Cost

While everything seems to get more expensive year over year, what really hurts those who are pursuing higher education is the interest rates charged on student loans. I am currently working on a Ph.D., and while that is my choice, and the school I attend is not most economical, I believe you get what you pay for and UIW is worth every penny. With that being said, when you add my student loans from obtaining a Master’s to what I am accruing to obtain a Ph.D., I will owe over $80,000 when I am done. I accept that is my burden, but the interest charged on that is 6.8% which is ridiculous saying my home loan is around 3%, and you can finance vehicles for below 6.8%, as well. However, the focus is home ownership and restoring the automotive industry, so you need buyers, so the rates are lowered. Education is incredibly important and the emphasis is not there. As we move forward, a Bachelor’s will carry as much weight as a high school diploma, it’s Master’s and Ph.D. that will really set candidates apart, so making it affordable to pursue those ambitions is very important to the success of future generations. If student loan rates could even just be cut in half that impact to those makings payments would be significant!
The main issue with students not pursuing a degrees is it just costs too much (tuition rates and especially interest rates). They aren’t finishing within 5 yrs because they are taking classes as they can afford them (meaning pay out of pocket vs financing it which is great, but takes longer to complete the degree) and for those not finishing, making money and taking care of the here and now out weighs the potential benefits of the degree later. And for those dependent on student loans to obtain their education, the cost to repay is daunting.
I believe the real focus needs to be on cutting student loan interest rates, more people will be able to go to college, finish, and pay it back without defaulting.