I asked my son Nick if what he learned from MBA school was necessary for doing his job well. Somewhat surprisingly, he said, no. The knowledge gained during the two additional years of college wasn't essential to job performance. In essence, he paid for a very expensive screening mechanism – something the school and the bank were better off for.
Unfortunately, many graduates don't end up with a high-paying position to offset their high student loans. Nationally, student loan debt is estimated at a trillion dollars, or nearly $30,000 a person on average. No doubt, there are those who would be thrilled if they only owed the “average” amount. The mind may be a “terrible thing to waste,” but somewhere along the way it has become a very expensive thing to educate.
Many economists predict that student debt will be the next financial bubble. However, unlike a house or a car, a college degree can't be repoed. Most student loans are not forgiven by filing bankruptcy. You may forget what you learned in school, but the loan officer isn't going to forget what you paid for it. The economic impact transcends into other areas. Debt-strapped individuals find it harder to buy a home or start a business, further hampering the general economy as well as their general wellbeing.