Finance and Loans: Are Student Loans Worth it?
Today, most Americans are going to college more than ever before. This translates to more graduates. That’s good news, right? Well, in as much as roses have a sweet smell, they also have thorns that prick. It’s without a doubt that most university graduates are drowning in student debt. Over 70% of college graduates have a significant amount of student loans. Collectively, more than 44 million Americans owe the government almost $1.5 trillion. What this basically means is that one in every four adults are settling their student loans.
Upon graduation, an average student has $37,000 in student loans. That money can purchase a new car, set up a business or act as a down payment to a home. It goes without saying that these financial burdens have an impact on the saving habits of Americans. A survey conducted by the Federal Reserve Board of Washington found that the decrease in home ownership is as a result of student debt. NerdWallet predicts that post-2015 college graduates will likely retire at 75, a consequence that will be brought about by the skyrocketing student debts.
With less than 35% of American adults possessing a bachelor’s degree, experts expect more Americans to have a degree by 2020. One of the reasons for this is that the job market will require more skilled workers with at least 65% of all jobs requiring a post-high school education. With students aiming to meet these demand, they resort to taking out more loans and hitting the books.
So, are student loans worth it in the long run? David Bloomfield, a law professor at Brooklyn College, seems to think so. He is of the opinion that earning a college degree is a wise investment by any student. He regards student loans as good debts that will eventually pay off. His school of thought is that a college degree from a reputable institution is a reliable investment that will determine the future income of an individual.