Pros And Cons Of Student Loans

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

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

The problem with today’s current level of student loans is that it causes so many people that took out loans to go into debt later on in their life. Now when the former students go into debt, it creates a domino effect. The students going into debt means that the government will be able to get their money paid back to them which causes the country to be buried in an even deeper hole of debt. The nation is currently over 20 trillion dollars in debt and student loan debt is more than 1.5 trillion dollars as well according to the United States Debt Clock as of November 2017. The issue of student loan debt needs to be addressed sooner rather than later to help the country gradually come out of debt. A start to help reduce the amount of debt in

On the end of the Democratic Party, both Hillary Clinton and Bernie Sanders presented comprehensive plans to help eliminate student debt, although they vary on how to deal with the cost of education and how much the government should pay (Josuweit, 2016). Clinton created the “New College Compact,” to address both the current and future educational costs, her main focus on addressing existing debt and allowing borrowers to refinance student loans at the rates allowed to students taking out new loans, which Clinton claims would provide to relief to twenty five million borrowers (Josuweit, 2016). In addition to this, Clinton wants to reduce interest rates on new student loans which would facilitate enrollment in IDR plans (Josuweit, 2016). On future tuition, Clinton claimed she would provide help so that students never have to borrow to pay for tuition and other fees attending a four year public college in state (Josuweit, 2016).

“The United States has created a new generation of people that have more student loan debt than at any other time in our history” (Murphey). A vast majority of students are graduating with debt. On average, students are carrying loan amounts big enough to buy a nice car or cover the down payment on a house, but instead of making those investments, or starting a family or a business, they’re struggling to keep up with student loan payments (O’Malley). Student loan debt is a major problem. Student loan debt exceeded credit card debt in 2010, auto loans in 2011, and it passed the $1 trillion mark in 2012.

Student loan debt is a debt that students allow to build up and mess up their credit for not paying it back. Student loan debt can be fixed with repayment plans that the student decides will be good for them. Student loan debt came about in 2006 and has been rising higher every year since. Student loan debt is called the gift that keeps on giving. In reality it does not keep giving the student allows other debts to come along making the first debt have more interest and become more expensive than it already was. Student loan debt also comes from the type of school the student decides to choose ("U.S. Student Loan Debt Statistics for 2018”). Whether the school is private or public the debt is tremendous if not

Student debt has become harder and harder for borrowers to pay back. According to Ivanchev, student debt has increased from seven-percent in 2003 to about fifteen-percent in 2012 (2014). If you go into default on your loans you could lose your professional license in some states, or even have your driver’s license suspended. Congress needs to fix student aid so that it’ll lower interest rates, and in some cases forgive debt; according to federal agencies, student debt is creating a major effect on the economy and its borrowers.

Tuition and student debt at colleges and universities in America have been rising far more quickly than inflation for over four decades. This is a trend that will continue without intervention. Student debt drastically affects students’ lives and decisions from getting married, to buying home, or to starting a business. The amount of debt held by students after graduating not only negatively affects the individual, but the economy as well. Loads of economic activity is currently halted by students working to pay off their loans. This is a consequential problem and the increasing number of student debt in America must be addressed.

According to Student Loan Hero blog called "U.S. Student Loan Debt Statistics for 2017", the class of 2016 had an average student loan debt of $37,172. With all this money how does the student debt accumulation add to the national debt? Well, we have already surpassed credit card debt and auto loans with $1.4 trillion dollars, credit card debt reaches $764 billion while auto loans reach $1.17 trillion, and that is only the beginning. If you look back in history at what student loans used to be you will see a huge increase, and sure, our money has lost value, but it is almost exponential how much we are taking out to pay for school.

In America today, the student loan debt crisis has reached an astonishing 1.2 trillion dollars in debt, making it the second largest source of debt in the United States, according to forbes.com. This is due to the cut to funding colleges, which used to be 7,000 dollars for each student and after 15 years is now 4,000 dollars for each student. There are solutions that could unquestionably lower student loan debt: colleges could stop competing to have more useless luxuries, take a certain percent out of the students income until it is paid off, and more of students’ parents could take the loan and not their child. While there is no perfect solution to make this problem go away (that we know of), there are ways we can lower the astounding amount of student debt in America today, even if it is just a small piece of it.

I think college student loan debt raises serious concerns for students and makes them worried about their future. College student loan debt in USA is at an all-time high and it has increased over time. The number of students requiring financial aid and student loans has increased as well. Majority of college students get loans to pay for their higher education, and the demand is increasing because college tuition cost is increasing. Most of the U.S. college four-year undergraduate students graduate with some level of debt. Most of those students may not know the problem they will face after graduation to pay back college loan. Some students may know that they will be in deep debt by the time they graduate,

Statics show that just in the past 10 years (2005-2015), the average student debt accumulated by college graduates has risen nearly 325%. Student loan debt is incredibly dangerous for not only personal finances, but also for the total economy of the country. Most student loan payment plans place borrowers in a 20 to 30 year payment plan. Unfortunately meaning most borrowers will be paying off these loans even after their

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 sheer amount of debt that a college student acquires after they finish their schooling is an egregious sum. The average amount that a borrower owes after they graduate is $26,000 (Denhart). These now excessive amounts of debt are thrust upon graduates, both young and old, and could take several years to pay off. Additionally, the national student debt has increased from $80 billion to $500 billion from 1995 to 2011 ("Student debt"). A young adult, fresh out of school, potentially has few approaches to attempt to decrease a debt of such enormity with perhaps a limited income. While less than 1% of people have loans