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Saturday, October 8th, 2016

College Admissions Directors: Debt Concerns Cost Applicants

Author:     Valerie J. Calderon and Jeffrey M. Jones
Source:     The Gallup Organization
Publication Date:     October 6, 2016
 Link: College Admissions Directors: Debt Concerns Cost Applicants
Stephan:   The rise of college debt is an issue that is now affecting not just students but the colleges who are squeezing the money out of them. As this survey reports, "Private colleges are feeling the effects of student debt concerns more acutely than public institutions. Nearly nine in 10 private college admissions directors say they are losing potential applicants because of student loan debt concerns, while half (51%) of public institution admissions directors say the same." As a country we must decide whether profit is more important than an educated citizenry. The answer on the surface seems obvious; surely we must opt for education, and Bernie Sanders is correct. But the truth is there are forces at work which want not just profit squeezed from students, but an ignorant electorate. This is a significant aspect of the Great Schism Trend.

Student loan debt could end up costing higher education in the U.S. for a long time. Findings from The 2016 Inside Higher Ed Survey of College & University Admissions Directors provide insight into how institutions of higher education are dealing with enrollment issues amid continued concerns about the rising cost of postsecondary education. The majority of admissions directors surveyed say their institution is losing potential applicants because of the applicants’ concerns about accumulating student loan debt.

Those concerns are rooted in sobering statistics. More than seven in 10 recent four-year college graduates have student loan debt. The nearly $1.3 trillion in outstanding student loan debt is shared across 43 million borrowers and exceeds credit card and auto loan debt in the U.S. The average debt load for graduates now tops $30,000 and is nearly triple the average debt load in the early 1990s. While the total average borrowed for a bachelor’s degree has skyrocketed, the average family income has not. Family incomes have been flat since 2000, and many are struggling economically, so while graduates may have a higher chance of avoiding unemployment and getting a better-paying job than their peers who don’t have a postsecondary degree or certificate, […]

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