Student Loans And The College Delinquency Rate

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.

Over the past decade, it has become evident to the students of the United States that in order to attain a well paying job they must seek a higher education. The higher education, usually a college or university, is practically required in order to succeed. To be able to attend these schools and receive a degree in a specific field it means money, and often a lot of it. For students, the need for a degree is strong, but the cost of going to college may stand in the way of a successful future. Each year the expense of college rises, resulting in the need for students to take out loans. Many students expect to immediately get a job after graduation, however, in more recent years the chances for college graduates to get a well paying job

In recent decades, student loan debt has increased dramatically causing a so-called, “education bubble”. This ‘education bubble’ is essentially the ‘housing bubble’ within higher education. The Federal Government, like those in the housing market crash in 2008, are lending money to those who receive a low income and can not afford college. According to The Weekly Standard, “the Federal Reserve Bank of New York reports that during the past decade, student loan debt has nearly tripled and the number of students with debt has risen by 70 percent” (Cochrane). The Federal Government needs to decrease the amount of loans they are giving out in order to prevent another crash within our economy. As a senior in high school who will not be receiving

In the U.S. students are encouraged to earn a college degree, but the cost of an education turns many away. “Driven by the allure of a decent salary with a college degree, Americans borrowed to go to school. Outstanding student debt doubled from 2005 to 2010, and by 2012 total student debt in the U.S. economy surpassed $1 trillion” (Mian, Sufi 167). There are plenty of opportunities to obtain funds for college, including one of the most common, student loans. A student loan is defined as “a common way to fund education, specifically college and graduate school, and they provide educational opportunities that you otherwise may not be able to afford” (Barr). Student debt is at an all-time high in America. Over half of all lower income

Without student loans, a great deal of students would not have the opportunity to obtain a higher educational degree. Student loans give the possibility to low-income families to be admitted into college without the doubt of not being able to pay. Lastly, some argue that “the upside of student debt is that … it may be possible to earn significantly more or to pursue a more personally fulfilling career, making the debt financially or emotionally worthwhile”(Fontinelle). This argument comes from if one wants to enjoy their job, they need to get the correct amount of education in their field of desire, no matter the debt. Conclusively, there are plenty of upsides to loan debt, but in all, the increased debt of student loans should be subsidized to lessen this

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:

It is no big secret that, in America today, most high-paying jobs require a college degree. Thomas C. Frohlich of USA Today stated that “graduating from college is a prerequisite for the vast majority of high-paying jobs”(2013). With the cost of a college degree increasing in unison with demand, few can earn a degree without the help of student loans. The American Student Assistance website reports that of the twenty million students enrolled in college, about sixty percent are attending with the help of student loans (2014). Obviously, student loan debt affects the individuals that obtain them. However, it also has severe effects upon the nation’s economy.

Over the last several decades, rising tuition rates and changes in federal and state policies, an increasing number of students are turning to college student loans. As a result of these changes in prices and policies, the percentage of undergraduates borrowing has increased from 37.8% to 46.2% for public 4-year institutions and from 48.5% to 58.9% for private institutions. According to one estimate, student loan debt has reached $1 trillion dollars, surpassing credit card debt (Reynolds and Brandon). Most recently, another report estimated that two-thirds of college graduates in 2011 had an average loan debt of $26,600, which is an increase of 5% from the previous year (Chen and Wiederspan). There are numerous factors involved in the

College students in America are facing a loan crisis because colleges are too expensive. In fact they are so expensive that a lot of people can't go to them or are paying off student debt years after they graduate

All over America, undergraduate and postgraduate students are feeling the pressure of student loans and their debts. A student loan is a type of loan designed to help students pay for post-secondary education and the associated fees, such as tuition, books and supplies, and living expenses (Mitchell 15). While it may sound like an inviting way to pay for college, it comes with its downfalls. Rapidly rising college tuition costs have made student debt the only option to pay for college for many students (Kristof). Student loans are increasing $3,055 every second (Kristof). The average student in America graduates with $35,000 in student loans (Akers 18). In fact, student loans have become so popular, all together students have

Student loan debt has increasingly become an issue, not only for those who have acquired it and must deal with it, but also for the economy. To function normally in today’s society, pursuing a college education is a requirement for those who want a high paying job. With this decision, students also choose to accept the massive amounts of debt and the long-term turmoil that it inevitably leads to. Student loan debt impacts students purchasing power, which negatively impacts the economy. Currently, there is over $1.3 trillion outstanding in student loans (Rosato). Recent state disinvestment in public universities has led to tuition increases, forcing students to borrow more than ever before. As a result, over 20% of these students are denied

In the United States today, the number of students graduating college with student loan debt is quite astonishing. In the article titled, “How the $1.2 Trillion College Debt Crisis Is Crippling Students, Parents And The Economy”, we will examine and break down the student loan debt crisis by the numbers. Today, almost two-third’s of students graduating college are graduating with an average of $26,000 in debt. For most students, $26,000 is a lot of money when the average annual income for a first year graduate is only in the mid $40,000 a year range. According to the Consumer Financial Protection Bureau, student loan debt has reached a new milestone, crossing the $1.2 trillion mark (Denhart, 2013, Introduction, par. 2). With student loan debt levels

The other, increasing in popularity, investment of consumer debt is student loans. Since 2008, student debt has been rising in increments of nearly $100 billion (Schrager). As alarming as it seems, this is not the result of student decisions alone. High school students are being pressured by society to further their education. Students seem to be raised believing a college degree is the ticket to success. However, it is not; anyone can become successful, regardless of background or education. Some students strive for attending college while others have been forced to prevent them from being lethargic. In either scenario, the students are accountable for the inflated tuition as parental contribution begins to decline. Thus, students acquire loans to mask the overall cost. But, the occurring interest throughout their time in school leaves a heavy financial footprint. Three types of students tend to be affected most, graduate, for-profit, and dropouts. Graduate students are permitted to borrow unlimited amounts of money not exceeding their cost of attendance. These students account for 65 percent of graduates who borrowed $50K or more in 2012. The for-profit students are independent of their parents or pursuing a degree greater than four years. For-profit students only constitute nine percent of degree recipients. Dropouts include 59 percent of the students with minimal debt. Because dropouts have a laborious experience job-hunting, they are less likely to repay their loans

Student loans are one of the top three national debts in the United States. Total student loans have reached an outstanding of one trillion dollars and are still on going. It would take the United States hundred-fifty years, twenty million dollars a day to fully cover this national debt. Student loans are intended for students to go to college but they come with a rising social and economic cost. As the expectancy of high return and tuition are increasing, more students are ending up with a mountain of debt and without a degree. It is risking our countries’ future; we will face another recession if the trend of student loans continues to grow exponentially. We will have a future of Millienials who are in debt and unable to invest their money into the economy. In order to have a stable and working economy, we need people to spend money. Young adults are the “masters” of spending money and have a huge contribution in stabilizing our economy. If young adults are spending their money in paying off their debts, there will be definite consequences. So people might ask, “what aspects of the economy are being affected due to rising student debt?” Despite the social cost that student loans promote, through in depth research and analysis, I have concluded that our economic cost will evolve around the housing market, small businesses, and students’ career choices. These are extremely valuable industries that