College tuition costs remain on the minds of parents and students today. However, when the media reports on a crisis regarding student loan debt, they don’t say whether the problem is the amount of debt individuals have taken on or the staggering cost of education today. Interest on this debt may be the problem, or it could be the high default rate. 

Many people believe the amount of debt students have accumulated is the heart of the problem. In fact, student loan debt now comes in at more than car loans and credit card debt, which is a crisis, and those students attempting to pay this debt agree this is the case. They can spend decades repaying the debt, never feeling as if they are getting ahead in the process. In fact, they may end up seeking help from Debt Legal Defense. 

The Far-Reaching Consequences of the Debt

Lenders struggle with high default rates while the federal government is feeling the pinch, as it guarantees many of the loans. The nation’s economy doesn’t remain unscathed, as the money going to student debt isn’t spent on other items. 

In addition, this problem will only continue, and student debt could read $3 trillion within the next decade. Sadly, this debt is also leading to a mental health crisis, as many people struggle with repaying these debts and are faltering under the crushing weight of their obligations. 

An Ongoing Issue

The student loan crisis and higher education networks remain connected. This includes universities, lenders, and government agencies, as they all contribute to the problem. With so many entities involved, reforming the system appears impossible, and nobody has tried to tackle this challenge head-on. While they are able to meet the immediate needs of the students and the schools, economic sustainability and long-term cost-effectiveness have been ignored. 

First, students must get much-needed relief from the crushing debt. Unfortunately, there isn’t a single solution that will work for all borrowers. Taxpayers can’t shoulder the burden, as it doesn’t pass the fairness test. Nevertheless, some people continue to support this solution, as they feel the government has bailed out lenders in the past. The advocates feel they can do the same here. 

A Possible Solution

Congress needs to create a commission that includes members from both parties to find a solution to the student loan crisis. This commission would be tasked with identifying and proposing strategies that are designed for the long term, are reasonable to all sides, and are broadly accepted. One solution that has been proposed, for example, involves allowing employers to contribute to their employees’ student loan payments. Doing so would provide both the employer and employee with a tax benefit. 

The Bigger Issue

The cost of a college education today lies at the heart of the student loan crisis. For the past few decades, the cost of pursuing a degree has outpaced the rate of inflation. As a result, students have no choice but to take on debt if they wish to get a degree. This leads to many individuals questioning how to bring the costs associated with attending college down to a reasonable level. 

States have reduced the amount of support they provide to higher institutions, which means students and their families pay more out of pocket. Add to this the rising salaries of presidents and senior administrators at these facilities along with the millions of dollars paid to coaches and assistant coaches. In fact, many athletic coaches make more than faculty members by a large margin. Somehow this has become acceptable in the eyes of many. 

Administrative bloat or increasing numbers of administrative staff has contributed to the problem. Robert Reich served as the United States Secretary of Labor. He once described the administrations in universities as overly large and redundant. Many high-cost degree programs at these universities have become redundant as well, such as the law schools in the state of Ohio. People question whether the state actually needs nine law schools. Higher education systems’ offices only add to the cost, yet don’t directly contribute to educating the students. 

What Hasn’t Worked?

Schools have attempted to use advanced teaching and learning technologies to bring costs down. Unfortunately, these methods have been avoided by those who would make use of them. For example, teachers have fought to prevent online teaching from becoming mainstream. In addition, schools refuse to collaborate to save money, preferring independence and autonomy instead. 

Many schools have invested money in non-academic amenities to attract more students, but these amenities add to the cost of tuition and the burden on students and their families. Furthermore, schools now charge mandatory fees for all students even if the students don’t benefit from the activities and services. 

Reform is Needed

Countless individuals recognize the need for genuine reform in the nation’s higher education system. However, they must know where to look for these reforms. One thing people have learned is that the higher education establishment doesn’t have the answers. They have conflicts of interest and won’t be of help in achieving this goal. 

It’s time to look to the students for answers to this ongoing issue. They have the power to bring the needed changes. If they come together, they can put pressure on the institutions to cut costs.

The easiest way to do so would be to put off enrolling for a year or two. This would force the schools to cut redundant programs to save money, as they wouldn’t have the revenue from tuition and the accompanying fees they charge. In addition, this would make them slash administrative costs and reevaluate their spending at every level. It appears students are already choosing to use this method. 

In 2019, a study was conducted that found 20 percent of prospective college students opted to take a different route rather than pursuing a college degree. If more students followed their lead, cost-saving changes would become necessary to keep most colleges and universities afloat. 

Help From Outsiders

Companies could help students in their quest to keep costs down. They can do so by choosing to evaluate students on their competency as opposed to whether they obtained a college degree. This competency could be acquired through military service, on-the-job training, and things of that nature. 

It is possible to solve the student loan crisis. However, don’t expect the establishment to take this step. It must come from students with support from their families and businesses before this will happen. If they are willing to take this step, it will benefit them in the long run as well as future generations. They must act now, as the sooner they do so, the sooner costs will start to drop, something most people in America today would love to see. 

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