Readers need to be very careful when reading the article which said College Board: US student loans are dropping, but cost of college is still rising
If people just read the title of the article, she or he may get very misleading information. From the title alone, a reader may not be able to know which US student loans (per capita or aggregate) are referenced. This kind of misleading article title has been around for many decades. Instead of providing an honest assessment, the report got twisted. Even the title of the article is so illogical–the two clauses of the title contradicts themselves. Increasing student loans have a positive correlation with rising tuition. Therefore, it surely irrelevance when the student loans dropped while the cause of the loans to drop, i.e., college tuition is rising–a Fallacy of Relevance type of logical error.
The fact that US student loans dropped is in TOTAL or AGGREGATE need to be added into it. Decreasing of total students loans in the US occurs because of the negative reactions from the American public and not from any other reasons. The society gets tired of supporting college reckless spending. The consumers get smarter than ever before by not supporting (read: buy) those colleges that have acted recklessly by keeping the cost of education higher every year with no viable reasons in decades. As results, consumers’ (students and their family) willingness-to-pay have finally hit the wall. In economic jargon, they become indifferent toward having a college degree or not. At that point they may choose to attend a trade school. When people gets smarter, then they can see that the charged price of the services or products that the college is trying to sell is much higher than its value. In other words, it is not worthy to spend that kind of money, when the buyers (students and their family) cannot get anything out of it, but debts that they need to bear for thirty years. The coming of consumers’ adverse reaction is predictable and has been expected for many years. Even people with less economic theory background understand the impacts of charging too much for something too little will harvest negative consequences in the future. Some US colleges have dug their own grave. It is just a matter of time which among them will soon be buried to the hole that they have patiently and diligently dug for many years.
When enrollment dropped 70 percent from the target, then one knows that the end is near for some. This is one of the most important reason why the total of US students loans has declined by 13% as suggested the College Board. Declining in college student enrollment is the driving factor behind the College Board story.
Please click the following link to express your opinion ===> —-SURVEY—-