Cause And Effect On Student Debt

Decent Essays

Student debt is slowing the growth of the U.S economy because it makes graduates not able to spend on goods and progress their lives. The obvious problem, supported with statistics, show that the increasing of tuition costs and student debt balances to be harming to the growth of America’s economy and its people. How? Statistics show that Americans owe more than $1.45 trillion dollars in student debt, shared amongst 44 million people. You would think by knowing this fact students will reconsider attending a four-year college, yet it doesn’t affect enrollment at all. What’s more concerning is college graduates leaving school with an average of $34,000 of student debt, according to Federal Reserve’s Bank of New York, effecting young Americans in many ways leaving them stuck in excelling at life.
Jim, a future college student, coming from a middle-class family living in Missouri, is the first to attend college in his family. His parents can’t support him in tuition payments, because it’s out of their budget. He is left with the choice of taking out student loans. Choosing where to attend college is a big decision for some but for others like Jim, it’s how they’re going to pay for it, and with the rise of tuition costs, it only gets harder. That is why students are left with choosing to take out student loans.
You may wonder, why is tuition increasing? Well there are a lot of factors. But the most significant is the 2017 Tax Plan. According to CNNMoney, about 145,000 graduate

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