The Student Debt Bubble Between 2003 and 2013 college tuition in the United States has increased by almost eighty percent. With this increase, there are few families that can pay the cost of someone attending college. So what do most families do? They borrow the money with the promise to pay it back, even though most will not be able to. Student debt has been increasing across the globe for the past century and student loan debt in the United States has been increasing exponentially the past decade, becoming a serious economic problem. There are many people trying to figure out this problem, but have had no such luck in finding a solution. Can the increase in student debt stop, or even slow down? The student debt bubble did not just happen
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But the problem isn’t just one group’s fault; it is a problem that this whole country has allowed. However, there is one group that can be looked into for this problem. For-profit colleges such as University of Phoenix, ITT Technical Institute, and many others are certainly suspect to this nations student debt problem. According to forprofitu.org, “Enrollment at for-profit colleges has increased an explosive 225% in ten years, enrolling 1.8 million students in 2008… A staggering 96% of for-profit students take out student loans”(forprofitu). Even though most of these students are taking out loans to go to these for-profit colleges does not mean all of them cannot pay it back. Katie Lobosco, CNN Money reporter, says that, “70% of all loan defaults are from students who attended for-profit schools”(Lobosco). Although some of them can pay it back, most of these student cannot. Unfortunately, we cannot just get rid of these for-profit universities and get rid of the root of the problem. A college education today, is as important as anything and the United States cannot take these opportunities away from their citizens. Joe Nocera, New York Times journalist, explains, “The country can’t afford to put [for-profit colleges] out of business. On the contrary, America needs it — and needs it to succeed — desperately”(Nocera). With the desperate need for an education there is no way …show more content…
However, there may be a way to limit the problem. Financial mogul and Dallas Mavericks owner, Mark Cuban, may be onto something about this current crisis. As of now private lenders can loan out money however they like. To stop this Cuban suggests that, “At some point, there 's got to be legislation where we put a limit on how much you can take out on a loan”(Jacobs). Doing this would slow down student debt because students would not be able to take out money they cannot pay back whenever they want. Also, some may not be able to attend post-secondary education at first but would be able to once institutions figured out that they cannot afford to lose students. According to Cuban, “When you put a cap on loans, the money 's not available to universities and colleges, they have to either raise student aid or lower tuition, or some combination of the two”(Jacobs). With a cap on loans and lower tuition or more student aid, student debt will start to decline. Although it may have a negative impact at first, limiting loans from private sectors is definitely best for solving this
But the problem isn’t just one group’s fault; it is a problem that this whole country has allowed. However, there is one group that can be looked into for this problem. For-profit colleges such as University of Phoenix, ITT Technical Institute, and many others are certainly suspect to this nations student debt problem. According to forprofitu.org, “Enrollment at for-profit colleges has increased an explosive 225% in ten years, enrolling 1.8 million students in 2008… A staggering 96% of for-profit students take out student loans”(forprofitu). Even though most of these students are taking out loans to go to these for-profit colleges does not mean all of them cannot pay it back. Katie Lobosco, CNN Money reporter, says that, “70% of all loan defaults are from students who attended for-profit schools”(Lobosco). Although some of them can pay it back, most of these student cannot. Unfortunately, we cannot just get rid of these for-profit universities and get rid of the root of the problem. A college education today, is as important as anything and the United States cannot take these opportunities away from their citizens. Joe Nocera, New York Times journalist, explains, “The country can’t afford to put [for-profit colleges] out of business. On the contrary, America needs it — and needs it to succeed — desperately”(Nocera). With the desperate need for an education there is no way …show more content…
However, there may be a way to limit the problem. Financial mogul and Dallas Mavericks owner, Mark Cuban, may be onto something about this current crisis. As of now private lenders can loan out money however they like. To stop this Cuban suggests that, “At some point, there 's got to be legislation where we put a limit on how much you can take out on a loan”(Jacobs). Doing this would slow down student debt because students would not be able to take out money they cannot pay back whenever they want. Also, some may not be able to attend post-secondary education at first but would be able to once institutions figured out that they cannot afford to lose students. According to Cuban, “When you put a cap on loans, the money 's not available to universities and colleges, they have to either raise student aid or lower tuition, or some combination of the two”(Jacobs). With a cap on loans and lower tuition or more student aid, student debt will start to decline. Although it may have a negative impact at first, limiting loans from private sectors is definitely best for solving this