Financing For Loan And Debt Crisis

1269 Words6 Pages
In America today, the total consumer debt was $11.52 trillion, and of that, student loans account for $1.08 trillion and that number is growing larger and larger every year (Hiltonsmith, Robert). A large portion of the population undoubtedly feels the burden of these statistics. Seven out of every ten college seniors has reported having to take out one or multiple student loans so that they can to afford to go to college (Hiltonsmith, Robert). The results of this outstanding amount of debt does not just affect the United States negatively for the obvious reasons such as lower credit scores and perpetual expenditures towards lenders. This loan and debt crisis has also led to an even larger disparity between the lower class and the upper…show more content…
Germany recently revoked the policy of college tuition in all providences nationwide, and with free tuition, more and more students every year can attend college (O 'Shaughnessy, Lynn). Germany is not the only country to apply this policy towards education either; Spain, France, Italy, Malta, Sweden and several others all offer tree tuition for public universities (Noak, Rick). For that reason, the solution to some of the aspects of the student loan debt crisis should be adapted from policies currently in effect in these European countries. Improving upon the models that countries such as Germany have implemented will better prepare the United States to create a successful tactic to tackle one of the country’s biggest dilemmas. There are a few complications that will have to be addressed. One of the methods used to fund the tuition of the citizens of these countries is through tax money (O 'Shaughnessy, Lynn). However, in order for the United States to afford to do this, the taxes will most likely have to be raised. Another problem that has arisen in some of these countries is under funding, there simply is not enough money to fund the school comfortably and to pay for tuition at the same time. These hurdles and others are what makes this problem so significant and pervasive, but unless it is addressed somewhere, no matter how small the solution, it will never be fixed. Robert Hiltonsmith, a policy
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