Why Have Student Loans for College?
Given all the banter and debate about student loans, one question is often left unanswered – why have student loans for college in the first place?
Education is the fertilizer of a strong society. Perhaps fertilizer is a bit much for a metaphor, but it accurately reflects the role of education in society. For a society to flourish, the younger adults entering the workplace need to be equal to or better educated than those beginning to leave it for age reasons. If this isn’t the case, the civilization will decay and implode. History has shown us this time and time again.
Education is mandatory through high school and we all pay for it with out taxes. Rightly so! Higher education is a different story. One has to show sufficient merit through testing and grades to merit getting a college education. Even when admitted to a university, one has to actually pay for it. College is expensive, which means financial solutions need to be offered. Here enters the concept of the student loan!
There is a distinct downside to student loans, however. What is it? They have to be paid back! No, I am not being frivolous. I am merely pointing out that they represent a financial burden that immediately falls onto the back of graduates that may not be in a position to deal with them when the first graduate. I don’t know what your first job paid out of college, but mine paid peanuts.
Student loans should be available for those who wish to attend college. That being said, the payment amounts that will be required should be more clearly explained to the borrowers. For individuals that have never handled money before, the first experience can be a brutal one from a financial perspective.
Why have student loans for college? Because they allow people to attend higher education when they otherwise would not be able to and that is good for our society as a whole. The last thing we need these days is a brain drain.
