A Outlook On Student Debt

This report examines the increasing trends in the amount of debt students are graduating with. The purpose of this report is to prove why these trends need to be stopped, and how they can be stopped. After viewing the statistics from 1993 to the present it will be obvious that student debt is not rising at a steady pace, but that its growth is leading to large financial burdens by many students. Recommendations are given about the actions that can be taken by not only students, but everyone to help improve this dire situation. The changes that student loans have been through over the last couple of years will have a lasting effect on current students, prospective students, parents, and those who have graduated and

Student debt is a topic that generates a lot of debates. From politicians to lenders to students, everyone has an opinion on the topic. With a trillion dollar national debt, it’s not surprising why the topic is such a huge issue and the solutions are even greater. The student debt is a form of debt that is owed when a student has completed college or drop out. The average interest rates for the ungraduated and graduated are 4.45% to 6% (Quadlin). To pay off all the students’ debt, it will take 10-25 years to complete it. College students will have at least six months before they have to make the first payment. Student debts can be a real problem for those who aren’t preparing for them. Student loans debt should have a longer grace period, lower monthly payments and repayment programs that apply to all because students will be able to manage and repay their debts in a timely manner.

In “The Argument for Tuition-Free College,” Keith Ellison addresses the matter of free-tuition for colleges and universities in America. The high cost of tuition increasing inequality and the largest personal debt in the country, student loans, are the main two problems Ellison discussed. Claiming that minorities are less likely to succeed in the community is one of Ellison’s ways to support the issue. He promotes his argument with two solutions. In the first one he explains how to eliminate student loan debt. Ellison uses free primary and secondary schooling as an example to explain his second solution.

An education is one of the most important tools a person can acquire. It gives them the skills and abilities to obtain a job, earn a wage, and then use that wage to better their lives and the lives of their loved ones. However, due to the seemingly exponential increase in the costs of obtaining a college degree, students are either being driven away entirely from earning a degree or taking out student loans which cripple their financial prospects well after graduation. Without question, the increasing national student loan debt is one of the most pressing economic issues the United States is dealing with, as students who are debt ridden are not able to consume and invest in the economy. Therefore, many politicians and students are calling

As a mother of four, a large number of the social problems described in the text can and does directly relate to myself, as well as, my family especially regarding the matter of education. However, the problem directly affecting my family and I is the emerging social problem of rising student loan debt. Student loan debt is a problem that has begun to seep into the very mainstream of society as more and more individuals attend college, especially those with great financial needs. Personally, I am lucky to say that I do not need to borrow money to attend IRSC which has been a major blessing that has allowed me to better my education. Unfortunately, the same cannot be said about my husband, who graduated from Florida State University with student loan debts around $30,000 dollars. $30,000 dollars is a relatively average amount, according the Institute for College Access and Success(TICAS) 70% of college students graduate with student loan debt, with an average of $28,950. While this amount is overall average in our society, combined with the costs of raising four children, as well as, having only one working family member who makes a relatively low salary as a school teacher, it puts significant financial strain on my family. Rising student loan debt just doesn’t affect my family and I, it affects millions of Americans, especially those who are poor and cannot afford college. Rising student loan debt is a societal problem that is hampering millions of young Americans

“By 2020, 65 percent of the jobs in the United States will require at least one post-secondary education Community colleges serve close to half of all American students, enrolling 10 million students each year, but just under 20 percent earn an associate’s degree within three years.”(Georgetown recovery: job growth and education requirements through 2020) In contrast to the 20th century, a high school diploma was sufficed enough to fulfill

Greenblatt discusses solutions by both the federal government as well as the state. Since Obama has been in office, his administration has been working on repayment plans. The basic function of the repayment plan is that once the student graduates and is working, the payment plans will be refinanced according to their new income. Since Obama’s term is almost over, the article discusses the current presidential candidates’ proposals for student debt. Sanders had said that he wanted to make four years of college free for students; people opposed of this idea because taxes would go up. He explained that the federal government would pay for most of it and the state would pay for the remaining. Both Clinton and Sanders favor lowering interest rates on student loans for the borrowers. Unlike Sanders however, Clinton would like to make community college free as opposed to 4 years of college being free for students. Trump has stated that he would like to help the issue with student debt but he has not discussed what his plans

In recent decades, student loan debt has increased dramatically causing a so-called, “education bubble”. This ‘education bubble’ is essentially the ‘housing bubble’ within higher education. The Federal Government, like those in the housing market crash in 2008, are lending money to those who receive a low income and can not afford college. According to The Weekly Standard, “the Federal Reserve Bank of New York reports that during the past decade, student loan debt has nearly tripled and the number of students with debt has risen by 70 percent” (Cochrane). The Federal Government needs to decrease the amount of loans they are giving out in order to prevent another crash within our economy. As a senior in high school who will not be receiving

Interest rates are constantly on the rise along with the cost of tuition and the income levels of students are not increasing in order to make ends meet. Therefore, student debt is spreading rampantly across our nation and is becoming a tremendous issue. Student debt is a topic that is relevant in today’s society because it affects such a large portion of the population. Furthermore, it is affecting the country 's economy in many ways. With the accumulation of debt, students are unable to afford to purchase a home, or at times, a brand new car because there is simply no way that they can afford such a large investment while they scramble to pay their loans.

The Student Loan Forgiveness Act of 2012 was introduced in the House of Representatives on March 8, 2012, by Hansen Clarke (D - MI) with well-known Presidential support for student loan debt relief, 24 Democratic co-sponsors, and zero Republican co-sponsors. The bill was introduced to increase purchasing power to strengthen the economic recovery from the Financial Crisis of 2008, restore fairness in financing higher education in the United States through student loan forgiveness, set caps on interest rates at 3.4% on Federal student loans, provide refinancing opportunities for private borrowers, and achieve other purposes (112 Bill Profile H.R. 4170 (2011-2012), 2012). The bill was referred to the House Committee on Education and the Workforce, the House Committee on Foreign Affairs, and the House Committee on Armed Services.

Facing a seemingly massive debt can create a scare tactic to continue on a path toward a higher and exceptional education. Although there are controllable factors to help lessen the weight of student debt it creates a wall of challenges toward furthering ones education, because of the fear of falling into a seemingly large debt Canadian students are afraid to maximize their education, prohibiting Canada to create and maintain a stronger and more skilled work force.

Marco Rubio has a plan for students. Since the 1980s, the student loan-debt burden has risen to $1.2 trillion, which is nondischargable, meaning that the debt could follow you for the rest of your life. States have cut education funding and in response, universities raised tuition. And it does not seem that politicians are taking any meaningful action to ameliorate this debt burden. Rubio wants businesses to invest in individual students and after graduation; the student “will pay a percentage of my salary over a defined period of time in return for that investment.” (The Wire)

In 1958, the National Defense Education Act provided college students up to one thousand dollars a year in loans, but the average annual loan was actually only five hundred dollars or less because students could afford the rest of tuition on their own. Interest began at three percent a year after graduation and could usually be paid off in ten years. (Good 590-591) These statistics are a far cry from today’s, with student loan debt surpassing one trillion dollars and many graduates paying off loans well into middle age. As a result of the government shelling out billions of dollars in loans and inflation, colleges have had to increase their tuitions thus creating a college “bubble”. In the past year or so many political leaders have proposed plans to pay for two years of community college, such as President Obama, or for a full four years, such as Bernie Sanders, a frontrunner for the democratic candidacy. Even states like Tennessee,

The words “free college tuition” spark interest in any college student with accumulating debt. In fact, this topic is so incredibly supported that Bernie Sanders implemented it as a core interest in his 2016 campaign. Once Hillary Clinton became the Democratic nominee, she decided to take it on herself with an extensive plan that guaranteed students free tuition. Unsurprisingly, free tuition resonates extremely well within the student demographic. To forty million Americans, free tuition eliminates the largest problem for students: debt (Hess, 2017). However, free college tuition generates the inverse of what these low-income and middle-income students believe. In fact, free college cripples them from multiple perspectives; students will end up spending more financially, will be less likely to graduate with a degree, and will be subjected to more inequality and less exposure.

Democratic senator Elizabeth Warren from Massachusetts, has proposed a bill that will allow college graduates with a lot of student loans to refinance at a lower rate (Bidwell, How Far Can the Student Loan Refinance Bill Go?). Republicans quickly shot down her attempt to allow graduates to refinance their loans. The bill was supposed to help those graduates with debt and also create a path for future bills like these as well. Republican’s explanation for this was that there would be no funding for this yet more money is allocated for other programs. The problem is that many of these politicians do not view higher education as a priority and something that everyone should be entitled to yet continue to fund prisons. Why is this? Many students would like to know. Politicians let young students believe that unless their parents can pay for college they cannot attend because there is not enough government aid to help those who are eligible and in need of financial help. Loan debt is “holding Americans back—it’s holding [the] economy back” yet many Republicans refuse any efforts to make a change (Al Franken, Sentenced to Debt). As a result, many students choose to not go to college. Teenagers graduating from high school know how expensive college is and with little programs to help pay