The Imbalance Between Loan and Degree Value

Most of the middle class is familiar with the concept of debt. For anyone who was forced to rely on student loans in order to make their way through high education will know first hand the stress and pressure which come hand in hand with loans. Currently, it’s thought that 7 million Americans have defaulted on their student loans. This is billions in unpaid debt that is straining the education industry as a whole and making it more difficult for future students to receive loans. It’s possible that with the help of professional recovery consultants a defaultee might be able to climb out of the debt that they have and begin making payments. However, the average defaultee’s situation is often more complicated which makes it incredibly difficult for them to be able to arrange payments or afford them. Are we charging too much for access to college? Should college instead become free? It would improve society by degrees that we can only wonder at if we do.

However, as institutions they have to be able to support themselves in order to deliver high quality education to their students. This involves equipment, books, paying professors and providing material for research. Education institutions are no longer the same centers of learning that they were thirty, or even twenty, years ago. They are driven and supported by a student body that relies heavily on the federal government to provide loans to cover the cost of tuition. Much of the problem lies with the fact that bachelor degrees have lost much of their return value while the cost of tuition has gone up despite of. There’s a serious issue of the amount of debt that students are placing themselves and how much they’re going to potentially earn for their bachelor degree. Making payments becomes difficult when you’re making half of what a degree was worth twenty years ago.

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