Issues on Graduating With Student Loan - Essay Example

The critical issue therefore is: Is it worth graduating from the university with educational expenses funded by student loan? In an article written by Andrew Martin (2012) entitled “Slowly, as Student Debt Rises, Colleges Confront Costs” published online in The New York Times, it was revealed that the president of Ohio University, E. Gordon Gee, was cited to state that “public colleges and universities need to devise a new business model to pay for the costs of education, beyond sticking students with higher tuition and greater debt” (Martin par. 3). As disclosed, the amounts of student loans have reached a staggering $1 trillion and, in conjunction with economic and financial difficulties, the numbers of borrowers struggling to pay off these debts are just manifesting a parallel rise.

Accordingly, “for the 2009 to 2010 academic year, annual prices for undergraduate tuition, room, and board were estimated to be $12,804 at public institutions and $32,184 at private institutions. Between 1999–2000 and 2009–10, prices for undergraduate tuition, room, and board at public institutions rose 37 percent, and prices at private institutions rose 25 percent, after adjustment for inflation” (Dept. of Education, National Center for Education Statistics 1). . Average debt per bachelor’s degree recipient increased from $10,600 to $12,400” (American Student Assistance par. 4). One strongly agrees with Mr.

Gee’s contention that another alternative course of action must be recommended to solve the student debt problem. From his professional perspective, Gee implements a planned apportionment of $1 billion, classified as inefficiently spent funds for potential redirection towards priorities from the Ohio University’s $5 billion budget over the next five years. Likewise, he focused on revenue generation activities that include privatization of the campus’ parking and pressing donors for additional funds (Martin).

Concurrently, college presidents all over the country are “looking for other ways to pay for education, stepping up private fund-raising, privatizing services, cutting staff, eliminating departments — even saving millions of dollars by standardizing things like expense forms” (Martin par. 6). Other proposals to solve the student loan crisis were highlighted by Sandra Block and Christine Dugas (2012), whose report entitled “Five proposals to solve student loan crisis”, included options such as recommending a bankruptcy reform; implement student loan forgiveness; increase Pell grants; linking federal educational aids to affordability; and by educating the borrowers.

From among those noted, one believes that educating the borrowers would address the root cause of the dilemma but would not immediately address and assist in solving the repayment of the current student loan crisis. Is it worth graduating from the university with educational expenses funded by student loan? Looking at the dilemma from the students’ points of views, the most plausible solution