Degrees Of Debt. The Runaway Costs Of College Tuition.

Student Debt is getting out of control and this video gives some insight on how we got here.

#studentdebt #studentloans #recession
Follow us in Twitter:
Follow us in Instagram:

In the last decade the media and economists have raised the alarm about the high levels of student debt, and as of August 2019 that debt stands at $1.53 Trillion, this is because the education system in the United States is broken. We are told that to “live the American dream” you need to go to college and get a degree. This narrative has changed the american society in the last 7 decades, and have dug a hole so deep we do not know if we will be able to get out of.
In 2018, 70% of students graduated with a Bachelors degree and, on average, with $40K in debt. That is the same amount of money as a 20% downpayment on a $200k house, a brand new tesla model 3, a F-250, a wedding, start up a small business or a brand new underground pool. In the united states 44.7 million american have student loans. Of those 10.9% or 4.9 million borrowers are in default status, 1.2% or 531,000 borrowers entered a repayment program and 3% are currently in deferment status.
For the 2017–2018 school year, the average cost of tuition and fees was $34,740 at private colleges, $9,970 for state residents at public colleges, and $25,620 for out-of-state residents attending public universities.
For the 2017 school year, for undergraduate tuition, fees, room, and board costs were estimated to be $17,237 at public institutions. $44,551 at private nonprofit institutions, and $25,431 at private for-profit institutions. Between 2006 and 2017, those same prices rose 31 percent, and prices at private nonprofit institutions rose 24 percent. At private for-profit institutions decreased 11 percent between 2006 and 2017, after adjustment for inflation.
The U.S has the highest college tuition costs in the world, more than twice the cost in Japan and almost 20 times higher than Portugal. The tuition costs are out of control, economists estimate than by the year 2021 the student debt will reach $2T a 34% increase from today’s levels.
To understand why are we in the situation we are in we need to go back to where everything started.
In 1944, it was clear that an end to World War II was near. In order to make sure that returning soldiers were given the tools necessary to return to civilian life, Congress passed the G.I. Bill, one of the most impactful legislative achievements of all time. The bill offered financial assistance to veterans of the U.S. armed forces who wanted to attend college following their discharge from the military. By the time the original GI Bill ended, 7.8 million of 16 million World War II Veterans had participated in an education or training program. The GI Bill is one of the benefits in today’s military.
The next major piece of legislation in connection with student financial aid was the National Defense Education Act (NDEA), in response to the Soviet space program. The NDEA was intended to promote the scientific superiority of the United States over the Soviet Union by making college more accessible to students from middle class families, especially if those students studied math and science.
In 1965 the Higher Education Act was approved. This act expanded the access to student loans by providing federal money to banks and other private lenders in order to facilitate student loans with low interest rates.

informed society,education,student debt,student loans,national debt,gi bill,student debt crisis,student loan forgiveness,cancel student debt,college,debt,debt relief,economics,college debt,obama,student loan cancellation,jobs,higher education,costs of college,tuition costs,tuition,