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Look Out Below! Kids Are Dropping Out Of College In Record Numbers With Debt

Look Out Below! Kids Are Dropping Out Of College In Record Numbers With Debt

Adults are over structuring learning for kids and increasing specializing for testing purposes. To what avail? Scores are declining in the testing area. Kids aren’t finishing college in record numbers. Only 60% are graduating from college and that was for six years! Only 36% completed a degree in 4 years.

Over 7 million kids attending college need some kind of federal assistance. Let’s do the math. There are a lot of kids leaving college without a degree and a mountain of financial debt to show for it.

Because of the tremendous amount of financial aid available to students, and colleges for sure, you would think more kids would be going to college. They are not. That is correct. Enrollment is down from 2008 until now.

Student debt is up. According to the Institute for college access and success the average debt is almost $30,000. In fact 7 out of 10 seniors were leaving college, many without degrees, and facing a mountain of long term debt. This does not take into account that nearly 20% of all seniors have some sort of private debt attached to their exit from college.

43 million borrowers of student loans own a combined $1.3 TRILLION in debt. The class of 2016 has an average debt of $37,172. When you do the math on the interest and principal on that average debt for a student attending college for 6 years, the student has a monthly payment after graduation of $427.78 for 10 years on a 6.80% loan. The total cost of that loan to the student is $51,333 with $14.161.02 in interest. That debt is incurred whether the student graduates or not.

This does not take into the fact of the added expense of having to go to college for 6 years instead of the standard 4 year degree. Students who graduate on time spend about 40% less that the six year students according to a study done by the University of Austin in 2014. In fact the average student who goes to a 4 year public institution will spend about $22,826 more in the next two years to stay at school. A student debt total can increase by an average of 79% by staying 2 more years according to a Temple University study.

You couple that with the fact that 80% of students going to college change their major.  About 37% transfer from college to college during their time on campus. When students transfer from one college to another, sometimes credits for courses taken do not transfer. You have a recipe for financial success for colleges and sky high debt for students’ right there.

Add on a recent study from the Education Department that says most students are graduating with 137 credits when all they need is 120. Remedial courses are being added that literally force a student to stay longer to get the same degree they could have gotten with less credits.

Only 50 out of the 580 Public Institutions have an on time graduation rate of 50% or more. At flagship universities only 36% report an on time graduation rate.

Clearly, there has to be more to this equation. Clearly, something is amiss. We recently spoke with a young man who was trying to graduate from college after taking a year off. This young man was shy three courses to graduate. He had dropped two courses and moved out of state. What we found out was appalling. He now had to take a whopping 10 more courses to get his degree from another institution.

Once again, we as adults, in trying to benefit and help our children, have created an environment that is adding to their frustration and angst. I propose a simple solution. Let the kids work for a year as seniors in high school, and have it be integrated into their classroom work. Although internships are great in college, we should be fostering their participation earlier on in life, preferably during high school, an issue which my proposed solution would address.

 


 

Written by : Jennifer