23rd October 2011
Link with 2 notes
This is scary because the cultural wisdom America has been telling everyone for my entire lifetime is that education will pay off no matter what the cost of education. Yet, education costs have been rising significantly more than inflation for years while wages have been stagnant which leads me to believe that education will not pay off when the cost is too high.
I have a problem with young people being crippled by debt when they are just starting off in life. I suspect it will cripple ambition since working harder just means more money for the loan agents and not an improvement in quality of life. Also you may not be able to get rid of student loans through bankruptcy or non payment, but that doesn’t mean all those loans will be repaid. You can’t take blood from a stone. If I owed more than I thought I could ever pay off, my incentive to go sit on a beach and find a nice soup kitchen would be quite high.
America needs to get out of its debt cycle and its bubble cycle. I think the government has encouraged debt in a variety of schemes from tax discounts to cheap student loans, and that has been bad for the country in the long term.