For-profit education is the leading cause of America’s student debt crisis
As of February 2019, student debt in the United States was more than $1.5 trillion. The rapid growth of America’s student debt is a cause for concern for numerous observers, who fear the outbreak of a financial crisis.
The ever-increasing cost of higher education, combined with a reduction in public subsidies, has meant that students have resorted to loans en masse. This type of debt is very different than other loans contracted by US households, however. Unlike consumer loans or mortgages, higher-education loans in theory enable the accumulation of human capital and can enable graduates to earn higher incomes in the future.