Student Debt Is The Cost Of An Education

Without student loans, a great deal of students would not have the opportunity to obtain a higher educational degree. Student loans give the possibility to low-income families to be admitted into college without the doubt of not being able to pay. Lastly, some argue that “the upside of student debt is that … it may be possible to earn significantly more or to pursue a more personally fulfilling career, making the debt financially or emotionally worthwhile”(Fontinelle). This argument comes from if one wants to enjoy their job, they need to get the correct amount of education in their field of desire, no matter the debt. Conclusively, there are plenty of upsides to loan debt, but in all, the increased debt of student loans should be subsidized to lessen this

Over the past decade, it has become evident to the students of the United States that in order to attain a well paying job they must seek a higher education. The higher education, usually a college or university, is practically required in order to succeed. To be able to attend these schools and receive a degree in a specific field it means money, and often a lot of it. For students, the need for a degree is strong, but the cost of going to college may stand in the way of a successful future. Each year the expense of college rises, resulting in the need for students to take out loans. Many students expect to immediately get a job after graduation, however, in more recent years the chances for college graduates to get a well paying job

The increasing cost of higher education in the United States has been a continuing topic for debate in recent decades. American society emphasizes the importance of education after high school, yet the cost of undergraduate and advanced degrees continually rises at a greater rate than inflation. According to the Advisory Committee on Student Financial Assistance, cost factors prevent 48% of college-qualified high school graduates from pursuing further education (McKeon, 2004, p. 45). The current system requires the majority of students to accumulate extensive debt with the expectation that they gain lucrative post-graduate employment to repay their loans.

Interest rates are constantly on the rise along with the cost of tuition and the income levels of students are not increasing in order to make ends meet. Therefore, student debt is spreading rampantly across our nation and is becoming a tremendous issue. Student debt is a topic that is relevant in today’s society because it affects such a large portion of the population. Furthermore, it is affecting the country 's economy in many ways. With the accumulation of debt, students are unable to afford to purchase a home, or at times, a brand new car because there is simply no way that they can afford such a large investment while they scramble to pay their loans.

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

As of 2015, the average amount of student loan debt in America alone was 1.2 trillion dollars and the average balance for each of the roughly 40 million borrowers still paying back loans was $29,000 (Holland 2015). John Oliver of “Last Week Tonight” makes a point that student loan debt exceeds that of both credit card and auto loans. However, despite the negative financial effects, achieving a college degree is vital to the National Economy and the job market. According to studies by the Hamilton Project, “The cost of not going to college is rising just as much as the cost of going,” (Greenstone & Looney, 2012). This is because employers are increasing the credentials of future employees which, in turn poses two issues. First, it is

College Students are exiting college with empty pockets. In the year 2015 the average amount of debt students are graduating with is about thirty thousand dollars. The average amount has been on a constant incline and continues to grow by about four percent every year. According to author Katie Lobosco “Colleges are not required by law to report how much debt their students carry, so some don't respond.” (1) so the average amount of student debt is inaccurate. It is likely that the average amount of debt per student exceeds thirty thousand by quite a bit. Billions of dollars in student loan debt goes un recorded which will in turn effect the nation directly.

In the United States today, the number of students graduating college with student loan debt is quite astonishing. In the article titled, “How the $1.2 Trillion College Debt Crisis Is Crippling Students, Parents And The Economy”, we will examine and break down the student loan debt crisis by the numbers. Today, almost two-third’s of students graduating college are graduating with an average of $26,000 in debt. For most students, $26,000 is a lot of money when the average annual income for a first year graduate is only in the mid $40,000 a year range. According to the Consumer Financial Protection Bureau, student loan debt has reached a new milestone, crossing the $1.2 trillion mark (Denhart, 2013, Introduction, par. 2). With student loan debt levels

I believe that for many individuals the use of loans are inevitable. However, If students are exposed to more alternative programs and methods such as, scholarships, grants and work study, it will decrease not only the amount of debt that these students will obtain, but it will also forestall the potential of students damaging their credits. In the midst of

As Young teenagers become adults and start College, one issue that doesn’t seem as a big deal at the moment for many students are student loans. Young college students who don’t have the money, don’t have enough scholarship money, or family who doesn’t have the money to pay, will apply for student loans each year. They amount the student receives can vary depending on the college and what the student has achieved academically. Though interest rates are low with subsidized being 4.29% and unsubsidized being 5.84% ("Federal Student Aid" Interest rates and Fees), student loans still have a huge effect on college students once they graduate. One college graduate’s story helps explain the struggles for most students:

In the past decade, the student loan “crisis” has been a popular topic in media. There is a constant talk of how terrible the debt is on students, and that free college is the perfect solution, but none of these are true. Student debt is rarely crippling and is a necessary part of the economy. It is often said that the cost of college is too much, or that most graduates don’t have jobs that use their degrees. Chris Lewis and Layla Zaidane state that “The employment prospects for young grads are pretty gloomy,” but it’s not young graduates that need to worry about their loans.

Throughout the United States, student loans have been show to drag this economy down. Student loans have been a big problem through many of the years. It has been showing a trend and it is raising and exceeding many of the debt types each year. Many problems that students that have loans cause are, “ 20 percent of respondents indicated they cannot get a loan for other items, are unable to purchase a home, and student loan debt negatively impacts their credit. 18 percent of individuals indicated they are living paycheck to paycheck, “drowning” in debt, and have a large debt load. 13 percent indicated they have a lower quality of life and are unable to afford the extra things. 12 percent indicated they are unable to save for their retirement or their children’s education and feel less secure.” Students that have

According to the report by Forbes (2013), United States already had $1.2 trillion in student debt so far in 2013 which is 6% of the overall national debt. Such a heavy debt burden causes situations where more students become delinquent without default or loans go into default when students cannot afford to pay them: “From

Every year, the consumption of student loans keeps on increasing. According to the statistics graph at the bottom, 71% of all students graduating from four-year colleges in 2012 had student loan debt, increasing to $20,000 more since 1993 (Gale Cengage Learning, 2016). Students are put into helpless positions to afford a college education. Since it’s a necessity for almost all students, the problem of the consumption of student loans may not be fixed as a whole. Borrowing loans will always be a

As tuition has increased over the last decades, loans have become the main source of financing for students looking into higher education. As a direct result of these loans, a majority of students graduate from college with thousands of dollars of debt waiting to be paid off. Culturally, student debt is seen by society as an acceptable means to reach college, and in turn a doorway to high paying jobs. Therefore, American students often take loans without thinking of the burden of paying them back. Over the past decade, the total student debt has escalated from $240 billion to more than $1 trillion dollars (Federal Reserve). This severe rise in the student loan debt has brought attention to the issue, making it a main discussion topic in politics, media and by researchers. Many people in today’s society believe that a college education is a necessity, however as more and more students struggle to pay back their debt, it is beginning to sound questionable.