Summary
College enrollment among 18-year-old freshmen fell 5% this fall, with declines most severe at public and private non-profit four-year colleges.
Experts attribute the drop to factors including declining birth rates, high tuition costs, FAFSA delays, and uncertainty over student loan relief after Supreme Court rulings against forgiveness plans.
Economic pressures, such as the need to work, also deter students.
Despite declining enrollment, applications have risen, particularly among low- and middle-income students, underscoring interest in higher education. Experts urge addressing affordability and accessibility to reverse this trend.
American student loans are a scam anyways. The interest rates are outrageous and the federal government subsidizing them, but then they get handled by private businesses in a system know for failure and fraud.
Student loan forgiveness shouldnt be a thing. It shows that the system is trash to begin with and the “forgiveness” remains arbitrary and is just a carrot on a stick.
Make a system where the loans are granted directly by the government and dont incurr interest. No for profit skimming middleman, no permanent debt. Offer a regulated bonus for people who pay back X% before Y years pass, so people are incentivized to pay back quickly, rather than delaying payback.
More importantly remove the outrageous enrollment costs per semester.
Depends, some are some aren’t.
However, in my opinion, the thing that makes student loans crazy is how the payments are structured.
With other big lifetime loans (mortgage, car, etc.), they are structured with a fixed term and the interest is factored in from the beginning. You pay $X a month for Y years, and that’s it, it’s all paid off. All you have to do is keep up with those payments, and you know how much they’ll be from the time you agree to the loan.
Student loans are structured more like credit cards. If you just pay how much they tell you to, interest will accrue, the loan grows, it capitalizes, and the term is indefinite. You can pay on it consistently for decades and never make any progress.
There’s practically no assistance to figure out how much you really need to pay, and sometimes even attempting to overpay to cover the interest doesn’t help, as they’ll apply the extra towards the next payment instead, and so extra interest still accrues.
7% is a scam. You wouldnt buy a house on 7% interest rates. And an education seems to be a safer investment. Especially for the government that should have an interest in education to drive the economy.
It’s outrageous that a loan for higher education comes with an interest rate at all. The increased productivity of a college graduate should cover the need to profit off the loan. Extra silly because as a graduate you only see compensation for a paltry fraction of that increased productivity.
Yeah, but you generally don’t have the choice of either going to a loan shark or not being able to have the career you want for your life.
I’m just thinking ‘scam’ is the wrong word when no one except the wealthy have any other real option. The military and athletic scholarships, I guess?
