Introduction
In late 1989, President George Bush and the American governors met in Virginia, where they committed to improving the public education in the country (Mirel & Angus, 1999). It was in this meeting that they established clear performance goals that were geared towards making America internationally competitive in terms of intellect.
The first two goals were aimed at transforming the curriculum and course taking. The third goal aimed at ensuring that American students at grades four, eight, and twelve at such levels that they demonstrated competency in challenging subject matter.
It also ensured that every student learned how to utilize their minds efficiently through critical thinking to prepare them for responsible citizenship, advanced learning, as well as increasing their productivity in the labor market. Goal four was formulated to ensure that the students in America are the highest achievers in both Science and mathematics in the entire world (Mirel & Angus, 1999).
President Clinton continued supporting the project through the nineties especially by signing the ‘goals 2000: Educate America Act.’
This act allocated 400 million dollars annually to finance grants for schools that were committed to promoting high standards for the curriculum content and overall student performance (Mirel & Angus, 1999). However, these efforts triggered a storm of controversy as its critics argued that the project would not promote equal educational opportunities across the American population students (Mirel & Angus, 1999).
Over the years, the Americans have prided themselves in the provision of quality high school education for all. Comprehensive high school education gives them a sense of individuality, and for a long time, it dominated the front line in the formulation of the secondary education model as well as the higher education. In fact, following world war 2, some European nations adopted the American high school model primarily due to the success it had previously registered (Mirel & Angus, 1999).
However, after the war, some countries like Japan rejected the American model and took on a different approach, which eventually saw them overtake the US through the achievement of higher levels of school attendance.
Presently, the United States spends enormous per capita national expenditure on education than most countries in the world. Most of the studies that have been conducted on young people in western society mainly focus on their transition from the family and school setting into adult life and careers. Lack of a connection between these phases of life in an individual renders him incapable of handling the day to day issues in life.
Reasons and solutions to foreclosure
The foreclosure crisis is one of the major problems facing the American economy today. Various theories have been put forward in the explanation of the recent rise in mortgage foreclosures in America. The underwriting standards have been found wanting in this regard. Borrowers default in loan payments due to bad credit and low disposable income that does not justify the mortgage in the first place.
Introduction of subprime loans that expanded credit by lending to borrowers who previously could not obtain any mortgage credit and offering large loans to those who previously could only obtain small loans led to increased cases of foreclosures (Gerardi, 2009). Reckless and irresponsible lending practices in the subprime mortgage market has seen numerous unsuspecting customers tricked into exploding payment adjustable rate mortgages that eventually become very expensive to pay, leading to cases of foreclosure.
Misinformed individuals and minority groups preferred the subprime loans that were risky due to increasing property values, strong economy, gas prices were low, and it appeared easy to finance the loans before the rates went up. (Bolves, 2010) These loans, however, had higher interest rates and were by far more expensive than they appeared to be. The highest percentage of people who fell victim of these loans was the minority and low-income earners.
House prices also significantly influenced the foreclosure rates in America. Evidence portray that the states where the house prices started falling registered foreclosure incidences before other states (Gerardi, 2009). Recession may have also contributed to the foreclosure crisis. Acquiring affordable housing is a problem, especially to the middle and low-income earners.
Financial executives responsible for this menace continue to benefit and enrich themselves at the expense of the home owners. This has especially affected the minority groups as the African Americans and Latinos make up the highest percentage of homeowners who have acquired the sub-prime high-risk mortgages.
There are personal reasons that may result in mortgage foreclosure, which include a change in health or unemployment. Job loss or sudden employment adversely affects an individual disposable income. Job demotions and early retirement also result in loss of a permanent source of income rendering the individual incapable of honoring their debt (Bolves, 2010).
Medical emergencies, injury, or death in a family may also lead to a reduction in income. This may also lead to foreclosure. Due to uncertainties that surround life, it is important to insure your loans to avoid such predicaments.
To address this growing problem, state and local governments are offering financial assistance to aspiring homeowners. One of the strategies being employed to save homes is lease backs where a home owner signs a contract with a company which purchases the house pays off the mortgage, taxes and all the other payments associated with the mortgage, then leases the house back to the original owner (Bolves, 2008).
These contracts mostly contain the option to buy where the original owner can buy back the house from the original owner. However, this method also provides an avenue for some leasing companies to exploit homeowners by imposing high processing fee, high repurchase price, and loss of equity (Bolves, 2008). Home owners should, therefore, be careful while entering into such contracts with leasing firms.
At high school levels, students should be taught extensively on contract law since the world today is characterized by contractual agreements almost at every level. If people lack basic contract skills, they are likely to fall victim of predator companies who are out to exploit them. Educating high school students on these issues will help them in the future as they engage in contractual agreements. If an individual lacks this knowledge, it is advisable to seek an attorney’s services.
Filing bankruptcy saves homes since it freezes the foreclosure process (Bolves, 2008). Under bankruptcy, all the debts that a person does not wish to keep are discharged. This can free up money to enable the person to pay his mortgage.
It’s sometimes possible to enter into an ‘affirmation agreement’ that adjusts the terms of a mortgage making it more affordable (Bolves, 2008). It is advisable to hire a lawyer since filing a bankruptcy is a very delicate process. It should be the last option in trying to save your home.
Deed-in-lieu is also another last resort to avoid going into foreclosure. This allows you to voluntarily give back your home to the lender. This does not save your home, but it does less damage to your credit ratings compared to going into foreclosure.
An individual qualifies for this if he is not in default and do not have any other option and selling the house before the time of foreclosure was unsuccessful (Bolves, 2010). All these available options should be made known to the learners at high school levels for them to be able to handle in case it arises n their life times.
How the high school education can be used to reduce cases of foreclosure in future
However, there are numerous cases of high school dropouts among American youth. According to a to CNN report in 2009 approximately 6.2 million in the U.S ranging between the age of 16-24 dropped out of high school which was about 16% of all the people in that age group in 2007. Young people who leave high school before earning diplomas or degrees at the college level often end up in informal employment where the income levels are considerably low (CNN, 2010).
High school graduates generally earn 1 million less than college graduates over a lifetime. High school drop outs, on the other hand, earn $ 9200 more than a high school graduate annually (Bridge land, 2010). They are also at a higher risk to slip into poverty in the subsequent years. A correlation has also been proposed between education and good health (Bridge land, Dilution & Morison, 2006).
At every age range, the more an individual is educated, the more likely he is to maintain good health. This has consequently resulted in reduced financial ability in property ownership among the high school graduates and dropouts relative to college graduates.
A national re-enrollment strategy should, therefore, be one of the major objectives of the American government (CNN, 2009). However, lack of funding at the federal and state level has significantly hindered this process, but success has r been registered in some of the states such as Chicago, L.A, California, among others.
The program offers extensive after-school and summer activities that focus on learning in the practical world and ensures that young people who have left high school end up not as dead-end dropouts, but skilled members of the American workforce earning competitive wages in the labor market.
Although the media constantly highlights the foreclosure crisis facing the American housing industry, less guidance is often given to home owners who are on the verge of losing their homes. The government is also reluctant to enact anti-predatory lending laws to regulate lending by banks and mortgage financing companies to protect aspiring homeowners.
It is improving the education curricular to ensure that what is covered in the syllabus is relevant and applicable to the real world situations as well as creating a connection between school work and the working environment.
A report on a survey carried out on young people who left high school without graduating showed that 81% said the system should incorporate real-world learning opportunities as well as increased experimental learning (Bridgeland, 2006). This would arm the high school graduates with adequate knowledge to survive in the dynamic and Complex economic situations in America.
The school system should also aim at delivering individualized instructions to students. More tutoring, summer tuition, and individual attention by teachers would help students gain renewed interests in learning and can also seek clarification for the current problems facing the county’s economy. The government should establish different schools for different students, depending on their skills and interests.
These schools should offer specialized programs for the students hence providing them with options to choose from (Bridgeland, 2006). This will ensure that those who are interested in the field of finance are equipped with the relevant knowledge including the prevailing market conditions in the economy. This will ensure that at high school levels, students are conversant with the economic issues and are able to deal with them.
Schools also need to provide diverse supplemental services and intensive assistance strategies for struggling students. These are inclusive of literacy programs; attendance follows up, peer counseling, mentoring, internships, among others (Bridgeland, 2006). This will not only provide motivation to the students to learn more but will also improve their literacy levels and enhance their coordination with the outside world.
Conclusion
The high school education system should be adjusted to incorporate studies on life problems that young people are likely to face during and after school. It is therefore important that citizens are protected by being availed with adequate information to guard themselves against malicious acts by financial institutions.
The American high school curriculum should include economics and finance classes compulsory to every student that aims at equipping high school graduates with knowledge on lending rates, accounts management and other basic financial skills.
This will ensure that the young people who leave high school institutions are armed with the necessary knowledge and skills to face the challenges in the American economy and this will significantly reduce future cases of mortgage foreclosure. They should also put in place measures that reduce cases of high school dropouts and subsidizing the college level education since most people facing foreclosure are low and middle-income earners who are inadequately educated.
Reference List
Bolves, L. E. (2008). The halt foreclosure manual: take control! Save your home. Eric L. Bolves, Esq.
Bridgeland, J. M., Dilurio J. J. & Morison, B.K. (2006). The silent epidemic-Perspectives of high school drop outs. Web.
CNN US. (2010). High school dropout crisis continues in U.S. Turner broadcasting system Inc. Web.
Gerardi, K. (2009). Decomposing the foreclosure crisis; House price depreciation versus bad underwriting. New York: Diane publishing.
Mirel, J. & Angus, D. L. (1999). The failed promise of the American high school, 1890-1995. New York: Teachers college press.