Student Debt Research Paper

Student debt is a topic that generates a lot of debates. From politicians to lenders to students, everyone has an opinion on the topic. With a trillion dollar national debt, it’s not surprising why the topic is such a huge issue and the solutions are even greater. The student debt is a form of debt that is owed when a student has completed college or drop out. The average interest rates for the ungraduated and graduated are 4.45% to 6% (Quadlin). To pay off all the students’ debt, it will take 10-25 years to complete it. College students will have at least six months before they have to make the first payment. Student debts can be a real problem for those who aren’t preparing for them. Student loans debt should have a longer grace period, lower monthly payments and repayment programs that apply to all because students will be able to manage and repay their debts in a timely manner.

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.

Student debt is becoming a big issue that is affecting many individuals in the United States, some having to decide between going to school or being in debt for years after they have finished their education. Most people want to have a great paying career and need to go to school for many years but do not have the financial means to pay for college or qualify for financial aid, seeking other options to get their education such as applying for student loans or credit cards. College students should not be worried about how much debt is being accumulated and how it can affect them in their future. This paper will examine the possible solutions to student debt such as student forgiveness, allowing bankruptcy, or eliminating private lending agencies. Having these options will help students with a good paying career from living paycheck to paycheck and become more financially stable.

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

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

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.

The cost of getting a college education has risen over the past three decades. Comparing it to the housing and medical care markets, it has risen considerably more than them. The current student loan debt, has risen to an astonishing $1.2 trillion dollars, the largest ever recorded. Student loans are just now a burden on our society, yet no one is surprised about the amount of debt the students are in. Yet is is extremely

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.

According to the Institute for College Access and Success, about seventy-one percent of students from a four-year university, graduates with student debt. Student debt alter from graduation from a public college or private non-profit college estimating around 25,000 to 39,000 dollars. With the Student Loan Forgiveness Program, it allows students the option to choice a firm career path, join the military branch, and better their life knowing the student debt will be reduced or forgiving. (“Average student loan debt, 1993-2012.”)

In 2016, college grads graduated with an average of $37,172 in student loan debt. This is a 6% increase from the previous year, and the rates increase as colleges become more expensive. Going to a University or College is looked upon as a luxury or a privilege nowadays. Good paying jobs that supply good living standards are requiring at least a bachelor’s degree to be considered for hiring. Any persons, including college students, should not be forced to live with, be pressured by, or be under the control of student loan debt. Student loan debt has been proven to have an impact on a person’s mental health. It keeps the less fortunate from having a chance to prosper in a competitive workforce, and the system that provides financial aid (FAFSA) doesn’t always meet a person’s needs completely. College should be an earned right for those who have stuck through the education process as an adolescent.

As decades pass by, obtaining a college degree seems more necessary to get a decent job after graduating. Therefore, high school students feel the pressure to get into a good university and to get the highest degree possible, even when they have no plan on how to pay for it. Financial aid has not kept up with growing tuition prices, and taking out student loans seems almost impossible to avoid. According to research, “About 40 million Americans hold student loans and about 70% of bachelor’s degree recipients graduate with debt.” (Market Watch) The U.S currently has a total of 1.3 trillion dollars of outstanding debt. There is a ton of controversy on how to solve this issue, but there are progressive solutions schools and college kids need

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,

Student loan debt is growing rapidly in this country and many students default on their student loans due to a lack of education about finances and budgeting. These are two difference sources that give average figures about student loan debt. “I think when students are graduating with $20,000 in loan debt, that‘s not a thing to ask and still expect all of their future prospects to be intact” (Pugh 2012); this is the second source: “The class of 2017 will leave with an average debt of roughly $35,000.” (Belkin 2017) These two sources were written only five years apart, yet the amount of student loan debt on average, per student rose more than $10,000 dollars in that time frame.

According to Business Insider, there is roughly 1.3 trillion dollars in total student loan debt. Of that 1.3 trillion dollars, 863 billion dollars was issued from the federal government. This is problematic because there are 40 million people each year that are paying off student loan debt. In my eyes, the purpose of higher education is to be able to take your education to contribute to the economy as well as improve your own quality of life. Continually having to pay off student loan debt almost takes the purpose away from being institutionally educated. Having to pay off student loan debt post-graduation is simply life taking. Recipients of higher education do not deserve student loan debt. Imagine if the average American had their debt wiped

In fact, USA today reported that, “the nation’s record high $1.34 trillion in student debt is also casting a long shadow over the economy, delaying home purchases, crimping consumer spending and inhibiting business formation” (Davidson). Students come out of college unable to purchase a home or participate in increasing the economy because they are so far in debt that they have no extra spending money. The economy cannot rebuild if young people are not able to purchase non-essential items. Therefore, student debt is also causing a problem for the nation as a whole. Students come out of college with a degree and are not able to get a job immediately.