degree is no longer an achievement but just a perk of which college you went to. A college degree is no longer enough. It must be backed up with internships and sadly connections in many industries if a job is to be a possibility. And with lessening availability of jobs even what internships will play a larger role in job placement/options.
College is terrible.
1. It is now societally made out to be something one needs to achieve any success at all, regardless of industry. Whether or not this is true is a separate argument. However, a quarter of a million dollars (coughcoughCMU) is a hell of a large number for something many view as mandatory.
2. Sure, financial aid is great, and grants exist. But they only cover a fraction of the cost. The rest of it just gets messy after graduation.
3. I will owe approximately $100,000 in student loan debt beginning in 2.5 years. Would those other four in five households like to divvy a little of that up for me? Now accepting applications.
None of the numbers in this report are surprising. In fact, it seems to me that these ratios are pretty standard throughout the last few decades. Of course the lowest and highest classes have more money to pay. The lower classes don't have enough money to begin with, and must owe most, if not all, college tuition in loans. THe upper classes tend to go to bigger name schools, which means a higher cost, and they get no financial aid to cushion the expenses. The middle class usually has some kind of savings to put toward college, and are able to get some kind of financial assistance. It's also not surprising that only 1 in 5 houses owe loans. Most college graduates are able to pay off their debts by the time they are 30-35. This leaves all of the households of those over that age without debt. There are many things that one can do to offset the cost of college, you just have to be prepared for everything and know what you're getting yourself into.
I was lucky enough to get a scholarship to a state school for undergrad, and so did not enter the world of student loan debt until, well, September. My education immediately led to jobs in the real world, therefore paying dividends on the opportunity that I had to get it in the first place. This time around, that opportunity is costing, a lot. I remember a lecture I got from a social studies teacher in eighth grade about "Opportunity Cost," and I do believe that is true: nothing I have ever accomplished has come without personal sacrifice. I think the problem in our culture is how we quantify that sacrifice, and really how we quantify most things, in mostly financial terms. And I think it shows in the quality of both education and student (CMU being the exception of course!) that we see in our system today. It doesn't seem to matter as much anymore what personal sacrifices in blood, sweat and tears you are willing to make for your education, as long as you are capable of making the sacrifice in treasure. As with our financial system in general, the betterment of society is funding an entire market, and corporations are skimming off the top of people's hopes and dreams. When all an education costs is money, all it will be worth is the paper upon which it is printed.
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