States President Joe Biden on Wednesday announced student debt relief that
experts claim will help 40 million people. “Using the authority Congress
granted the Department of Education, we will forgive $10,000 in outstanding federal
student loans,” the President said, adding that federal Pell Grant recipients
will receive up to $20,000 in debt relief.
decision is expected to give a fillip to the Progressive section of the
Democrat party ahead of the midterm polls. There’s also data to show that debt
relief will not have a massive impact on inflation, according to a Wall Street
Journal report. However, Conservatives maintain that debt relief is irresponsible
political circles continue to discuss the impact of the debt relief, a more
fundamental question is being asked by youngsters and experts alike: Is college
even worth it?
costs have increased momentously over the last three decades. A recent CNBC
report states college costs have risen by 169% since 1980. Compared to this,
pay for young workers has only increased by 19%.
A New York
Post column published this week asked the question: Some colleges don’t produce
big earners. Are they worth it? The column relied heavily on a Third Way report
that claimed college-educated workers were not earning more than their
high-school-graduate counterparts after working for six years. A difference in
earnings is only noticeable after 10 years, that of 29%.
Itzkowitz, the lead author of the study, said, “We do know that the number one
reason why students attend college year after year is for greater employability
and to have a financially secure future. So, we’re starting to see more and
more people ask, you know, what is the actual return I am getting for these
tens of thousands that I’m paying for a college credential.” He was speaking at
NewsNation’s “Dan Abrams Live”.
to Itzkowitz, a reduction in state investment in college education has led to
tuition and net costs piling up. “We’ve also seen the proliferation of
for-profit colleges, and some of them offer good returns, but they do disproportionately
offer poor returns,” Itzkowitz said, adding, “So it’s really important that
students look at net costs that they’re going to be paying relative to the
earnings that they can actually obtain.”
Way report’s claims, however, face arguments on the other side. A Forbes report
published in June claims people with bachelor’s degrees earn significantly more
than those with high school diplomas. The median salary for workers with high
school diplomas is $38,792, the report states, adding there is 3.7%
unemployment among such workers.
other hand, the median salary for workers with bachelor’s degrees is $64,896,
and such workers have an unemployment rate of 2.2% on average. The Forbes
report cites data points from an analysis carried out by Northeastern
University on data obtained from the Bureau of Labor Statistics. Further,
college graduates are more likely to have health insurance.