Posts Tagged ‘college debt’
We’ve talked a lot about college debt. About half of college grads from the last 5 years are out of work. In addition, college debt in America is nearing $1 trillion. The New York Times posted a video about student debt. It’s worth watching.
They also posed these questions:
What is college for?
Should everyone go to college?
How much do you think a college education is worth? How much would you be willing to pay?
Why have the costs of college risen so much in recent years?
How important is it to our society that college be affordable to all? How much student debt should be considered “unaffordable”?
How much of a priority should government financing for public universities be?
Do you plan to go to college? Ideally, what college, or type of college, would you like to attend? How much, roughly, will that cost?
What college costs should students and families take into account beyond the cost of tuition?
What options will you have for paying for college?
At what point does a college education paid for with loans stop being a good investment? How much debt is too much debt?
What are some ways that students and their families can lower the costs of college?
Whom do you know who is in college, or has recently graduated from college? Are they in debt? How has that debt affected their lives? (If you already have student debt, consider sharing your story with The Times.)
How financially literate do you consider yourself? Your family?
What messages about college have you gotten from your family, your community and your school?
What responsibility do colleges and admissions offices have to give students a realistic sense of what college will cost them? How might they do that?
After reading this series, what questions do you still have about paying for college? What steps should you take next to ensure you can afford college, if you choose to go to college?
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In a topic he has written about before, Tech Billionaire/Dallas Mavericks owner, Mark Cuban, took to his blog over the weekend to write at length about our nation’s trillion-dollar college loan debt crisis. Cuban compared the college loan market to the housing bubble before the crash that preceded the great recession.
Cuban states, “It’s far too easy to borrow money for college. Did you know that there is more outstanding debt for student loans than there is for Auto Loans or Credit Card loans ? Thats right. The 37mm holders of student loans have more debt than the 175mm or so credit card owners in this country and more than the all of the debt on cars in this country. While the average student loan debt is about 23k. The median is close to $12,500. And growing. Past 1 TRILLION DOLLARS.”
Cuban championed non-traditional higher learning institutions and was critical of colleges tuition raises:
“While colleges and universities are building new buildings for the english , social sciences and business schools, new high end, un-accredited, BRANDED schools are popping up that will offer better educations for far, far less and create better job opportunities.
As an employer I want the best prepared and qualified employees. I could care less if the source of their education was accredited by a bunch of old men and women who think they know what is best for the world. I want people who can do the job. I want the best and brightest. Not a piece of paper.
The competition from new forms of education is starting to appear. Particularly in the tech world. Online and physical classrooms are popping up everywhere. They respond to needs in the market. They work with local businesses to tailor the education to corporate needs. In essence assuring those who excel that they will get a job. All for far far less money than traditional schools.”
Cuban was also highly critical for traditional universities unwillingness to offer courses online. In addition he blaims student debt for lack of growth in the US economy:
“The biggest problem the economy has is the enormous student debt new college grads and those leaving college find themselves with. In the past leaving college meant getting a job and getting a used car and/or an apartment with some friends. Yes there was student debt, but it wasn’t any where near your car payment. You could still afford the car and the apartment. Now its the exact opposite. Today, the minute you graduate college you face the challenge of debt against a college education whose value is immediately “underwater”
As a result spending habits have changed dramatically. Now when you leave school you move back home. You take public transportation or borrow your parents car. The only thing new you buy is the cheap work outfit you need. Savings ? Forgettaboutit. It’s not happening. Your entire focus is on hitting your monthly nut for school debt , credit card and maybe a car or apartment. The crush of college debt has taken an entire generation of graduates, current and future out of the economy. Which is exactly why the economy hasn’t grown and won’t grow beyond microscopic growth rates we have seen so far.
So until we get the meltdown in college education, don’t expect much improvement in the economy. Who gets elected won’t make a dang bit of difference.”
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