Education Is Crucial If One Were To Be Successful In Life.

1309 WordsFeb 11, 20176 Pages
Education is crucial if one were to be successful in life. In modern day, a person without a college degree would have a difficult time to sustain a living. On the contrary, those who are able to attend college and have graduated are also struggling to pay their student loans. Students who try to further their education have had this issue for ongoing years. Not only does a student try to acquire as much knowledge as one can, but it is not a guarantee that once a student graduates from college, that he or she will have an occupation. This all factors into how it has become strenuous for students to pay their student loans when tuition fees are excessive instead of being affordable for each student. Therefore, student loans should be…show more content…
The Student Loan Act of 2012 is a recognition that millions of Americans have grossly overpaid for their education due to governmental interference in the marketplace (Barnet and Bedau, 2014). Education should be a birth given right instead of a commodity the government uses to extract money from (Barnet and Bedau, 2014). Instead of considering student loans as an exception it is seen as a norm. The average amount acquired by an undergraduate student in 2012 was $25,900 according to data from the National Center for Education Statistics (Johnston and Roten, 2015). The federal student loan program is designed to correct market failures that cause students to invest exceptionally less in their education because of either capital market imperfections or external benefits from education (Miles and Zimmerman, 1997). The capital market failure occurs because students are unable to obtain loans by committing future earnings as collateral. The high cost or lack of other financing causes students to invest less in their education than would be profitable for the student, furthermore it would be less socially desired (Miles and Zimmerman, 1997). The “external benefit failure” goes to proves that students do not efficiently value the benefits their education provides to society. Students can’t obtain the entire benefit for themselves in higher wages which cause them to invest less than the socially desirable amount (Miles and Zimmerman, 1997). Thus, they will
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