Pricier Student Loans - Smell the Fish?
October 1st, 2007
A “good” guarantee for a good start in life is education. Education means money and this is what students don’t have and of course the solutions are the student loans, which are getting pricier and pricier. If we add that to the recent subprime lending problems that are the shaking America right now the vision for the next 10-20 years is not great.
If we take for an example a graduating student that has to pay $150,000 or so for his private and student loans that kept him in college and sent him to proper higher education, then I am sure his $2,000 salary is not enough for a “consumer”economy. No traveling, no going out, which is less money spent in the market.
Why everything ended up here is a very good question because Alan Greenspan was considered one of the best economists in the world, with top-notch performances, and the economy was going great. Apparently not, and since tuition fees increased by a few times in the last decade, the education system is becoming very picky on who to choose for their classes. Consider those $23,000 in scholarships for four years. Enough? Of course not because the fees are somewhere near $51,000 for public colleges and $121,000 if you choose private.
I will finish with asking THE question: “will the students be able to repay their loans?” because we all grow up and we have children. Money needed again! What do you think?
