It’s not exactly news that Americans are pretty much screwed because of student debt. One writer offers a particularly interesting account of the problem with student loans, however. As Charing Ball explains in the Atlanta Post:
The rule of thumb has always been that graduates with bachelor degrees makes on average a million dollars more than those with just a diploma. However, the million you’re suppose to make is off-set by the reality of a, on average, $46,700 four-year cost of tuition (including fees, books, room and board) at a public school and $99,900 at a private institution….
And while the median income for a worker, who is fortunate enough to get a job in this economy, with a bachelor’s degree is around $46k, you have to remember that average college grads don’t pull even that with the average high school grads income level until age 33.
It’s no wonder that the default rate climbed to 7.2 percent in 2009.
Exactly. How far can this go?
Ball suggests an interesting solution: “If we can bail out the banks, we can forgive graduates of their student loan debts.”
Well not easily, but still, it might worth a debate.