Should You Go To College???

Written by on April 30, 2010

We have seen the housing bubble burst, we saw the collapse of Wall Street and our banking system, now we need to look at the problems facing students who accumulate debts. With the rising costs of tuition at our universities and colleges, many students leave school with debt that equals a small house.

Too many of our students leave school over $100,000 in debt, looking for a job that will hopefully pay them 30,000 a year. Something doesn’t add up, and as you know if it doesn’t make dollars it don’t make sense! What should a young person do? The question is easy if they are in a position to get a scholarship, but how about the millions of students who don’t have that option? Should they pass up a 4 year college and go another route? Should they head to the armed forces so that their college years can be paid for down the road? Or should they just head to school and get ready to in a lifetime of debt before they reach their 25th Born Day?

Black Voices posted some info on how African-American students lead Whites and Hispanics in the amount of debt they accumulate while in school. This article gives you something to consider the next time you tell a young person to head to school.

Blacks Accumulating More Student Loan Debt than Whites or Hispanics

Over all, the analysis — based on data from 2007–2008 graduates in the “National Postsecondary Student Aid Study” — revealed that about two-thirds of all those who received a bachelor’s degree graduated with some amount of loan debt.

About 25 percent of all college-degree recipients graduated with at least $24,600 in debt, and 10 percent graduated with at least $39,300, says the report.


A co-author of the report, Sandy Baum says that it’s not the lowest-income students who have the most debt at graduation, but actually middle-income students. The authors, though, could not pinpoint why that is other than to speculate that the types of colleges middle-income students choose to attend may have a high tuition.

Among bachelor-degree recipients, independent students were also more likely to have high-debt levels. About 24 percent of them had at least $30,500 in loan debt, twice the percentage found among students who depend on their parents or another guardian.

“Independent students, who are disproportionately likely to come from lower-income families, are most likely to have high-debt levels,” according to the report.

The College Board also analyzed the relationship between student debt and race, finding that black students are more likely than Asians, whites, and Hispanics to have high-debt levels. Only 19 percent of black students graduated with no debt, while the percentage of debt-free graduates from other racial groups ranged from 33 for Hispanic students to 40 percent for Asian students.

About 27 percent of all black students graduated with at least $30,500 in student-loan debt, while the portion of students with that level of debt ranged from 9 percent to 16 percent for other races.

According to the report, the problem is not that the students are borrowing too much, but that difficulties in predicting earnings after graduation and students’ lack of understanding about the financial impact of loans leave too many of them borrowing more than they can manage.

For instance, if you’re attending a graduate teachers’ college for $30,000 per year, and upon graduation, you’re saddled with more than $100,000 in debt, it would take a lifetime to pay back that loan on a teacher’s salary.

 

Many students graduate with manageable debt or no education loans, but almost 17 percent of graduates in 2008 borrowed $30,500 or more to get their bachelor’s degrees, according to a report released by the College Board Advocacy & Policy Center. The students who borrow the most are disproportionately black, and are more likely to have attended a private, nonprofit or for-profit college than a public four-year school, although debt levels did not necessarily reflect family income.

BlackVoices


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