The Next Model of Student Loans

from Medium

The inflation levels of student loans can be crippling to social mobility, just ask young people who graduate with $50,000 or more in student loan debt. While job uncertainty increases with rising automation, what about students staring down the barrel of six-digit loan obligations yet to come?

The student debt crisis could have long-term impacts on the U.S. economy. Yet we rarely think about alternatives to the status-quo of dangerous inflation.

What happens when student debt actually lowers the fertility rate? What happens to consumerism and an inverted population pyramid and a labor market that can no longer provide for the services society needs? Welcome to the economic press of the future.

More here.

52 Responses to The Next Model of Student Loans

  1. Hassan Elzeeny March 22, 2019 at 6:13 pm #

    The student loan system in America is something that needs to change. School is something in America that is treated as a necessity, but it is the cost of a luxury. Year by year it seems like school tuition is going up and so is student debt. No matter how well you do in high school it seems like you wind up in the same spot debt wise. The overly complex and confusing financial aid system is failing the students most in need of assistance, preventing students from pursuing their dreams of attending college and without financial aid, many students dropout of school or decide not to go to college at all. According to an article by Annie Nova on CNBC “Outstanding student loan debt in the U.S. has tripled over the last decade, surpassing auto and credit card debt and only second to housing debt, and now stands at $1.5 trillion.”. To me it seems like FAFSA does not fully understand the struggles of a middle class family. They assume that when your family makes a certain amount of money that it is all going towards school and that’s how they decide who gets what amount of money. They do not consider the amount of members in a family, bills, food etc. Many times the amount given from FAFSA isn’t enough for school and you have to get a loan from the bank. Not only does it not help middle class students, but fafsa puts students in a very tough position. Immediately after college you are expected to find a job that pays well enough to not only pay bills, but pay back college debt. Another problem with this is the effect it can have on your credit if you are not ready to pay the debt immediately. Something that I believe many students should look into is going to a community college. This is something that I did and it saved me and my family thousands of dollars. People want you to look at community college in a negative way, but in reality it is the exact same thing as going to a university, but cheaper. You take the same courses the first two years as almost every university student for thousands less. Not only is it cheaper, but it is a much easier way to obtain scholarships to other universities. For example, when I finished community college I received a transfer scholarship from every university I got accepted to. In my opinion it is time to change how student loans work. Education should not be treated as if it is a luxury, nor should it be the end all be all route to getting a job after school. Education should be attainable by everyone that wants to further their education and there should be a much more reasonable way to payback any student debt. It should not feel like a set up trap by the government that students cannot escape for over 30+ years of a person’s life.

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