Essay Student Loan Debt Relief

Student loan debt has become a discouraging problem throughout today’s economical foundation. “Overall debt is falling but student loan debt is increasing year-over-year and at a much faster rate,” chief executive David Stevens told The Washington Post. “[Young graduates] are already on the margin for being able to qualify for a mortgage. If you add on a

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.

“Is Forgiving Student Loan Debt A Good Idea?,” an article written by Kayla Webley in a 2012 issue of TIME magazine, discusses the solution of a one-time student loan bailout for all college students, and argues that, even though this solution is not the best, it is an answer nonetheless. Webley supports this claim by introducing a petition started by Robert Applebaum, a student burdened with $88,000 in college loan debt (130). However, she argues against his propositions, stating that the bail-out will not be an efficient stimulus politically or economically, many students will eventually be able to pay back their loan debt, and there are government programs already in place to give students financial

Student loan debt affects college students all over the United States. Today students are having to take out loans in order to pay for all of their college expenses. It can be a pain to deal with the hassle of paying back the loans. The problems with student loans include causing students to go into debt that they are not able to pay them off in the given time which makes them put major life decisions on hold, and the debt stay with the student even through bankruptcy. A solution that would solve these problems is the idea of debt forgiveness which is the idea that the government will get rid of all the loan debt for college graduates.

Problems in the student loan market are not just harming students but are also exacerbating problems with the United States’ recovery from the Great Recession. New York Federal Reserve Bank data has found that outstanding student debt topped $1 trillion in the third quarter of 2013, and the share of loans delinquent 90 days or more rose to 11.8 percent. Furthermore, the share of 25-year-old Americans with student debt increased to 43 percent in 2012 from 25 percent in 2003, while the average loan balance rose 91 percent, to $20,326 from $10,649 (Gage and Lorin). More than 40 million Americans are in student loan debt and because of this, more than 40 million Americans are not able to stimulate the economy as they are not able to buy houses or cars, or start businesses or families (Applebaum). In Wisconsin alone, student loan debt has resulted in a loss of over $200 million annually from new car purchases, while also resulting in middle class households with student loan debt overwhelmingly renting homes instead of owning them (Vanegeren).

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.

Americans have amassed more than $1.3 trillion of student loan debt (Clements). A lot of graduates are postponing life events like having kids, buying a house, to deal with the debt. About 14% of student are in default. Default means failing to make payments on your loan as scheduled. Defaults usually results in larger loan balances. With this upcoming election, it 's crucial for candidates to address student loan debt and their solutions. As a potential voter, it’s important I select the candidate that will benefits me and get rid of my loan debt.

The decision to attend college for most individuals yield promise of advancement in being able to further one’s learning, and assists with developing a marketable educational portfolio from an institution of reputed academia. However, with the pursuit of obtaining a college degree from a university, there are augmented concerns with student loans and repayment issues. In electing to secure a student loan for college, prospective students or parents should realistically, forecast or measure probable (anticipated) student debt. In particularly, with students aspiring to attend college, several organizations or subsidiaries, and for-profit institutions cash in on unknowledgeable hopefuls contributing to the student loan debt dilemma/crisis (or student debt). The college costs and financial constraints for student borrowing, if ill-prepared will substantially effect students in pre-graduate or even post-grad status. The findings suggest that there is eminence of the possibility of default, with repayment behavior which effects long-term financial outlook. In examining the data on cumulative debt, number and characteristics of borrowers, types of institutions, and repayment dynamics there are unsettles that arise in the gest of student borrowing.

Student Loans: What They Are, What The Evolution of Student Loans Has Looked Like, and What The Current Policy Is.

Student debt is becoming a big issue that is affecting many individuals in the United States, some having to decide between going to school or being in debt for years after they have finished their education. Most people want to have a great paying career and need to go to school for many years but do not have the financial means to pay for college or qualify for financial aid, seeking other options to get their education such as applying for student loans or credit cards. College students should not be worried about how much debt is being accumulated and how it can affect them in their future. This paper will examine the possible solutions to student debt such as student forgiveness, allowing bankruptcy, or eliminating private lending agencies. Having these options will help students with a good paying career from living paycheck to paycheck and become more financially stable.

It is impertinent that the government and colleges spend time keeping track of the amount of debt that college students are going to be faced with when they leave the college. “This information can then be used to improve student loan counseling” (Kantrowitz). By having these statistics, the goverment can

student debt crisis has reached an all time high with debt reaching a total of 1.3 trillion dollars across the United States.With tuition cost increasing,lack of scholarships and unpaid back loans,student debt will continue to increase even higher.The enormous amount of debt put upon each student creates the inability of those students to help the economy grow.Our economy as we know it is a loop and decreasing the student debt significantly will help the economy grow.Instead of putting that money towards the government where it won 't be used to help decrease the student debt as we can see by the total debt, it should go to the community, such as purchasing homes,cars,consumer goods,sales tax which will help improve the economy even more.Crippling student debt is stifling the growth of the U.S. economy because it inhibits graduates from being able to spend money on consumer goods and home purchases. To alleviate this, lenders should be required to forgive student loans in cases where students are unable to repay their debts,decrease a cost of attendance,and increase scholarship opportunities from universities.Doing so would benefit the growth of the economy by increasing tax revenues, unfreezing credit markets, and creating jobs.

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 today’s society, a popular topic of conversation is the never-ending debate over student loan debt and how it can be alleviated. Many people today feel that student loan debt should be paid for in full by the government by completely forgiving these loans. However, this poses many problems. Instead of completely erasing student loans, there are many things the government can do to lessen the burden of the student loan debt that still requires the student to pay back the borrowed loan without forgiveness.

In 2016, an accumulation of almost 1.4 trillion dollars of student loan debt was outstanding in America (Kess). Students from all over the nation, and the world for that matter, are going to higher education without the financial ability to do so. One of the few options for financial aid available to these prospective college students is to take out student loans to pay for the high tuition of most universities and colleges. While these loans are a modality for attending higher education, they often come with strings. Along with being several thousand dollars in debt, interest also accumulates into the total amount of the owed financial total. Until these loans are repaid the interest keep accumulating and the debt grows. With debt still affecting students negatively well after they finish their higher education, the price of college tuition should be abated.