There are so many unfortunate realities presented in this comic. Think about the quandary of the Millennial Generation: not only do many young American’s face their own personal student debt, but they also bear an incredible national debt of over $14 trillion, plus obligations to fund other future liabilities.
Have we given the Millennial Generation an asset or liability?
Former Virginia Secretary of Education, Dr. Wade Gilley, writes in an Op-Ed entitled Is this America’s next financial bubble?
“According to The Project on Student Debt, some 37 million current and former students owed more than $25,000 each in student debt in 2010 (not counting credit card debt), and a recent news report indicates that perhaps one third are at least one month late on their payments. Most are trying to at least pay the interest to keep their debt from ballooning in a lackluster national economy.”
There are many unemployed or underemployed graduates facing this painful reality, and unfortunately many younger students who are positioned to rack up educational debt do not really understand the implications.
Even the financiers want to steer clear of student loans in their portfolios because their high risk of default is proving to be a bad investment.
This is a national predicament, not only for the student, but also for America as a whole. The poor economy is certainly to blame, yet I believe there are other reasons for this dilemma that have been trending under the surface long before the economic doldrums.
The price tag on tuition is up, and the cost of borrowing is inevitably poised to increase. On top of that, the economic value of that coveted diploma is worth less than it was in decades past and does not get one as far. Plus it’s taking students longer to graduate—up to 5 or 6 years—while they change majors 2 to 3 times. Too often many students enter college having no clue as to what they want to do and graduate without much more direction.
This is not a good equation for our young or for our nation.
Do you think this is a reality? Why do you think this is happening? And what could be done about it?
How can the institutions of higher education be held accountable? Consumers (students)? Parents? Lenders?
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