Student Loan Debt Of The United States

An education is one of the most important tools a person can acquire. It gives them the skills and abilities to obtain a job, earn a wage, and then use that wage to better their lives and the lives of their loved ones. However, due to the seemingly exponential increase in the costs of obtaining a college degree, students are either being driven away entirely from earning a degree or taking out student loans which cripple their financial prospects well after graduation. Without question, the increasing national student loan debt is one of the most pressing economic issues the United States is dealing with, as students who are debt ridden are not able to consume and invest in the economy. Therefore, many politicians and students are calling

With the ever-increasing tuition and ever-tighten federal student aid, the number of students relying on student loan to fund a college education hits a historical peak. According to a survey conducted by an independent and nonprofit organization, two-thirds of college seniors graduated with loans in 2010, and each of them carried an average of $25,250 in debt. (Reed et. al., par. 2). My research question will focus on the profound effect of education debt on American college graduates’ lives, and my thesis statement will concentrate on the view that the education policymakers should improve financial aid programs and minimize the risks and adverse consequences of student loan borrowing.

Here in the United States, there are many forms of consumer debt, which help contribute to the large sums of debt countless Americans find themselves faced with. Directly effecting many college students is student loan debt. Student loan debt is now the second largest form of consumer debt behind housing” declares the Federal Reserve Bank of New York (Grisales). This is due to the fact that student loan debt grew 7.1% in 2014 to $1.2 trillion (Grisales). If this statistic alone is not worrisome this next one is sure to be. The amount of debt in the housing market that helped to spark the last recession was only $1.3 trillion (Grisales). Due to the increased amount of debt required by students to attend college many students are feeling the wrath. According to the U.S. Census Bureau, “In 2014, 11.7 percent of females and 17.7 percent of males between the ages 25 and 34 were living with their parents” (Grisales). The fear of obtaining massive amounts of debt is driving the current generation of student’s to put off many future hopes and dreams. While causing them to move back home to save money. The current student loan crisis is crippling the economy and ruining the lives of American students.

Student loans are becoming more and more of a problem for college students all across the United States. As college tuition has significantly increased over the past years, it has become extremely common for most college students to finance their education through student loans. Tuition has become so expensive that it is almost unheard of for a student to pay for their tuition out of pocket or by working for their education part time. As the result of tuition being so high, many students often graduate from college with thousands of dollars in debt waiting to be paid off. More often than not, people do not think of the consequences of taking out so many student loans, they usually have some reasoning behind why they take out as many student loans as they do and in return do not think about the after-effects and consequences of borrowing that much money. Most people do not worry about their loans because they expect to make a decent salary after graduating and believe that they will be able to pay back all of the loans later on in life. Due to the extreme cost of college and students obligation to take out student loans, college campuses should require students to become aware of the dangers of pulling more student loans than necessary.

Student Loan Debt Isn’t A Myth,” it describes how student loans are a huge crisis, and the

With the 2016 presidential election looming in the near future, the subject of student loan debt has become a major issue on the campaign trail. The national amount of student loan debt is 1.08 trillion dollars, with 11.5% of that amount in default or in 90+ day delinquent. To put that in perspective, total consumer debt at the end of 2013 was 11.52 trillion .(Forbes, 2014) According to an in class poll, only 7 students out of 169 students were completely confident in their knowledge of student loans. However, if we had lower tuition and expenses students wouldn’t have to take a loan out in the first place.

While higher education continues to grow in popularity as an important investment in American society, the student loan debt that accompanies this education also continues to grow as a burden to the American economy. Although the plethora of debt most commonly applies to graduate students and college dropouts rather than undergraduate students, student loan debt has accumulated to $1.2 trillion and continues to grow. Student loan debt made up 13% of the debt accumulated for adults between the ages of 20 and 29 in 2005, and has grown to account for 37% of the age group’s debt in 2014. Even though the government made $66 billion in profit on federal student loans from 2007 to 2012, the American economy shows very little positive feedback if any at all. About ten million federal student loans are taken out annually with an average loan balance of $15,900 in 2005 and up to $25,500 in 2014. The debt accumulated from these loans has made a larger gap in economic inequality, has limited entrepreneurship, and has prevented future loans from being taken out because of damaged credit ratings. Student loan

Tuition and student debt at colleges and universities in America have been rising far more quickly than inflation for over four decades. This is a trend that will continue without intervention. Student debt drastically affects students’ lives and decisions from getting married, to buying home, or to starting a business. The amount of debt held by students after graduating not only negatively affects the individual, but the economy as well. Loads of economic activity is currently halted by students working to pay off their loans. This is a consequential problem and the increasing number of student debt in America must be addressed.

As of 2015, the average amount of student loan debt in America alone was 1.2 trillion dollars and the average balance for each of the roughly 40 million borrowers still paying back loans was $29,000 (Holland 2015). John Oliver of “Last Week Tonight” makes a point that student loan debt exceeds that of both credit card and auto loans. However, despite the negative financial effects, achieving a college degree is vital to the National Economy and the job market. According to studies by the Hamilton Project, “The cost of not going to college is rising just as much as the cost of going,” (Greenstone & Looney, 2012). This is because employers are increasing the credentials of future employees which, in turn poses two issues. First, it is

Higher education comes at an extremely high price. The excitement of graduating college to land the six-figure job is soon destroyed when students realize how much debt they’ve obtained. Dreams of owning a house and starting a family are shattered by the money borrowed to provide and guarantee students an excellent future. Instead of waiting to land the ideal job, students work multiple jobs to help ends meet. Struggling to stay afloat, millions of students become victims of one of the major economic crisis in the United States today; Student debt.

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

According to CNN, “Almost 19% of student loan borrowers owe more than $50,000.Only 6% of borrowers had that much in 2001.” (Gillispe, 1). Why has student loan debt increased so much? Student Loan debt has become a national problem with no solution. Many students are borrowing more money to keep up with the rising cost of tuition in universities, leaving themselves with thousands of debt after graduation. Students after gaining this debt, have to find jobs to support it which can come at a challenge after the financial crisis of 2008. So there stands a problem between students having massive amounts of loan debt and getting jobs to pay this debt off. Advocates or liberals think forgiving this debt is a good idea, while opponents or conservatives think it is not even an option. This essay will focus on the controversial topic of forgiving student loan debt and why something should be done about the massive debts graduates have. It is important to first look at the history of student loans and how the student loan crisis came about in order to understand the controversy.

Student loans debt is a major problem in this society. It has escalated and accumulated over the years as more people attend college. Americans postulate that going to college gives them an opportunity to succeed in life and to earn a great salary. On the other hand they are leading themselves owning the government money with so much debt. It’s not just one loan most of students have to pay for both, there would be different loan due dates that most students have to keep track of while going to school. There are whole bunch of scholarship opportunity out there people doesn’t even use them. Some students borrow more them they can pay back. Regardless, money borrowed for education would have to be paid back either concurrently or after one receives

How the Student Loan Debt Crisis Is Undermining the Economic and Social progress of American Graduates

A student loan is every other kind, but there are subtle differences that make it more dangerous than most debt. Loans are borrowed money from banks, government authorities, and they help pay for higher level education. Due to a fear of debt, student loans affect college students destructively by driving them away from dreams of success. There are a variety of ways to equip a loan, such as local banks, online, or through credit unions. With an assortment of ways to get a loan, there are also many loans to choose from. “By examining how student borrowers fare financially after graduation, we attempt to further the existing knowledge of the costs associated with education debt and the manageability of the typical debt burden” (Hershbein, 2014, p. 292). Unfortunately, loans are substandard to students who need financial help, because in the end they only hurt your financial future. All student loans contain different requirements and negative effects to various factors, some being the unpredictable success of undergraduate, immigrants being unable to attain a loan, and the government being piled with debt not being repaid; these are all elements that demonstrate the negative effects loans display. Loans are difficult to choose from, especially if it effects future financial status.