Posts Tagged ‘economy’
Our economic crisis is disproportionately hurting lower-class citizens. Big lenders have cut off loan services for students of community colleges and less-selective four year colleges (NYT article here). Over 40% of college students attend these institutions. These institutions of higher education are often the bridge between the lower and middle class – they offer innovative professional tracks, serve students who do not fit into traditional educational settings (including students with disabilities, parents/caretakers, and gifted students) and provide many other important services to communities. In recent years, states have looked toward community colleges to shortages in the fields of nursing, teaching, transportation technology, air traffic control, and many other careers.
Cutting off funding opportunities for students who attend these institutions destroys another path toward economic mobility for millions. Moreover, there are may be a ripple effect felt in critical sectors of the economy.
What’s the solution? For the time being, students are able to find fallback loans with higher rates and less perks (ex – no more rate cuts for students who pay loans on time). Also, students who are not able to get as many loans as before have to assume credit card debt and/or work extra part-time jobs. This makes students less-likely to finish school or decreases their earnings once they leave college.
One solution, is to have professional organizations, nonprofits, and state/federal governments promise students repayment of loans if they finish school and take jobs in critical areas. This solution would be a band-aid for issues of equity and access that ripple throughout our education system. Lenders are dividing schools into a tiered system because they see the difference in earnings potential between ‘elite’ and ‘non-elite’ students.
Sadly Relevant/Cheesy Poster: