Student Loans: Do They Really Help Students And Make Economic Sense?
Are student loans and education debt leading us to a looming crisis?
A guest post at the Christian Science Monitor argues that the student loan market is a flawed business model and will eventually create a massive negative impact on other industries. It debates that it is almost immoral to allow children to finance their college education, only to start their lives (after graduating out) immersed in debt.
A boost in educational funding for financing may come at a price. If the current trend continues, students will increase the amount financed and they will be paying for the majority of their education in loans. As the January 14 edition of the Economist notes, “only about 400,000 more Americans were employed in December 2009 than in December 1999, while the population grew by nearly 30m.” With an unemployment rate of 10% (real figures are closer to 17%), matters look only more ominous.