In the last recession of 2007-2009 the economy was crippled. Millions of people lost their jobs and homes making it the biggest financial crisis since the Great Depression. Economists say, that there is usually a recession every three years, and we are now six years overdue. So, what will be the cause of the next recession?
College is one of the factors that may push us into the next recession. College tuition is so expensive today, that it forces many students to obtain loans to help pay off their education. Even after finishing college, most students cannot compete in the job market because a bachelor’s degree has essentially become worthless for many majors. As a result most students are unable to pay their student loans and fall into debt. This puts us in danger of a “student loan bubble,” and if it pops, economic expansion will suddenly stop, creating a recession.
However, economists are not even sure if there is even a bubble, but one thing is certain, college tuition is extremely high, and a college education, for some majors, has essentially become worthless. These two factors combined have caused many students to fall into a mountain of debt that is almost impossible to pay off. According to USA Today, “68 percent of 2015 bachelor’s degree recipients graduated with student loan debt…$30,100 per borrower.”
The amount of loans that have been given out has already surpassed the amount that caused the recession of 2007-2009. If something is not done soon, we may head into another recession. Saving up for college is a start, but if we can avoid loans all together that would significantly help the looming financial problem. Another is lowering college tuition. As of now prices are incredibly high, and that should not be the case. It shouldn’t cost so much to further your education.
Yes, we are six years overdue, the next recession is bound to happen, we just don’t know how or when. There are many possibilities that can cause the next recession, and sadly college is one of them.