For decades now, American students have been paying for their higher education by taking student loans. It seemed to work quite well for previous generations, but the times have changed dramatically. In fact, America is at risk to go bankrupt if things will carry on in the same way.
Plenty of foreign students come to the U.S. to get a college education, and that’s because the American education system is considered to be one of the best in the world. Those who come from abroad, though, don’t get a student loan since they’re usually on scholarships. They then go back to their homelands, and all the investment put into them returns to those same countries.
Another problem caused by student loans is that these loans don’t get erased if a person goes bankrupt. Technically, this person has no money to return the loan and probably won’t have it in the near future, so eventually, the money never returns and instead that person remains in debt for many more years, making it more difficult for them to get back on their feet.
The Job Market Privileges
A third reason why the student loan system is so problematic nowadays is that things have changed since the days of our parents and grandparents. They used to take loans in order to go to community colleges, and then they usually found a steady job with a good salary, which provided them with the security needed to both raise a family and repay their loans.
Today, plenty of students take loans in order to go to private colleges and ivy-league universities. The tuition is much higher, meaning the loans are a lot bigger, and at the same time it’s harder for them to get those coveted jobs in big companies such as Google or PayPal, which will secure their future and allow us to repay the loans. Those companies have the privilege to pick the best students from the best institutions, and so those with degrees from luxurious universities, such as Yale or MIT, will always have an advantage on students that went to Boston college or Queens college for example. That doesn’t mean these graduates are unable to do the job well, it just means they went to a less exclusive college, that’s all. Equal opportunities, anyone?
It seems that the existing student loans system is outdated, and needs to undergo some significant changes if we wish to avoid seeing America go bankrupt. Hopefully, the message will come through and we’ll see some positive changes in the near future.