Editor's Note: We're honored to bring you the following guest post from June Smith
I can imagine
Ron ranting about this as he did so many times: Because of the anemic labor
market, half of the recent U.S. college graduates are either without jobs or in
jobs that don’t utilize their skills and their expensive liberal arts educations,
or justify their exhorbitant student loans. They are lucky to find jobs that
require a high school diploma or G.E.D.
How many times
did Ron say that in between being a barista, parking cars, or delivering pizzas
earning just above minimum wage, the average recent college grad spends a
couple of hours a day online looking for a job more suitable for someone with a
B.A. degree and huge student loans? The jobs just aren’t there.
The average student loan debt is $25,000 but Maryland
tops that by several thousand dollars.
Entry level jobs have been eliminated and the age of the “assistant
manager” is a thing of the past. But the debts must be paid. Student loan debt
now tops a trillion dollars—increased more than 500% since 1999.
President Obama is urging our elected officials to keep
the student loan rates at the current level of 3.4%, before by law, they double
on July first. According to a White House spokesperson, “The rate change would
affect an estimated 7.4 million students, who would each see an additional
$1,000 in debt per year at the higher rates.”
Being immersed in debt before ever earning
a paycheck is, as Ron would say, “an unintended consequence.” Up until recent
years, a college degree had always been a fast track to a high paying job, a
fancy wedding, nice cars, maybe a boat, and manageable debt. But those days are
over, just like the dot com days.
Now, college grads are not only bouncing
back home to live with dear old mom and dad, they are asking for their help to
pay off student loans just months after they’ve paid the final tuition payment.
Whose idea was it to shell out what money
was on hand and augment it with financial aid? Ever increasing tuitions and
fewer job opportunities isn’t breaking news. Thus, the hope and dream of
sending a child to college has turned into a nightmare for millions of
families.
The President said, “We should be
doing everything we can to put higher education within reach for every American
— because at a time when the unemployment rate for Americans with at least a
college degree is about half the national average, it’s never been more
important. But here’s the thing: it’s also never been more expensive.”
That last sentence may be the only
truthful thing I’ve ever heard him say.
Based on information from the College
Board's
Trends in College Pricing, “the 2011-2012 average total costs
(including tuition, fees, room and board) were $17,131 for students attending
four-year public colleges and universities in-state and $29,657 out-of-state,
and $38,589 for students at four-year private colleges and universities.”
Parents and students are advised to set
aside “an additional $4,000 for textbooks, supplies, transportation and other
expenses”.
According
to www.Finaid.org’s College Cost Projector, “college costs increase
at about twice the inflation rate. Current increases have averaged 5% to 8%”
per year. Their user-friendly cost
projector, found just below the Discover® Card ad for student loans with no
payments until graduation and a 2% graduation reward click-here option, bases
estimates on a 7% tuition inflation rate.
Is it any
wonder that college graduates who majored in anthropology, art history, any of the
humanities, philosophy or zoology can’t find jobs in their chosen fields?
One doesn’t
need to master the academic disciplines of anthropology or art history or the
humanities to understand the origins, nature and destiny of human beings in
today’s world.
Studying
Aristotle, Plato, and Kant can’t help solve the problems this nation is facing
although an understanding of the basics of Zoology may be helpful if applied to
researching and revealing the habits and comparative actions of yellow dog Democrats.
Luckier
classmates choose nursing and teaching and accounting, time honored occupations
although many of us weren’t happy with the results of 2011 tax preparations,
but that’s no reason to shoot the messenger.
Here’s a little
gem Ron would have loved: A Middle Tennessee State University student with
mounting student debt recently met with a career counselor whose main advice
was “Pursue further education.” More “boowah, bushway, hoo-ha, blah blah”
thinking from someone who has a job, health care coverage, and other benefits.
The government
is betting on better job growth and an increase in the labor market they expect
will be boosted by an aging population in need of in-home care, nursing aides,
and/or companions.
They’re so sure
of their bet that they want to double the current student loan rate.
I’m betting
there will be even more baristas, waiters, waitresses and fast-food employees
with a B.A. degree that’s not worth much more than the cost of the parchment
paper, gold foil seal and leather case they received it in on graduation day.
For now, we’ll
have to wait for the “River” card and the final round of betting to officially
begin in this “hold em” game—and hope they hold back the increase of student
loan rates.
More below the fold.
