The United States has recently gone through one of the worst recessions in the history of the country, in part, because of issues in the housing market. The bubble burst when house prices skyrocketed higher than market value followed by a steep contraction. We are seeing the same occurrence in higher education in the United States. Each year, the cost of a college education significantly rises, which puts students in more and more debt. The bubble might burst because selling loans together in a bond offering, which is how loans are financed, is becoming less attractive for investors.
The cost of college education rises 8% every year, which means it doubles every 9 years. This far outpaces any other kind of inflation that is tracked. The high cost of education coupled with the weak job market has made repaying loans difficult for many recent graduates. Over 35% of student loans are in delinquency. Also, the average earnings of students with 4-year college degrees is less relative to what it was in 2005. This combination of rising costs of college tuition, poor job market, and lower starting salaries has led to defaulting on student loans.
Student debt affect purchasing power. When students are forced to pay part of their earnings towards a long-term, high-interest loan, they are less capable of purchasing, cars, houses, vacations and other commodities. Because of this, the housing and automobile industries are less likely to be able to recover from the Great Recession. Usually, college graduates, those with new incomes, are the bright spot in the housing and auto markets as they, in the past, were able to make investments in these industries.
The student-loan bubble is not the same as the housing bubble. Total student debt is in the $1 trillion category, but that is a much lower figure than mortgages. The danger lies in delinquency and spending power. If someone cannot make his house payment, he can foreclose the mortgage. If someone cannot make a car payment, he can turn the car in. If someone cannot make a credit card payment, he can file for bankruptcy. Student debt is the only kind of debt that does not have the protections listed above. Student debt sticks around permanently. Debt lenders can garnish wages to help facilitate loan repayment. This negative affects student purchasing power like no other debt market can, which could lead to a different kind of bubble bursting in the near future.
In reality, students should be smarter about earning an education. Taking classes at a community college and earning degrees in fields that have jobs is the smartest way to ensure accruing the least amount of debt and having the best job outlook post graduation. Unfortunately, the prestige of attending an elite, private institution, the excitement of pursuing one’s passion in art history, and the immaturity of taking on more debt than one should all gets in the way of fixing the student debt bubble.
Ava Reed is an avid education and technology blogger who specializes in distance learning. She loves reading, cooking and helping others on their career explorations. “Let’s say ‘no’ to stress; we need to identify a specific career that will allow us to make good use of our talent and skills.”
Do you ever have those moments when you step back, look at what you were doing, and think, “Wow, only a college student would do this”? If so, then you are in good company. Upon returning home for my first break my freshman year (and actually interacting with non-students) I realized how odd college students really are. So, I began recording some of the more interesting and amusing aspects of being in college. Perhaps you can relate.
You know you’re a college student when…
Lynley Turkelson is a sophomore Psychology student at Cedarville University. She enjoys studying the human body, particularly the brain, and hopes to eventually work with severely disabled children. In her spare time, she enjoys blogging on The Northern Belle, writing poetry, and reading thought-provoking books.
We are excited for you to start using Postify. Whether you are looking to get some cash for your old Psychology textbook or you want to get rid of that old digital camera you never use, selling and exchanging your things has never been easier. As you look you begin using Postify, we have put together some tips to maximize your user experience and hopefully help you to earn a little more cha-ching.
Now what are you waiting for? If you haven’t already signed up, it only takes about 30 seconds. Get started now!
August has been a tremendously busy but exciting month for Postify as we launched our website and opened at two primary schools, Cedarville University and Wright State University. Here are a few highlights from our busy month.
Interviews / Press: Tanner Perrien, one of our founders was interviewed here by the Dayton Daily News. We also have an article pending with The Guardian, a student newspaper for Wright State, and we have been featured on several blogs.
Online Visitors: Our online traffic numbers have jumped tremendously over the past few weeks as we have thousands of visits from students from Cedarville, WSU and other schools. More importantly, we’ve had students start to embrace and actively use the site, like this guy.
On-Campus Visits: We had several on-campus visits to Cedarville and WSU. During these visits we talked with students, handed out sunglasses and coasters and had some fun as can be seen in this picture.
$50 Gift Card Giveaway: We also had a promotion at Cedarville University. Students who posted five or more ads on Postify were eligible for a $50 gift card to Amazon. We had great participation and Bethany (@BethanyGraces) was the lucky winner. Congratulations Bethany!!
August was an excellent kick-off for Postify, and we are excited to keep the momentum going in September. If you haven’t already, like us on Facebook and follow us on Twitter to stay updated and learn more about our upcoming prizes and giveaways!!
Postify recently announce in this Cedarville University ad that we were giving away a $50 Amazon gift card to one lucky winner on Friday, August 31st.
We are thrilled to give away this prize and here are the important details in order to be eligible for this Fun Friday Giveaway.
That’s all! This is a very easy way for one lucky student to get 50 bucks. If you haven’t already posted your items, post them now while there is still time!!
Other Important Details (just in case you were wondering): :-P
We haven’t had an update for a while, but that does not mean the Postify team has not been working hard. Our programming beasts (Adam and Tanner) and master designer (Cam) have been working hard on the new site, blowing away deadlines. While it’s not available to the public yet, we already have a functioning site. If you are reading this blog, you just may get a sneak peak. :)
Let me tell you about some of the features on this site that will make your life as a college student much easier, while also allowing you to save and make a lot of money. Pretty soon you’ll be wondering how you made it without Postify. (You can thank us later.)
Beautiful Design - I think we as a culture have just accepted classifieds sites as websites that look like they were made in 1993, but function well. We easily criticize other functional websites that aren’t aesthetically pleasing, but we turn a blind eye when it comes to classifieds. The team at Postify wants to change that, and our new site that officially launches August 1st offers a clean, modern look, while maintaining the intuitiveness and functionality that is required for a great user experience. We here at Postify like to say that we are “putting the class back into classifieds.”
Social - The new site integrates major social networks and allows you to share your ads on Facebook or Twitter once they’re posted. I know that I’d rather buy, trade or rent things from friends as opposed to strangers, so social sharing will help you do just that.
Textbook Feature - Everyone knows that college textbooks are one of the most purchased items in college. Why not sell, rent or exchange your old textbooks with other students? The new site will allow you to just type in the ISBN number for your textbooks that you’d like to sell, and all of the important information automatically populates. The picture of the book even pops up, making your life much easier. You will also be able to add comments to describe the book’s condition.
Lists - Chances are you have lists of books, movies or furniture you would like to buy. Maybe you see something on Postify that you like, but you aren’t sure if you should buy it. Our list feature allows you to create lists for these items so you can keep tabs on them.
Free! - Did I mention that this will all be free? You will get to do all of this and more for free. I wish I was in college again, just so that I could use this!
That’s a brief summary of just a few of the features for the upcoming launch. Trust us, there is a whole lot more, but we can’t share all of our secrets with you quite yet. ;)
Postify will be launching at Wright State University on August 1st. If you would like to say hello to us or keep up to date with the latest news, make sure you check us out on the social media links below. Also, if you are still reading, click here to see some screenshots of the new site! Thanks for reading and feel free to share us with your college friends!
+Written by Jared Banz
Unless you are a brand new college Freshman, you likely have many old college textbooks just lying around and collecting dust. You have several options for what to do with these textbooks.
Hoard them - If you would like to make an appearance on the show “Hoarders,” then by all means keep all your textbooks! They also make for great box-stuffers at home, perfect for putting in your parents’ attic for the next 20 years until they’re all moth-eaten and irrelevant.
Burn them - Oftentimes, textbooks and study notes bring back bad memories of long nights cramming, coupled with poor grades and unreasonable professors. Maybe you have a Chemistry notebook that is filled with blood, sweat, tears, midnight-oil and RED INK that came from a heartless professor who felt more like telling you what you did wrong than how you could correct it… but I digress.
OR you could go the smart route:
Exchange them - Is one of your friends taking a class next year that you’ve already taken? Do they still need the book for that class that is sitting under your bed? Maybe they also have a book for an upcoming Psychology class that you are scheduled to take. Why not save money and trade books? Things don’t always work out this way with your immediate friends, but on a campus the size of Wright State, it’s likely that there are hundreds of other students who would love to save some cash and exchange books with you. Instead of buying it new from the bookstore, you decide to get on Postify and propose an exchange.
Sell them - Why not help the class below you? Instead of selling your book back to the bookstore for a fraction of what they’re going to resell it for, sell it to that freshman for more than you would get otherwise. They’ll be happy to buy it for less than at the bookstore, and maybe you could include your notes for a little extra money.
In conclusion, burning and hoarding your books is not the recommended way of dealing with your textbooks. Instead, consider using Postify to exchange, buy or sell your textbooks. You can thank us later when you have more date money.
After finishing a year of college, I’ve experienced great successes, as well as some terrible mistakes. People always give new students tips on what is right and wrong for a college student, yet so few of us follow through. My first mistake was not getting enough sleep, which is vital to receiving a great education, and ultimately it affected some of my grades in the end. Without sleep, it is much more difficult to retain information and the motivation to study. For example,I had a friend in the honors program who maintained a 4.0 all year, and not once did he grant his body less than eight hours of rest. Being well rested, he was able to have the energy to exercise and eat three meals a day, both of which I failed to do as well. It isn’t that I, or any of my similar friends, wanted to deprive ourselves of a healthy lifestyle, but simply lack of effort in factoring health into time management. Studying and sleeping are two of the most important aspects of college life, both of which it seems there is never enough time for. There is also so much pressure on freshmen college students to join clubs, make friends, and get spectacular grades, making it difficult to maintain a healthy balance of sleep and exercise.
Another huge issue that I had in college, as did my roommate, was in the area of spending. Since I attended a school close to Providence during my first year, my friends and I always wanted to go into the city and do new things. The problem with that is the fact that eating multiple meals in the city is not quite as financially-friendly as eating on the designated meal plan. While it may seem tempting to go out and do tons of new things with the credit or debit card that many students are using for the first time, it is important to remember that eventually the funds will be depleted or the balance will have to be paid off. To avoid this problem with food, I suggest always sticking to the meal plan if it is an option. Your bank account and parents will thank you.
Here are a couple more tips for new students:
*This was a guest blog post. If you are a college student and would like to become a contributor to Postify’s blog, please email email@example.com.