The ABCs of Higher Education – Part I

Posted by Elizabeth Halpern | Posted in Bad Credits | Posted on 02-07-2011

Question of the day: Is it a good idea to go into debt to attain a college education? In his first joint address to Congress, President Obama said that the United States should “once again have the highest proportion of college graduates in the world.” To achieve this goal, 60% of young adults would need to get their associate or bachelor’s degree by 2020.From an article on www.washingtonpost.com by Michelle Singletary, the financial columnist asks, “…how are families going to achieve this when the sticker price for a college education has roughly tripled since 1980 in inflation-adjusted dollars?” She continues the query, saying, “…we have to decide, as a matter of public policy, whether college is a right or a privilege.”In joint studies by Pew Research and the Chronicle of Higher Education, three quarters of respondents said college is too expensive. Among survey respondents who took out college loans and are no longer in school, about half said that repaying loans has made it difficult to make ends meet, a quarter said it has made it difficult to buy a home, 24 percent said it has had an impact on their choice of career and seven percent said they have delayed getting married or starting a family due to outstanding loans.Perhaps surprisingly, a majority of college presidents replied that most people cannot afford a college education today.Singletary continues saying that for those who borrowed funds in pursuit of a higher degree, the average debt for attaining a bachelor’s degree increased by 36%, from $17,075 in 1996 to $23,287 in 2008. Repayment of these student loans often takes two to three decades. Yes, that figure is for a so-called ‘four-year’ degree; costs for those pursuing a career in law or medicine can expect debt at ten times those numbers. However, with an advanced legal or medical education, there is the possibility of earning a six-figure income and being able to repay those loans over a reasonable length of time. For many with a bachelor’s degree, there is no such lucrative salary expectation. Perhaps, instead of a college degree for all, technical training in automotives, plumbing, electrical contracting, medical tech and other careers that do not require a four-year-plus degree may be a viable and lucrative alternative.All high school seniors and their families will have to individually decide, based on finances, personal aptitude and a myriad of other factors, what education path to follow. However, going into great amounts of debt is probably not a good idea.If you have too much month left at the end of your money, don’t despair and don’t face your financial woes without an experienced and knowledgeable bankruptcy attorney from Legal Helpers. For your free initial consultation, call 800-260-1402 or log on to www.legalhelpers.com. The attorneys from Legal Helpers have helped over 56,000 consumers in the last three years discharge their debt; we may be able to help you, too.

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