G.P.A. Should Not Determine Educational Loan Eligibility

Because of the increasing costs of higher education, more and more students are finding themselves in the need to obtain loans to help cover their educational costs. According to the New York Federal Bank, total student loan debt has reached $865 billion in the 3rd quarter of 2011. In order to slow down the growth of student loans, there is a question whether to limit loans to only those that have high GPAs.

This is not the solution to slowing the growth of educational loans. The main cause of increasing student loan amounts is the rapid increase in college costs. It appears that we as a nation have given up on the idea that public higher education is an investment. To me, it is now seen more as an individualized privilege than a necessary right that benefits society as a whole. An excellent example of this change is the California higher educational system. The original 1960 California Higher Education Master Plan called for a free education for all California residents. A renewal of the Master Plan in the mid 1980's later allowed for tuition to be charged, but provided increased student financial . As a student in the early 1990s in the University of California system, I paid roughly $4,000 a year. As of 2011, the tuition is now $12,192 for the University of California. This is an increase of 300% in twenty years. This does not include fees, books, food and lodging, and other educational costs. Although for some students these costs are covered by grants and scholarships, for many these higher educational costs are covered increasingly by loans.

In my opinion, restricting these loans to those who only have high GPAs will decrease the educational opportunities for many students. The best solution to reducing the need for college loans is to look at why the cost of higher education is so high, and the reasons so many students are required to obtain these loans. This will require looking at the level of public investment in the higher educational system, and reducing the escalation in costs that have occurred over the last few decades. As our nation faces more and more competition on a global scale, we need to realize that we have to expand opportunities for our higher education students, not restrict them. Restricting loans only to high GPA students is not the answer to reducing our potential educational loan problem....better investment and the control of higher educational costs is.

References:

California Higher Education Master Plan of 1960
The Master Plan Renewed: Unity, Equity,Quality and Efficiency in California Postsecondary Education
http://www.universityofcalifornia.edu/admissions/paying-for-uc/cost/index.html
http://data.newyorkfed.org/research/national_economy/householdcredit/DistrictReport_Q32011.pdf