August 24, 2013
HIGHER EDUCATION BUBBLE UPDATE: Student Loans Will Haunt You To The Grave.
We’ve devoted considerable space on this blog documenting the ways in which student debt prevents young people from beginning their lives as adults. A study from Demos, for example, finds that among college graduates, those without student debt are more likely to own a home and enjoy lower interest rates on their mortgages. But the effects of debt can also linger into older adulthood, even when the loans are paid off: the study found that debt-free grads build up a hefty $208 thousand more in wealth over the course of their lifetime. . . .
This is more evidence, as if any was needed, that American higher ed is doing young people a great disservice. Colleges should be preparing students for life as an adult by giving them the skills they need to thrive in the workforce. While some programs succeed in this task, many do not, and they still saddle students with debt that will dog them for much of their lives.