As Of 2015, The Average Amount Of Student Loan Debt In

1213 WordsApr 3, 20175 Pages
As of 2015, the average amount of student loan debt in America alone was 1.2 trillion dollars and the average balance for each of the roughly 40 million borrowers still paying back loans was $29,000 (Holland 2015). John Oliver of “Last Week Tonight” makes a point that student loan debt exceeds that of both credit card and auto loans. However, despite the negative financial effects, achieving a college degree is vital to the National Economy and the job market. According to studies by the Hamilton Project, “The cost of not going to college is rising just as much as the cost of going,” (Greenstone & Looney, 2012). This is because employers are increasing the credentials of future employees which, in turn poses two issues. First, it is…show more content…
They discovered that the return of the investment of college education is decreasing. Over a 30 year period, the price of college increased by nearly 50%. Since tuition rates are increasing, student loans are becoming something that is simply a part of becoming a college student. It is almost expected that going to college means having an unimaginable amount of student loans. The reason that this stereotype exists is because it seems to be true. Between 2005 and 2011, the amount of federal student loans for private school students increased by 84.3 billion dollars. The other issue with increasing prices pushing for the acceptance of more loans can be said to be derived from ignorance. The Consumer Financial Protection Bureau says that, in 2012, many students most likely lacked the understanding necessary for deciphering the difference between private student loans and government loans and that “default rates on private student loans have spiked significantly” since our 2008 recession. Not only are debts from student loans making it difficult for graduates to get onto their feet in the short-term sense, but in the long-term as well. Long-term does not mean that by age 40, people are paying off debts. Long-term means that as of 2015, more than 2.8 million Americans over age 60 still had student debts to pay off. This is not entirely due to the debts of the people personally, but also the loans taken out for
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