Daily VideoMay 31, 2012
Why Is There So Much Student Loan Debt?
Student loan debt in the U.S. has reached more than $1 trillion, and more and more potential college students are wondering whether the investment is worth it. Many economists say it is still worth going to college in the long run, but many of today’s students may never pay off their debts with the amount of money they make.
Although there are ways to put off making student loan payments until the borrower has enough income, the interest on the loan continues to accumulate, even when payments aren’t being made. Experts say defaulting on student loans is a terrible thing for borrowers, negatively affecting their credit and wages for years.
Some advocacy groups say the U.S. education model is flawed and needs to be re-examined, because students spend a lot of money obtaining a prerequisite for a job but can never earn enough to pay that back.
“You go into massive amounts of debt just to get an education that you need as a prerequisite to get a job, and then spend the rest your life paying off that educational debt. There’s got to be a better way.” – Robert Applebaum, ForgiveStudentLoanDebt.com
“The massive inflation we see in tuition, in college prices, have gone up faster than health care, faster than almost any other major industry. Well, that’s a product in large part of federal student aid. If you give someone $100, you tell them they have to use it for college, and colleges know they have it, of course they’re going to raise their prices.” – Neal McCluskey, Cato Institute
Warm Up Questions
1. What is debt?
2. What is credit?
3. Why do people go to college?
1. Based on what you heard in the video, do you think going to college is still worth it, despite the debt?
2. Why did one economist make the argument that federal student aid is driving up the cost of college?
3. What are your future plans? Will you need to go to college to achieve them? If so, how do you plan to pay for it?
Tooltip of related stories
Tooltip of more video block
Submit Your Student Voice
Dozens of cities throughout the United States have been deemed “sanctuary cities,” where local governments resist cooperating with federal immigration officials, including handing over undocumented immigrants who have may committed very minor offenses. Continue readingArts & CultureEconomicsHealthScienceU.S.UncategorizedWorld
In order to address the homelessness problem facing students, a school district in Kansas City, Kansas, with over 1,000 homeless students, partnered with Avenue of Life, a nonprofit organization that brings students out of homelessness by supporting the entire family. Continue readingArts & CultureEconomicsHealthScienceU.S.UncategorizedWorld
In places where violent conflict makes it difficult for human rights investigators to observe, social media platforms now make it possible to document abuses.Arts & CultureEconomicsHealthScienceU.S.UncategorizedWorld
In an interview with PBS NewsHour’s Judy Woodruff, Speaker of the U.S. House of Representatives Paul Ryan said he is getting along well with President Donald Trump, although he disagrees with some of the President’s recent statements. Continue readingArts & CultureEconomicsHealthScienceU.S.UncategorizedWorld
The new, privately-funded Nekton project explores and records deep sea life in Bermuda to shed light on the dangers facing coral reefs. Continue readingArts & CultureEconomicsHealthScienceU.S.UncategorizedWorld