College Bubble Essay

Since we were young, weve been told that with hard work and determination in high school we would single day make it to college. Once there, if we succeeded with graduating, wed get a degree which would lead to a well paying c arer that would allow us to invest in our future. With college debt now leading in the nations debt with the growing amount of 830 million dollars, we are stuck asking. Why is the college-loan system failing? The College Bubble was a term used to explain the doing of the nations menstruum financial crisis and college knowledge constantly on the rise.That is was creating the bubble of debt that will eventually burst. College reading rates have sky rocketed up 29% in the terminal 5 days. The average school twelvemonth for a standard four class, for-profit college now costs $27,293 and on average precisely 2/3 students graduating due to non being to afford their college education. With the economy in a recession and lossing over 8 million jokes between the classs of 07-09, graduates are struggling in the job commercialise, as well as paying morose their student loans.(NIA) During the beginning of the recession, m whatsoever induristes felt the collapsing of the economy. Induristes like the tran edition market, real estate and even oil All induristes alone two, healthcare and colleges. During this difficult time, colleges are prospering at students expense and graduates are non seeing the benefit. Only making the expenditure of college and the hard work of graduates, a poor investment. The government has tried to help students with government aid and programs for low-income graduates, but has failed to fix the problem.Colleges are charging to much for an education that even with government aid and loans, can not be affordable or paid off by a graduate in this struggling economy. College loan system is failing students due to a endeavoring economy, over college spending causing higher tuition rates, depleting wages and declin g job market. College tuition and the loan system in place to fund it, mustiness be modified to compensate in send to set about student debt. College tuition has obviously raised to unmanagable amounts for college students but why?It is due to the college arm race. Colleges are currently spending huge amounts of notes into their campuses and recectional actividies in order to encourage more students, which also means more money. Ohio University economics professor, Richard Vedder was quoted saying, Every campus has to have its climbing wall, you cannot have a campus without a climbing wall(5). In 2009 alone, colleges spent a total of 10. 7 billion dollars on contruction of new facilities like gyms and nicer dorms in an afford to recruit more students. (NIA).Students will pay more money to attend a college that has a favorite college sports teams. When it comes to NCAA coaches, Brady and Jody stated statisticly the average salary for a NCAA football coach was is $1. 47 million i n 2011. Which in the last six season was a climb up nearly 55% (2). If teams meet performance goals, coaches will, in addition, receive bonuses. Such expenses made by colleges for sport teams, maybe a leisure for a student but how does this help them with a better quality education or with their cribbling debt?Students are paying for something that in no way betters their education, just the notarity of the college. College have found many ways to capitalize of their students in order to afford such expenditures. Some 4 year colleges require that you must be on campus for your first two years of attend with them. Room and board cost an average of $8,887 in the school year of 2011-12, that is up 4% since last year (College Board). It would make sense why they would require that you to stay on campus, if it only put more money into their pockets.College books are another expense of students, colleges are benefitting from. Books are also required by colleges in order to attend classes and are not included in tuition. The cost of college books has tripled in the last 10 years, costing an average of $200 dollars (NIA). Colleges will publish their own books, require students to buy them, then update or revise them every year to make the book obsolete causing students to have to by new ones every year and making the resale of them, nonexistent Colleges will work with publishers and recieve kick backs for using books they publish.Adminstation for college also feel the advantage of higher tuition rates. The president of Yale salary has tripled from $591,709 in 2000, to 1. 63 million in 2009. (5) With the average cost of graduating at a 4 year college at $27,293 a year, it is easy to see who is truly profitting from an attending and/or graduated student. Colleges are captializing of students in a poor economy and once out of college, their is no guarentee employment will be waiting. In 2008, Americans lost over 10. 4 trillion dollars in the financial crisis. Between 20 08-2010 over 8. 3 millions of jobs were lost.The government tried bailing out the country with a 4. 6 trillion dollars and was only able to recover 1. 1 million jobs, . 9% percent of jobs. That is 4 million dollars in cost for each job recovered (NIA). Boyce Watkins, a finance professor at Syracuse University is quoted saying, College is certainly an investment. The question is whether or not you get your return on that investment in actual financial capital and this blanket notion that going to college will guarantee you a better economic future is not always full-strength(3). In 2009, the numbers were at 12.5 million umemployed, that is 8. 1 percent of the American population. The numbers have contuning to raise leaving the total count of unoccupied at 17. 5 million. With unemployment at the highest its ever been in the last 25 years (6), its easy to see that even with the investment of college education, the job market is not in a state of stablity leaving the college graduate to take a minimal paying jobs, move trades, or move altogether to an compass in which is hiring. All in which is at a cost to them. Many people cant afford to move, so they need jobs to come to them.This is one of the least discussed, most challenging problems in the labor market right now This is the largest annual jump in the number of unemployed since the U. S. Bureau of campaign Statistics began tabulationg this data just after World War 11. Most of the unemployed62. 3 percentare out of work because they lost their job, higher than any point since 1982 quoted Heather Boushey, a senior economist at the liberal Center for American Progress (7). College graduates not only face the outragous cost of tuition but once finishing their degree they are stuck in a dead end job market.With both college tuition and unemployment at record highs, it is not hard to see that why the college loan system is failing. What once was the american dream has now turned into americans debt. With colle ge spending to much on non-educational expenses and leaving their students to flip the bill in this economic downfall, its no wonder the college loan system is not helping the college graduate. The college loan system has to look to not only take into consideration the economys state but the own colleges spending.While the nation is trying to recover and grow from the current recession it is important to recognize that student borrowing is working against our economic interests and the source of why that is happening. In order for the college graduate to pay of their debt, there must be employment after college and if that is not an guarenteed, colleges must reevaluate their expenditures. Until the economy recovers from its current crisis, student debt will only worsen and end up not only cost the american graduate but the nation as a total.