Education in the United States of America could be termed as a disaster for a student’s life in most cases.Though all politicians agree on the rising need of qualified professionals, what they are ignoring is the fact that there are thousands of high school/college dropouts who cannot afford the high cost of education. Those who do have the opportunity to study have got to be very financial stable, or have to work in part time shifts to make up for their tuition fees.
The other majority have to apply for student loans, which in itself is a damaging aspect for a student’s life as they become involved in repaying debts from a very early age. As it is youngsters do not know any money management skills and thus they don’t only land themselves in educational debts but also in personal finances as well.
Expensive Education
The turn of the millennium saw with it great inventions and progressive factors, but at the same time it also bought with it an economic doom. For the past eight years, education has become highly expensive in the US. Nearly 25% of a family’s income is spent on college tuition fee alone.
Parents have to keep up a special student’s savings account as soon as a a child goes to school, so that by the time he grows up, there can be enough money saved.
Those who don’t go for savings account have to depend on student loans and according to statistics by the year 2005 atleast 50% use loans to get access to public universities. Private universities have a much higher rate. In this economic turn down, college graduates are found to be in a state of debt, pathetic living conditions rather than having a high paying job.
Consolidation Overdose
Debt consolidation was the only approach where students would have their debts consolidated and wash their hands off the loan with a relaxing smile. That however is now no more an easy option because of the credit downfall, as from the horrific recession. The only consolidation offered is by the federal government loans, but even on that the amount of subsidies is decreased and the deal does not adhere to private loans. So students opting for private loans will have no loan consolidation options.
Future Damage
If this state of educational expenses continue to rise, then surely the country would face a great damage in terms of workman power, qualified professionals and aspiring students. Considering this high cost of education, not many students would be attracted to getting a college graduation degree, which will be a huge loss for the country.
Want to stimulate the economy? Do a one time student loan amnesty!
The government must be responsible for this issue for it is their job to protect the people more specially the students who will be the future of our nation. On the other hand, one positive effect of student loans is that our young professionals to be responsive as early as being a student. This will somehow lead them into valuing hard work.
Yes you are quite right here, but it seems like the price of this positive effect is too heavy to be paid.