Will continuing tuition increases eventually cool demand for college?

Total student loan debt hit the $1 Trillion mark this week and continues growing.  Congress is debating to stop the increase in the student loan interest rates from 3.4% to 6.8% on July 1, 2012.  And, UC’s are considering an additional 6% tuition hike on top of the 47.6% tuition increase, since 2009.   With more attention about the consequences of…

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The $1 Trillion Inheritance

The Student Debt total reached $1 Trillion today.  What are the costs for future generations and its prosperity? Since student debt is future income brought forward, Creative Marbles suggests thinking carefully about career and major choices to know if a student would be able to afford the monthly loan payments.    Also, students need to consider the “opportunity” costs of diverting…

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Graduated, Yet Still Not Grown Up?

Parents want what’s best for their children.  Yet, what is the cost of  “the best” for both parent and child? A recent Ameriprise Financial study found the following amongst Baby Boomer Parents (born between 1946-1964) 55% allowed their adult children to move home rent free 71% paid college tuition Yet, 34% say that helping children has slowed down saving for…

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Dropping wages = shrinking prosperity?

According the the Economic Policy Institute, from 2002-2012: For male workers: With a college degree:  hourly wages dropped 11% to $21.68 With a high school diploma: hourly wages dropped 10% to 11.68 For female workers: With a college degree: hourly wages dropped 7.6% to $18.80 With a high school diploma: hourly wages dropped 9.2% to $9.92 All wages are adjusted…

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College Degree’s Changing Value

As an update to a recent post, several recent studies show a growing number of children who earned less education than their parents, reversing the trend since 1876.  Does this current trend mean a decrease in the living standard of Americans overall, since currently people with bachelor’s degrees earn more over their lifetime, than those with a high school diploma?