The facts: Student loan debt has recently surpassed credit card debt as the largest debt in the United States. Student debt is likely to reach $1 trillion in 2011.
Our opinion: Though tuition increases and budget cuts for education are inevitable, the General Assembly should place a higher value on education for the upcoming fiscal year and ensure that tuition does not rise further.
Rising tuition costs, budget cuts and mounting national debt have led to speculation about the worth of a college degree. For those students who choose college, many are now facing a mountain of borrowed money they may never be able to pay back. Though some individuals may collect debt through poor planning and idealistic assumptions, many students take loans solely because they have no other choice.
The North Carolina Constitution cites that the state legislature shall provide the benefits of the UNC system free of expense to people of the State, within practicality. Although budget cuts and tuition increases are inevitable, the General Assembly must prioritize education further when finalizing the budget for the new fiscal year.
The average student loan debt has recently surpassed the average student credit card debt as the leading cause of debt in the United States. Seniors graduating from N.C. State in 2011 will have accrued the largest average student loan debt to date in the history of the University. Tuition and fees have nearly doubled over the last decade, from an average of $3,302 annually to a whopping $7,018, undoubtably contributing to the increase in debt.
Tuition and fees are indirectly determined by the General Assembly. The UNC Board of Governors sets the rates of tuition and fees for the UNC system, but the rates obviously must be consistent with the budget set by the General Assembly. The new fiscal year begins on July 1, and the General Assembly has override power on matters of the budget, namely tuition and fees.
Rising apartment costs, gas prices and a generally higher cost of living are largely out of the control of the state budget. Until the national government pulls out of its terrific debt, these costs will likely rise and will most likely never fall below their current level. A college degree is almost required for an edge on competition today in most job markets, but the worth of college is fluctuating due to its massive cost and consequential debt that follows that cost.
Though the state government does not have the power to control student debt, it does have the power to control a significant portion of student debt in tuition and fees. In 2010, the General Assembly gave the UNC System permission to raise tuition by $750 at each of its campus. This measure was likely necessary, but the General Assembly should perhaps place a higher value on education and prevent further tuition increases to maintain the goal of making college an affordable and likely possibility for all its citizens.
