Student Debt Consequences

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.

The United States needs to look to other nations that have figured out the necessity of higher education to be at an affordable cost if not free. In 2015, college graduates are facing on average just north of $35,000 in student debt (Berman). In part, the government has reduced the federal funding that each college receives each year. Therefore, colleges have constantly raised the

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

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

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

In her article “A Lifetime Of Student Debt? Not Likely”, Robin Wilson discusses how expensive a college education has become. Wilson notes, “It used to be that, 10 to 20 years ago, if you went to a four-year public institution, had a low to moderate income, and worked a reasonable amount part time in school, there was enough aid. And public institutions were better financed, so you could come out with no debt. That same student now would have to borrow to get their

In recent decades, student loan debt has increased dramatically causing a so-called, “education bubble”. This ‘education bubble’ is essentially the ‘housing bubble’ within higher education. The Federal Government, like those in the housing market crash in 2008, are lending money to those who receive a low income and can not afford college. According to The Weekly Standard, “the Federal Reserve Bank of New York reports that during the past decade, student loan debt has nearly tripled and the number of students with debt has risen by 70 percent” (Cochrane). The Federal Government needs to decrease the amount of loans they are giving out in order to prevent another crash within our economy. As a senior in high school who will not be receiving

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 has 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 with an even larger amount of debt.

Paying for a Higher education in the United States is still yet to be affordable for the common student, regardless of all financial help, it's still a burden. Due to student loans and other financial helps, student debt has become a crisis, that many Americans continue to struggle with throughout years without absence. The current economy is leaving no choice than raising tuitions. "But from now on, unless inflation is halted, there's no choice in the matter but to continue raising tuition", according to the Los Angeles Times. Student debt enlarges with the current inflation.

Most of the student debts are a result of loans to fund their education. Student loans are significant for education funding because it is a form of investment. However, the students are normally left with huge debts after completing their studies and have to struggle financially to acknowledge the debt when it falls due. This has a negative impact on an economy as these students will minimally contribute towards their retirement savings due to the financial burden accelerated by the current high unemployment rate. It is also stated that the students’ delinquency and defaulting rates are high compared to other housing debts (Elliott & Nam, 2013). This is bound to have an adverse effect on economic growth, and the

"Debt is a trap, especially student debt, which is enormous, far larger than credit card debt. It 's a trap for the rest of your life because the laws are designed so that you can 't get out of it. If a business, say, gets in too much debt, it can declare bankruptcy, but individuals can almost never be relieved of student debt through bankruptcy." This compelling statement was made by American activist, linguist, journalist and philosopher, Noam Chomsky. On the topic of student debt, I realize that it is by far one of the most largest and most considerable issue plaguing college graduates today. That is why my number one goal is to graduate college, not only for my bachelor 's, but also my master 's and doctorate 's degrees, debt free. I

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

A student loan is every other kind, but there are subtle differences that make it more dangerous than most debt. Loans are borrowed money from banks, government authorities, and they help pay for higher level education. Due to a fear of debt, student loans affect college students destructively by driving them away from dreams of success. There are a variety of ways to equip a loan, such as local banks, online, or through credit unions. With an assortment of ways to get a loan, there are also many loans to choose from. “By examining how student borrowers fare financially after graduation, we attempt to further the existing knowledge of the costs associated with education debt and the manageability of the typical debt burden” (Hershbein, 2014, p. 292). Unfortunately, loans are substandard to students who need financial help, because in the end they only hurt your financial future. All student loans contain different requirements and negative effects to various factors, some being the unpredictable success of undergraduate, immigrants being unable to attain a loan, and the government being piled with debt not being repaid; these are all elements that demonstrate the negative effects loans display. Loans are difficult to choose from, especially if it effects future financial status.