In the midst of an economic crisis where the credit market has taken a considerable beat-down, loans tend to shrivel up like raisins or even disappear. ‘
Student loans are to the education system what the spinal cord is to the human body.’
The task of researching, or even just trying to figure student loan rhetoric out, could easily cause one to become frightened or subject to nausea. Take that task and add our current economic situation and things become worse.
In the 2007-08 year, 42 percent of undergraduates (including full time and part time students) borrowed federal Stafford loans, according to Collegeboard.com said. Some students also borrow from private institutions.’ As our economy continues to plunge, borrowing from private institutions is fraught with dangers.
‘In each year between 2000-01 and 2006-07, an estimated 60 percent of bachelor’s degree recipients borrowed to fund their education,’ the Web site stated. ‘Average debt per borrower rose 18 percent from $19,300 to $22,700 over this time period. Average debt per bachelor’s degree recipient increased from $10,600 to $12,400.”
Unsurprisingly, costs of a degree are rising as well.’
‘Sixteen percent of full time students in public four-year institutions faced tuition and fee increases of less than 3 percent in 2008-09. 23 percent (of borrowers) faced increases of 9 percent or more,’ Collegeboard.com reports.’
When considering the state governors who are faced with massive budget deficits, containing tuition increases is anything but an easy task. This year, the UH Student Government Association proposed a tuition freeze, a proposal that is hoped be heard and accepted by our state government.’
To aid the task of reducing costs, UH downtown alumnus rep. Garnett Coleman introduced a last minute bill to increase the UH student center fee.
UH System Chancellor and President Renu Khator and the UH board of Regents are also working diligently on lowering costs for students. A UH system update on March 13 showed them tracking about 16 of 412 bills to limit tuition or fees.’
There seems to be a lot of focus on Tier 1 status coming from our board and president. Hopefully, that enthusiasm is also behind curbing tuition increases as well.’
In the current American Recovery and Reinvestment Act, $30.8 billion is being allocated to promote college affordability. According to the U.S. Department of Education, $17 billion of the allocated money will be used to close the shortfall in Pell grant programs and boost grant amounts by $500 to $5,350 in the first year and more in the second year, serving an estimated 7 million low and moderate-income young people and adults.’
$13.8 billion has been allocated to boost the tuition tax credit from $1,800 to $2,500 for families earning up to $180,000 per year.’
The environment for student loans and college affordability looks bleak. When paired with high unemployment rates and companies scaling back, school is an intelligent choice.’
Our government officials should do everything to keep college costs down. As people get laid off and join the unemployed, gaining new skills or education is a way to move an economy forward. The importance of college affordability cannot be overlooked.’
Andrew Taylor is a finance junior and may be reached at [email protected].
