Tagged: student debt
We just wanted to point your attention to a White House report that argues mounting student debt is actually helping the economy. We’ve cited our concern about the growing student debt before and we’re really not trying to get political. (Perhaps it’s worth noting here that both Hillary Clinton and Donald Trump have expressed concern over the $1.3 trillion and growing student debt level.)
The crux of the report is that most debt is held by graduates who are able to pay it off and concurrently contribute valuable skills to the economy while also spending much of their high incomes on housing and other goods and services. The report also breaks out the student debt group into graduates and drop outs. Graduates are doing fine and have the higher average debts because they spent more time in school. The drop outs are not doing as well and are far more likely to default, but on smaller debt balances.
At AdmissionsConsultants, we see it more as a break out between for-profit and traditional not-for-profit schools. The for-profit schools tend to charge the higher rates, employ questionable marketing tactics and many sport unbelievably low graduation rates.
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