Act Your Age! BONUS: Getting You to Act Your Age

I just read a great article from the Metro Times. It is entitled, “In Too Deep”, and covers a plentiful range of perspectives on the current generation’s college debt situation.

Should I start with some facts and statistics to bore you?

No!

I will address the problems and give solutions that are being enacted or solutions that should be enacted.

Problem #1:

College students are mounting more debt every year while the average tuition increases every year far beyond the rate of inflation.

Solutions:

1.) Write letters to local congressmen for legislation to halt the increase of tuition of public colleges and universities, provide more grants, give more funding, etc.

2.) Don’t go to college.

We all know performing solution 2 is straightforward. Solution 1 needs some answers. I’m not here taking sides on any one political party, but the ‘non-partisan’ group, the Project on Student Debt, stated in a press release regarding student loan assistance:

“While President Bush and his allies in Congress have given lip service to the importance of a college education, they have cut $12 billion from the student loan program, turning a blind eye to rising tuition and interest rates.”

I don’t think any American likes to hear this type of thing. I’m sure there are more important budget issues than education. Yeah, right.

Since I just brought up the importance of education, let us see if a ‘college education’ is worth the money for certain popular professions that usually require a degree.

Problem #2:

Careers such as social workers and teachers do not pay enough to comfortably pay off student loan debt over time.

Solutions:

1.) Pressure the federal and state governments to raise salaries for these jobs which are primarily funded by the state.

2.) Ask employers that these jobs not require a degree.

3.) Educate future college students that these careers will not comfortably pay off student loans.

This problem is the most obvious one in need. How would anyone go into a career where they will be confronted with debt that is hardly manageable?

Teacher salary is low, and we all know it. Why is this? That’s a whole other topic. My hunch is that it could be the establishment powers wanting to keep education quality low to keep the middle class from gaining too much power. I could be wrong. I must also note that if everyone REALLY cared about the children, voters would not be voting for the same people who keep teacher salaries low!!! Anyway, enough of the politics.

Problem #3:

College students are getting into student loan and credit card debt where they do not think of the real consequences.

Solutions:

1.) As the article states:

Debt consolidation consultant Dvorkin would like to see a mandatory fiscal education class at the high school level, covering everything from the working of credit cards to student loans.

2.) I really don’t think there is a better solution than number 1.

In the article, a student mentions that credit cards were, “being given to me like candy”. Oh, please stop with the innocent child defense. People get scamed, ripped off, and robbed every day. I do agree that credit card companies are rampant on college campuses. I do not believe it is their fault for mounting debt.

The irresponsibility of today’s generation with debt is not only a personal problem, but a national economic problem. So, actions must be taken such as teaching high schoolers the effects of student loan and credit card debt, along with enacting laws that make credit card companies state realistic debt scenarios before a student signs up. Here’s a nice example:

…a bill proposed by Sen. Christopher Dodd (D-Conn.) would require credit card companies to disclose in plain English how long it would take to pay off the total debt when making only minimum payments.

We may, after all, be in for some progress.

 

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