Student Debt Research Paper

The student loan crisis is worse than ever and more people are leaving college thousands of dollars in debt before they even have a job or any type of income. With the rising cost of college and living expenses, people are taking out more student loans for higher amounts, leaving more people in an undesirable amount of debt and essentially trapping them. “There's currently no way to get rid of federal student debt other than paying off the loans.” (Quinton, Sophie, why you might be paying student loans till you retire). Because student loans are not like other loans they will not disappear if you declare bankruptcy, so the borrower is forced to pay them back even if it means you cannot afford to do so. There is not just one thing that is causing the student loan crisis this is a combination of many things that are being overlooked or ignored. We need to look into the reasoning to determine why this is happening, what problems it is causing and then come up with a solution that can stop the problem. Student loans are a great tool to use if you need financial help for college, but one must be careful and consider the consequences and understand what a student loan is and how to deal with them to make a responsible decision about their financial future.

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.

Student loan debt affects college students all over the United States. Today students are having to take out loans in order to pay for all of their college expenses. It can be a pain to deal with the hassle of paying back the loans. The problems with student loans include causing students to go into debt that they are not able to pay them off in the given time which makes them put major life decisions on hold, and the debt stay with the student even through bankruptcy. A solution that would solve these problems is the idea of debt forgiveness which is the idea that the government will get rid of all the loan debt for college graduates.

Problems in the student loan market are not just harming students but are also exacerbating problems with the United States’ recovery from the Great Recession. New York Federal Reserve Bank data has found that outstanding student debt topped $1 trillion in the third quarter of 2013, and the share of loans delinquent 90 days or more rose to 11.8 percent. Furthermore, the share of 25-year-old Americans with student debt increased to 43 percent in 2012 from 25 percent in 2003, while the average loan balance rose 91 percent, to $20,326 from $10,649 (Gage and Lorin). More than 40 million Americans are in student loan debt and because of this, more than 40 million Americans are not able to stimulate the economy as they are not able to buy houses or cars, or start businesses or families (Applebaum). In Wisconsin alone, student loan debt has resulted in a loss of over $200 million annually from new car purchases, while also resulting in middle class households with student loan debt overwhelmingly renting homes instead of owning them (Vanegeren).

Americans have amassed more than $1.3 trillion of student loan debt (Clements). A lot of graduates are postponing life events like having kids, buying a house, to deal with the debt. About 14% of student are in default. Default means failing to make payments on your loan as scheduled. Defaults usually results in larger loan balances. With this upcoming election, it 's crucial for candidates to address student loan debt and their solutions. As a potential voter, it’s important I select the candidate that will benefits me and get rid of my loan debt.

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

Student loan debt is the second leading component of American consumer debt. Student loans can be seen as a challenge that has to be overcome, on top of college itself. This is an opportunity for college students or former college students to show their responsibility. It is the responsibility of the student to find some way to pay this debt. This situation should not be the taxpayers’ problem. Student loan debt is a problem that does not always have an easy solution for the debtor.

An estimated 20 million Americans attend college each year, and 60% of those students borrow annually to pay for it (qtd. in asa.org, “Student Loan Debt Statistics”). Moreover, citizens continuing to pay off debt after schooling brings the overall number of student-loan-borrowers to about 40 million- with a collective 1 trillion dollars in debt (McCarthy, “10 Fun Facts About the Student Debt Crisis); a fourth of these borrowers owe over $28,000, a tenth owe over $54,000, 3.1% owe more than $100,000, “and 0.45 percent of borrowers, or 167,000 people, owe more than $200,000” (Haughwout, “Grading Student Loans”). While some view this predicament as the result of laziness or carelessness, the bulk of this substantial group are not at fault.

Student loan debt in the United States is expanding unrestricted each year. There are 36 million Americans today, holding over $740 billion dollars in student loan debt. (U.S. 2013) The current student loan system is intended to open doors to economic prosperity for those who could not otherwise afford to go to college. Research suggests that the unintended consequence of too much available student credit is real people losing prosperity and languishing in debt for extended periods of their lives. Reducing or eliminating the availability of student loans would have a tremendous impact on improving the lives of Americans. If things continue the way they are now, American’s will soon find college, and its implied ticket to economic

While higher education continues to grow in popularity as an important investment in American society, the student loan debt that accompanies this education also continues to grow as a burden to the American economy. Although the plethora of debt most commonly applies to graduate students and college dropouts rather than undergraduate students, student loan debt has accumulated to $1.2 trillion and continues to grow. Student loan debt made up 13% of the debt accumulated for adults between the ages of 20 and 29 in 2005, and has grown to account for 37% of the age group’s debt in 2014. Even though the government made $66 billion in profit on federal student loans from 2007 to 2012, the American economy shows very little positive feedback if any at all. About ten million federal student loans are taken out annually with an average loan balance of $15,900 in 2005 and up to $25,500 in 2014. The debt accumulated from these loans has made a larger gap in economic inequality, has limited entrepreneurship, and has prevented future loans from being taken out because of damaged credit ratings. Student loan

Students High in Debts Crisis "The only good thing about student loans is that the day I die my children will not have to pay for them” (Block). The problem with everyone not being able to go to college is the cost of it. Many High school graduates don’t even think about going to college because of how crazy expensive it is. Many students drop outs later on due to not being able to keep paying and the ones who do graduates struggle in paying off their student loans for years.

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,

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

College and higher education is often viewed as the fundamental key to the American dream. It is seen as a gate way to the middle and upper class. However this dream comes with a price, which is often overlooked until its to late. According to the National Center for Public Policy and Higher Education, the cost of college has increased 439% in the last 30 years. This has forced a large amount of the American college students to take out enormous student loans that they will struggle or fail to payback. If to many students fail to pay back their loan (also known as defaulting), this could result in an economic rescission, just like during the housing market crash.

A university education has long been a staple of the American Dream. Millennial students, however, have been rudely awakened to see their dreams turn into nightmares. Millennials have been forced to lease their livelihoods to the government and private corporations in hopes of obtaining a better future. They find themselves being scolded by politicians and citizens alike for being, ‘lazy’, ‘entitled’, and ‘ungrateful.’ They are blamed for the trend of increasing student loans and defaults because of their ‘carelessness’ when the root of the problem originates from the decades of government recklessness and public neglect. Students are forced to take out loans to finance their education because of perpetually decreasing federal funding and upon graduation the students who are fortunate enough to be employed don’t earn enough. Without well-paying jobs, graduates cannot pay back their student loans and thus find themselves in a perpetual cycle of indebtedness; a cycle which can lead to not only the next economic recession, but can also lead to a social regression. In order alleviate the student debt crisis and revive the American Dream, the government must reform the federal student loan repayment program by extending coverage to all students.