Know Power, Know Responsibility: How to unleash the potential of every child in America

Part 1 — Chapter 11: The Cost of College and Student Loan Debt

Author’s Note: I will publish additional sections of this book each week. You can find previously posted sections at the following links: Note to Parents of School-Age Children and Note to Teachers, School Administrators, and Other School Staff here; Introduction here; Prologues Part 1 and 2 here; Prologues Part 3 and 4 here; Part 1-Chapters 0 and 1 here; Chapter 2 here; Chapter 3 here; Chapter 4 here; Chapters 5 and 6 here; Chapter 7 here, Chapter 8 here, Chapter 9 here, and Chapter 10 here.

CHAPTER 11 — The Cost of College and Student Loan Debt

College costs are only too high if there is an inadequate return on that cost. We need school models that prepare students to do planning and make choices through which they receive the highest possible return on their education and training investment — in other words, to apply critical thinking. If all students approached their future with this mindset, educational institutions would need to adapt their cost structures and operations accordingly. Critically thinking high school graduates could largely alleviate concerns about untenable student debt.

There is a growing cry for middle and high schools to teach financial literacy, largely driven by significant increases in the cost of college and the corresponding increase in student loan debt. Some schools have added personal financial literacy to their curriculum as a course, while others have integrated it into their existing courses.

The intent of these efforts is great, but the outcomes fall short of what is needed and possible. As with any subject taught in a traditional setting, the effectiveness of the learning for any given student is varied and unpredictable. Some students will see the relevance and may retain some of the desired knowledge and skills, but others will forget these lessons immediately after completing an assignment or class.

In theory, college costs, student loans, and the impact of student debt seem relevant to high school students nearing entrance to college. It turns out, however, there are numerous factors at play when students consider taking out student loans, including cultural considerations, the influence of family and friends, and the prevalence of college experience in one’s family. In addition, recent research shows that adolescent brains are very poor at distinguishing between high- and low-stake decisions; many students are no more concerned about college expenses and student loan debt than they are about what clothes they should wear on a date. (Hamzelou, 2017)

It turns out being knowledgeable about college financing and the risks of debt is not enough; emotions and outside influences can render knowledge and common sense powerless. That is why students must have opportunities to apply related skills throughout all aspects of their lives and education. Effectively managing one’s finances is simply applying critical thinking skills to personal economics, and the economic aspects are not really that complicated. However, emotions add to the complexity.

The brain’s frontal lobes — the logical thinking part of the brain — is one of the last parts to fully develop. The amygdala — the part of our brain tied to emotions — develops earlier and so has a greater influence on thoughts, decisions, and actions during adolescence. (Sweeney, 2009, p. 86) (Feinstein, 2009, pp. 82, 128) Consequently, emotions can overpower logic and effectively render the development of personal financial literacy meaningless during adolescence, which lasts into the mid twenties.

The way to counter this — and to accelerate the development of the frontal cortex — is to place students in situations that require them to analyze and think past their emotions. The more often students practice this critical thinking, the better they will become at doing so. Like a muscle, the more it’s exercised, the stronger it grows.

Return on investment of postsecondary education

The cost of college and the challenges of student loan debt have become significant political issues. However, if all children developed strong critical thinking skills and applied them to planning for the future, market forces could address many of these challenges. The proof is in those college students and graduates who have found ways to get the education and training they need without overwhelming debt and without having outside sources of wealth such as families or trust funds.

Compounding the cost and the debt are students who enroll in programs that won’t lead to living-wage jobs, programs that are not aligned with the student’s interests or strengths, or programs that don’t provide value for the student. These choices are almost always made on emotion or through outside pressures and often lead to or exacerbate the cost and student loan issues. Further, colleges and universities target student emotions through marketing campaigns meant to attract the greatest number of applicants. Some even do this with no purpose other than to turn a profit.

Many people with overwhelming student debt say they saw warning signs but felt they had no choices. Many students will slowly work their way into untenable financial situations before they realize how bad things are getting. Lessons in personal financial literacy alone will not overcome these, but well-honed critical thinking skills can.

Applying critical thinking to college costs and loan debt

In a new system of schooling, students would practice and improve their critical thinking skills prior to reaching the age when college costs and debt are a major concern. At some point, they would develop a vision for their future, set goals, and plan for achieving those goals. Key within this process would be considering the fiscal and opportunity costs of various paths the student might take. Students would consider all the factors including variables and unknowns. Through the application of critical thinking, students would do their own research and calculations to lay out a plan for developing needed knowledge and skills and paying for it.

By taking ownership of and being invested in this process, students will develop a plan and prepare for when that plan must somehow be changed or even abandoned. Students who are deeply invested will be able to adapt their plan when the landscape changes, overcome challenges that arise, and leverage opportunities that unexpectedly present themselves.

Reduce need for government interventions

Adopting a school model that fosters critical thinking will reduce the need for government interventions. Rather than Congress and state legislatures imposing laws and rules to help students avoid unnecessary college loan debt or poor decisions, students would seek out the information needed to make good choices. If they can think critically, they will know to avoid options that don’t have adequate information and will not be unduly influenced by fancy marketing campaigns.

The cost of college or other means of developing knowledge and skills is only too high if there is not an adequate return on the cost. We need a school model that will ensure every student can make the necessary choices and plans to receive the highest possible return on their education and training investment. This, in turn, will force educational institutions to adapt their cost structures and operations to be more cost-effective — without the government requiring them to do so. Institutions who deliver no or poor training just to make a profit for the owners would be put out of business. Critically thinking high school graduates will make concerns about untenable student debt a thing of the past.

Continue with the next element of Know Power, Know Responsibility (Chapter 12), here:

Kevin Miller is a Boomer who joined the Army during the Cold War and continues to serve. He has spent 30-plus years working in K-12 education as a teacher, administrator, and consultant and is now on a mission to reinvent our school model. His book Know Power, Know Responsibility provides the imperatives for a complete redesign of schools and the way to get there. See his website knowresponsibility.com to learn more.