Wall Street meets your street
Patricia Morrison
Issue date: 11/6/08 Section: News
Economic matters have taken center stage in political races at all levels.
Significant changes in both national and international economies are bound to affect individuals participating in those economies.
But what do the current shifts in the United States and world economies mean to Capital students?
Saurav Roychoudhury, assistant professor of economics said, "[I have] no doubt that the ongoing financial and economic crisis has affected everyone."
He encourages students not to assume that rising college costs outweigh the benefits of attending college.
People who have earned college degrees are better able to withstand economic turmoil.
Roychoudhury said he thinks graduates with a bachelor's degree can expect to make about $1 million more over their working lives than someone with a high school diploma alone.
Stephen Baker, professor of economics, said he is unsure whether there is an economic crisis, but "the students who are most affected are those who borrow significant amounts to attend college."
Students who took out loans significantly higher than they could easily repay will have difficulty repaying those loans as interest rates rise.
Roychoudhury and Baker agree that one result of the economic downturn will be a greater difficulty in securing credit and student loans.
During a recession, unemployment rates rise, making it more difficult for new graduates to find jobs.
"Recessions may actually be good for the long term growth of an economy," says Roychoudhury. "A growing economy will help later graduates find jobs more easily."
Roychoudhury also encourages students thinking about putting in some extra study time to go on to graduate school or pick up another major or a minor.
Obtaining more diverse skill sets makes students more marketable as employees.
Both Baker and Roychoudhury encourage students to begin making good financial decisions now that will help lessen the effects of economic shifts later.
Starting a savings plan, budgeting and taking out loans that are easily repaid are all ways to begin building a sound financial future.
"Start building a good credit history," Roychoudhury said, "your credit score will help you get the best rates on all types of loans."
These may include student loans to get through those last couple years at Capital or for graduate school or a loan to purchase an apartment, house, or car.
Baker said saving and spending wisely are integral to making good financial choices.
Students can save money, he says, by swapping eating out for home-cooked meals with friends and by analyzing whether they really need a car and the expenses that come with owning one.
pmorriso@capital.edu
Significant changes in both national and international economies are bound to affect individuals participating in those economies.
But what do the current shifts in the United States and world economies mean to Capital students?
Saurav Roychoudhury, assistant professor of economics said, "[I have] no doubt that the ongoing financial and economic crisis has affected everyone."
He encourages students not to assume that rising college costs outweigh the benefits of attending college.
People who have earned college degrees are better able to withstand economic turmoil.
Roychoudhury said he thinks graduates with a bachelor's degree can expect to make about $1 million more over their working lives than someone with a high school diploma alone.
Stephen Baker, professor of economics, said he is unsure whether there is an economic crisis, but "the students who are most affected are those who borrow significant amounts to attend college."
Students who took out loans significantly higher than they could easily repay will have difficulty repaying those loans as interest rates rise.
Roychoudhury and Baker agree that one result of the economic downturn will be a greater difficulty in securing credit and student loans.
During a recession, unemployment rates rise, making it more difficult for new graduates to find jobs.
"Recessions may actually be good for the long term growth of an economy," says Roychoudhury. "A growing economy will help later graduates find jobs more easily."
Roychoudhury also encourages students thinking about putting in some extra study time to go on to graduate school or pick up another major or a minor.
Obtaining more diverse skill sets makes students more marketable as employees.
Both Baker and Roychoudhury encourage students to begin making good financial decisions now that will help lessen the effects of economic shifts later.
Starting a savings plan, budgeting and taking out loans that are easily repaid are all ways to begin building a sound financial future.
"Start building a good credit history," Roychoudhury said, "your credit score will help you get the best rates on all types of loans."
These may include student loans to get through those last couple years at Capital or for graduate school or a loan to purchase an apartment, house, or car.
Baker said saving and spending wisely are integral to making good financial choices.
Students can save money, he says, by swapping eating out for home-cooked meals with friends and by analyzing whether they really need a car and the expenses that come with owning one.
pmorriso@capital.edu
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