ABSTRACT
The core problem for US universities is this: they have restructured themselves to fit with an economic system that doesn't have much use for them. The universities are having a very modest effect on the overall lives of those in the lower half of the income ladder, and a modest effect on their social mobility. The student debt system was so entrenched that debt growth inevitably continued unabated after 2008, regardless of the decline of the incomes and wealth that had supported it. There are several clear signs that student debt lowers the net value of college for its graduates. The first is the growth of debt levels in relation to growth in income. The second sign of debt-changed outcomes is the stagnation in college completion for the bottom half of the US population by income. The financial aid system that builds in loans may damage student learning while also harming their finances.
