Education is always a hot topic, with everyone wondering about Common Core State Standards, budget shortfalls and charter school vouchers. While every parent wants their children to get a good education, the dwindling of funds for public schools is putting this possibility in jeopardy. The current U.S. Secretary of Education Betsy DeVos has a lot in store for America’s educational system, so everyone should keep an eye on her in 2018.
Increasing School Loan Debt
Since 2009, student loan debt has doubled to $1.3 trillion. In 2016, the average college student was left with $30,000 in debt, while earnings for new graduates have remained very low. Many of these graduates are struggling to keep up with payments. Thirty percent of 22 million individuals with student loan debt are either delinquent or in default. The GOP tax bill recently passed by the House could worsen this situation, as it would do away with deducts for interest on all student loans.
Some college graduates with student loan debt are saying their diploma is “worth little more the paper it is printed on.” As many are struggling to find work, the student loan debt continues to scale upwards.
Spending Bill Lingers
There is a pretty good chance that everyone has heard about the current tax bill working its way through Congress. It should come as no surprise to learn that the tax bill could have a negative impact on the public education system. The Trump administration has said repeatedly that they wish to place more emphasis on charter schools and that could negatively impact public schools and the funding that they receive. The tax bill curtails state and local tax deductions and that could have a negative impact on city schools. Just recently, the National Education Association put out a study that concluded that the tax bill could likely lead to the loss of $370 billion in state and local revenue.
In return, it could ultimately result in the loss of 370,000 education jobs. An amendment by Ted Cruz may potentially help homeschooled students. Nevertheless, those students need money to begin with. The amendment strengthens 529s and allows bigger contributions to such accounts without incurring gift taxes. This expansion further hurts the public education system in the United States. Students dealing with financial difficulties and legal troubles should consider getting a probation violations defense attorney.
Oracle Opening A School
While the tax bill has hurt public schools, some are not worried about the tax bill. Oracle is a good example of this. The company has put plans in place to open a $43 million public high school on its campus. The company intends to create a public charter school. The $43 million building will be home to a Design Tech High School. The existing charter school is already home to 550 students. If Oracle has their way, those students will be transferred to the new Oracle building. In return, that will give Oracle immediate access to highly educated students that can help strengthen their business in the future.
The school is expected to make the switch sometime in early January. There is a good chance that other Silicon Valley companies will follow in a suit in the near future.