Increasing numbers of students, worried about the employment market and rising tuition fees, are growing disillusioned with the potential gains of earning a degree at prestigious universities, according to the Wall Street Journal. Growing numbers of students defaulting on substantial student loan repayments are among the reasons that many students are choosing to fill out college applications to more affordable universities.
A report that was published recently by student loan company SallieMae indicates that more students are choosing to attend two-year colleges due to escalating costs of pursuing postsecondary degrees. The study suggests that there was a 12 percent increase in the number of students opting to earn their degrees at cheaper colleges from the previous year. The annual survey polled more than 1,600 students and their parents. Data from the study states that families are spending 9 percent less on education, on average, than last year.
In an attempt to ease the burden on students struggling to repay sizable loan debts, President Barack Obama recently announced plans to assist borrowers. According to the Huffington Post, more than 1.6 million students could benefit from the new legislation, which reduces the monthly repayments from 15 to 10 percent of discretionary income. The new regulations will also forgive any unpaid debts after 20 years, as opposed to 25.
Tags: college applications