Higher learning, YES! Education, YES! Broadening horizons, YES! Owing so much that once you graduate you can no longer afford to learn anything new because you have to take a crappy position and continue up that ladder in order to pay off your debt and by the time you do you have killed the creative side of your brain at a mundane shitty job and will likely just continue doing the same thing because it’s comfortable! No. No that, that sounds terrible.
The average college graduate in 2014 will have $33,000 to pay back to his/her esteemed institution for supplying them with a education, that in theory, has provided an otherwise unattainable skill set.
Let’s put aside the fact that student loans have around a 4% interest rate, which compared to the .75% interest rate big banks get from government, is completely infuriating. Let’s also put aside the fact that the price of a college education has risen 14% over the last 5 years. You know, the last 5 years where our economy has been pretty stagnant and the unemployment rate has risen 5%. Should we also forget that the average college endowment went up 11.8% last year? Sure, why not, let’s remove that from the equation as well.
Let’s put all of this aside and ask a couple questions. Does this $30k in the hole make an engineer take a high paying job at Hewlett Packard as opposed to taking half the salary and working at a new energy company that could literally change the world? What on a large scale is failing because of individual financial burdens? Can this debt hurt the overall benefit of the US, of the world? Fresh college grads across this country want good jobs that do something, that mean something. Unfortunately the “meaning” of a job now is to alleviate some of their debt.
Universities have costs, and because of these costs tuition is not an unfair thing to ask for. It is also great that loans are an option for those that cannot pay outright for an education, an interest rate on a loan is also fair. What is not fair is charging an over the top rate on these loans knowing that college bound individuals understand the importance of the education they are about to receive and have no other options. It is also not fair for a public institution like the University of Missouri to have a $1.2 billion dollar endowment.
Endowments should be used to offer scholarships, not to sit and accrue interest so that you have a bigger endowment.
You ain’t ever going to be Harvard ($33 billion endowment) Missouri, quit trying.
Yes, education can come in many forms, and not everyone needs an advanced degree, I get that. However, the opportunity should be there for all, and that opportunity should be for the students, not the loan sharks.