Over 30% of college graduates between the ages of 25 and 29 are either unemployed or largely underemployed. Even more startling is that almost 40% college graduates between the ages of 20 and 24 who are able to find a job, are underemployed (Doglow, 2012). Because modern students are borrowing so much more to fund their education and are unable to find appropriate jobs after graduation, they are more likely to default on their student loans.
Under these conditions, it is easy to see that the higher education bubble has the potential to be a huge disaster for our national economy. Our government just recovered from the housing market bursting and if the student loan bubble bursts as well, it can place our country back into a recession (Leef, 2012). Let us look at possible solutions that could help prevent this bubble from bursting. .
One thing that would cut down on the amount of money borrowed by students is if universities looked for more ways to cut costs. Here at JCC, many professors work together to have books rewritten under the school name so that students can buy textbooks for much cheaper (Driscoll, 2012). I think that this would be a good idea for other universities to try. Another solution that could help universities cut cost is holding back on lavish spending. Many schools try to build the nicest dorms, the most elaborate facilities, and so on. A lot of these expenses are unnecessary and contribute to the rising cost of tuition. One idea that could greatly reduce the amount of money a student spends for college is to offer more three-year degrees. If students can finish a bachelor's degree in three years, it could save students as much as one or two whole semesters of tuition money (Driscoll, 2012). .
The second thing that would help reduce the amount of money borrowed by students is to lower the limit on how much money each student is allowed to borrow. From personal observation of my school and schools nearby, I've learned that many students are able to borrow the full amount of loans after switching majors multiple times, with no limit.
