Education Debt: The Problem and Solutions

As tuition continues to increase and federal student support continues to increase, the number of students relying on student loans to fund university education has reached a record high. According to a survey conducted by independent nonprofit organizations, two-thirds of college graduates graduated through loans in 2010 with an average debt of $ 25,250 per capita. (Reed et al., Para. 2). In my research presentation, focusing on the broad impact of education debt on the lives of American college graduates, educational policy makers should improve the financial aid program and minimize the risks and adverse effects of student loans I will focus on the viewpoint of being.

Kent Smets, Professor of Business Economics and Public Policy at Wharton, for educated students at university or for students who do not attend difficult courses or major, education debt is "good debt" It says that it is often. This is a problem. "For example, the value of today's communication degree is not as good as it does not understand the latest technology (such as search engine optimization) that helps get a good job." According to a survey by Georgetown University, women working full-time are 25% less income than men, with the highest standards of education, income from African Americans and Latin America is about 1 million more than white and Asian income It is considered to be few. Doll

Yes, first of all, student debt problems are basically not a matter of students borrowing a lot of money. This is that students borrow money instead of taking valuable education or recalling that they can afford. Thus, in other words, the default rate of student loans is inversely proportional to the amount you borrow, so those who most likely to become the default borrow fewer than $ 10,000. This accounts for most of the defaults.

A student loan is a good example of a "solution" that itself is a problem, and the fundamental problem (the rise in the cost of a diploma with a declining profit) is rising rapidly driven by a "solution". Enhanced, selfish, bloated bureaucracy. The real solution was optimized for the fourth industrial revolution and emerging economies, not the economy of 1946. Distribution of power and control, transparency rather than selfish confusion, to empower the community rather than centralized institutions and cartels, adopt destructive techniques - existing tenants scorpions, cartel rackets, regulations A method of destroying the upper barriers