Essay On Student 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 main problems with student debt are the high monthly payments, high interest, short grace period, and repayment programs that does not apply to everyone. Majority of students can’t pay back loans they have borrowed because they aren’t given enough time to pay them off. Students have at least six months to pay off their debt before they get an increase in interest. Over 75% percent of students have to get loans to pay for their first year of college and more (Quadlin). Debt is something we all have to deal with even parents suffer from them as well.

A problem with student loan debt is that students gain more debt because they are not able to pay off the student loans within the given time which also causes them to put certain life decisions on hold. According to Sophie Quinton debt is a problem for the recent college graduates because “There’s currently no way to get rid of federal student debt other than paying off the loans. while some borrowers are paying off their debts just fine, overall they are adding debt faster than they are shedding it”(Quinton). According to Jamaal Abdul-Alim stated that a “survey - titled Student Loan Debt: Who’s Paying the Price?- revealed a number of troubling statistics about the practical ways that student loans are impacting college graduates in their everyday lives. For instance the survey found that: 49

College debt can stunt most students from pursuing their college dream and going to their school of choice. Students get scared of the word debt and the numbers that they would be dealing with outside of college. Students are putting aside going to their dream schools because of the fear of how much debt they will get into after college. There are many reasons why people don’t pursue college, or just from not being able to afford it. Students go back and look at not going to their dream college or college at all and regret not taking the challenge and going with what they always wanted to do. Some students experience not being in debt after college and why they think college tuition is right where it needs to be, but others will make shocking choices to not be in debt. College students are choosing not to pursue their dream college or college at all because of finances they would be dealing with after college, debt.

Student loan debt relief is a controversial issue in America today. Student loan debt affects twelve million college students, roughly 60% of all college attendees, per year (Student Loan Debt Statistics). Student loan debt relief rose to the forefront of economic news during the financial market crash of 2008. The U.S. Government has developed a debt relief plan that extends payments over a 25-year period, with a full forgiveness of all remaining debt at the end of that 25-year term (Ensuring That Student Loans Are Affordable). During this repayment period, payments can be suspended during times of unemployment, giving hardship students a break from their student loan payments. Many people feel that student

When we think about college and a college education, it seems as though our first initial thought is the student loans and debt that can result in achieving a college degree. Looking back, student debt has risen drastically and has made it extremely stressful for students and families. Many people go through their entire life in debt, especially from being a student. Student debt has always existed; however, now, it is so extreme, almost all students who attend college find themselves deep in debt, and must continue paying off their debt many years after they graduate. For the past two decades, student debt has risen, illustrating how big this social problem has become. The reason student debt is a significant social problem is because of how much it can effect a person’s life, and their families lives, that can carry over to their future. Although there were many things that led up to and impacted the drastic student debt that is now being faced by many students around the world, the corporation Sallie Mae, was the essential factor in why student debt has skyrocketed to unreasonable proportions. Sallie Mae provided the first type of corporation that changed its focus from helping students, to helping themselves. The history and scope of the student debt can help us understand that the corporation, Sallie Mae, was the main cause of this problem.

A great deal of students turn to college loans to help pay for their many college expenses. A study conducted by CNBC displayed that 59 percent of student’s graduation from a public four-year institution had student loans. After graduation many students found themselves under “student loan pressure”- meaning it will take years of them working in order to pay the debt. Students will invest thousands of dollars towards tuition, housing and textbooks and may be paying the school back for years following their graduation.

In the year 2007, 18.2 million students enrolled into college. About thirty-nine percent of those students were between the ages of eighteen to twenty-four (Marcus). College is seen as something one must do to be able to have a successful life or career. Student debt is almost guaranteed for anyone that goes into college. Seventy percent of bachelor's degree recipients graduate with student debt. Student loans in just the U.S. alone are up to 1.2 trillion dollars, this is the second highest level of consumer debt, just trailing behind mortgages (Snyder). Student debt has been an issue for anyone thinking about going into, that is attending, and graduating or leaving college. How to solve this issue is very simple, which is to save money, lower

That causing the students to fault on their loans. Haley Edwards states in “ But can America afford this approach to solving student debt?” Work in public service they can get loan forgiveness in just 10 years.” Public service jobs are jobs that are related to the government, these jobs allow student loan forgiveness after 10 years which is crazy because a college graduates average age is 22 and that puts them debt free by 32. Others it takes well into their middle age years to pay their debts back. Loan forgiveness lifts massive amounts of stress their shoulders. Students don’t know how to handle debt. Most students out of highschool don’t lnow what loans are and the backlash it could have on their futures. They have no clue on how to calculate interest, how long itll take for them to pay the debt back either. “ 71% of undergraduates who graduate with debt or the 1 in 7 who end up defaulting on their loans.” (But can America afford this approach to solving debt, Edwards) This statistic shows that students who are just now entering college that they don’t know anything about loans. Or they don’t get jobs that can pay their loans back. “ The

From the beginning of an education in preschool, to the time of graduation 14 years later, everything learned, interpreted, analyzed, understood, or even misunderstood has its effect in the future. The question is always “what do you want to be when you grow up?” As you age, the career dreams develop into a more mature answer. No matter how anyone is raised, there is always someone pushing at least one other person to go to college. Then, that silly career question is turned around on them, “how exactly do you expect me to afford college?” Roughly, about $809.6 billion is spent on college in the United States each year. Along with all the money spent, deb comes trailing along. Everyone can agree college tuition is not cheap, not to mention

In the United States today, the number of students graduating college with student loan debt is quite astonishing. In the article titled, “How the $1.2 Trillion College Debt Crisis Is Crippling Students, Parents And The Economy”, we will examine and break down the student loan debt crisis by the numbers. Today, almost two-third’s of students graduating college are graduating with an average of $26,000 in debt. For most students, $26,000 is a lot of money when the average annual income for a first year graduate is only in the mid $40,000 a year range. According to the Consumer Financial Protection Bureau, student loan debt has reached a new milestone, crossing the $1.2 trillion mark (Denhart, 2013, Introduction, par. 2). With student loan debt levels

In 2010 student debt has increased to $830 billion. That is more than credit card debt. Graduating with such high debt is hurting students in the long run with jobs, making large purchases and stimulating the economy. The author gathered information from books, articles and studies. Even though she has a degree in Liberal Arts and Sciences. She has done other articles on “School Reform” and “Regulating Credit Cards.” This article is going to work best for people finding out more information on student loan debt and how it is affecting graduates after college. This resource shows a point of view from an educational and government stand point. There is a pie graph that shows what type of loans make up Financial Aid and a bar chart the show the

One of the biggest crisis affecting Americans is student loan debt. As the price to attend colleges and universities has risen, so do the amount of loans being taken out and students entering into debt. Currently forty-four million U.S. citizens suffer from the stress and pressure of student loan debt (“U.S. Student Loan Debt Statistics for 2017”). Those loans combine for an enormous, $1.31 trillion; Which averages out to about 37,000 per student (Lage). As a whole, college in the United States is too expensive and forces students to take out substantial loans that create huge financial burdens, and while there are various methods and plans to repay these loans back, it takes too much time. The US as a whole, will not see much progress until either the cost of college, or the loan forgiveness time span, is reduced significantly.

I think that one of the biggest issues in America is the rising cost of college and the student loan debt problem. College costs are constantly rising ahead of inflation, and the amount of people borrowing money for college is steadily increasing. According to Kelly Holland from CNBC, in 2015 there was over $1.2 trillion in student loan debt out of a total of 40 million borrowers (par. 1). On average, that means each borrower owes $29,000 in student loans (par. 1). When people are in that kind of debt, the economy falters. People are less inclined to invest, buy things, have a family, and even start a business (par. 20-22). The one thing that drives the United States economy is incentives and when people don’t have the incentive to contribute to the economy, the economy suffers.

The Department of Education in recent times has embraced a new system regarding student loans, bringing on board a customer-friendly policy. According to this new scheme, students will now have access to loans with easier and less complex repayment terms. This development will help them fast-track the repayment of their debts without hassles. The Department of Education also integrated an income-based repayment plan: a flexible approach geared at facilitating student finance in their most dire hour of need. Sadly, despite having the potentials to substantially pull off the amount of burden on people’s shoulders, this income-driven repayment scheme hasn’t gained much traction and acceptability among the general population. This is due to