Analysis: Should We Regulate Student Loans And Tuition?

Matt Taibbi argues in his Rolling Stone article titled “Ripping Off America: The College-Loan Scandal” that the government is the primary source to blame for today’s appalling inflation rates on increasing student debt. Additionally, he argues that the reason the tuition is so exploitative and unfair, is because it was created to benefit two groups. The first being, “…colleges and universities, and the contractors who build their extravagant athletic complexes, hotel-like dormitories and God knows what other campus embellishments” (Taibbi). Next up, the other group that gains from the current system is the government. This is because, “…the government actually stands to make an enormous profit on the president 's new federal student-loan system, an estimated $184 billion over 10 years” (Taibbi). Further, Taibbi goes onto to state that students often have no idea what they are signing up for with student loans, because not all students have access to the same information. Finally, Taibbi mentioned that “because of the poor job market, young people may have less of a chance than ever to actually get a good job commensurate with their education” (Taibbi). This means that with no degree, students have no chance, but with a degree you are forced down a road of high risk, and at the end you are likely to be left with a ton of debt.

With this increase in tuition costs it is making a college education more and more unaffordable and putting students in more debt.

College tuition is a subject that I am certain is on every college student's mind. The current cost of college has become so outrageously high and so students are graduating college with what you think is a feeling of excitement for their lives starting, when in reality they are entering a pool of stress due to high amounts of debt and no job guarantees. With that being said overly expensive College Tuition is merely taking away opportunities from potential students. According to Collegefactual.com, you will see that 20 years ago the average college tuition for a student at any University was around $6,285 for the room, board, and tuition. Today, according to Niche.com, the average tuition for almost any college is over $30,000 for those same things. Today, this isn't even offered for those same colleges, we don’t even know what is actually causing the raising tuition. At this point in time, we are paying for the name. Just like clothing, we pay more for the “high end” (a.k.a the college name) items. This is an issue that not only affects college students, but people who want a good education. College tuition should be lowered because the average student debt is too high, FAFSA results can be misleading and not high enough, and there is not enough access to college for deserving students.

“College Prices Soar Again!” “Budget Cuts Cause Even Higher Tuition!” “Higher Education Now Even Less Affordable” These are all statements that have been seen all over the media: newspapers, magazines, television, and radio. (3 SV: SV) Rising college tuition in America has been a problem for years. Many students drop out after a single year due to the pricey costs of tuition. The rapid rise can be attributed to many aspects of the economy, not just a single source. There have also been some propositions of how costs could be lowered, but these have yet to be seen. The United States has gone into a tuition crisis.

College debt is becoming more of a drastic problem in the United States with the rising costs of college tuition. In “Why the Student Loan Crisis Is Even Worse Than People Think” Mark Kantrowitz expresses how the issue of student debt in America is to be blamed by the government’s lack of action. In “Is College Doomed?” Graeme Wood expresses the benefits of the new and innovative univeristy Minerva. A perk about this university is that it includes the cheaper tuition than other ivy league schools because of its lack of all the componenets of an average university. The government needs to be more involved in preventing future college students from graduating with overwhelming debt.

Tuition and student debt at colleges and universities in America have been rising far more quickly than inflation for over four decades. This is a trend that will continue without intervention. Student debt drastically affects students’ lives and decisions from getting married, to buying home, or to starting a business. The amount of debt held by students after graduating not only negatively affects the individual, but the economy as well. Loads of economic activity is currently halted by students working to pay off their loans. This is a consequential problem and the increasing number of student debt in America must be addressed.

So it’s not that colleges are spending more money to educate students, it’s that they have to get that money from someplace to replace their lost state funding; and that’s from tuition and fees from students and families (Sanchez 1). While most institutions tried to keep costs down, some took advantage of the public perception that a high tuition means a quality education (Sanchez 2). The problems that students face now are rising tuition, increasing loans and lacking financial aid to compensate. The fastest growing income for public colleges and universities in our country is tuition. Most students must take out loans to make it through college now.

With the economy going into inflation the prices have been going up on everything. Including college, prices have been raising very high in the last couple of years. "Less than half of recent grads think college was worth the cost. "Weston. Today high school students are second guessing themselves to attend to college.

In the 1980s a first-year college student could attend a public four-year university for $2,500 and a private university for a little over $5,000. Although, most of these universities are offering the same mediocre education from the last three decades; the cost of tuition has more than tripled for public universities and for private universities, it has gone up a staggering 85%. Canada holds an average educational cost of 5,974 and England follows with an estimated average cost of 5,288. In spite the tuition in the United States being more than twice that of its allies; the main problem contributing to the continuing rise of tuition are the billions of dollars owed in both federal and private student loans. Unfortunately, out of 15 countries the United States held the number one position when it came down to the cost of a higher education (including books, fees, room and board).With that being said, I will thoroughly explain in the following essay how student loans have affected the cost of tuition, compare US tuition to other countries, and analyze the average spending budget for most universities that prove to influence the rise in tuition.

Student Debt. Few words drive more fear into the hearts of parents and teenagers alike. With college graduates now owing more than $1.5 trillion in debt and nearly five million Americans in student loan default, borrowing for higher education is quickly spiralling out of control. Universities are one of the best places for wholesome instruction, but what good are these institutions when no one can pay for their resources?

As a student who has difficulties affording increasingly high tuition in college, financial aid and student loans is one of the biggest concerns for me. Even though with a low-interest rate of student loans, it is still hard to pay back the debt after graduation. As in recent years, the cost of universities in America has rose to such a level that it has exceeded the rate of inflation. (Walker) According to CNBC, America has more than $1.2 trillion of student loan debt, what’s more, about 10 million federal student loans are taken out annually. (Orman) Face on such a huge threat to the economy, in the meanwhile, recently there are some debates happening that has influenced the interest rate of student loans.

Two-thirds of students graduating from universities in America are graduating with some level of debt. This debt has reached a whopping $1.2 trillion. And 40 million is now the number of people who make up this monumental student debt. As a former student in community college I understand completely the financial burdens that might come along with education. So I can only imagine how expensive it gets for students in four-year institutions. In your line of work I’m absolutely sure you can relate to these burdens. With the growing emphasis on college education, it would be reasonable to have low cost or free education the way other countries do. But all we have is raising costs and debt accumulation, which has become an urgent issue and if it isn’t addressed soon, it can be detrimental for students, parents, our economy and even you, the educators.

According to an article in Huff Post, majority of 62 percent students cannot or are not able to afford public college education. This has increased since last 40 decades. If we look today, it takes a year or two for a minimum wage worker to gather enough money to pay for in state tuition for a semester at public college. While, only minimum wage pay from working on summer was enough money to pay an entire college tuition for a year in 1970 's and before. This is the main cause why today 's youth do not like to attend college, and/or do not finish their graduation. College cost is raising every year, let 's say it is flying high, way high

These are bleak statistics, especially considering student loan debt is the second-largest growing category of debt in the US. Until a solution is found, it could quickly outpace credit card debt, which is number one on the list of debt. Graduating college is often viewed as a rite of passage for students into the real world as adults, and having that much debt saddled on their shoulders can be very detrimental. There’s an incredible pressure to find employment and make money immediately so as not to miss a loan payment. Students may have to sacrifice dream jobs and careers for the immediate financial compensation of something else. However, all hope is not lost. I believe that by restoring funding from the government, encouraging alternative options, and making books cheaper, college can be made affordable once again.

The cost of education is very expensive. I believe it starts in elementary, private, junior high, high school, and leads into college. There are many people who can’t afford to pay for education verses people who can. There is low class who can’t afford education without taking out a loan and help with paying from FAFSA, also the middle class has to take out a loan because they may make just enough to make payments. The upper class are the only ones who can afford to pay for education without worrying about being in debt. There are three things caused by the cost of education, it creates debt, depression, and worry.