Earlier this week I was listening to NPR as I was driving to an appointment and I heard two separate news clips that made me wonder. The first piece was on the cost of higher education and the amount of student loan debt we have in this country. The student loan debt in this country now exceeds the level of credit card debt, and it is gaining on that lead. Tuition costs were up another 5% this year (well above the cost of inflation) and there is no sign of that slowing down.
In addition, they pointed out that most students in state universities are graduation with a high level of debt than those attending some of our most prestigious private universities. This is because of the higher levels of assistance that many of the private schools can offer. The first issue is the question of whether students are mortgaging their futures with the level of student debt, especially in the current economy. This was driven home by a poster I saw from the Occupy movement that asked the question of “Is your college education worth your student loans?”. The issue of those going to the more prestigious university students graduating with less debt may be tied to increased aid, but also to the economic class that attends schools like Yale, Harvard, and Princeton.
More ironically, the second piece was a former economic adviser of George W. Bush who now teaches at Harvard. The controversy surrounding him and his comments was based upon the fact that many of his students walked out of his economics class at Harvard. His comment was that there was plenty of financial aid for college. My first thought was that he just didn’t get it! But then I realized that perhaps I needed to know more about. So who is Greg Mankiw? He went to Princeton, MIT and Harvard. He is a conservative economist who was and adviser to George W., and is how tied to Mitt Romney. So perhaps he really doesn’t get it, because he hasn’t experienced what the typical student goes through, or the student loan debt they have to carry. So is this the right attitude and should we be listening to him? Perhaps not.
The other aspect to this issue that I think we have to consider, is that education is an area where we are falling behind as a nation. Perhaps it is time we looked at other countries and see what is working. For example, a family friend in France is going to be graduating with her doctorate. Total student loan debt? $0.00! Higher education has been free for her, all she had to do was pay her living expenses. I also looked at Germany, the economic powerhouse of Europe. The majority of higher education is free here also, although some schools do charge modest amounts of tuition. Yes they have affordable higher education, as well as national health care, higher union membership, a vigorous manufacturing sector, and higher taxes.
I was fortunate. When I went to school I was able to work and pay my way through school. I took an extra semester and graduated in January, but paid my last bill in February. When you look at college costs now you know that isn’t even possible today. So the question is, do we need to revamp our current model of higher education and find a way to make college affordable? When I say college I mean community colleges as well as universities. Personally, I believe we need more education that isn’t asking our families and students to mortgage their futures!