Persuasive Essay On Student Debt

The sudden rise of college tuitions began right after the recession in 2008. Many people lost their jobs, and their current jobs were not paying well enough for them to survive through this devastating time. More people turned to higher education and college tuition began to rise because obtaining college majors will guarantee a higher pay other than minimum wage. This downturn didn’t end here because over the years, tuition rose even higher. In 2014, the debt for college students reached to 1.2 trillion dollars, that is an eighty four percent major increase since the recession. It is very difficult for every individual to repay their entire college tuition on time because their job may be underpaid. If you begin to miss your monthly payments, there will be several consequences right ahead of you.

College cost more money each year and will continue to rise in price needed and textbooks will do the same. Private student loan debt is a perfect example of this it was on the rise, $6.2 billion was borrowed in 2012-2013, up from $5.5 billion from2011-2012. In

Thousands of American University students are drowning in debt, furthermore statistics indicate student debt currently tops 1.3 trillion dollars and rising. Grads1st consider the unsettled debt currently exceeds outstanding mortgage and credit card debt.

Over the last decade student loan debt has risen substantially and is now one of the largest form of personal debt in America, totaling about one trillion dollars, with 71 percent of students who earn a bachelors degree graduating with debt, with the average amount of debt being $29,400.

do not realize the risks they take when they acquire student loans. Student loans can and do have

According to the article “College on Credit” written in “The Economist” journal, student debt over the years has risen tremendously. In the course of 10 years, student debt has sky rocketed from $41 billion to $87 billion in 2009. Certain states decisions to increase the tuition fees to help heal their own budget troubles will only worsen this economic crisis. The article further states how borrowing will continue, if students are unable to pay the tuition. Due to limited government funds, the ever so increasing number of students wanting to borrow loans resort to private sources.

amount is 1.2 trillion dollars. The article reminds readers that debt is more than just a nuisance; it

The article points out that student loans are at an all-time high. “Student loans are one of the fastest rising sources of debt. As of the third quarter of 2013, student debt stood at $1.027 trillion or about 9 percent of total household debt, up from about 3 percent in 2003.” (“Student Loan Debt Is Torpedoing Home Sales” RealEstateEconomyWatch.com 2014) It goes on to say that the average college graduate in 2012 graduated with student loan debt of approximately $29,400.

Over the last several decades, rising tuition rates and changes in federal and state policies, an increasing number of students are turning to college student loans. As a result of these changes in prices and policies, the percentage of undergraduates borrowing has increased from 37.8% to 46.2% for public 4-year institutions and from 48.5% to 58.9% for private institutions. According to one estimate, student loan debt has reached $1 trillion dollars, surpassing credit card debt (Reynolds and Brandon). Most recently, another report estimated that two-thirds of college graduates in 2011 had an average loan debt of $26,600, which is an increase of 5% from the previous year (Chen and Wiederspan). There are numerous factors involved in the

Most of the students owe about the average of $28,400 in federal and private loans

There are many factors that contribute to student loan debt some of which are, increase in tuition, out of state fees and private colleges. In fact, the cost of education always rises faster than inflation. The cost of operating a college is getting higher and at the same time, governments are contributing less money. State support for public colleges and universities has fallen by about 26 percent per full-time student in the last 20 years. (Luzer) For the 2011-12 academic year, average tuition and fees range from $2,963 per year at public two-year colleges and $6,604 at public bachelor’s colleges, to $35,195 at private doctoral universities. In 2015-16 the cost of a four-year private school was $32,405, and $43,921 if you add on fee, room and board. (Tuition and Fee) The cost of tuition will inevitably raise due

The growing cost of college tuition is a major problem in today’s world. It is causing students to have to take out student loans to pay for it. The problem with student loans is that they have a high interest rate, can take years to pay off, and are a deterrent for going to college.

These loans are a growing crisis, having “quadrupled since 2004 to just under $1.2 trillion” (Gorman). At the projected rate, the student debt crisis will continue to rise if the focus of funding higher education remains on loans and not federal or state grants. Without reform on policies that help decrease college prices, the student loan debt crisis will continue to grow and further disadvantage the socioeconomic standing of people who seek the most financial aid.

According to the Federal Reserve Bank of New York, student loans have quadrupled since 2004, to $1.2 trillion (Brown). This insurmountable debt is an astronomical problem for Americans today and more so, for future Americans. College tuition have been rising for the past 40 years and will continue to do so exponentially. In an asset management report done by J.P.Morgan in 2014, the firm projects the cost of private universities to be at roughly $90,000, and $40,000 for public four-year universities in the year of 2030 (Badkar). If the government remains dormant toward this issue, college students 20 years from now, will be burdened by an even bigger pile of debt.

The cost of tuition at colleges and universities in the United States has seen a steady increase over last several decades. Since the 1980s, the list price for tuition has risen by roughly 7% per year, while the inflation rate has averaged 3.2% per year. The effect of this mismatch in the rise of the cost of tuition versus the average inflation rate has had monumental effects on the ability of students to afford a higher education. This, in turn, has forced more students to take out increasingly large amounts of loans, causing for the national student loan debt to grow to over $1 trillion dollars, more than total credit card