Something I find incredibly frustrating is that while the economy is struggling and college grads can’t find jobs the prices for education are going up. This seems ridiculous to me!
A college education is no longer the secure investment it used to be. This article from the New York Post explains the situation in more detail how student loans will be the next debt bubble to burst.
Financial advisers often refer to educational debt as “good debt” because college graduates make far more on average than nongraduates.
But not all degrees provide an equal return on investment. A degree in chemical engineering, for example, produces an average starting salary of $64,500. Someone with a degree in culinary arts, however, can expect to start out making less than $30,000 — a salary they might get without a degree. Yet despite such differences, the government subsidizes loans as if all majors were equally valuable.
The job market, while tough for all, is even tougher for recent college grads. A study showed that among 2010 graduates, only 56 percent had managed to hold at least one job by this past spring. No wonder defaults are on the rise.
So can anyone please tell me why tuition costs are rising?