Student loan debt is a big issue and obviously much more expensive than it ever was in the past. Couple that with loan rates twice of what the normal population pays is unfair and a recipe for disaster. Just because a student doesn’t have the collateral yet doesn’t mean they should have to dig themselves out of a hole twice as big, for wanting to contribute to the economy. However, forgiving this debt is not a solution. It is 100% unfair to anyone who has taken out debt paid it off and those who haven’t gotten a higher education because of the associated costs.
As human beings it is our responsibility to weigh the pros and cons and come to a decision. We shouldn’t be waiting for people to come save us for decisions we have made with all of the information available. This is just a very slippery slope and one that can practically be applied to any loan situation. Should we forgive any mortgage loan debts for those that maybe got in an adjustable rate and are having trouble now? Or should we forgive loans for cars because of maintenance or maybe business debt? The list goes on and on.
The solution in my opinion starts with the colleges. They have had free reign to increase their costs at an alarming rate without oversight. I remember for an example when my sister went away to UCLA about 10 years ago her Tuition literally went up over 30% in one year. THAT is WRONG and this is the big problem. I believe colleges and other schools should be in line with property tax increases yearly, only allowed to go up a max of 1% a year. Some are 2% but I think given the past greediness gov should step in and put the boot down on these schools. Before this happens there should also be a gross readjustment of appropriate tuition levels by looking at some past numbers and increases. This is only half of the issue.
The other half is obviously the lending portion. When you apply for loans you are given the best amount for the best rate based off of equity and credit scores. Most students don’t have anything, only debt. It is evil for banks to prey on them and make their hole twice as large to have to dig out of just because they want to be contributing members of society. There should be certain programs offered by these organizations for students as future economic contributors being the reason for a better interest rate. I also believe that given these fundamental flaws in the system the millennials and the younger generation are considering alternative forms of education for ourselves and our children.
I have two boys 4 and 6 and have always thought since graduating from SDSU with my pointless marketing degree that most broad degrees you receive at 4 year universities are pointless. They get you in some doors but that’s about it. The more specialized ones like accounting, (my husband did that) and it went right into what he was doing and allowed for growth in other financial things, are good but there aren’t very many of them at four year schools. A lot of the ones that are specialized require a doctorate or higher level, which gets us into that fun student loan debt arena! I believe trade schools are a very undervalued option that I think will take on some of these big schools in the coming years. I believe in owning your own company and working for yourself and I always encourage my children to do things they are interested in. There is no point to go to college and take two years of general ed, much of the same crap you took in high school, that will be in no way related to your major. It was designed for you to spend more time and money at their school. I see it now. I believe we are going to see a big shift in the schools people choose going forward and that will also bring down prices with competition and make things more fair.
The Jane Files 