Tuesday, Aug 14 2018 | Updated at 02:28 AM EDT

Stay Connected With Us F T R

Jan 25, 2017 07:49 AM EST

Student debt has become a national problem worth more than $1 trillion. However, one Harvard Business School article said that the real problem involves more than high tuition fees. The author of the article has presented several points why student debt has become a problem. The first reason that was stated was because most college students choose programs with poor employment outcomes.

Majors, such as engineering, computer science, accounting, and those that have quantitative reasoning, will much more likely yield high returns for those who got them. On the other hand, those who earned degrees in arts and humanities, psychology, and other non-quantitative majors are more likely to malemployment - being in jobs that do not really require a bachelor's degree. Moreover, those who have a master's degree, no matter what they majored in, will not suffer malemployment.

Watch video

If a person finds himself in a job that does not require a bachelor's degree, that also means he or she will receive a salary that is lower than what they expect. Therefore, if they finish college with a debt, paying that will be a burden because the salary they're receiving is not enough.

The second reason why a student gets into debt is because they select costly institutions or kept an expensive college lifestyle. Students need to change this kind of mentality and instead look for more affordable options with quality and have comparable employment outcomes.

The third and final reason why students find themselves burdened with college debt is because they fail to complete college. If a students wracks up debt during his freshmen to junior years in college and then suddenly stops, they will find themselves in the same situation as the first group - in jobs with low returns.

In order to avoid wracking up unreasonable college debt that will be difficult to pay off, students and parents should consider education as an investment. They have to consider whether the investment they will put will gain higher rewards in the future. Then, it could help them avoid pitfalls that would lead to overblown student loans.

See Now: Facebook will use AI to detect users with suicidal thoughts and prevent suicide

Follows Student Debt, Student Loan, Student Debt Problem
© 2017 University Herald, All rights reserved. Do not reproduce without permission.

Must Read

Controlling Robots With Brainwaves And Hand Gestures

Jun 23, 2018 AM EDTWhat if you can control robots with a simple flick of a finger? A team of experts is trying to make that a reality through this latest experiment.

Flavored Electronic Cigarettes Linked To Possible Cardiovascular Disease

Jun 16, 2018 AM EDTScientists from the Boston University School of Medicine looked into the effects of flavored e-cigarettes to the lining of blood vessels. Here are ...

LendingTree Study: Which Places Have the Most Student Debt?

May 31, 2018 AM EDTLendingTree outs its study that identifies places in the United States with the most student debt. Here's the complete list.

Best College Reviews Names 10 Best Master's in Biomedical Engineering Programs Online

May 31, 2018 AM EDTPlanning to pursue a master's degree in Biomedical Engineering? Here are some of the best online programs you need to consider.