An American Horror Story

Student loans have dramatically risen throughout this last century.  The prices for college have gotten so high that it seems like student debt is inevitable. Although, they have created positive economics by helping students with their loans, the actual normative economics is that people are just getting deeper and deeper into debt. The demand of college has increased and this in turn has caused prices to increase. College has become a need in our lives so it seems like you cannot receive a good job, or with that good pay without going to college. Because of the increase in need based loans, colleges have taken advantage of this, and raised the prices of their school’s tuition . It takes years upon years to repay student loans and it changes the whole lives of these former students. It affects their wages because a large part of it goes to paying off college loans. Colleges understand their audience so they have good allocative efficiency, so that’s what makes them thrive. Colleges are making a good profit, so why would they change? Student loans have taken the money of people all across of America and will continue to for as long as we live. It’s the tragic truth.

        Hearing stories like the one of McCarthy, who has estimated that he has around seventy-two thousand dollars in student debt, is heartbreaking. Knowing that he has to deal with all this tragedy, for just wanting to further his education ,is unjust. It’s especially sad to know that it’s only going to get worse from now on and our children will have to face the tragedy of student loans. Colleges are making more and more upgrades to their facilities as a way of attracting more students.  As the demand for college grows and loans grow, the prices for college will increase – as demand increases so does supply.  In the case of college there does not seem to be equilibrium, and demand and supply just keeps increasing. As more people go to college, and loans are easy to get, prices will continue to go up, and student debt will continue to increase. In order to get a good job, one must get a college education or graduate degree. Soon most jobs won’t even accept workers who don’t at least have a bachelor’s degree. It’s a never ending cycle of debt with someone getting in debt to go to college so they can have a good job so they can pay of their debt. My question is what’s the point?