Yesterday my local paper ran a front page story titled “Upsurge in student loans threatens economy”. The article explains how the near doubling in the cost of higher education in the past decade could haunt the U.S. economy for years. Some of the statistics cited include:
- More than $17 billion in private student loans were issued last year, up from $4 billion in 2001
- Outstanding student borrowing jumped to $85 billion last year, up from $38 billion in 1995
- Consumer prices rose less than 29% over the last 10 years, while tuition, fees, room and board at four-year public colleges rose 79% to $12,796 and 65% to $30,367 a year at private institutions
When will we reach the breaking point?