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Owing more for College than for Cars

Education loans hold a very high second rank in the categories of US debt

Photo of Namita Simha
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There have been several programs in the past and in the present that try to provide students reliable access to funds and support them in getting through college. How effective have/are these programs? The benefit of a degree lasts a lifetime, but the hassles of funding for a degree or the whole borrowing process fades the importance of earning a degree.

A Chinese proverb says, Catch a fish for a man and he is fed for a day. Teach a man to fish and he is fed for life. 

How can we shift the focus on to the more important aspect of educating people and then reaping the benefits through their contributions to the economy?

Each year as inflation increases so does the college tuition fees and in the recent past it has exceeded inflation too. The graph above shows that student loans have been increasing steadily, exponentially compared to auto or credit loans. After mortgage loans, student loan is  the next big debt that stands out. As a result, the implications are undesirable for young adults, affecting their post-schooling economic activities such as home ownership, auto purchases etc.


What is a provocation or insight that might inspire others during this challenge?

So the interrelated questions that arise are, 1. Can the borrowing be made cheaper? 2. If yes, how easy or difficult it is to for colleges to further increase their fees? 3. Or can we have the best of both, that is reduce the interest rates on student loans while enforcing rules/laws on colleges to not increase their fee structure exponentially year after year?

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