Monday, December 29, 2014

2 Problems Students Have and The Solution

Students nowadays are graduating with an all time high of student loan debt.  How bad is it? According to business.time.com, "Credit bureau TransUnion says that in the past five years, the average student loan debt each borrower carries has risen 30% to $23,829. More than half of student loan accounts, which add up to more than 40% of the total dollars owed, are in deferral status."

As noted at www1.whdh.com, "A graduate student at the University of Southern California, 22-year-old Astrid  Solorzano - will be $160,000 in debt before she lands her first job."

According to sizusfinlit.blogspot.com and www.forbes.com, "60% of college graduates can't find a job in their field."

The 2 problems we have are:
  1. Students are graduating college with thousands of dollars in debt to start their life
  2. Students are graduating college with no experience, uncapable of finding or creating jobs
We have students graduating with $100,000 in student loan debt and no experience, lacking the skills necessary to land or create good jobs.  What if we required two years of military or the peace corp before entering college?  What if we implemented a work study program, rather than just allowing students to rack up large amounts of debt?  Isn't it possible to solve both of these problems at the same time.

A lending industry that focuses on the uneducated is really considered predatory, isn't it?

This post was reposted from http://finlit.biz/debt/2-problems-students-have-and-the-solution/, originally written on February 13th, 2013.

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