"Everyone should be able to go to college and should do so no matter what it costs! Here, we'll loan you all the money you need."
Just don't mention that you'll be paying it back for the rest of your life and because of the huge debt on your shoulders, you won't be able to buy a house until you're 40 years old, if you're lucky.
View: WSJ graphic
I'm going through this right now. My son is about to enter college, and although I make 6 figures, I can't afford to pay for his college. This, again, is a symptom of corporate America outsourcing the middle-class. 30 years ago I would have had significantly more expendable income.
I really debated whether or not a degree is worth it anymore. I think that if you don't get 'a' degree...you are at a significant disadvantage.
This may be a symptom of corporate America outsourcing the middle-class, but more likely it is the expected result of a 30+ year generational credit bubble that, as expected, raised prices of non-traded goods/services. What happens when credit is freely available (aka debt) and the US dollar is overvalued (1980-2008)? What happens is you get people switching the things they used to purchase with savings (homes and higher education) with debt financing. That is why prices have risen exponentially for things like housing, medical care, and higher education.
What’s most striking is the hyper-acceleration of debt in the last 9 years while wages have been falling:
From 2005 to 2012, average student loan debt has jumped 35%, adjusting for inflation, while the median salary has actually dropped by 2.2%.
From housing, to borrowing, to small-businesss creation to household formation; there will be painful, long-term consequences of runaway student loan growth and it’s getting worse.
http://www.forexlive.com/blog/2014/05/16/class-of-2014-graduates- with-most-debt-ever/ 5/16/14