Nathan Ray
Dr. Monteiro
English 1301-420
12 April 2017
Solving the Infamous College Affordability Issue The Federal government, state government, and Board of Trustees should consider creating policies that are aimed to reduce college tuition because seeing the monetary cost of attendance may deter many people from pursuing a degree which will affect unemployment rates and eventually the economy. Mark Pocan once said, “By making college unaffordable and student loans unbearable, we risk deterring out best and brightest from pursuing higher education and securing a good paying job” (Pocan 1). Education is a fundamental human right, and it needs to be accessible to everyone. The purpose of this paper is to persuade the government to help make
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Not only does a high price tag discourage many from pursuing a degree, but it can affect unemployment as well. The Baby Boomers are reaching an age where retirement is an option and will leave the workforce up to the younger generations. This will be a big blow for the economy if America does not increase participation in the workforce. Unemployment will increase tremendously if the output of college graduates isn’t reaching needed levels to balance the shift out. The amount of student loan debt is at $14 trillion and is continuing to increase. There are 44.2 million American students who have an average $37,000 in student loan debt. Student loan debt can impact major financial decisions for the student whether it be to purchase something like a car or house. Seeing the hefty price tag of a college education can deter many from pursuing a degree. Paying off college can be a real struggle if the student is not from a wealthy family. Some families can’t even provide food to feed themselves. Everyone should have the opportunity to pursue a higher …show more content…
The first one is the Income-based Loan Repayment (IBR) which will be the main way to pay off debt. According to an editor at StudentDebtRelief.us, the student’s salary is used as a measurement to determine monthly payments (1). The editor also states the student’s payment will not exceed 15% of his or her income. This benefits mostly those who receive lower salaries since they would otherwise pay the same as someone in a higher income bracket. President Trump declared he would prefer IBR to be a default program for borrowers instead of the already existing public service loan forgiveness program (Student Debt Relief 1). The President also believes, “The Government shouldn’t be making money on student loans” (Student Debt Relief 1). By this he means interest rates are high, and the government is profiting off interest. Steven Disalvo believes instead of milking graduates for money to repay loans quickly, they could allocate money into their savings to purchase other goods and services due to this new repayment system
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
As it is, there is about $1 trillion in college debt in America. A Philadelphia Enquirer article warns that, “The average debt owed per person is $25,000 -- the highest level of student debt in the nation's history,” and that the number is increased by tens of thousands of dollars for those who go on to get higher degrees. $25,000 is a lot but the reality is that a lot of people have even more than that. For example, what if someone goes to an expensive private college and their tuition is anywhere between 30 and 70 thousand per year. In total they could be paying between 120 and 240 thousand dollars per year. The majority of the country is most likely unable to easily pay for that and could end up with extensive amounts of debt just because they went to the college that they wanted to. Student’s education shouldn’t be compromised just because the school they want to go to has a high tuition. Alarmingly, “Study after study has shown the number one barrier to attending college is the published rate of tuition.”(Lowe) The amount of student debt as a result of a school’s high tuition should decide where people should go to school. If tuition is decreased then simultaneously, student debt would be as well.
An education is one of the most important tools a person can acquire. It gives them the skills and abilities to obtain a job, earn a wage, and then use that wage to better their lives and the lives of their loved ones. However, due to the seemingly exponential increase in the costs of obtaining a college degree, students are either being driven away entirely from earning a degree or taking out student loans which cripple their financial prospects well after graduation. Without question, the increasing national student loan debt is one of the most pressing economic issues the United States is dealing with, as students who are debt ridden are not able to consume and invest in the economy. Therefore, many politicians and students are calling
Along with the average tuition increasing, so has the average income of Americans. In order to afford college tuition, student loans, financial aid, and scholarships come in handy for the time being. Unfortunately, American’s who have finished college still have a load of debt to pay off for many years after graduating. Americans are spending money they don 't have to finance educations they are not sure are worth it. In some cases, students who find jobs right out of high school are left without college debt, but also without a degree. On the other hand, many people who attend college have large college debts yet have a decent
There is no escaping the fact that the cost of college tuition continues to rise in the United States each year. To make it worse, having a college degree is no longer an option, but a requirement in today’s society. According to data gathered by the College Board, total costs at public four-year institutions rose more rapidly between 2003-04 and 2013-14 than they did during either of the two preceding decades (Collegeboard.com). Students are pressured to continue into higher education but yet, the increasing costs of books and tuition make us think about twice. Sometimes, some of these students have to leave with their education partially finished, leaving them with crushing debts. It is important to find the means to prevent these
College is a dream that almost every American wants to come true, however, with the extreme rise in the costs of tuition it is a dream that has quickly turned into a nightmare. “Tuition at a private university is now roughly three times as expensive as it was in 1974, costing an average of $31,000 a year; public tuition, at $9,000, has risen nearly four times,” (Davidson). “For the average American household that doesn 't receive a lot of financial aid, higher education is simply out of reach,” (Davidson). That is why many students have begun questioning the worth of a college degree and if the amount of debt that is received upon exiting college is all for the better. And considering that costs have risen much faster than the rate of inflation, many are starting to believe that college just isn 't necessary any more. However, according to White, economically, the answer would still be a yes. “While unemployment rates for new grads and experienced workers alike have fluctuated throughout the recession and recovery, the earnings premium that college-and advanced-degree holders enjoy over their peers who didn 't attend college has remained relatively stable, and in some instances, grown, according to the report that was released this week,” (White). A study was shown that many college grads are able to get earnings that are significantly higher than those who did not get enough education or only hold a high school diploma (White). Even
In 1976, the average cost to attend a four year public university was $2,175; today, the average cost to attend a four year public university is $25,000 (Snyder). This means it is 1150% more expensive to go to college in The United States today than it was 30 years ago. This obviously would create a problem on how we as people are going to pay for our higher education. Today college has become almost a necessity to have a satisfactory life, and with these rising prices some individuals believe student loans are the only option. There are many reasons as to why the prices have risen, but the one undeniable fact is that this has created a problem within our country. Which, is known as the student debt crisis, and it has been on the rise the past couple years. This problem is affecting people all around the United States, and is causing multitude of problems for them all because they wanted to pursue higher education. Wanting to better your opportunities by bettering yourself is not something that needs to be punished, and sadly that is what is happening. This problem is something that needs to be fixed for the sake of Americans and our economy, but will also take time and a multitude of steps to correct.
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).
When starting college every student makes a very important decision. Whether if they want to get financial aid or to pay the money up front. Having college debt will not only ruin their credit, but he or she may also have to pay off their tuition for the rest of their life. Research says, “According to the College Board, which tracks students’ financing of higher education, undergraduate students in 2013 through 2014 borrowed in the aggregate nearly $63 billion and received $33.7 billion in Pell grants.” By this quote from “Debt, Merit, and Equity in Higher Education Access” it clearly shows the effects College Debt has on their society but, also on their future. Every paycheck they receive, a small portion goes toward paying their college the same college they finished years ago. It’s not worth paying at least one hundred fifty dollars every check when it could have been paid all together. However, many may not have the same opportunities as others.
As soon as I started kindergarten, my dad opened a bank account in my name and started saving money for my college fund. Despite his efforts, our family still cannot afford the unreasonable price of a state university, which leaves me with a scholarship as my last hope. Because of the government’s higher education spending cuts, students like me must choose between going into debt to get a degree, or skipping college while robbing themselves and the nation of their potential. Although many politicians believe that students must pay for the costs of college, the federal government should fund public higher education because it will aid the students and the US economically, benefit American society, and provide
To begin with, student loans have provided many people with the opportunity to attend college and increase their employment opportunity after graduating. According to the student loan debt statistics there are more than forty-four million, or roughly seventy percent, of college students that currently have a student loan (Cloud, 2017). Without student loans, these students would have to forego any plans of seeking higher education until they were able to save enough money to pay for it themselves. Given a population of just above three hundred and twenty-five million people, over ten percent of Americans currently utilize student loans in pursuit of higher education (United States Census Bureau, 2017). Moreover, more than one-third of the United States’ working adults have obtained a bachelor’s degree or higher (Wilson, 2017). Not only would these students potentially not be able to attend college, but they would also face difficulties in being employed. Unemployment is one contributing statistic to determining whether the economy is thriving or struggling. According to Asoni and Sanandaji (2015), “college
Higher education costs have been increasing at a rapid pace, faster than inflation for the economy as a whole, for the past fifty years. It started in the 1960’s when the federal government passed the Higher Education Act to increase the amount of people able to afford and attend college. Regardless of the Unites States Government efforts to increase the affordability of college, federal aid programs have not risen to expectations due to the ever-increasing college prices. To lower the price of college, the government needs to cut back on student financial spending to go only to the lowest income families and create tax incentives for families to start saving up on their own.
The cost of tuition for higher education is quickly rising. Over half of college freshmen show some concern with how to pay for college. This is the highest this number has been since 1971 (Marill and O’Leary 64-66, 93). The amount of college graduate debt has been rapidly increasing also. With limited jobs available because of the high unemployment rate, college graduates find themselves staying in debt even longer. Although grants and financial aid are available to students, students still struggle to pay for their college tuition. Higher education costs are prohibitively expensive because the state’s revenue is low, the unemployment rate is high, and graduates cannot pay off their student loans.
Student debt is at an all-time high. Many college students and recent graduates may find themselves asking: "what's the point?" Why go to college if there is no guarantee of a great job, but you are almost certainly guaranteed to graduate with high levels of debt? But take a careful look at the statistics. While the unemployment rate for recent four year college graduates is 6.8%, the unemployment rate for recent high school graduates is nearly 24% (Webley 2012). Of course, there are many other reasons to go to college, such as personal fulfillment. But for those who are considering not going to college because of economic concerns, I advise you to think in the 'long term.'
If an aspiring college student doesn’t have the necessary funds to attend school, there is another option they could use to pay for school. Student loans are a popular choice so that the student can pay for school. While this may seem like a great option for affording school, it can be a devil in disguise for many. The New York Times reports that Americans owe over 1.4 trillion dollars in student loan debt (Kelly 1). This happens when a college student takes loans with the belief that the college degree they get will help them achieve a higher salary which will in turn will help them pay off their debt. This often isn’t the case. A student takes the loans and attends school, but does not receive the salary that they were hoping to acquire from attending school. A standard payment plan for students is to pay off their debt in ten years, but according to a study conducted by US News, the average bachelor degree holder takes twenty-one years to pay off (Bidwell 1). This is a common occurrence as well, a report conducted by The Institute for Collee Access and Success shows that in 2012, seventy-one percent of college graduates had student debt (Serrato 1). The current system that the government offers to help those struggling to afford a secondary education is a flawed program that needs restructuring.