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So they actually have a fascinating program in place they are working on through each states workforce development boards that identify job opportunities that are in need and target students as young as middle school to start steering them towards specific career paths. I know that’s not exactly what you asked but thought I would share.
So much to unpack, but I’ll do my best to simplify.
1. Most debt is not on BS degrees. Most Debt is from post graduate degrees in medicine, law, accounting, MBAs.
2. Most individuals who take out loans (regardless of major), can pay back their loans. Issue is more related to those who don’t finish school,
3. Because issue goes down to educating our children early on. However, we as a country do a horrible job with early childhood education. As a result? Many of our students (specially young, poor students), are taught to hate math, science, and the like. So we have them drop out or pursue things they are not able to do.
There’s more but “the money” isn’t the issue, nor are the specific majors.
I don’t disagree that throwing money at the problem will solve anything. Realistically, I think there needs to be a cap on interest rates so that those who make less than us on this sub can make progress towards paying off loans.
For example, if someone gets their BS from a private university with no financial support, they can expect $200k in debt. With a 4.22% rate, you’re looking at $776 in interest on a monthly basis. The recommended monthly payment for a 20y loan would be around $1,235/mo.
Then if you take an average earner in North Carolina, you’re probably looking at ~$425/mo after expense income. Well, what if you have an emergency? What if you lose your job? What if you make less than the average? For many, loan payments take a back seat and the progress you’ve made vanishes because of loan interest.
Again, everyone on this sub should be able to handle their college debt. But we’re not the majority; there’s plenty of people scraping by, looking at a mountain of debt they can’t imagine overcoming.
Edit: sorry if I went on a tangent/ completely off topic here… didn’t even look back at the original post before commenting
Two things we can do to solve the student loan problem:
1) make them fully dischargeable in bankruptcy
2) stop having governments (both fed and state) subsidizing/backing them
Price controls (I.e., capping tuition) could potentially be an option as well, although those always backfire. Not sure what that would look like in higher education though.
The ultimate effect of any of these proposals would be that far fewer people would go to college. Optically that doesn’t look good, but it’s fair to ask if it’s actually worth it for most people.
D1 is right. More government funding/subsidizing/backing will just jack up tuition even more, ironically making it even less affordable. This is the cause of the problem in the first place, so more of the same won’t solve it.
Strong believer that the cost of college tuition should be dependent upon the potential lifetime earning opportunity of the chosen major. For example education majors will never have the lifetime earning potential that some with an engineering degree so they should not pay the same tuition.
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I could see a world where there are programs that incentivize teachers, nurses, etc. With favorable rates discounts. Most of rural America has a huge problem sourcing educators, I think more would be inclined if college was significantly cheaper for them assuming they teach for at least 5 years (like the military almost)
And universities need to reduce tuition - I’m thinking out-of-state tuition for public schools in particular.
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So fun fact, I did university in the UK. My degree was 40% cheaper bc of universities there don’t spend on football stadiums and luxury dorms.
A big part of the student loan conversation that I don’t see a lot of people talk about on this app is that a very big chunk of student loans are for-profit/barely accredited colleges that prey on poor people. These schools offer courses that are marketed as changing your career, moving up in the world, etc. when in reality it won’t get anything and ultimately people don’t finish + get stuck paying off a high interest loan they can’t afford for the rest of their life. 83% of grads from for profit colleges had loans, averaging $40k where as 66% of graduates from public colleges had loans, averaging $26,900 (data all from 2016). I know it’s not a perfect comparison, because more people graduate from public colleges than for profit every year, but just making the point that the issue is much deeper than 18 year olds wanting to study french literature
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Agreed - I feel like every online degree is predatory. Even from respected institutions