Student Loan Debt : The American Dream Perceived By Many

1294 WordsFeb 27, 20176 Pages
Student Loan Debt The American dream perceived by many is to obtain a college degree to have a successful life. However, many people cannot afford to go to college and are left no choice but to get a student loan. Student loans are intended to help students pay for a higher education, but is it worth the risk of being in debt? The dictatorial definition of debt in the Merriam Webster’s dictionary as a state of being under obligation to pay or repay someone or something in return for something received (“Merriam-Webster”). A borrower is disadvantaged from the beginning of his or her career due to being bombarded with payments. In many cases, people drop out of school or are struggling to find jobs while they owe thousands of dollars in…show more content…
Loans with interest increase rapidly and can affect one 's credit score. Credit scores determine if an individual is eligible to buy a home, take out a car loan and obtain credit cards. Paying student loans on time demonstrate to future lenders that you can be trusted to handle money responsibly. For example, my first semester of college, I took out a student loan with Nelnet of 5,700 dollars. Unfortunately, unforeseen hardships came abroad that caused me to lose my job and drop out of school. Within a year and a half, my loan went from 5,500 to 7,700 dollars. If I had paid attention to my grace period and correctly read the loan’s terms of agreements, I probably could have paid what I could afford towards my student loan. Instead, I chose to ignore my student loan and allowed it to accumulate with interest digging myself in a realm of debt. Next, as a society concerning student loan debt, I propose the cost of tuition should be lower. The price of college tuition varies due to many fees such as commutes, courses, housing, schools, and supplies. Sometimes student loans are not even enough to cover all college cost. For instance, does the student commute or live on campus? Is he or she attending a community college or a university? According to the College Board, the average cost of tuition and fees for the 2016–2017 school year was $33,480 at private colleges, $9,650 for state residents at public colleges. (What’s
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