The next big boom!

Today, I read an article in the New York Times about law school graduates and debt. While the article focused on law school debt, the bottom line, I felt, was this: Is it worth it to take out thousands in loans to get educated? While most studies indicate that having an advanced degree will in the long run result in a higher salary, what most studies do not address is at what cost. (http://www.nytimes.com/2011/01/09/business/09law.html is the link to the article.)

Don't get me wrong; the student loan program has allowed thousands of students to get a college education. Without this program, many who now have degrees would not have been able to acquire them. But as tuition continues to rise, the decision to take out thousands in student loans should be addressed.
Unlike many other loans, student loans cannot be discharged in bankruptcy, which means the loan taker will have to pay them, regardless of how long that takes. They can even garnish your earnings to satisfy a student loan. Additionally, if the loans are not repaid in a timely fashion, the student's credit rating will be forever damaged. Are we creating a generation of students who will forever be in debt?

Another aspect of the student loan program that is not often discussed is its impact on colleges. In the United States, there are over 4000 colleges; a college for just about any student's ability. If the student loan program is ever restricted, how will that affect a college's ability to survive?
Is the bubble about to burst for colleges? Is it a coincidence that many colleges are setting their sites on students from other countries? After all, these students would not qualify for student loans, which means they would pay for their education without financial aid.


Enrollment in most colleges has increased steadily over the last few years. But ask just about any graduating senior from college about their outlook for the future and you will not get a happy answer. Most leave college with thousands in student loans and without the prospect of a job. Each day, MoreThanGrades hears from students concerned with debt and paying for college. Unfortunately, there are no easy answers to their questions.
I think the time has come to have a serious discussion about going to college, paying for college, student debt, and the affect it is having on our national economy. With private school tuition at over 50,000 per year at most schools, students should think twice before they sign on that student loan form. What do you think?