Student Debt Should Not Be Eligible For The Minimum Amount Of Money

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Introduction Present time’s workforce has become very competitive due, to the increase in many people having a bachelor’s degree, at minimum. Currently, 40 million people are victims of student debt, our country’s all-time high rate. One factor that plays into student debt is, the loans that the federal government distributes. As of 2016, the highest amount of money you can receive from the government in student loans, as just the student alone, meaning no cosigner, is $6,500.00. This amount is distributed through three separate loans including, Direct Unsubsidized Stafford Loan, Direct Subsidized Stafford Loan and the Perkins Federal Loan. Not every student is eligible for the maximum amount of these loans. The main reason a student…show more content…
Student debt is doing nothing but increasing and there are no regulations on tuition and/or interest rates of student loans, or even additional assistance with increasing cost of attendance.
Overview of Current Knowledge
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.
As mentioned before the lump sum of $6,500.00 is distributed through three separate loans including, Direct Unsubsidized Stafford Loan, Direct
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