Most college and high school students, alumni, and parents know that paying for college has become a small fortune. For that reason, loans become the only option for college hopefuls as they seek a better and more profitable future. This problem is not limited to America, but unfortunately has grown to encompass higher education in the UK, Canada, China, and Japan amongst many others. Given that student debt has become such an issue, why are the same lending practices allowed to continue?
The first reason concerns the benefit this provides both universities as well as their governments. For example, the United States Treasury takes in around 130$ a month from the social security benefits of anyone over 65 with student loan debt, a demographic which includes over three quarters of a million households in that country alone. One important detail to bear in mind is the fact that social security benefits are not substantial to begin with and therefore, any money that is collected out of that sum will significantly impact this population. This detail reveals that student loan debt effects individuals of many demographics, not just millennials as is the popular belief. The government attempts to subsidize these payments with various grants, but the reality of the situation is that it gives these institutions the opportunity to increase their tuitions. As this vicious cycle continues, it is quite evident that the government and universities will continue to benefit at the expense of those seeking education and a better life.
The second reason is the lack of resistance to these practices. The simple fact that the amount of individuals applying to these institutions continues to increase yearly serves to enable these price increases and for the government to continue lending. Students finally appear to be taking a stand, or at their efforts are at least being publicized. The Corinthian 15, as they have come to be known, are a group of students who are taking a stand against the especially predatory Corinthian Colleges. The students are refusing to pay their debt to the chain of for-profit colleges and despite only making a small difference, they are turning national attention towards a problem that is often overlooked. In recognizing the potential catastrophe large amounts of student debt may result in, it may definitely be in the interest government to fix this issue immediately.