The Increase Of Higher Education

859 Words4 Pages
Currently, the difficulty to pay for higher education are hindering not just thousands of students, who cannot afford the tuitions, but also the economic growth of the United States. Since 1970’s, the income of American families has been stagnant and the price to attend universities has increased three times, which has led the student debt to an incredible rise, and now it is bigger than $1 trillion. The effects of this huge student debt are terrible for the economy, and will prevent a sustainable growth, because the students enter the labor market owing money, so they avoid making risky investments that could have been successful. Phelps (2014) gave an example of a student who worked thirty to forty hours a week, during junior and…show more content…
At first, the benefits for the whole educational system would be worth the change in the loans policy. To get a student loan free of interest rates, the pupil should have earned high grades in high school and middle school; it would work as an incentive for the students to study more and would also introduce meritocracy, which is another base of capitalism, in their lives. The consequences of this need for high grades are more engagement to the classes and more knowledge acquired. The exams average grades would increase, and so the competition for the spots in big universities. When the teachers start to feel that the students are getting higher grades and are been more engaged to classes, they will be more comfortable and happy to teach. Thus, the whole educational system would be benefited: students, teachers, schools and universities. In addition, the economy would also be stimulated by the student loans at no interest rates. Initially, the labor market would be benefited, because the students could work while in college, and start paying their debts earlier. There are a lot of working opportunities at universities’ campuses, so the students can take advantage of it. Jones (2014) claims that some schools are collaborating with programs that help students to pay for their loans even before graduating, so they can start their professional careers without a very big debt. If the
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