This is a topic that is close to home as a current student, and the spouse of a recent grad school graduate. According to Avery & Turner (2012) “total student loan debt rose to over $800 billion in June 2010, overtaking total credit card debt outstanding for the first time” (p. 165). We are borrowing more than ever, and there is no slowing in sight. If things do not change it would seem as if we are headed for another financial bubble, only this time rather than a mortgage crisis, it will be a student debt crisis.
Students are responsible to control the costs of their education. This will take a multifaceted approach and sacrifices in different areas of each student’s life. The United States has traditionally adopted a model of repayment …show more content…
Albrecht and Ziderman (1992) state: One effective technique for targeting funds is to allow higher education institutions to manage a loan pool, and to allocate funds to the neediest students. Chinese and Chilean universities have been fairly successful in identifying needs students. In Chile and the Philippines, students must submit information on family income, assets, parental occupation and education levels, family assets and place of residence. This information is verified through spot checks and students are barred access if they provide false information (p. 361). By being more specific in the targeting of students, the help will be going to those that have the highest need, based on more than just income. Conversely, by lowering the tuition, more students will be able to pay without the need for loan …show more content…
In response to the question, "When will your GSL loan repayment begin?", 24% of the loan recipients answered "don 't know" and only 49.4% answered correctly. When asked, "What will your total monthly loan repayment be?", 25% were unable to answer (Holland & Healy, 1989, p. 4). How can we expect students who have a low-level understanding of money management, to grasp what it means to borrow excessive amounts of money? There should be programs put in place at each institution that are required as part of the loan application process. Is it not the goal of each institution to educate? It would seem that every effort should be made to assure we are setting students up for
Students are responsible to control the costs of their education. This will take a multifaceted approach and sacrifices in different areas of each student’s life. The United States has traditionally adopted a model of repayment …show more content…
Albrecht and Ziderman (1992) state: One effective technique for targeting funds is to allow higher education institutions to manage a loan pool, and to allocate funds to the neediest students. Chinese and Chilean universities have been fairly successful in identifying needs students. In Chile and the Philippines, students must submit information on family income, assets, parental occupation and education levels, family assets and place of residence. This information is verified through spot checks and students are barred access if they provide false information (p. 361). By being more specific in the targeting of students, the help will be going to those that have the highest need, based on more than just income. Conversely, by lowering the tuition, more students will be able to pay without the need for loan …show more content…
In response to the question, "When will your GSL loan repayment begin?", 24% of the loan recipients answered "don 't know" and only 49.4% answered correctly. When asked, "What will your total monthly loan repayment be?", 25% were unable to answer (Holland & Healy, 1989, p. 4). How can we expect students who have a low-level understanding of money management, to grasp what it means to borrow excessive amounts of money? There should be programs put in place at each institution that are required as part of the loan application process. Is it not the goal of each institution to educate? It would seem that every effort should be made to assure we are setting students up for