Affordable Higher Education
Every year more than one million students drop out of high school without a diploma. Furthermore, we are slipping further behind when it comes to access to higher education. These findings have serious implications for young people, the middle class and our nation.
Twenty years ago America had the most educated population in the world, but we’re no longer ranked number one. Belgium, Canada, Ireland, Japan, Korea, Norway and Sweden all have a higher percentage of it’s workforce educated than we do. Spain, France and Finland could surpass us in the next few years.
Education is directly related to salary level later in life. A recent study found the median income for workers with a high school degree was $32,000, with a four-year college degree $54,000 a year, and the median salary for those with a master's degree or higher was $72,000.
It's very important that we have a highly educated workforce, because everyone makes more money and are more productive. There is an exceptionally high college dropout rate in America, because of the expense of a college education.
A lack of federal funding, coupled with the higher tuition costs, are creating a financial gap. Hundreds of thousands of highly qualified students are giving up the idea of college, because they can’t afford it. Low-income students, as well as, middle-income students with good academic qualifications are increasingly having to leave school before completing their degrees. Those who stick it out in college are graduating with greater debt than ever before. The escalating cost of college tuition and the weakening of basic student aid such as Pell grants have led to a severe increase in debt for college loans.
Last year $12 billion was cut from student loan programs, and another $6 billion from Pell grants. By shortchanging opportunities to earn a degree, we’re shortchanging our nation’s future.
The College Board estimates an average four-year public institution costs about $13,000 a year. The cost at a private institution is approaches about $30,000 a year.
The vast majority of students dependent upon student aid, after four years at a public institution, the average student owes the government close to $16,000. The average private school student owes more than $18,000.
Middle class American trying to pay for the skyrocketing costs of higher education usually have to borrow the money. The student loan programs works brilliantly for the banks, but not for the students. Higher education, the ticket to success for young students has become the ticket to debt. Sallie Mae has become the focal point of this problem.
Our government created Sallie Mae in 1972. It’s now an independent bank, which manages over $100 billion in loans. The bank's preferred rates begin just under seven percent, but when the government doesn't guarantee the student borrower, the rate goes much higher.
The incoming Democratic Congress is taking aim at those banks that are profiting enormously, while middle class students, their families, struggle with the debt. Senator Kennedy of Massachusetts finds it interesting that Sallie Mae, who provides the great bulk of student aid has seen their stock go from $3.17 a share nine years ago to over $50. a share today.
In 2005, "Fortune 500" listed Sallie Mae as the second most profitable corporation on its "Fortune 500" list. People are getting rich off the student loan system thanks to taxpayer support. Meanwhile, our middle class families are struggling with more debt that's harder to repay.
Twenty years ago America had the most educated population in the world, but we’re no longer ranked number one. Belgium, Canada, Ireland, Japan, Korea, Norway and Sweden all have a higher percentage of it’s workforce educated than we do. Spain, France and Finland could surpass us in the next few years.
Education is directly related to salary level later in life. A recent study found the median income for workers with a high school degree was $32,000, with a four-year college degree $54,000 a year, and the median salary for those with a master's degree or higher was $72,000.
It's very important that we have a highly educated workforce, because everyone makes more money and are more productive. There is an exceptionally high college dropout rate in America, because of the expense of a college education.
A lack of federal funding, coupled with the higher tuition costs, are creating a financial gap. Hundreds of thousands of highly qualified students are giving up the idea of college, because they can’t afford it. Low-income students, as well as, middle-income students with good academic qualifications are increasingly having to leave school before completing their degrees. Those who stick it out in college are graduating with greater debt than ever before. The escalating cost of college tuition and the weakening of basic student aid such as Pell grants have led to a severe increase in debt for college loans.
Last year $12 billion was cut from student loan programs, and another $6 billion from Pell grants. By shortchanging opportunities to earn a degree, we’re shortchanging our nation’s future.
The College Board estimates an average four-year public institution costs about $13,000 a year. The cost at a private institution is approaches about $30,000 a year.
The vast majority of students dependent upon student aid, after four years at a public institution, the average student owes the government close to $16,000. The average private school student owes more than $18,000.
Middle class American trying to pay for the skyrocketing costs of higher education usually have to borrow the money. The student loan programs works brilliantly for the banks, but not for the students. Higher education, the ticket to success for young students has become the ticket to debt. Sallie Mae has become the focal point of this problem.
Our government created Sallie Mae in 1972. It’s now an independent bank, which manages over $100 billion in loans. The bank's preferred rates begin just under seven percent, but when the government doesn't guarantee the student borrower, the rate goes much higher.
The incoming Democratic Congress is taking aim at those banks that are profiting enormously, while middle class students, their families, struggle with the debt. Senator Kennedy of Massachusetts finds it interesting that Sallie Mae, who provides the great bulk of student aid has seen their stock go from $3.17 a share nine years ago to over $50. a share today.
In 2005, "Fortune 500" listed Sallie Mae as the second most profitable corporation on its "Fortune 500" list. People are getting rich off the student loan system thanks to taxpayer support. Meanwhile, our middle class families are struggling with more debt that's harder to repay.
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