In the United States, getting an education after high school is becoming a luxury as college tuition costs are outpacing inflation. Colleges and Universities in America are more expensive than in any other country in the world. For many, getting accepted by his or her school of choice is not the first priority. Students and their parents are more focused on finding the money to pay for tuition (and living expenses if the school is far from home). According to a recent study made by the Advisory Committee of the United States Senate, between 2001 and 2010, an estimated 2 million American students who are qualified for college will not go because they cannot afford to. The Speaker of the House of Representatives has proposed reform of the financial aid system during Congress's first 100 hours. This may be the first step in helping deprived Americans get the chances they need to become successful.
Although student loans are somewhat helpful for many students, they often come at a significant cost. According to a poll taken by AllianceBernstein Investments, in 2006 44% of adults who have student loan debts have delayed buying a house, 28% have postponed becoming parents, 27% have not had medical or dental procedures done because of the cost, and 18% have avoided getting married. In addition, taking on a student loan can put him or her behind in retirement investments by as much as a million of dollars.
Senator Barbara A. Mikulski stated that “Belief in the American dream is shrinking.” People can no longer feel that they are given equal opportunities. A college degree is especially important for those in low-income families if they are to break they cycle of poverty, and it is becoming harder and harder to get. “Having a high school diploma is not enough to support a family,” said David Sullivan, a Chicago-based financial planner with MML Investor Services in Massachusetts. If we fail to make higher education available to all Americans, then we are accepting a society divided into two distinct classes. Obviously, this is not a good thing for those in the lower tier. In the long run, this would be an unattractive system for those in the upper tier as well, as they are forced to choose between expensive social welfare programs and an increase in social unrest. It is common knowledge that a college degree can increase an individual's lifetime earnings by several hundred thousand dollars. That income represents an increase in productivity in the overall economy, to the benefit of both rich and poor.
Senator Edward Kennedy has suggested the Student Loan Sunshine Act, which calls for lowering loan payments to 15% of the student's income and cutting interest rates. This is necessary because it is evident that, especially with private lenders, that loaning companies are aggressively trying to attract students who will take larger loans to make more money. "We already know that the federal student loan program is filled with unnecessary subsidies for the big lenders," Kennedy said. Congress should accept the Democratic plans of reform to make it easier for students of the lower and middle classes to get a higher education.
Janny Leunge of Application2Graduation in Chicago feels that it is worth the investment and the hardships of paying of loans to get a Bachelor's degree. “If a student is willing to do whatever it takes,” she said, “he or she can make it.” According to a recent poll, roughly 50% of college graduates took on a student loan. To ensure that your child can go to college, parents need to put away $150 a month from the child's birth to the time he or she goes to college. That is a lot of money for most families.
Whether one is in this situation or not, the problem is relevant to all Americans. Perhaps one can send a letter to his or her corresponding congressman expressing support for the Student Loan Sunshine Act. There are so many things that one can do, and it is certainly appreciated. Thank you.
