Bigger loans for STEM students – S.P. Kothari and Korok Ray

MIT Sloan Professor SP Kothari

MIT Sloan Professor SP Kothari

From The Wall Street Journal 

By S.P. KOTHARI and KOROK RAY

Outstanding student debt has ballooned to $1.3 trillion and is now, aside from mortgages, most American households’ largest liability, according to the Federal Reserve. Last year alone student debt increased by almost $83.2 billion, or 6.7%. The price of tuition has risen an average 3.4% each year for a decade, markedly outpacing inflation.

Meanwhile, the U.S. faces a daunting skills gap in science, technology, engineering and math. Each year there are 1.3 million new openings in STEM fields but fewer than 600,000 new graduates. Is there a way to solve both these problems at once?

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