Charlie Harper of the Dublin Courier Journal has a smart take on the tuition loan bubble that both President Barack Obama and presumptive GOP nominee Mitt Romney have now endorsed.
The amount of total student loans outstanding is estimated between $870 billion and $1 trillion according to the Associated Press, an amount that has doubled in the last five years. To put that in perspective, total credit card debt held by Americans is estimated at $693 billion and total auto loans outstanding are about $730 billion according to the Bank of New York. The amount of student loan debt and its role in our economy is not inconsequential.
Instead of extending and pretending, we must have an honest policy discussion with regards to deflating this bubble. Why are degrees in philosophy and art history subsidized at the same level as math and science fields? Why are borrowers allowed to receive loans without demonstrating they have conducted an analysis of how they expect to pay the loan back? Surely they should be able to complete a simple pro-forma of the average income for a graduate in their field and then deduct the expenses for the cost of living in their chosen city plus the debt payments they will have to make. Why is this not part of the application process?
- By Jim Galloway, Political Insider