Repairing the Student Loan Market

The economy in 2008 was the stuff of a goodlot of focus? The answer is simple. The reason
Stephen King novel - scary stuff. As 2009 begins,America is strong as a country is because we have a
prioritizing what to fix first is a task for an incomingstrong middle class. Homeownership is often touted
President who must wonder what he got himself into.as the reason the middle class is stable and it is part
One area that should be at the top of the list is theof the answer. A large secondary answer, however,
student loan market.is the generally high level of education of most
The facts are fairly simple. If you want to get intoAmericans.
higher education these days, you are probably goingHaving lived in many other countries, I can tell you
to need student loans. Yes, a few of us will havethat the idea of millions of people going to college is a
parents who can foot all or part of the cost, but therare one. One of the immediate differences you
vast majority of us are going to borrow, borrow andnotice between "us and them" is a large percentage
borrow some more. The only problem is findingof our population goes to college in one form or
someone to borrow from in 2009 is going to beanother. Besides creating a viable market for
difficult.fraternity movies, this high education level provides
Student loans are often viewed as a form ofour economy with people who start businesses or
government funding. There are government backedhighly qualified people who work for companies. It is
loans, but the majority of student loans are actuallythis educated, mobile workforce that is the real basis
private. This means the lenders are part of theof the stability found in our middle class and student
financial markets in general and, as we know, thoseloans pay for that education.
markets are a huge mess. The who, what and whyStudent loans are a vital link in the continued
of the financial meltdown are subjects for anotherexistence of a strong middle class in this country.
article. The key thing to understand is the creditYes, banks need help. Yes, the housing market needs
crunch effecting mortgages, credit cards, auto loanshelp. It is educated people, however, that are our
and so on are also affecting the availability of studentstrongest assets and we better not forget that. If
loans.we do, no amount of corporate handouts is going to
With so much going wrong, why should our newsave us in the long run.
leadership make sure the student loan market gets a