Wednesday, 16 May 2012

Student loan brings a success or a dilemma

Students loan brings a success or a dilemma

To enter into the higher education, students need a large amount of money to spend on the academic expenses. The students from families with less financial abilities may have no choice to put their children on the student loan scheme. Although the student loan system helps students to attain their higher degree, it can lead them to face with a dilemma.

An analysis conducted by The New York Times of the latest data from the Education Department, students loan for pursuing a bachelor's degree was increased from 45 percent of students in 1993 to 94 percent in 2011. The average debt for all student debtors was $23,300. The highest average debt in the country belongs to graduates with bachelor's degrees of Ohio's educational institutes. E. Gordon Gee, the president of Ohio State University does not reckon that college tuition fees will affect students' families. Also, many economist and parents are confident of students' abilities to repay their loans, or even to earn more income after graduation. Consequently, these students have been granted more loans by the Obama administration with a reason for the U.S. to be a top leader in education among developed countries. However, some economist states that increasing student debt delays the country's economic recovery as 40 percent of the candidates postpones their major spending on a home or car. They, finally, drop out of the university; otherwise, they have to become a debtor forover.

I strongly oppose people to be any types of debtors. Eventhough education is a tool for students to achieve success in their professional lives, uncertainty can be happened all the time that might cause them to be unable to pay back the debt. To tackle this problem, the government sector should play an important role on finding the alternative way to raise fund to support people's education. In stead of easily granting student loans, they should offer programs to encourage students to work and study at one time in order for them to the income to the studying cost.

In Thailand, student loan is not a new project. We have known it since a period of Mr. Takin's government. As far as this project has been continued, I just wonder how it will make Thai's educational system improved and when graduates will be free from debts. I have raised up these questions because the income graduates earned is still not sufficient for their living costs. How they can repay for debt!
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References
Martin, A. & Lehren, W. A. (2012, May 12). A Generation Hobbled by the Soaring Cost of College. The New York Times. Retrieved May 15, 2012 from http://www.nytimes.com/2012/05/13/student-loans-weighing-down-a-generation-with-heavy-debt.html

2 comments:

  1. I think that student loans are a good idea, but I'm not sure that governments should be trusted to run them using tax payers' money. Why can't commercial banks and other businesses do this? They can decide on any basis they like whether to take a risk on the student applicants, perhaps guaranteed by their parents.

    Education is a great thing, but I'm not sure it's OK for governments to steal from some people to give it to others free of charge. It is, on the other hand, a very good thing for others to freely give of their wealth as such truly great philanthropists as Bill Gates and Warran Buffett do, along with the generous founders and supporters of such private universities as Harvard.

    I also like Lek's point that incomes are too low in Thailand - I think this is a direct result of government policy to protect very selfish groups by not allowing free, fair and open competition from foreign businesses who could bring enormous economic benefits and social development to the whole Thai people, especially the poorest who have suffered for decades from unjust laws that dishonestly pretend to "protect" them, for example, the laws against foreign people buying land or setting up wholly owned banks and rice businesses.

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    Replies
    1. Thank you, Aj.Peter for your interesting comments. I think it's difficult for commercial banks to run this student loan project, as they are afraid of bad debts. It may be the possiblity for the banks to do that, if they can get support from the government. But we cannot depend on the government as they are still fighting with each other. I'll wait and see how they will manage the largest budget, which has been recently allocated for education.

      I agree with you that there should be a raising fund supported by the foundation in order to help poor students. The most important thing is that the good systems for selecting the deserved students must be well planned.

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