Tuesday, June 24, 2014

Student debt is not a bigger problem than before

The misperceptions matter because they distract us from the real trouble with our higher education system. It’s not the graduates of expensive colleges who are struggling to get started on a career. Such graduates make for good stories (and they tend to involve the peer group of journalists), but history suggests that most of them will do just fine.

The vastly bigger problem is the hundreds of thousands people who emerge from college with a modest amount of debt yet no degree. For them, college is akin to a house that they had to make the down payment on but can’t live in. In a cost-benefit calculation, they get only the cost. And they are far, far more numerous than bachelor’s degree holders with huge debt burdens.
--David Leonhardt, NYT, on the myth of exploding student debt