Real Solutions

Now that we have identified the problem of rising student loan debt and its contributing factors, what, if anything, can be done about it. I say we end the trends! There was a day when people saved for college or worked two jobs to pay their way through college. They didn’t expect hand-outs they worked hard and expected to carry their own load. We need to return to a focus on integrity and self-reliance in all aspects in our lives.

A college education is not a budgeting surprise. We all know it is coming and have plenty of time to plan, save and prepare for it. Heaven forbid that we sacrifice wants for future needs instead of the instant gratification mind-set. Dave Ramsey puts this concept perfectly when he coined his famous mantra, “Live like no one else, so you can live like no one else.” He is a two time self-made millionaire. He became so successful by exposing the lie of the necessity of debt. He broke free of the culture of entitlement. I think we have to do the same if we are going to break this cycle and find a solution to this critical issue. We need to avoid debt like the plague. We need to plan for our future and start saving for college when our kids are young. If we are in debt, we need to make getting out if debt our top priority. This will free up our future budgets to save for future educational costs that we can cover ourselves interest free. More time should be applying for scholarships and grants than for student loans. If less people had to borrow money to attend college, this would be the first major step in stemming the tide of rising student loan costs. The government role would decrease as people became more self-reliant. This can be accomplished with a better understanding of real-world money applications taught to our high school students across the country. Don’t get me wrong, Algebra and Trigonometry are important but I think we can better prioritize graduation requirements by making a budgeting class mandatory to graduating! What a difference it would make if the hope of our future had some practical financial knowledge that they could apply immediately after graduation by applying that knowledge before they drown themselves in debt. Giving students and their families Counseling with more tools to easily compare graduation rates, student loan debt, employment prospects and potential future earnings as they make important decisions about higher education. The information has to be accurate and easy to understand, and make sure the data can be readily available online for prospective students and their families, where that information can include: • Make the best financial decisions; the student should first understand your loans and the many different options you have to manage them. This is, after all, a significant amount of debt, and knowing your choices can help. • Debt management, the principle of compound interest, to pay off the student loans. • Develop repayment strategies using the calculator managing your education debt are to know who you borrowed from and who to pay back. • How to work together to students, families, financial aid administrators, and tax preparers to ensure that all students and families understand what education tax benefits they are eligible for and receive the benefits for which they qualify. This would be a good start to addressing the root issue...ignorance, which I find ironic! Now, how to address the basic economic issue of supply and demand? Tuition costs have sky-rocketed and the only remedy that I have seen so far has only made the problem bigger. Instead of concentrating on programs that are increasing demand and debt at the same time, why not focus on the supply part of the equation. How can schools offer higher enrollment opportunities without raising tuition? An answer to this question would naturally bring down tuition costs as the supply and demand equalize. The answer is right under our noses. Just as our generation has perpetuated some negative attributes, it also has many positive traits that are unique. One is the adaptability and availability to the internet. We have a vast opportunity to expand higher learning online and by so doing, expand this option to more people than ever before! It is not only increasing supply but it is more affordable than all brick and mortar options! There are several colleges already utilizing this option to increase enrollment capacity, including BYU-I.

One example is BYU-Idaho’s Pathway Program. “The Pathway program is a low-cost educational program that combines online learning with support in a local group setting. The program has widespread application around the world and is growing as fast as local leaders are being trained.” (Kim B. Clark, President of BYU-Idaho). If more institutions offer affordable on-line degree options and we begin to take control of our lives by eliminating debt and becoming self-reliant we can stop and even reverse these dangerous trends. We can outsmart the system! We must! Our future depends on it!