IMPACT OF ECONOMY ON EDUCATION

Impact of Economy on Education

Impact of Economy on Education

Introduction

The economy is continually weakening as many states across the country are starting to face a budget crunch that has a direct impact on the funds available for education. A number of factors including the fuel prices, housing market, and a reduction in the collection of taxes shows that the number of cities having lower revenues have increased as compared to the previous years.

Economy has a great impact on everyone's life, and education is a part of our lives. Education in every part of the world has become commercial, so a person going for any studies will be needing money. If the economy is not flourishing, then it will certainly impact the individuals' expenditure on education. Economy and education are positively related to each other. Therefore, if a country desires to achieve development and growth, and most importantly a sustained growth, it requires education (Lauder, 2006).

Thesis Statement

This paper critically reviews the problems that economy causes on education and also provides the solutions to those problems.

Discussion

The financial crisis around the world has not only caused chaos among the people who depend on either businesses or jobs to earn their living, it has taken its levy on people who just completed their schooling and are looking to get a degree so they can strengthen their future with a career that pays enough to live comfortably and successfully. University education is already an expensive proposition due to higher education fees, expenses for living and other necessities, is now a dim and distant only a spark on the perspective that seems an unachievable target for students due to a number of reasons:

1) Lower Income and Savings:

For parents who are out of work, are having lower wages or it is difficult for them to keep their jobs; such individuals are unable to fulfill their child's requirements that are dependent on their parents to pay their education fee. This means that lower income families have to rely on their nest eggs (if any) to be able to continue to meet the daily expenses and costs of living, and this reduces the amount left on the education of their children.

2) Higher Interest Rates on Private Loans:

Was the basis of most funding programs of education a year ago, are now difficult to get at least the stricter and lender providing standards for lending. And even if they are allowed, the interest rates associated to them are sky high and therefore provide returns for a particular problem. The parents in the past were not worried about borrowing money to finance the education of their children in the past because they were certain that their children would be able to pay as soon as they started to work once they had earned their degrees. But now, with the labor market looking desolate than ever, loans taken for education are not so practical because people do not know when and how know how they will ...