Benefits Of Increasing Student Loan Debt

While this is often true, it can create problems when a student does not have the money to pay for a quality education. The cost of college has risen an estimated 250-500% over the last 30 years while consumer price index has only increased by 115 percent during the same time frame (White, 2015; Eskow, 2014). The amount of student loan debt is increasing, along with the cost of college. The income of many young people today cannot keep up with the rising costs of college education and housing. Part of the problem with student loan debt begins when students choose to attend a college that exceeds their financial resources and rely on federal student loans as well as private student loans to make up the difference. Eskow found that even public colleges and universities are becoming difficult to pay for without taking out student loans often averaging $30,000 for tuition, room, and board (2014). Since many people do not have enough money to cover college education expenses, they rely on student loans, both federal and private, to fill the gap. Financial advisor Ramsey stated that often the loans students take out pay “for an off-campus standard of living, and no debt was needed to get the degree” (2013). “The Project on Student Debt reported in 2013 over ⅔ graduating seniors were leaving school with student loans” averaging approximately $28,400 (White, 2015). Taking on almost $30,000 in debt before even starting a career can have a significant impact. It can force people to get a job just to pay off the student loans, not based on what they got an education for prepared for or what they studied. This also can cause a setback in future plans, having to delay many adult milestones due to lack of

The U.S. is home to some of the greatest colleges and universities in the world. But with an overwhelming 1.3 million students graduating with an average student loan debt of $29,000 each and with youth unemployment elevated, the question of whether or not college tuition is worth the money arises (The Institute for College Access & Success, 2013). Higher education faces intimidating challenges: continually rising costs, access and completion problems, constant changing of technology, and responsibility pressures from state and federal officials. But no challenge is more intimidating than the fundamental question that many Americans face to ask themselves, "Is college worth the cost?" As a result of the economic turn down, many students who graduate are not finding well-paying jobs, either within their field of study or not.

Throughout the USA college tuition has increased drastically; in the last five years Georgia colleges have had 75% increase along with other states such as Arizona whose tuition has increased by 77% (NPR). Since 2006 the tuition in Utah has increased by 62.8% and is rising throughout the U.S. (Desert News). Between 1885-2016 the price of college has increased between 2.1% to 4.3% per year beyond inflation (CollegeBoard). Through calculations, that equates to about a hundred precent increase since 1885. It’s no secret that college tuition has skyrocketed, increasing student debt and leaving prospective students to ask “Is College Worth It?” college education is beneficial in that it teaches students valuable life lessons in responsibility, prepares students to enter the workforce and can be relatively inexpensive. The eduction is “college education” is worth every penny but America has created clichés to define the college experience which are expensive and unnecessary. In a radical new world a college education is required in many high paying jobs, which leads to the question “Is the experience of college all it is built up to be?” Through recent research, many articles and news mention about the value of higher education seem to only take account of is the financial aspect. A college education is worth what one makes it and is an investment in a future and in one’s self. The purpose of college the education is to be prepared to go into a the workforce having gained the

College is a dream that almost every American wants to come true, however, with the extreme rise in the costs of tuition it is a dream that has quickly turned into a nightmare. “Tuition at a private university is now roughly three times as expensive as it was in 1974, costing an average of $31,000 a year; public tuition, at $9,000, has risen nearly four times,” (Davidson). “For the average American household that doesn 't receive a lot of financial aid, higher education is simply out of reach,” (Davidson). That is why many students have begun questioning the worth of a college degree and if the amount of debt that is received upon exiting college is all for the better. And considering that costs have risen much faster than the rate of inflation, many are starting to believe that college just isn 't necessary any more. However, according to White, economically, the answer would still be a yes. “While unemployment rates for new grads and experienced workers alike have fluctuated throughout the recession and recovery, the earnings premium that college-and advanced-degree holders enjoy over their peers who didn 't attend college has remained relatively stable, and in some instances, grown, according to the report that was released this week,” (White). A study was shown that many college grads are able to get earnings that are significantly higher than those who did not get enough education or only hold a high school diploma (White). Even

College debt has risen significantly since “The Great Recession” in 2009. Due to the high college fees, students are faced with lifelong debt. If the rise continues, only the rich will be able to obtain a higher education, resulting in American education to take several steps backwards instead of improving. Although many have tried to fix college debt problem, it has mostly gone unnoticed. Specifically targeting the nation’s youth, college debt is destroying the chances of the lasting effects on the economy from fully recovering.

While higher education continues to grow in popularity as an important investment in American society, the student loan debt that accompanies this education also continues to grow as a burden to the American economy. Although the plethora of debt most commonly applies to graduate students and college dropouts rather than undergraduate students, student loan debt has accumulated to $1.2 trillion and continues to grow. Student loan debt made up 13% of the debt accumulated for adults between the ages of 20 and 29 in 2005, and has grown to account for 37% of the age group’s debt in 2014. Even though the government made $66 billion in profit on federal student loans from 2007 to 2012, the American economy shows very little positive feedback if any at all. About ten million federal student loans are taken out annually with an average loan balance of $15,900 in 2005 and up to $25,500 in 2014. The debt accumulated from these loans has made a larger gap in economic inequality, has limited entrepreneurship, and has prevented future loans from being taken out because of damaged credit ratings. Student loan

The cost of getting a college education has risen over the past three decades. Comparing it to the housing and medical care markets, it has risen considerably more than them. The current student loan debt, has risen to an astonishing $1.2 trillion dollars, the largest ever recorded. Student loans are just now a burden on our society, yet no one is surprised about the amount of debt the students are in. Yet is is extremely

It is no big secret that, in America today, most high-paying jobs require a college degree. Thomas C. Frohlich of USA Today stated that “graduating from college is a prerequisite for the vast majority of high-paying jobs”(2013). With the cost of a college degree increasing in unison with demand, few can earn a degree without the help of student loans. The American Student Assistance website reports that of the twenty million students enrolled in college, about sixty percent are attending with the help of student loans (2014). Obviously, student loan debt affects the individuals that obtain them. However, it also has severe effects upon the nation’s economy.

Many families have been left with few options due to the enormous obstacle placed before them. These problems have deterred many aspiring college graduates, some are left too afraid of the price tag associated with higher education to complete their education. And for some even begin it. Good paying careers are the major push for college education however,  "The bar is getting higher for well-paid jobs, with most requiring a college degree..." (Biola and Rodriguez 5-6 ). This leaves America's youth with a decision that should not be as hard to make as it actually is. Is the risk of staggering debt in their future really worth it when they have seen others before them struggle to find good work even with a degree? With all of the talk of high tuition up to the national level many critics have decided to add their two cents into the debate. In "Democrats' loose talk on student loans", the author points out that, "44percent of students at two- and four-year institutions do not borrow at all," (paragraph 2) While this is a factual statement, having 44% of college students not borrowing money is nothing to sneeze at. Despite the fact that the number is smaller than what one would normally expect it does not make the effect of student debt any less important or devastating in some extreme situations.  The author continues by stating, "And of those who do, 59percent borrow less than

When it becomes time for someone to pay off their student loans, it can be a long, complex, and strenuous process. Attorney Heather Jarvis, a specialist in the field of managing student loan debt, graduated Duke University School of Law with a total of $125,000 in loans. “Four-year college graduates continue to experience far less unemployment and earn higher salaries than those with only a high school education… But higher education is expensive and scholarships and grant aid has failed to keep with the rising tuitions.” Says Heather Jarvis. This shows that yes attending college is beneficial to people and their futures, but with tuition continuously rising year after year, colleges have failed to keep increasing the scholarships and grants they give out, which in turn causes many students to end up taking out loans, which if they don’t manage right can have endless effects on their future. “In the United States today, there are approximately thirty-seven million student loan borrowers who together owe more than one trillion dollars. Seven in ten college seniors who graduated in 2012 had student loan debt. Those who had student loan debt owed an average of $29,400.” This is why it is so important to constantly monitor one’s loans, because they can pile up very quickly and suffocate you with debt when you finally get around to paying them.

As decades pass by, obtaining a college degree seems more necessary to get a decent job after graduating. Therefore, high school students feel the pressure to get into a good university and to get the highest degree possible, even when they have no plan on how to pay for it. Financial aid has not kept up with growing tuition prices, and taking out student loans seems almost impossible to avoid. According to research, “About 40 million Americans hold student loans and about 70% of bachelor’s degree recipients graduate with debt.” (Market Watch) The U.S currently has a total of 1.3 trillion dollars of outstanding debt. There is a ton of controversy on how to solve this issue, but there are progressive solutions schools and college kids need

According to statistical data released by the Institute for College Access and Success, nearly two-thirds of the total number of students graduating from American institutions of higher learning is leaving school with some level of debt (Dwyer, Mccloud, & Hodson, 2012). As revealed by the data projections, learners who are average borrows are graduating with a debt of an upwards of $ 26,000 in debt. With the total count of the debt crossing the $ 1.3 trillion mark, the issue is alarming and needs swift action before it worsens. While the average American believes that a degree is a pathway to a successful life in America, the burden of debt combined with the lessening educational and financial returns are frustrating American graduates,

Each year, millions of students face the hardest question of their lives, college or not. Unfortunately, due to the cost of overall cost, many students and their families struggle with this decision. In the United States, college tuition and fees have raised considerable over the last decade and show no sign of stopping. Taking out loans larger than most will every pay for a car, students are accumulating sizeable amounts of debt. Predicated that in coming years companies will demand higher qualified workers is placing a lot of pressure on students; leaving them without many options. With limited aid available, countless are wondering if it is enough to make college worth the debt. Finding a way to insure

The cost of tuition at colleges and universities in the United States has seen a steady increase over last several decades. Since the 1980s, the list price for tuition has risen by roughly 7% per year, while the inflation rate has averaged 3.2% per year. The effect of this mismatch in the rise of the cost of tuition versus the average inflation rate has had monumental effects on the ability of students to afford a higher education. This, in turn, has forced more students to take out increasingly large amounts of loans, causing for the national student loan debt to grow to over $1 trillion dollars, more than total credit card

The more student loan services there are, more money becomes available and the easier it makes for colleges to raise their tuitions.