It is a proven postulation with verifiable empirical findings that education is a cornerstone of success in an individual's life. Notably, any element that purports to handicap a student from getting proper educational training, be it social, political, or economic, has a long-lasting social effect on the person as well as the economy. There is a distinctive quality amongst millennials that categorizes college students as being the most indebted in as far student loans are concerned (Collins, 2019). A significant reason for this problem lies in the fact of the existence of many inexperienced students who tend to take more than they require. This issue might seem frivolous to many students, but a more in-depth analysis of its severity shows how profound the impacts can be in the long run.
Within the United States, thousands of Americans are struggling with paying their debt in regards to college. College is not for everyone, but getting an education in a trade or anything that the person wants to pursue in life is essential, and most of all, it becomes more than just an education. It starts to be the preliminary key to all the concepts of the individual's life. Other applications can be applied in regards to how much of an economic barrier is in regards to getting a good education. Student loans are out of control, and as they keep growing, there is the reality that many individuals will not be able to get out on time. The rate of individuals who keep getting into school debt merges from the little knowledge that is known in regards to what repayments mean and how they process within the time being. The lack of knowledge on the way that young adults should manage their money is shallow, and this has the last effect.
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Young adults who come from affluent backgrounds are less likely to have to deal with the economic pressures that force individuals to have to take out student loans or depend on any other economic loaning system. The disparities have been displayed over an extensive period and continue to do so because it reflects in the rise of low-income housing systems that have been submerged to having to deal with this massive increase in loans. Education and training are always going to affect the economy in many different ways but mainly in the way that they can add value to the markets or take it away. "We will mostly ignore the fact that the difference between high school graduates and college graduates change over time - given years of experience and the ups and downs of the economy" (Conley, 2011). The changes are a recurring issue that seems to continue to grow. Other factors rise and continue to get in the way of individuals who get a high school diploma and those who advance into another realm of college.
The fear that continues to grow is the overbearing weight that has been placed on those who are going to college because it is the right thing to do, and it earns them more money. While this might be true, it all depends on how the economy has been going throughout those years. This concern comes down to a particular and relocating circumstance that accumulate to what can be targeted and changed around in society. "The expansion of higher education has merely resulted in a ratcheting up of credentialism and expenditures on formal education rather than reflecting any time societal need for more formal education or opening up opportunity for more people.''(Conley, 2011). The statement suggests that there is a more substantial impact regarding how society can look at the informal opportunities presented when the person has a bachelor's degree compared to a high school degree, especially in specific industries that can have a huge impact on the economy. There is no better alliance than being able to necessarily approach the situation in a way that could become more than just the systematic way in which things are proven to work and continue to advance. The adjustments are made because we have constantly been told that to make more money, college is the way that burdens the economic value of what an education means. The economy is still a reflection of what can happen when a society can have an educational system that rewards what a degree means.
According to Student Loan Hero, about $1.5 trillion is in the record as part of the whooping and ever-growing student loans since the 1980s (Ji, 2020). A lot of factors spawn this terrific statistic with the vital element lying on the high number of student enrollment over the past years. There is a prevalent belief that the door to getting more money is through the acquisition of proper education. Many millennials are, therefore, pursuing this dream, which places a massive weight on academic institutions and a consequent increase in fees to cater for this dynamic. In the process, numerous financial-aid programs have been developed to supplement students in filling this new void. In addition to that, state governments are far from supportive with little to no aid at all, which further pushes students to resort to this detrimental option. The effects on the long-term goals are acute and, to a greater extent, hinder the eventual graduates from progressing and experiencing the full benefits of the money they were diligently working for. A water resource engineer narrates her tribulation on just how it has been difficult for her to buy a house as she struggles with her average income to clear her loans (Ji, 2020). This problem underscores the assertion on how the impacts of education and training in society are two-way, either productive or pernicious. The student graduated from school with a debt of $25,000 and has been using $300 from her salary as part of loan repayment. Also, other students explain how they opted to pay twice their monthly payment to offset their loans sooner than later.
The Pew Research Center conducted a study and postulated that having a student loan can lower an individual's net worth. Households headed by graduates aged 40 or below having student loan debts were reported to have a net worth of $8,700 (Ji, 2020). On the contrary, a household headed by a graduate with no student loan accounted for a net worth of $64,700, which stood out as the median statistic. This disparity presents a colossal inability to sort out the day-to-day needs that could ultimately lead to an economically poverty-stricken society. At times, these problems could extend to a graduate's life and aspirations, with many leaving their life dreams for higher-paying jobs. If one wishes to work for a non-profit organization that pays lower than a profit institution that will offer higher pay, their wish will only remain a distant dream as they seek a better solution to their financial obligations.
The contemporary business society has companies conducting credit checks during the hiring process. If a company notes an applicant has defaulted in repaying their loans or faces late repayment issues, then that is reason enough to disqualify them from the application. The same applies to those that are already employed. If a check pinpoints any of the two listed delinquencies, then an employee is at risk of losing their job. There also exists a FICO score, which is calculated based on the timeliness of repayment. A lower score is attributed to late settlements that will ultimately lower your future loan limit. Lenders might even fail to consider you for future applications with an increased interest in approved loan requests.
There is also an underlying belief that propels the idea of a college degree being better than high school diplomas. The rationality of this assertion is only relevant to a certain degree. This belief alone places a lot of pressure on college graduates to succeed in the current economic world that hugely favors those that are street smart as opposed to those that are book smart. Statistics conducted in the United States report that those with college degrees are twice likely to get a well-paying job as opposed to their counterparts with high school diplomas and degrees (Conley, 2011). Furthermore, the earning gap between these two groups is continuing to widen even more as the world grows and develops.
A generated report for 2019 by the Association of Public Land-Grant Universities notes that college graduates aged between 22 to 27 get an annual income of about $44,000 (Vedder et al., 2017). High school graduates, on the other hand, get a yearly salary of $30,000. Unemployment rates also affected high school graduates more than it did college graduates. These pragmatic factors explain why many people perceive college degrees to be better than high school degrees. This belief could be innocuous when viewed arbitrarily; however, there are underlying negative impacts that come along, which should not be overlooked.
The success that comes with getting a college degree is partly dependent on the state of the economy. Many graduates find it hard to get employment in their respective fields and are forced to deviate in search of financial stability. Two researchers, Richard Deitz and Jason Abel researched the productivity of college degrees and found that 45% of graduates are working in informal settings (Vedder et al., 2017). The education sector is, therefore, placing much emphasis on revitalizing the college sector and losing out on an essential element, which is the creation of opportunities.
Conclusively, the emergence of colleges has brought alongside it novel challenges whose effects could be extremely destructive in one way or the other. The economic impacts resulting from this institution extend to both the victim's life and the society at large. A lame understanding of the full scope of student loans goes a long way in impeding progress post-college. Similarly, a one-sided focus on colleges alone as the pathway to success leaves alone a key target of job creation, which has a ricocheting effect on the graduates. A sociological understanding of education and economy would underscore the necessity of a fully-inclusive approach rather than a systematic one.
References
Collins, R. (2019). The credential society: An historical sociology of education and stratification. Columbia University Press.
Conley, D. (2011). You may ask yourself: An introduction to thinking like a sociologist—WW Norton & Company.
Ji, Y. (2020). Job search under debt: Aggregate implications of student loans. Journal of Monetary Economics.
Vedder, R., & Strehle, J. (2017). The diminishing returns of a college degree. Wall Street Journal.
