Student Debt Benefits

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.

As with any college student, the idea of not having to pay for school sounds quite perfect. Average student loan debt has increased at a constant rate since 1993 and peaked for 2015 graduates at $35,000 according to the Wall Street Journal. The same report shows two other key factors. While 70% of students leave college with student debt, the need for a college degree has never been more important. Unemployment rates between people holding a bachelors degree or more sits around 2%, while people with only a high school diploma is over 5%.

Each year, college tuition increases more and more, which makes getting a higher education almost impossible for some people. According to Pay it forward written by Catherine Morris tuitions and fees at public four-year institutions has been increasing an average of 3.4 percent each year between 2005 and 2015.

Since 1974, tuition has been on the rise and has reached new heights. One reason why tuition is increasing is because of “the state governments’ unwillingness or inability to raise per-student financing” (Davidson). The government is spending less on college and moving those funds into other categories, such as the military. Furthermore, colleges are spending less on each student than they did during pre-recession (Fox). Even after the recession, the government is continuously cutting more and more from education funds. As the government cuts more from education funds, tuition cost will steadily increase to compensate the loss. Tuition increased from 1994 to 2015 is depicted in the graph on the next page. Drawing a conclusion from the graph, it is possible that if this trend continues, public colleges will approximately reach the same price as private colleges one day. The amount of financial aid given is unable to meet the needs of lower income students,

There is somewhere between 902 billion dollars and one trillion dollars in total outstanding student debt today, and around 60 percent of college students borrow money annually to pay for their tuition and books (Ghannam). Seven out of 10 seniors (69%) who graduated from public and nonprofit colleges in 2014 had student loan debt, with an average of $28,950 per borrower.

Tuition rates have been on the rise since the start of colleges. In 1988, the average college tuition was about $2,800 for a year of schooling. In 2008, that number had risen 130% to nearly $6,800 for one year; according to Annalyn Censky of CNN Money, if the average income had raised the same amount, median family earning would be roughly $77,000 a year, instead of the current $33,000. Americans are making $400 less on average than they did in 1988 says Censky. Over the past twenty years, college has risen 5% of the median family income from 12% to 17%; private colleges went from 27% to 47% says Economist.com. (1 SV; SV.) Tuition isn’t the only thing rising at colleges: room, meals, books, and other fees are rising as well. (4 SV: A,B,C,D.) This also takes its toll on families as well as the students themselves. Many students

Today college tuition prices are rising. Paying for college can often be a stressful responsibility. A college education is very important for many students, but when stressing on how to pay for college gets in the way, it becomes more of a burden. Kim Clark effectively states the rising prices of college tuition in her article, “The Surprising Causes of Those College Tuition Hikes.” Clark states that the cost of attending a public university, even after subtracting out aid and inflation, rose more than fifteen percent in the last

The amount of money being borrowed is overwhelming, especially since the cumulative total of debt is huge, nearing a trillion dollars, much bigger than credit card debt. However, a typical college graduate who borrowed money to continue attending the college owes at least $25,000 dollars when student debt is not so big for individuals as compared to 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.

Is college worth incurring significant at debts? Student are wondering if going to college is worth getting debts. Student who wants to go to college is taking loans to pay for college, but the problem is that it might be impossible to pay back the loans. Going to college is worth having a debt because lifetime earnings, job opportunities and good for your community.

According to William B. Bradshaw, “that figure is beyond comprehension.” As of January 2, 2018, there is $1.48 trillion in total United States student loan debt, 44.2 million Americans with student loan debt, student loan delinquency rate of 11.2%, and average monthly student loan payment is $351 (A Look at the Shocking Student Loan Debt Statistics for 2018). About half of the students that graduated in 1993-94 with a bachelor’s degree graduated with debt, averaging a little more than $10,000. In 2016, more than two-thirds of college graduates graduated with debt, and their average debt at graduation was about $35,000, tripling in two decades

Many know the best place to invest a large amount of money is into a college degree, many are a wondering why as well. “In today’s tough labor market, a college degree dramatically boosts the odds of finding a job and making more money.” (Greenstone 1).

While student debt has been an issue for quite some time, the steady increase annually is alarming. According to MarketWatch, The average amount of debt per student upon graduating in 2015 was $35,051; about $2,000 more than class of 2014 graduates. In comparison, the amount of debt per student in 1993 stood just under $10,000. In a report by the Urban Institute, a Washington, DC-based think tank that carries out economic and social policy research, the quantity of college graduates with more than $40,000 in student loans has increased by almost ten times in eight years. Not only is the amount of debt per student upon graduating steadily increasing, but also the amount of students requiring loans. Currently, the amount of students requiring loans to graduate stands around seventy percent; ten percent higher than class of 1997 graduates. These are

Student debt is one of the top causes of crippling debt. If you want to get a college education in today's world, you will need to either be very wealthy or suffer the consequences of student loans. College costs had risen five hundred percent since 1985, imagine how much more that has risen until 2016. A tuition at a private college was projected to cost $130,000 on average for over four years. As state cutbacks in the wake of the financial crisis, caused the cost the price of public higher education to raise by 15 percent in a two year

Throughout the year’s higher education has become more popular and the number of students grows each year. Unfortunately, the amount of money it costs to finance your education grows as well, and along with that comes student debt. Student debt has reached an all-time high in the United States of America, and according to CNN, the amount of debt has reached 1.2 trillion dollars. The Institute College Access has said that at least 70 percent of all students are in some type of debt directly corresponding to their college education. Not only is the demand for educational degrees growing in the work fields, but the amount of debt a single person has coming out of college. There is not one state where the average amount of debt is under $22,000.00 and the national current average of debt is $28,950.00 says the Institute for College Access. In a recent study from the Institute for College Access the amount of debt in a 10-year time period, 2004-2014 rose from 65% to 69%, while average debt at graduation rose at more than twice the rate of inflammation.