The
higher education system in the United States of America is ominously
broken. The cost of higher education has
outpaced inflation for the past 20 years while the earnings power of a degree
has failed to keep pace. Graduation
rates at four-year institutions continue to slump: currently 40% of students
fail to achieve their degree within six years.
For those who do graduate, the near-term labor markets continue to be
challenging with over 10% unemployment and much higher underemployment. All the while student loan debt has continued
to mount: student loan debt has risen to over $1 trillion, surpassing auto
loans and credit cards combined. The
culmination of these factors (runaway costs, declining value and exploding
debt) has created a highly unstable system that is on the brink of a major
restructuring. At the Prime Student Loan
Blog, we hope to highlight these instabilities, and to provide an intellectually
and financially rigorous thesis on how the restructuring of the higher
education market will occur.
Fundamentally, we hope to highlight the path to reverse the higher
education bubble while causing the least amount of harm to past, current and future
students.
The
Prime Student Loan Blog is an outreach platform for Prime Student Loan, LLC (referred
to herein as “Prime Student Loan” or “PSL”).
Prime Student Loan was founded by the authors of this blog in order to
help graduates reduce the burden of existing student loan by accounting for the
evolution of credit quality, and, ultimately, help future students more
appropriately finance their educational investments. Many of the topics and assertions presented
in this blog directly underpin the mission statement of PSL, so we encourage
anyone who is intrigued by these posts, who feels a personal resonance with any
of the predicaments, or who is simply additionally curious about our enterprise
to reach out to us directly.
Stay tuned for additional (approximately) weekly posts.
Derek
Kaknes
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