Question

There is currently an increasing debate on the value of secondary education when compared to the rising costs of student debt. How would you use the theory learned in this week's lecture to support/reject a decision to accept student debt in the pursuit of a degree? The theory discussed in this week's lecture is: "The Cost of Time".

Answer 1

The time value of money is one of the most important concepts in the world of finance. The rise in the cost of education especially at higher levels have forced many to consider whether the education is worth given the amount of investment and time considering the various economic factors and other factors. Here one thing to be noted is that quality education is an essential part of any society which wants to grow and flourish so the cost of not taking or providing the education is much higher than the cost of debt which is in the form of student debt. For any country if it wants have a global standing then it is bound to have a strong education institutions where quality education is being provided at affordable cost. In many ways education and healthcare are social issues which should be either partly or fully funded by the government. The student might be a burden in the initial years of life but the cost of not providing and taking quality education is much higher, you get into a spiral of poverty where you might not find job because you do not have education and now you would not have money to take the education so student debt is not a big issue as long as it within the limits and as it is related to social development it is the responsibility of the government to make sure that cost of quality education is low.