Student Loan Debt

Many people believe that a college education is a worthy investment. The ability to become a college graduate will result in making more money. There are more jobs in today’s society that require college degrees. College graduates develop more and better employment opportunities within earning a degree. Self-discipline is a major element in becoming a successful graduate. Also, college graduates are healthier and live longer. Adults-young and old, male and female-who have a bachelor’s degree or higher have twice the annual median income than someone with only a high school degree ("Do college graduates," 2014).

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.

One of the biggest overall benefits of having a college education to some degree after a high school diploma is the most obvious: the considerably higher pay rate that is available for those careers that often times require a degree. It’s a common misconception that big amounts of money will just come pouring in after they walk across the stage with their degree, however, the real benefits start stacking up you begin to pay off student loans and the are now being employed in a career within your degree specifications. A study done by Georgetown University proved that graduates from college “earn $1 million more in earnings over their lifetime” as compared to those who only had a high school diploma (Cornerstone). As well as that, another study done by the Pew Research Center found that in 2012, there was a HUGE average yearly income gap “between high school and college graduates” of around $17,500

5. Base on class statistics 83 percent out of 16 percent thinks the government should forgive student loan debt once a student has completed college and has obtain a job in the field of study.

When opportunity knocks you should always open the door. College is a great opportunity to garner success from a secure career. Furthermore, college or university education is worth the debt you will accumulate from it. If you're still weighing your options, consider this, "Lifetime earnings for college graduate are substantially higher than the earnings of someone without a college degree," (Source 4, pg. 13). Getting a higher education is not just good for you, but its also good for your bank account. On the plus side, it is easier for you to live a better life, and if America ever hits a recession you will be in a better position to support you and your family.

A lot of people will argue, that college is too expensive. Not everyone can go to college, for financial reasons. Also, they may get into college, but end up having to leave because they cannot afford the remaining balances; or, they received financial aid, but end up having to take out loans they are going to be paying back forever. It is like once they graduate they will be working mostly to pay off their student loan debt. This also discourages some students. In some cases, they will not even take the initiative to try because it is so costly. I do not understand why it cost so much to want to better yourself, and possibly put us in debt for the rest of our life just to receive a higher education. Not only has the cost of college risen over a period of time, but it continues to go up. Yes, they have alternatives for paying student debts, but what if you do not qualify? Lastly, you are not guaranteed a job just because you graduate and have a college degree(s).

oday, society stresses the importance of postsecondary education to students due to the countless ways that an associates, bachelors, masters, or doctorate can enhance an individual future. For an individual to reach financial security in the United States’ economy it is basically mandatory that they have received a college degree. Postsecondary education will provide skills and knowledge that will prepare individuals to be successful within their career as they compete for leading positions. Overall as an individual receives a college degree they will become more likely to experience job security and financial security, and this is important to most as they hope to live a stable life. In college, students are taking as many as one hundred credit hours which contributes to most also accumulating student loan debt as they try to finance their education. Even though the completion of a postsecondary education will contribute to a graduate obtaining a respectable income it may also cause graduates to suffer from high student loan debt which will negatively impact their finances far into their adulthood. R.J. Matson created the image above to emphasize how student loan debt negatively impacts student and changes need to be made to avoid stress caused by the debt.

The main focus of the debate on college is whether a higher education pays off. While it is widely believed the skills learned at college are invaluable, and earning a degree means a better job with a higher salary, college is still a huge financial risk; the prospect facing a lifetime of student debt is intimidating. Parts of the debate that need further research include how to get the cost of college education down, and how can students avoid getting into unmanageable debt.

The student loan debt total was about nine hundred and two million dollars to one trillion dollars in the United States in 2012; the federal student loan debt made up about eight hundred and sixty-four billion dollars of the total debt (Driscoll and Clapp). Many people in the United States that cannot afford college tuition and additional fees take student loans and/or federal grants. Student loans are different from federal grants in that the loans have to be paid back with interest, while federal grants do not have to be paid back. A federal grant is also known as financial aid. Students with lower income are less likely to attend college because of student loan debts. The government does provide some help, however, there are limits

Eighty thousand dollars. Also expressed as $80,000. That is a lot of money. Most of us would really like to make that in our annual salaries or would like to win that amount in the lottery. What was bought with this $80,000? Not a car or two, not a house or even a home equity to improve one’s house, and not having a child. This $80,000 is the amount paid for tuition for one’s college degree(s). Compared to other countries, student loan debt in the United States is skyrocketing due to over-inflated tuition costs, dismal grant/scholarships availability and lack of beneficial repayment programs.

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:

Today, there’s an issue that has been weighing college students down. The problem is student loan debt. This is the highest of all debt, passing up auto loans and credit card debt. There is approximately $1 trillion in student loans in America and the number is growing every year. It has been said that most of the student’s in debt were dropouts and graduate students, but now has broadened to students still working on their degree. Is getting a degree worth the financial burden?

Facing a seemingly massive debt can create a scare tactic to continue on a path toward a higher and exceptional education. Although there are controllable factors to help lessen the weight of student debt it creates a wall of challenges toward furthering ones education, because of the fear of falling into a seemingly large debt Canadian students are afraid to maximize their education, prohibiting Canada to create and maintain a stronger and more skilled work force.

Individuals who say it is not worth going to college would argue that college is a waste of time but can agree that college graduates make more money than non-college graduates. College graduates with a four year degree make more money than a high school graduate. For example, these statistics from an online source explains that “On average, a college graduate with a bachelor’s degree earned $30,000 more per year than a high school graduate, or about $500,000 more over a lifetime, as of Apr. 2013. The bachelor’s degree makes a huge difference than a high school diploma. The majority of high school graduates want to work when they graduate high

A college graduate earns a higher income compared to those who only have a high school diploma or less. It is evident that with education, comes knowledge. The more acclimated we are to seek knowledge, the better success we achieve. Many will argue that the degree is not worth the debt one will accumulate. If managed wisely, though, a college degree will not only prove to be more beneficial, but in the end will also make us more prosperous financially. “Adults with a college degree estimated, on average, that they earn $20,000 a year more because of having achieved a degree.