Causes Of College Debt

This report examines the increasing trends in the amount of debt students are graduating with. The purpose of this report is to prove why these trends need to be stopped, and how they can be stopped. After viewing the statistics from 1993 to the present it will be obvious that student debt is not rising at a steady pace, but that its growth is leading to large financial burdens by many students. Recommendations are given about the actions that can be taken by not only students, but everyone to help improve this dire situation. The changes that student loans have been through over the last couple of years will have a lasting effect on current students, prospective students, parents, and those who have graduated and

The main focus of the debate on college is whether a higher education pays off. While it is widely believed the skills learned at college are invaluable, and earning a degree means a better job with a higher salary, college is still a huge financial risk; the prospect facing a lifetime of student debt is intimidating. Parts of the debate that need further research include how to get the cost of college education down, and how can students avoid getting into unmanageable debt.

My primary concern for passing this bill is student loan debt. The current student loan debt in the United States is $1.2 trillion and studies show that 70 percent of college students that graduate leave school with student loan debt that averaged $33,000. Currently the class of 2015 is the most indebted class ever because of student loans, and not only are the students in debt but the parents too. Studies have shown that about 17 percent of college graduates have parents with loans out on their behalf because of the extreme cost of a college education. As a student, these outstanding figures are terrifying. Studies have shown that this debt directly correlates with student drop out rate. There are many reasons why students drop out but one

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.

Colleges are noticing a drop in students’ interest in a higher education, because it forces them to fall into poverty. Obtaining a higher education is a dream of many working class citizens, but the price to go to a choice college is not available economically. The majority of students use some type of student loan, they have become the norm for attending college (Johnston, Roten 24). College is becoming unaffordable to many lower class students. With tuition prices this high, students are backing out of school and looking for jobs that only require a high school diploma. Student loans should help people, but it is only hurting them because they feel like they can never repay it. Especially since student debt continues to rise. “Student loan debt rose by 328 percent from $241 million in 2003 to $1.08 trillion in 2013, according to the Federal Reserve Bank of New York” (Johnston, Roten 25).

An estimated 20 million Americans attend college each year, and 60% of those students borrow annually to pay for it (qtd. in asa.org, “Student Loan Debt Statistics”). Moreover, citizens continuing to pay off debt after schooling brings the overall number of student-loan-borrowers to about 40 million- with a collective 1 trillion dollars in debt (McCarthy, “10 Fun Facts About the Student Debt Crisis); a fourth of these borrowers owe over $28,000, a tenth owe over $54,000, 3.1% owe more than $100,000, “and 0.45 percent of borrowers, or 167,000 people, owe more than $200,000” (Haughwout, “Grading Student Loans”). While some view this predicament as the result of laziness or carelessness, the bulk of this substantial group are not at fault.

These fraught students display the future, and it’s not looking too bright. With higher education becoming a progressively distant dream for the average American, heftier loads will be landed upon those who can scarcely afford to reach their aspirations. These students are not simple figures on a statistical report, but they are young people at a point in their lives where they must be aided on the basics and essentials of financial lingo and repayment plans (Rajan, 2014). The liability imposed on the current generation can only be noted as atrocious and sleazy, obstructing any economic growth that might’ve been projected before realizing the trap they have fallen into. Worsening as we speak, The New America Foundation has declared that debt

The term student debt has become a bit controversial in today's world; it strikes fear into the hearts of students and parents alike. This is because student debt is increasing at an incredible rate and everyone agrees that it is a major problem. Many solutions have been proposed to fix this problem, yet nothing has been done. This problem is projected to worsen in the near future. The causes of this are relatively simple and clear-cut. The increase in student debt is caused by a combination of factors including rising tuition, decreases in government funding, the shift to student loans, and increases in the overall costs of college.

Caroline Kerr English 100 Mira Costa Community College April 2, 2015 Argumentative Essay In 2014, graduating college students debt on average increased by 25% — in 2008 going from $23,450 to $29,400; in 2004 only 900,000 students graduated in debt, in 2008 1.1 million students graduated from debt and in 2012 1.3 million students had gradated from a four year in college loans and debt (71% of all students). An even scarier statistic is that just from public schools in the United States over 65% of gradients had student loans as of 2012. The worst thing about this is that students who received Pell Grants (families that on average earn less that $40,00 per household) were more likely to have student loans, in fact 88% of Pell Grant students

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.

For many in the middle class student debt has a strong and relentless grasp on their economic future. In their article "Why Free Higher Ed Can't Wait" Jeje Biola and Belinda Rodriguez state that, "Student debt has reached a record total of over $1.3 trillion" (6). This has left many people wondering where this is coming from and wanting change. This number is just too high in the minds of the average American. In the last few years free college tuition has been a hot topic in American politics, as recently as the 2016 presidential race. Candidates such as Bernie Sanders and Hillary Clinton proved to be a huge push for free tuition. The raising college tuition rates effect all Americans in some form or fashion, so support is quickly rising especially

Historically Black College and Universities have played a essential role in changing the scene of advanced education in the United States. Today, in a time of quick change, HBCUs confront difficulties and also new snags. Not only does the HBCU itself face difficulties, but being a student at one can definitely be challenging at times. They face multiple issues such as debt, discouragement, and mental illnesses. All of this could affect both their futures, and worth ethics. In order for the students to be career steady, these issues they are facing must be fixed.

College Students are exiting college with empty pockets. In the year 2015 the average amount of debt students are graduating with is about thirty thousand dollars. The average amount has been on a constant incline and continues to grow by about four percent every year. According to author Katie Lobosco “Colleges are not required by law to report how much debt their students carry, so some don't respond.” (1) so the average amount of student debt is inaccurate. It is likely that the average amount of debt per student exceeds thirty thousand by quite a bit. Billions of dollars in student loan debt goes un recorded which will in turn effect the nation directly.

Facing a seemingly massive debt can create a scare tactic to continue on a path toward a higher and exceptional education. Although there are controllable factors to help lessen the weight of student debt it creates a wall of challenges toward furthering ones education, because of the fear of falling into a seemingly large debt Canadian students are afraid to maximize their education, prohibiting Canada to create and maintain a stronger and more skilled work force.

Students graduating from a 2-year college will amass an average of $10,000 or more in student loan debt depending on each student circumstances. These losses would be exacerbated by several key policy proposals. In all, the total cost to the government over these years could exceed billions. But of could the general taxpayers will bear the cost as well as the student that will be facing a large debt in the near future. Legislators are constantly come up with new ways to sacrifice taxpayers to subsidized educational loans but to no avail. Congress has expanded a lost loan repayments plan that will effect tax payer and will have a negative effect on the economy.