education crisis

How economics affect education?

Higher education is an important factor in everyone’s life. However, not a single day goes by without having to hear news concerning higher education. It became even more actual topic after the 2008 financial crisis and the ongoing economic effects of it. The main thrust of this debate centers around a justification of the role of higher education and a redefinition of its funding relationship with government. Unfortunately, all the discussion around higher education often fail to mention the impact the economic crisis has on higher education. Why it is worth mentioning? Because the economic crisis has changed higher education on many levels.

Changes in education and their lasting effects

The immediate short-term effect of the economic crisis has been at the institutional level. Lower student numbers on certain programs – the most expensive ones and those with lower job prospects – has led senior managers in universities to prepare for the worst by making plans to reduce staff at all levels. It means that not only many people have lost their jobs. It also means that education slowly becomes less rounded – the programs that have less students enrolled are taken away from the syllabus and replaced with more practical studies. That means that in the future universities might not offer course like Women Studies or Philosophy. The effects of such decisions will affect the country for many years to come and in return require more resources, because the jobless teachers will either need government aid or retraining which does cost tax money.


The raise of private debt

What is even more critical is the long-term effect of the economic crisis on advanced education full scale arranging and policy. The economic crisis has legitimized the long-existing contention that higher education ought to be dealt with the same as some other administration in the economy and, all things considered, ought to be liable to perpetually responsibility and managerialist rehearses. Accordingly, higher education arrangement has entered a period of outrageous defense with an accentuation on adjusting the financial plan. One may contend this is likewise not another improvement. Despite that, it causes an even bigger financial burden on students and their families.

Now more than ever the only way to receive higher education is through the help of a student loan, also known to many as private debt. The government no longer offer direct funding to people who cannot afford education on their own. But with the ever-rising costs of education less and less people can afford it in the first place.