Thursday, August 20, 2015

Lets do something about student debt

Source: The Economist
I quote from an article in The Economist:
Student debt in America now totals $1.2 trillion, up more than threefold over the past decade. On August 10th Hillary Clinton announced a $350 billion plan to reduce this sum. It would increase federal subsidies granted to state-school students, and help existing borrowers refinance their liabilities. New loan originations have decreased every year since 2010, and default rates have stabilised.
I started at a campus of the University of California in 1955 when it was essentially free. I completed my last degree at another campus 20 years later, when fees were still quite low. I worked during college, and got a couple of scholarships, but I finished each stretch in residence on campus with more money than I started. I didn't have any student debt. There was nothing wrong with a university system that made that possible then, and I don't see why a system that at least makes higher education more affordable is not possible now. Lets reduce student debt, especially for majors where the earning potential does not justify the debt. 

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