Thursday, December 1, 2011

Increasing Student Debt

This article highlights the ever increasing debt that students in America are taking on by attaining post-high school degrees or attending universities. In 2001, US student loans amounted to about $50 billion. This number increased to about $110 billion by 2011. This drastic increase in the amount of student loans means that more students are betting that their future payout with the degrees they're attaining will more than payoff whatever debt they incur from attaining their degrees. Coming up with solutions to relieve this debt as this article presents will help to encourage more people to attend college. This in turn would lead to an increase supply of skilled labor which would reduce the income inequality as discussed in class. However, if nothing were to be done about the increasing debt that college students take on, this may deter more people from attaining advanced degrees. Thus, leading to the possibility of less skilled workers and an increased income inequality.


http://www.economist.com/node/21534781

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