Student Loans, Rising College Tuition and the Social and Economic Effects in the United States


Government involvement in student loans allowed many young Americans to go into debt and live beyond their means. Implied promises of high paying jobs in the future that would theoretically create an earning potential that could make student loan indebtedness seem like a rational investment. The U.S. Government��s goal of ��college for all�� even for those who were better off without a college degree was certain to have dire consequences. (Dwyer, Hodson 2012) In the process of creating additional demand for higher education, the American government overlooked the most important thing that gave higher education value; scarcity. A person with a college degree in the past made more money than a person without it because a college degree was scarce therefore the demand for it was high. Prospective employers were willing to pay more for college educated employees. Today it can be argued that a 4 year college degree is worth less than a high school diploma was in the 1950��s. Another unintended result of government subsidized loans is that young adults who are not sure what to study will often choose the easiest major or something they think they will academically excel at ignoring its utility in the job market. Government supported student loans are acting as a barrier and are preventing young Americans from comfortably entering the work force free of debt.

Author Information
Gerard J. White, Assumption Unuversity, Thailand

Paper Information
Conference: ACEID2015
Stream: Educational policy

This paper is part of the ACEID2015 Conference Proceedings (View)
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Posted by James Alexander Gordon