I recently read a report by America’s Promise Alliance about the dropout crisis in the schools and what a lack of job opportunity and education means to a young generation people. You need to consider these facts about the school dropout crisis.
These shortfalls hold huge costs for students and taxpayers. The dropouts have fewer options in today’s economy, living a poor quality life and no economic mobility.
In 2015, the average students with a college degree earned up to $1,015 per week, while the earnings of the high school dropout was just $454.
There are many good options that allow students to get a HSE (high school equivalency) diploma and we should be more supporting these programs (GED, TASC, HiSET) and help young people.
In the meantime, the unemployment rate for a degree student is 5.2% whereas for dropouts it is 14.6%. An advocacy group called as Alliance for Excellent Education, based in Washington, estimates that every year the dropouts cost the nation in lost income of more than $300 billion.
The percentage of freshmen who are need of remedial class has risen to 39 percent in 5 years. The figure of the students who take on college work after many years has reached to 46 percent.
America has to increase the rate of education and decrease the dropouts so that it can remain competitive and come out of the economic recession.
Out of every 4 public school students, 1 student drop out before finishing the high school – that is 1.3 million students per year- 7,000 each school day. The situation has significantly improved to some extent. The rate of the national graduation increased from 72 percent in 2001 to 75 percent in 2008.
There were 261 less dropouts in 2008 than in 2002. During that period of six years, the graduation rates have been improved by 29 states. But it’s not the time to celebrate. According to a report on the dropouts, the graduation rates were below 70 percent in 2014 and 2.2 million students still dropout.
But a success has also been achieved: only 62% of African Americans and 64% of the Hispanic students graduated in 2014.
On the other hand….
Education is expensive
Whether for graduate school or undergrad, many people use student loans to finance their education. Some do this out of necessity. Others do it because they believe student loans to be a prudent financial choice. There are many pros and cons associated with student loans.
A smart and informed student should recognize these things if he or she wants to make the best possible decision before heading to college.
Student loans can be deferred or put into forbearance:
One of the major pros of using student loans is that most of these loans are very flexible. Government-backed student loans come with the option to defer. Students do not have to pay the loans while they are still enrolled in school.
Another positive is that students can request an unemployment deferment. If a student does not have a job and is looking for work, he or she can contact the loan provider and request an interest-free deferment with many loans. Lots of loan providers also provide a temporary forbearance for students who are having difficulty.
Some student loans can be forgiven:
Some students will take government loans before working in the public interest. People who plan to serve for ten years in a public interest position can have their government loans forgiven after that point. This can amount to a massive amount of savings for those students. This option is not available with all privately funded loans.
Student loans charge interest:
Even though the interest rate is low, student loans still charge something each year. Interest paid is money that you could have otherwise had. Graduate loans carry a higher interest rate that can make paying off the loan difficult in some instances.
This will make your education more expensive than it might have been. Some people will rationalize this cost. Still, it remains a negative factor associated with taking out student loans.
Student loans cannot be discharged through bankruptcy in most cases:
Whether you have Discover.com student loans or government loans, it is incredibly difficult to discharge student debt in bankruptcy. The vast majority of people will be stuck with these loans regardless of their financial situation. Many other types of debt can be discharged if things go wrong.
You can expect to pay off these loans until you’ve zeroed out the balance, left the country, or left the earth. The finality of students loans is scary. This is why students should think long and hard about taking out loans before they receive the first dime. When used properly, they can be a definite positive.