Student Loan Debt

Key informant interviewee Natalia Abrams, stated that “this is a time where media and politicians are talking about student loan debt but they are only focusing on policy for the new college student, but there needs to be a policy for the 43 million existing borrowers.” There are two separate policy issues that need to be analyzed in order to address the student loan debt crisis. Research shows that there is a difference among default rates based on race and socio economic status. These differences left unchecked can wreak social and economic havoc on society. While student loan debt crisis may not be a crisis for all, the danger is the growing amount of debt that a significant fraction of borrowers are currently saddled with that is preventing

In fact, in the past, even if you were a college graduate, you were considered to be in the minority of the society; however, today, a college degree is fundamentally a requirement for any majority of careers. As the need for a college degree increased, the less affordable it became, therefore, student loans became a must. Although student loans do help students with a higher education, they can also get those individuals into tons of debt. Even though we can all benefit from a college education, the future looks pretty barren for those with student loans. The future of college tuition, and in another word, student loan; seems to be going only up with no release in sight. In order to get a better understanding of why, this might be a good time to look back at when the first federal student loan and grant programs were established and how it has fueled the rising tuition costs.

The hot topic amongst people entering college is student loan debt. With the average debt at tens of thousands of dollars, many people shy away from college, or at least do not get a full degree. As a result, many politicians have preached plans to make college free, and thus bring an end to student loan debt. However, those on the other end of the spectrum find themselves hindered in jumping aboard the free college mania, because, after all, nothing is free, everything comes at a price. And as they soon learned, what a price indeed. In fact, in order for the universities to pay staff and accommodate the student body without tuition being on the shoulders of the students, state taxes would have to be increased on the entire taxpaying population.

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.

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.

Can you imagine yourself as an adult who just graduated from college, and has to move back home and live with your parents? Imagine waking up everyday and knowing that you have two hundred thousand dollars in student loans that has to be paid? There are many reasons that cause these problems, but today, large amounts of student debt and an increase in unemployment are the major problems that college graduates are facing. With the lack of jobs and no money, people are turning to their parents for food and shelter. In Rosie Evan’s essay “Boomerang Kids: What are the Cause of Generation Y’s Growing Pains,” she explains the causes of the delayed adulthood, and she also gives the messages to people and the government to offer better support to this generation. The causes of Generation Y’ growing pains are the amount of college’s debt, lack of employment and people becoming too dependent on technology.

“Those who earned a bachelors degree in 2011 graduated with an average of $26,000 in debt” (Economist). This is an alarming statistic for me, considering that “the debt per student has doubled in the past 15 years,” so that figure doesn’t seem to be going down any time soon (Economist). I believe that this student loan debt crisis is something that should be resolved with the utmost time-efficacy in Washington. Increasing Pell grants is a great start, but more needs to be done to truly fix the crisis.

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.

Student loan debt has been increasing over the years and is currently at about $1 trillion. This large amount of money is due to lenders not enforcing students to payback their loans soon after graduation, and as a result “a payment delinquency and default rate in excess of 25 percent, and has postponed repayment on 14 percent of its loans, but is still accruing interest on them.” With this large and increasing amount of money, it seems as though “ the Consumer Financial Protection Bureau, the Federal Reserve, or even Congress—would be investigating this perfect definition of a predatory lender and trying to shut it down.” I believe that people need to be paying off their student debt as soon as they possibly can. Not only does interest over

A major problem students encounter in higher education is debt. Students acquire these deficits in higher education for many reasons such as credit card debt, student loans, and high payment plans. Some people say that dues are not a problem, but it can have a great impact on a student's life - even after college. This research will make people aware of the growing problem that is indebtedness.

Your first step should always be filling out the Free Application for Federal Student Aid (FAFSA). The FAFSA tells you how much in federal grants, scholarships and loans you qualify for based on income and the school you are attending, among other factors.

It was first promulgated in 2010 that outstanding student loan in the United States exceeded that of outstanding credit card debt for the first time ever (Kristof, 2012). As of today, there is over $1.2 trillion in outstanding student loan debt, $1 trillion of which is in the form of federal student loans (Denhart, 2013). The Student Loan Forgiveness Act of 2012 was designed to ease some of that burden and mitigate some of the real damage incurred by a lifetime of insurmountable debt.

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.

Later in the study done by Sandy Baum and Marie O’Malley, the subject at hand was the borrowers’ points of view. Baum and O’Malley used this portion of their study to focus on the perspectives of borrowers about their student loan debt. They found that:

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: