Four in five Americans believe the average level of student loan debt is too high to justify going to college, according to a new survey.
The survey, by Country Financial, found Americans growing increasingly wary of student loan debts and the value of college as a financial investment. Eighty-one percent of the survey respondents said that the average level of student loan debt, pegged at $29,000 for 2012 by the U.S. Department of Education, is just too much to justify the expense.
Steep tuition hikes are contributing to doubts about the financial value of attending college, especially with many states jacking up tuition at public colleges and universities to help cope with budget deficits. Twenty-six percent of the 3,000 Americans surveyed said that given the rising costs, a college education is just not a good investment, up seven percentage points from 2010. Country Financial said that was the greatest number of people who felt this way in the survey’s four-year history. Since 2008, the proportion of people who believe college is a good investment has dropped from 81 percent to 58 percent.
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A 78 percent majority said children should work at a part-time job to help pay for college. Nearly half of those surveyed (46 percent) said it was more important to save for their own retirement than to invest in a child's college education, up three points from 2010 and four points from 2009.
The Gen Y adults aged 18-29 who were surveyed said they actually expect to assume a greater burden of paying for a college education than people in previous generations had to pay. They were more likely than older adults to say that saving for a child’s education (66 percent) was more important than saving for retirement (18 percent), while other age groups said the opposite. Just 58 percent of the Gen Y respondents said that children should get a part-time job to help pay for some college costs, at least 20 points lower than any other age group.
Only 23 percent of the Gen Y respondents said their parents should pay the entire bill for a child’s college education. That was two percentage points higher than in 2010 and at least eight points higher than other age groups.
7 Comments
Since y'all like more numbers than the average bear, I'd like to suggest the following study if you have a deeper interest in the ugly side of student loans.
http://www.ihep.org/assets/files/publications/a-f/Delinquency-The_Untold_Story_FINAL_March_2011.pdf
Posted by: smaxson | July 20, 2011 2:57 PM
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To acm71:
As you say, "Without an education, however, how do you expect to Americans in general to succeed in an increasing competitive global economy?", you are correct.
But with little help from the government available, and States cutting their own throats by balancing their budgets on the backs of students seeking college education, with only low paying jobs "sometimes" available, we will fall further behind in the global economy. Our system based on the Law of the Jungle, i.e., Survival of the Fittest, is coming back to bite us in the a**.
When we have less and less US consumer purchasing power, ore economy will be subject to collapse.
Posted by: Tedego | July 20, 2011 1:16 PM
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Wow, how can you question giving your child or yourself an education? Yes, debt is burdensome and people coming out of college really can't expect to be making $100k+ except in rare instances. Without an education, however, how do you expect to Americans in general to succeed in an increasing competitive global economy?
Posted by: acm71 | July 20, 2011 11:38 AM
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Affordable education is out there. And of course if you finance 4 years of your life without working to pay bills while you are in school you will load up on student debt. It comes down to making the right choice for your situation and working through it. I am 23 with a bachelor and masters degree and only $4,000 in student loan debt. I had a little help from my dad for grad school, but for the most part I worked and applied for scholarships to pay for college. If you want to further yourself and get a degree, don't use student loans as an excuse.
Posted by: JBraud | July 20, 2011 9:37 AM
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Short-sighted thinking: never in lack, even more rarely sought after.
Even a lousy law student who manages to pass the bar will get a return on the shingle money. Just tell her to keep up the CLE and you'll be bragging in five years. Look up once in a while. You might see something other than your two feet and the dirt.
Posted by: EnrolledAgent | July 20, 2011 8:43 AM
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My daughter recently graduated from law school and passed the Texas bar exam. She amassed about $150,000 in college loans for law school only and is currently working for $36,000 a year while looking for more gameful employment. Doors don't seem to be opening in the legal job market. We are beginning to question our decision to pursue law school.
Posted by: Bruce M | July 20, 2011 8:13 AM
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Four in five Americans believe in bigfoot and UFO's as well.
Posted by: fstitely | July 20, 2011 7:13 AM
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