Student Loan Debt

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.

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

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.

My primary concern for passing this bill is student loan debt. The current student loan debt in the United States is $1.2 trillion and studies show that 70 percent of college students that graduate leave school with student loan debt that averaged $33,000. Currently the class of 2015 is the most indebted class ever because of student loans, and not only are the students in debt but the parents too. Studies have shown that about 17 percent of college graduates have parents with loans out on their behalf because of the extreme cost of a college education. As a student, these outstanding figures are terrifying. Studies have shown that this debt directly correlates with student drop out rate. There are many reasons why students drop out but one

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

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

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:

Although the majority of students in college struggle with finances, STEM majors and underrepresented minorities, specifically have a daunting task of paying for college at a remarkably young age. According to the article, “Debt Overload”, by the National Society of Professional Engineers, “…28% of African American students reported $33,500 or more of undergraduate debt compared to 15% of Caucasian students.” Also, students with Science, Computer Science, Engineering, Environmental Science, or Mathematics majors accrue over $20,000 a year in debt. Majority of student loan debt exceeded $900 billion in the first quarter of 2012, up $30 billion from the previous quarter, the Federal Reserve Bank of New York reported on May 31. This number has increased by $663 billion since just 2003. Student debt is so widespread that two-thirds of the class of 2010 graduated with loans averaging $25,250 each, according to the Project on Student Debt. While studying the article, it was clear that another possible reason that students did not enter the STEM profession was because they could not afford to go in debt for a degree that often required further education after a Bachelors. At the same time, the country is

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.

Thank you very much for the time you will give out of your day, in reading this letter I have prepared for you. Being a member of the president’s cabinet is not an easy partaking, and let me start by thanking you personally, for your part in securing congressional support for the American Recovery and Reinvestment Act. Part of the act, along with other improvements to the economy, had provisions for increasing Pell Grants, and without this government subsidy, I don’t know how financing college would have been possible for me. Your dedication to the continued success of young Americans is not being overlooked, and I would like to emphasize that point. However, I do believe that there are gaping holes in the way higher education functions in

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.

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

Statics show that just in the past 10 years (2005-2015), the average student debt accumulated by college graduates has risen nearly 325%. Student loan debt is incredibly dangerous for not only personal finances, but also for the total economy of the country. Most student loan payment plans place borrowers in a 20 to 30 year payment plan. Unfortunately meaning most borrowers will be paying off these loans even after their

Having a good sense of how much the desired field of education is going to cost, can help one prepare financially. Majority of all a student’s cost will fall within three categories: tuition fees, books and other course materials, and living expenses. Tuition fees depend on the province or territory where you will study and the school chosen for your desired program. In 2013-2014 the average cost of one year’s tuition at a Canadian university was $5,772.10, although keep in mind college programs may cost less depending on the field of study. Books and other course materials for most undergraduate university programs range from $800 to $1,000 per year, although there is ways of reducing the cost of materials needed: buying used books, getting electronic version, and sharing certain resources with roommates or friends. Living expenses highly depend on how you decide to spend money, this is the most controllable expense of choosing to put yourself through post-secondary school. Living at home with your family, if realistic, can cut expenses by thousands of dollars a year. If planning to live off campus you will have to consider expenses such as bills, gas, parking permits, groceries, entertainment, etc. The main focus is to realize your “needs” over your “wants”. Another thing to consider and plan for is inflation rate or the likely hood of costs rising. (Canada,

There is a 529 Plan that can help the parent start preparing for their child’s college. The plan will help families save many for future college funding. The plan is setup into two plans, saving and prepaid. Saving plans work by investing your money in shared funds. If the family were to choose the savings plan, it comes with different options to invest the family’s money in. The account will either increase or decrease in value based on the investment. The prepaid plan will allow the family to pre-pay all of the cost for public higher education. The prepaid plan may also be converted for a private college. Even though contributions are not deductible, the income in the plan is federally tax-free. Therefore, the income will not be taxed when they are removed to pay for college. The 529 plan does not have to be reported on tax return. The donor will stay in control of the account. The account owner can withdraw funds at any time, but non-qualified withdrawals will earn income tax and a ten percent tax. Anyone can qualify for a 529 plan. There are no limits on income, age, or yearly contribution. (§529)