Each year the expense of college rises, resulting in the need for students to take out loans. Many students expect to immediately get a job after graduation, however, in more recent years the chances for college graduates to get a well paying job isn’t nearly as high as it used to be. Because students can no longer depend on getting a job fresh out of college, it has become harder to repay the loans. Without a steady income, these individuals have gone into debt and frequently default loans. If nothing is done to stop colleges and universities from increasing the cost of attending their school, the amount of time it takes for students to pay off their loans will become longer and longer.
Investments Moody’s Economy.com predicts a 1.1% drop in investment Gross Domestic Product (GDP), over a 2.9% drop in 2007. Given the recent sub-prime mortgage debacle and similar collaterized debt in the corporate market, the 1.1% drop is understated given the tightness in corporate lending and the government's short term stimulus package. The stock market dropped in tandem with recent events over the past few weeks including a one day 309 point drop in the Dow Jones Industrial Average. Non-Residential, Inventory Change, and Residential are the key indicators for the $1.8 Trillion annual business investment (15% of US GDP) and implications upon the economy. Nonresidential The Philadelphia Federal Reserve’s Business Outlook Survey for the month of January came in at -20.9, it’s lowest number since October 2001(median of 0 versus 50 for PMI) 1.
One might ask why would someone want to spend money to receive more education and miss out on more years of work that they could’ve performed? For many, it is so they can receive more salary for the jobs that they will have later in life, also so that they can get training for their wanted career. The cost of attending college is high and continues to rise without indications of decreasing. The rising cost has many benefits such as earning more pay, but it also has its disadvantages such as the debt that is accumulated from student loans. Not everyone can afford to drop down thousands of dollars and attend school for a few more years.
Bloomberg.com. Bloomberg, 30 Jan. 2014. Web. 2 Feb. 2014. "Incomes Are Flat, Reflecting a Slowdown in Job Growth, but Consumer Spending Rises."
In recent years, students have taken out loans to help with expenses. Most students choose to attend a community and junior college to help minimize the debt. Even after graduating with a degree, students still face the struggle of finding a job in this economic time. For higher class families this may not be a problem to them. But for the middle class and low income families, they face tougher times being that they don 't have the financial help like higher class families do.
Managing risk and compliance. (2010). KM World, 19(3), 6. Perry, M. (2013, June 26). Federal regulations have lowered real GDP growth by 2% per year since 1949 and made America 72% poorer.
Unfilled orders fell .8%, marking a third-consecutive month of decline. Industries are softening up as durable goods orders fall below expectations, and it may continue to struggle if companies are reluctant to increase capital spending. There is growth nonetheless, but the rest of the year may yield below expected levels if the factory sector cannot recover. The US economic growth may be slowing as consumer spending slowed to a more moderate pace. According to the Commerce Department, the total value of goods and services slowed to 2.3% with a previous rate of 1.8% last year.
Although college can be scary for some people because of the costs or the classes and the new experience, it would later be for their advantage. Some people only go to college because that is what their parents want, but they should be going because they want to go and they want to learn and want to get a higher paying job in the future. With less people going to college, there will be less money going to the colleges... ... middle of paper ... .... Johnson, Terrence L. "Planning for College Costs." Black Enterprise 04 1997: 77-84. ProQuest.Web.
First, free college can encourage students to go to college to get a degree which leads to a high paying career. It can fulfill those students that are having a hard time financially, and fewer students will be in debt. Second, with free college, colleges will be more likely to help students that need the guidance to stay on track and get a diploma. Clayton and Bailey mention, "If we want to significantly improve educational outcomes, we need to make college more affordable so more students can enroll, and make the reforms needed to en-sure community college students can succeed in their courses, complete their program, and grad-uate within reasonable amount of time" (Clayton and Bailey). Finally, free college can help the U.S. catch up to the rest of the countries with higher education.
In 2008 the growth abruptly slowed down to 2.1%, in 2009 the economy contracted by 6.9% and economic growth was stagnant each year ever since. In 2010 decreasing manner was sustained and the economy contracted by 1.3%, in 2011 economy contracted by 0.2%, which may have appeared as a slight revival, but in 2012 the economy contracted by 1.9% due to the passive and stagnant recovery in the global economy. In 2013 the economy contracted by 1.0% and for the 5th consecutive year remained in recession. The European Bank of Reconstruction and Development (EBRD) stated that the growth of Croatia’s economy would not happen before 2014. During 6 years of recession Croatia has already lost 12.3% of its output.