Education Debt: A Case Study

Student debt is a topic that generates a lot of debates. From politicians to lenders to students, everyone has an opinion on the topic. With a trillion dollar national debt, it’s not surprising why the topic is such a huge issue and the solutions are even greater. The student debt is a form of debt that is owed when a student has completed college or drop out. The average interest rates for the ungraduated and graduated are 4.45% to 6% (Quadlin). To pay off all the students’ debt, it will take 10-25 years to complete it. College students will have at least six months before they have to make the first payment. Student debts can be a real problem for those who aren’t preparing for them. Student loans debt should have a longer grace period, lower monthly payments and repayment programs that apply to all because students will be able to manage and repay their debts in a timely manner.

With the ever-increasing tuition and ever-tighten federal student aid, the number of students relying on student loan to fund a college education hits a historical peak. According to a survey conducted by an independent and nonprofit organization, two-thirds of college seniors graduated with loans in 2010, and each of them carried an average of $25,250 in debt. (Reed et. al., par. 2). My research question will focus on the profound effect of education debt on American college graduates’ lives, and my thesis statement will concentrate on the view that the education policymakers should improve financial aid programs and minimize the risks and adverse consequences of student loan borrowing.

oday, society stresses the importance of postsecondary education to students due to the countless ways that an associates, bachelors, masters, or doctorate can enhance an individual future. For an individual to reach financial security in the United States’ economy it is basically mandatory that they have received a college degree. Postsecondary education will provide skills and knowledge that will prepare individuals to be successful within their career as they compete for leading positions. Overall as an individual receives a college degree they will become more likely to experience job security and financial security, and this is important to most as they hope to live a stable life. In college, students are taking as many as one hundred credit hours which contributes to most also accumulating student loan debt as they try to finance their education. Even though the completion of a postsecondary education will contribute to a graduate obtaining a respectable income it may also cause graduates to suffer from high student loan debt which will negatively impact their finances far into their adulthood. R.J. Matson created the image above to emphasize how student loan debt negatively impacts student and changes need to be made to avoid stress caused by the debt.

Student debt has led to many negative consequences for students attending college. Senators tend to have different views when it comes to solving the student debt issue. Elizabeth Warren, a Democratic senator from Massachusetts, has been concerned about the constant rising of interest rates on student loans throughout the years. She proposes a certain bill to help cut down such rates. Bernie Sanders, another Democratic senator from Vermont, focused on the importance of the young generation earning an education. He attempts to make college more accessible for everyone. Lastly, Robert Reich, a former United States Secretary of Labor, has pointed out that college is not for everyone. He believes that individuals should have a choice rather than being forced into college due to society.

In recent decades, student loan debt has increased dramatically causing a so-called, “education bubble”. This ‘education bubble’ is essentially the ‘housing bubble’ within higher education. The Federal Government, like those in the housing market crash in 2008, are lending money to those who receive a low income and can not afford college. According to The Weekly Standard, “the Federal Reserve Bank of New York reports that during the past decade, student loan debt has nearly tripled and the number of students with debt has risen by 70 percent” (Cochrane). The Federal Government needs to decrease the amount of loans they are giving out in order to prevent another crash within our economy. As a senior in high school who will not be receiving

The hot topic amongst people entering college is student loan debt. With the average debt at tens of thousands of dollars, many people shy away from college, or at least do not get a full degree. As a result, many politicians have preached plans to make college free, and thus bring an end to student loan debt. However, those on the other end of the spectrum find themselves hindered in jumping aboard the free college mania, because, after all, nothing is free, everything comes at a price. And as they soon learned, what a price indeed. In fact, in order for the universities to pay staff and accommodate the student body without tuition being on the shoulders of the students, state taxes would have to be increased on the entire taxpaying population.

In the U.S. students are encouraged to earn a college degree, but the cost of an education turns many away. “Driven by the allure of a decent salary with a college degree, Americans borrowed to go to school. Outstanding student debt doubled from 2005 to 2010, and by 2012 total student debt in the U.S. economy surpassed $1 trillion” (Mian, Sufi 167). There are plenty of opportunities to obtain funds for college, including one of the most common, student loans. A student loan is defined as “a common way to fund education, specifically college and graduate school, and they provide educational opportunities that you otherwise may not be able to afford” (Barr). Student debt is at an all-time high in America. Over half of all lower income

Although the majority of students in college struggle with finances, STEM majors and underrepresented minorities, specifically have a daunting task of paying for college at a remarkably young age. According to the article, “Debt Overload”, by the National Society of Professional Engineers, “…28% of African American students reported $33,500 or more of undergraduate debt compared to 15% of Caucasian students.” Also, students with Science, Computer Science, Engineering, Environmental Science, or Mathematics majors accrue over $20,000 a year in debt. Majority of student loan debt exceeded $900 billion in the first quarter of 2012, up $30 billion from the previous quarter, the Federal Reserve Bank of New York reported on May 31. This number has increased by $663 billion since just 2003. Student debt is so widespread that two-thirds of the class of 2010 graduated with loans averaging $25,250 each, according to the Project on Student Debt. While studying the article, it was clear that another possible reason that students did not enter the STEM profession was because they could not afford to go in debt for a degree that often required further education after a Bachelors. At the same time, the country is

Going to college has been taught to be the next step in education after graduating high

The typical all-American dream is a great paying career, a happy family, and a good home to raise them in. This is, however, only possible by going to college and getting a good education at a high-cost university that buries you in debt. Often when discussing student loans the general consensus are that students are in colossal financial struggles if they obtain degrees at good universities. The myth of crippling student loan debt is, however, not typical.

off their debt than there are a few more problems that start to come up. Help and make

[Hook] Here is where a hook would go. [Transition/ Background] Many people think that college is the only surefire way to be successful in life. Others believe that it is a waste of time or that it is not necessary for everyone. Whatever the stance people have strong opinions on whether or not you should go to college. [Thesis] A four year college degree is not the best investment towards a successful career because it costs a lot of money and there are better alternatives.

Moving forward in my own work considering the idea of an education debt, instead of just an achievement gap, seems like a big ideological switch. I have a difficult time with idea that something that occurred several hundred years ago would still have a complete cultural impact is tough for me to accept. The non-market effects discussed by Wolfe and Haveman are far easier for me to understand. I liken those effects to Maslow’s Hierarchy of Needs. If parent’s do not have a positive link between their school

Definition of the problem: Student debt has become a major problem for our college graduates to not only to start their career but also starting their lives living independently.

This study examined how parents’ teaching and modeling of financial concepts affects college student credit card debt (n = 173). Parental hands-on mentoring of financial skills was most strongly related to lower levels of credit card debt and this relationship was partially mediated by it leading to greater financial delay of gratification and less impulsive credit card purchasing which in turn were related to less problematic credit card use. Having parents who struggled with debt was not significantly related to debt although having parents who avoided talking about finances predicted problematic credit card use. Students’ beliefs that their parents would bail them out of debt were related to lower levels of debt. Financial knowledge and