Benefits Of A Student Loan Debt

“Ensuring quality higher education is one of the most important things we can do for our future generations” (Ron Lewis). There are more students enrolling in post-secondary schools than ever before and consequently there are more students acquiring large debts. Once a student graduates, they enter a $33,000 or more student loan debt (Students Loan Resources). These student loans continue to place graduates into large debts, which is largely caused by their lack of knowledge of available resources, and this impacts their everyday lives and future generations.

Here in the United States, there are many forms of consumer debt, which help contribute to the large sums of debt countless Americans find themselves faced with. Directly effecting many college students is student loan debt. Student loan debt is now the second largest form of consumer debt behind housing” declares the Federal Reserve Bank of New York (Grisales). This is due to the fact that student loan debt grew 7.1% in 2014 to $1.2 trillion (Grisales). If this statistic alone is not worrisome this next one is sure to be. The amount of debt in the housing market that helped to spark the last recession was only $1.3 trillion (Grisales). Due to the increased amount of debt required by students to attend college many students are feeling the wrath. According to the U.S. Census Bureau, “In 2014, 11.7 percent of females and 17.7 percent of males between the ages 25 and 34 were living with their parents” (Grisales). The fear of obtaining massive amounts of debt is driving the current generation of student’s to put off many future hopes and dreams. While causing them to move back home to save money. The current student loan crisis is crippling the economy and ruining the lives of American students.

College cost more money each year and will continue to rise in price needed and textbooks will do the same. Private student loan debt is a perfect example of this it was on the rise, $6.2 billion was borrowed in 2012-2013, up from $5.5 billion from2011-2012. In

Individuals dealing with student debt "are postponing marriage, childbearing and home purchases, and pretty evidently limiting the percentage of young people who start a business or try to do something entrepreneurial," said Mitch Daniels, president of Purdue University and the former Republican governor of Indiana (qtd. in Holland). Because it’s almost universally accepted that college is the key to success, students are finding themselves falling head-over-heels in large amounts of student debt justified only by these universal standards. Student debt doesn’t just burden the individuals who are liable, the sheer amount of debt has begun to rattle institutions and financial patterns that are at the core of American society (Holland).

According to the Federal Reserve Bank of New York, student loans have quadrupled since 2004, to $1.2 trillion (Brown). This insurmountable debt is an astronomical problem for Americans today and more so, for future Americans. College tuition has been rising for the past 40 years and will continue to do so exponentially. In an asset management report done by J.P.Morgan in 2014, the firm projects the cost of private universities to be at roughly $90,000, and $40,000 for public four-year universities in the year of 2030 (Badkar). If the government remains dormant toward this issue, college students 20 years from now, will be burdened with an even larger amount of debt.

As the demand for workers with college degrees increases the pile of debt students may graduate with gets bigger and bigger. This problem is America’s next sizeable financial crisis, but this crisis however is avoidable. Student loan debt is a financial bubble waiting to blow up just as the housing market collapse did in 2007, which the country is only just now starting to see signs of recovery from. The cost of a four-year degree has seen increases that surpass inflation and health care costs. Likewise, the amount of student loan debt is now greater than both auto loans and credit card debt. So, the question most frequently asked is, how has this happened?

“The United States has created a new generation of people that have more student loan debt than at any other time in our history” (Murphey). A vast majority of students are graduating with debt. On average, students are carrying loan amounts big enough to buy a nice car or cover the down payment on a house, but instead of making those investments, or starting a family or a business, they’re struggling to keep up with student loan payments (O’Malley). Student loan debt is a major problem. Student loan debt exceeded credit card debt in 2010, auto loans in 2011, and it passed the $1 trillion mark in 2012.

The problem this debt is that “The cost of higher education is increasing at an alarming rate, particularly at four-year public institutions. According to the College Board (2009), public colleges costs are rising faster than private institutions, and undergraduate students are facing new pressure to pay educational expenses.” (SOLIS DURBAND 1). This can be a real problem for students who choose to take student loans to pay for college

Student loan debt in the United States is expanding unrestricted each year. There are 36 million Americans today, holding over $740 billion dollars in student loan debt. (U.S. 2013) The current student loan system is intended to open doors to economic prosperity for those who could not otherwise afford to go to college. Research suggests that the unintended consequence of too much available student credit is real people losing prosperity and languishing in debt for extended periods of their lives. Reducing or eliminating the availability of student loans would have a tremendous impact on improving the lives of Americans. If things continue the way they are now, American’s will soon find college, and its implied ticket to economic

Post-secondary education comes at a very high price. The excitement of graduating college to land the six-figure job is soon destroyed when you realize how much debt you are in. Dreams of owning a house and starting a family is shattered by the money borrowed to provide and guarantee students a better future. Instead of waiting to land that perfect job, students are forced to work multiple jobs to help ends meet. Struggling to stay afloat, millions of students are becoming victims of one of the major economic crisis in the United States; Student debt.

Unfortunately, with furthering your education, student loan debt is almost guaranteed. My husband is seven years older than I am, so when I graduated high school and chose to get married instead of going onto college we lived in his small house that he had. Shortly after getting married, we found out that we were expecting our first child. I knew that we would grow out of our first home quickly so we began the process of getting a new home. We found out that no credit is worse than bad credit. We were blessed that by putting down a decent down payment by selling his old house would help us to be able to obtain a loan.

What do you think of when you hear the words college graduate? Well, in most scenarios, these words would be exciting to someone that just graduated college who have put in years of hard work and dedication to better educate and promote themselves for their future careers. Sadly enough, this is too far common not the case. In today’s society, students are graduating college with piles of debt at an alarming rate. With a troubled economy that is recovering from a recession and jobs difficult to come by for a lot of graduates with bachelor’s degrees, the student loan debt in the United States is bound to be a major crisis that could severely weaken and crimp the economy even more in the coming years.

No doubt, having less things to worry about will make one less burdened. Indeed, having little to no debt after I'm done with college would make my life easier and would ultimately help in many other areas, like helping others and fulfilling my dreams. In fact, having to pay student loans will haunt me until my death, or at least until I figure out a way to pay it off, because student loans cannot be forgiven. I would rather not have to deal with that headache. Although the tuition of Rose State is comparatively cheap, it still is asking a lot for a young adult just born into the world to come up with that amount, not even considering the taxes that are imbued on this too. Finally, yes I have plenty of potential, but so does every other bright

You’ve been dreaming of your dream job your entire life. You hoped to one day become a lawyer and now it’s your time. You’re about to go to college and you’ve already applied for many student aid programs for help on your tuition to go college. With a total of $188, 500 to become a lawyer, what will you do you? You don’t have any other choice, but to apply for student loans. When you graduate college you immediately get a job at law firm, to pay off your student loan debt. With an income starting off at about $47,000 per year, you have to pay between $245 and $304 per month. The total interest paid over the course of the loan would be $7,141, bringing the total amount paid to $37,141. The repayment period in this case would be about 10 years

American youth have more pressure to get a good education than ever before, but at what price? The cost of education is at an all time high and rising every year. Many Americans are struggling with a large amount of student loan debt weather they graduated with a degree or not. The only way to secure the future of students today is to invest in the students themselves rather than investing their money into the corporate market. By preparing students for higher education and providing financial resources students will have the knowledge to deal with student loans and the debt they may be accruing while in school.