In 1982, UNC System President Bill Friday wrote suggestions to give before the House Subcommittee on Postsecondary Education. His suggestions were a response to President Reagan’s proposals to cut student financial aid. One of President Friday’s counterpoints to the proposed budget cuts follows.
“Transferring an increasing level of the cost of education from society to the current user of education services will create a new indentured class of individuals who may have borrowed more heavily for their education than their future earning power can accommodate.”
For many students, President Friday’s prediction of an indentured servitude may be becoming a reality. The Condition of Education 2013 was recently released by the Department of Education and the National Center for Education Statistics. According to this report: “In 2010–11, the average student loan amount, in constant 2011–12 dollars, was $6,800, which was a 39 percent increase from 2000–01, when the average student loan amount was $4,900. Of the 4.1 million students who entered the repayment phase on their student loans in fiscal year (FY) 2010, some 375,000, or 9 percent, had defaulted before FY 2011.” See the full report here.