CNBC has a show in the early January of this year which is about the student loan programs in America and how this sector may burst next to the housing bubble. The name of the program is “Price of Admission: America’s College Debt Crisis“. I was lucky to have my family support throughout college, but still graduated with $120,000 in student loan. My job has a good pay, so I will be able to pay my bills. Not any job can guarantee that prospect. My pharmacy school’s tuition now is 43,000 a year!!! I don’t think it is worth it. With the slow economy right now, the school should not increase the tuition with the rate of 6% per year. The students should sign a petition to the board of trustee or directors or the president, but nobody has thought to do it.
One of my co-workers is taking classes of University of Phoenix, a for-profit private school, for major in software engineering. He said he has financial aids but I am afraid he will be hooked to private loans sooner or later. Data has shown that most of the students of that school will not be able to pay back loans. I can’t persuade him to take classes at community college. He has children and he works full time to support his family, so online program is convenient for him. The thing is with the slow economy, he may not find a job but the interest still builds up. There is no bankruptcy for student loans. Once you are hooked, you are stuck forever. Even if you are dead, your co-signer will have to continue to pay for it.
Higher education is a really good idea, but you have to consider the cost as well. Sometimes it is not worth it. Sometimes, it takes longer but affordable. The cost of education and for-profit schools should be regulated. Students, be aware!!!!