This is what Americans owe in student loans.
It’s greater than America’s auto debt or credit-card debtand second only to the mortgage debt in the United States.
Approximately 2/3 of all college students graduate with loans. In 2010, the average one of those students had    accumulat...
In 2010, the unemployment rate for collegegraduates under 25 years old was over 9%.
1/3 of all graduates end up taking lower paying jobs that don’t require college degrees. Today, more than 100,000janitors…...
Over the past 25 years, college tuition cost has increased at an average rate that is higher than the general rate of infla...
College tui$on	  that	  was	  $10,000	  in	  1986	  would	   cost	  that	  same	  student	  over	  $59,000	  today	  -­‐-­...
There are a number of factors.
Faculty wants good salaries.
And a lower teaching load.
Alumni want new stadiums. Students want nicedorms and facilities – all things that cost money.
I want                                               a raise.College rankings drive up costs. Colleges can moveup in the r...
Budget cuts for state legislators means less money going to public colleges. Public colleges then raise tuition. Compared ...
This is very similar to what happened in the housing market. Through Fannie Mae andFreddie Mac, the government provided ch...
And with funding so easily available…
Prices went up… and up… and up.	We now know how the mortgage bubble ended. And now college education is heading down a ver...
The government will provide almost anyone a loan to pay for college.  This attracts more and more young  people to go to c...
With the government backing just about every loan,universities can raise tuition prices. First because of highdemand. And ...
The more government aid goes up, the more tuition will rise.  
Lim                                     Avai ited 	                                         lable                         ...
TO RECEIVE MORE GREAT ARTICLES LIKE THIS,   SUBSCRIBE TO OUR FREE E-LETTER AT
Student Loan Debt
Student Loan Debt
Student Loan Debt
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Student Loan Debt

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As the student loan debt hits $1 trillion, check out some of the facts surrounding this crisis and the future of college tuition.

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  • I remember thesis from Samuelson book (1949,1961 or ?) ,,Economics' about decision for 16-18 years old teenager - to open joinery or to study+dept => What will be the outcome of the two young people after seven years? The first will have a private already extended workshop, little kids and wife, but the second will have a non-repayable loan and do nothing.
    For me as a postsoviet student this was a shock. This book I read in 1991.
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Student Loan Debt

  1. 1. This is what Americans owe in student loans.
  2. 2. It’s greater than America’s auto debt or credit-card debtand second only to the mortgage debt in the United States.
  3. 3. Approximately 2/3 of all college students graduate with loans. In 2010, the average one of those students had accumulated $25,000 in debt by graduation day.
  4. 4. In 2010, the unemployment rate for collegegraduates under 25 years old was over 9%.
  5. 5. 1/3 of all graduates end up taking lower paying jobs that don’t require college degrees. Today, more than 100,000janitors… 317,000 waiters/waitresses… 18,000 parking lotattendants and 365,000 cashiers - all have college degrees.
  6. 6. Over the past 25 years, college tuition cost has increased at an average rate that is higher than the general rate of inflation.
  7. 7. College tui$on  that  was  $10,000  in  1986  would   cost  that  same  student  over  $59,000  today  -­‐-­‐  more  than  2  ½  $mes  the  general  infla$on  rate.  
  8. 8. There are a number of factors.
  9. 9. Faculty wants good salaries.
  10. 10. And a lower teaching load.
  11. 11. Alumni want new stadiums. Students want nicedorms and facilities – all things that cost money.
  12. 12. I want a raise.College rankings drive up costs. Colleges can moveup in the rankings by paying professors more, havingmore alumni who donate to the school, and attractingbetter students and athletes. Colleges compete to be the best. And to be the best, you have to spend.
  13. 13. Budget cuts for state legislators means less money going to public colleges. Public colleges then raise tuition. Compared with thethree other major state expenditures (shown left), college students look more like paying customers than hungry learners and the easiest solution for state officials is ask them to pay more.
  14. 14. This is very similar to what happened in the housing market. Through Fannie Mae andFreddie Mac, the government provided cheap and easy loans for everyone to buy a house.
  15. 15. And with funding so easily available…
  16. 16. Prices went up… and up… and up. We now know how the mortgage bubble ended. And now college education is heading down a very similar path.
  17. 17. The government will provide almost anyone a loan to pay for college.  This attracts more and more young people to go to college, most of whom cant afford education without the governments help. 
  18. 18. With the government backing just about every loan,universities can raise tuition prices. First because of highdemand. And second, because they know students won’t be denied financing from the government.  
  19. 19. The more government aid goes up, the more tuition will rise.  
  20. 20. Lim Avai ited lable ! Putting a limit on loans would cap spiraling tuition prices.  By taking away easily available loans, young adults would assess the true value of a college degreeand opt for alternatives to career and business training. It would reduce the demand for college, thus reducing the ability of colleges to raise tuition fees. The price of college would flatten or even come down.
  21. 21. TO RECEIVE MORE GREAT ARTICLES LIKE THIS, SUBSCRIBE TO OUR FREE E-LETTER AT

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