Almost every day, one can find articles written on student loans.  Let us deepen the analyses and check what portion of $1.00 taken by the students will be used for?  AAEA has pulled a ten-year data, and based on this data set, the Association has broken down the loans and checked how they were spent.  Fortunately, the regulator has calculated the share and made them available to use without further need to recalculate each component.  The components are (1). Instruction share; (2). Student service share and (3). Administrative share.  The Association has checked that the sum of these components is 100 percent. 

We take the information and apply it to US colleges.  Cost component one and two have direct relationship with student education activities while component category (3) includes the portion of spending on academic support, institutional support, and operations and maintenance ascribed to the education function.  In other words, component number 3 does not have direct relationship with the student class room activities.  As shown in Table 1 (click here: read the whole article), these unrelated expenses make up the largest portion.  On average and for the whole colleges in the US, the overhead cost is about 40%.  What does it mean is that for every $1.00 that the students borrow about $0.40 will go to pay the overhead cost?

Let us work together and make every effort possible to lower the cost of education simply because we are the one that can make this country a better place for everyone, every single family, and future generations~~we are the United State of America.

Please click here to read the whole article.  Please let us know what do you guys think?