What is the future of students loans?
More than 42 million people in the US – roughly one in six adults – holds a student debt, which averages roughly to $30,000 for a four-year undergraduate degree. Nearly a fifth of borrowers are in default and millions more are behind on payments, which comes due shortly after graduation regardless of employment or income.
However, there are places where students receive education at a greatly reduced cost regardless of their background. In Germany, Norway and France; although not entirely free, students are able to pay the small sums through working part times jobs and borrowing from parents. This may not guarantee a completely debt free scenario post University, but it certainly encourages students to head to University and not fear the bailiffs come graduation.
Can governments do more to help younger generations be debt free regardless of socioeconomic background? Is this really the best way to educate our youth?