While student debt is rising, parents’ ability to pay without resorting to debt is declining. Fed data show that the income of the typical American family, adjusted for inflation, declined from 2007 to 2010. Their wealth was down almost 40% — back to levels not seen since the early 1990s. Separate data show that household income is back to levels of a decade and a half ago. Meanwhile, the Education Department released data showing that during the period 2008-10, tuition at four-year public universities was up 15%, and in some states, such as Georgia, California and Arizona, up more than 40%. This is not a surprise: With states responding to slow growth in tax revenues by cutting back on support for higher education, universities had no choice. With tuition up and families less able to help their children, borrowing is the only option for many students. And they’re stuck with the debt. Unlike other debt, student loans cannot be discharged through bankruptcy.

Read full article [here].
by Joseph E. Stiglitz, USA Today.

Posted: July 3rd, 2012, by: admin. Categories: . Awaiting Comments.