Tuesday, October 16, 2012

The Prime Student Loan Blog – A Financially Rigorous View of Higher Education and Student Lending



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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