The economic progress of North America can affect many industries, including educational institutions. This situation may see some progress in the coming years, which could help positively improve multiple markets.
The Gross Domestic Product in the United States should remain between 2 percent and 2.5 percent through 2017, according to a report from Dun and Bradstreet. The country’s situation is in some of the best economic shape of the strongest performers in the world, and this could continue over the next few years.
It is possible that the GDP in the U.S. could grow to more than 3 percent by 2015, which would be expected if the situation was more normal, the report showed. During the past year, the GDP growth level ranged slightly lower, at 2.7 percent to 2.9 percent. With this in mind, it may be difficult for the Federal Reserve’s GDP projection to be met until 2016.
Some sectors in the U.S. may see improved credit situations, the report explained. This could be the case especially if credit risk tumbles throughout many states that struggled with these issues.
Debt levels remain problematic for students
While sectors such as education may see growth from the improving economic situation, many students are still struggling to deal with the high costs of a degree. According to The Institute for College Access and Success’ Project on Student Debt, more than 70 percent of those who graduated with a degree in 2012 had some level of debt to deal with.
The frequency of lending dropped significantly during the recession, but even with this in mind, approximately 20 percent of those who had debt dealt with loans from private entities, the report showed. When looking at both private and federal avenues, loan debt jumped 6 percent on an annual basis between 2008 and 2012.
“Despite discouraging headlines, a college degree remains the best route to finding a job in this tight market,” said Lauren Asher, president of TICAS. “But students and families need to know that debt levels can vary widely from college to college. If you need to borrow to get through school, federal student loans are the safest way to borrow.”
Loan debt during 2012 for those leaving school varied widely at the state level, with the lowest average being $18,000 and the highest $33,650, the report added.