Taking Out A Loan For College

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

In the article, “Should Everyone Go to College?” (2014) Stephanie Owen and Isabel Sawhill discuss how much money it is to go to college. The average upfront cost of four years of college is $102,000 and private schools have a lifetime earnings premium of over $620,000. They explain that among young high school graduates and bachelor’s degree holders, working full-time would be $15,000; 23-25 year-olds with a bachelor’s degree make $12,000 more than high school graduates. Premiums associated with a college degree grow over a lifetime. By age 50 the gap has grown to $46,500 and the total premium for a bachelor’s degree is $570,000, and $17,000 for an associate’s degree. Financial aid has a big role in helping students go to

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

Higher education has been known by many Americans as a luxury for only those who can afford it if not being forever in debt with student loans. The price of higher education has been in debate for many years but it still has not ceased to come into an agreement. Should higher education lower its price or is it worth paying for it? As Andrew Hacker and Claudia Dreifus argue in their article “Are Colleges Worth the Price of Admission?” there are colleges worth mentioning about how successful their financial management has been correlated with their students success. The issue has also come into attention for Sanford J. Ungar, as he explains in his article “The New Liberal Arts,” although liberal arts education may be have its misconceptions, it does pay for its price. Hence, higher education (whether from a regular university or a liberal arts college) is worth the price, as it prepares individuals for the real world more than any other kind of education, it is an unique time were students are allowed to explore and put their abilities into test and it is the opportunity for many to overcome the many obstacles life has to offer.

Which is a significant raise compared to those who start work right after high school. Despite all these facts and benefits that come with getting your college degree some people still believe its not worth it. They believe that they can get more money just working straight out of high school because of no debt. But it is a fact that the median annual salary for someone with a high school degree is 30,000 dollars. But someone with a bachelor's degree annual salary varies from 45,000-90,000 dollars which is a considerable increase, and if you're are worried about debt there are things the government have implemented to help with that including government grants, lowered interest rates and they waive the fees and even let you have a 6 month grace period. Government also bases what you pay back on your income so that its easier to pay back these loans. With the ever-changing governement who knows what will become available in the years to

In order to be successful in the workforce, having a powerful career there are things needed like higher education. Graduating from college is essential to finding a successful job, since more jobs are making college degree a requirement, more people are going to college. The problem is the cost of going to college outweighs the earning from the career you obtain. Very little people are able to pay for college out of pocket. In 2014, 42% of undergraduates paid for college out of pocket (Sallie Mae). The result of this is that students seeking higher education are forced to take out loans. On average, college students borrows $25,000 to earn their degrees (Alexandria). I just don 't get the concept of college tuition or student loans. It

College has become a significant chapter in the lives of many Americans today. In most cases, to reach the well-paying and dreamed-of careers, students must have a bachelor's degree or higher in a certain field of expertise — typically from a university. While this is true, many students have realized that university-level education, even in-state, is not cheap. With tuition rates on the rise, college is beginning to be seen as more of a burden than an opportunity. Although scholarships and financial aid decrease the net cost of attending college, the majority middle class students are not equipped with enough aid to graduate debt free, or even close to it.

The U.S. is home to some of the greatest colleges and universities in the world. But with an overwhelming 1.3 million students graduating with an average student loan debt of $29,000 each and with youth unemployment elevated, the question of whether or not college tuition is worth the money arises (The Institute for College Access & Success, 2013). Higher education faces intimidating challenges: continually rising costs, access and completion problems, constant changing of technology, and responsibility pressures from state and federal officials. But no challenge is more intimidating than the fundamental question that many Americans face to ask themselves, "Is college worth the cost?" As a result of the economic turn down, many students who graduate are not finding well-paying jobs, either within their field of study or not.

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

Families are now aiming low when it comes to college- or are simply not going at all. Money could play a huge part in this decision- after all, the cost of college has skyrocketed over the years, and so has the amount of student loan debt. This is something even Leonhardt admits, stating that, because of this, only about 33 percent of young adults get a four-year college degree today, while another 10 percent receive a two-year degree (Leonhardt). And even though many colleges offer financial aid packages, that money may soon be cut and the cost of college will continue to grow. It is true that, in my personal experience, just because a student is awarded financial aid does not mean they have a golden ticket to University. This leaves many desperate students the only option of taking out as many loans as they think they can handle- often more than they should. Debt is not a new issue for America, but it is still a problem. Although David Autor, an M.I.T. economist, laments: “not sending [young adults] to college would be a disaster”, no one can ignore the rising rates of loan defaults, and some think it

The United States has developed a set of economic circumstance in which it has not seen in quite some time; with regard to some factors it has never seen such circumstances. For example, student and credit card debt has reached unprecedented heights. This is also coupled with a slow jobs market as well as a lack or inability to save or invest for retirement. In this environment, the younger generations face an incredible hardship if their finances are not planned accordingly. Therefore, the prudent student will likely be far ahead of his peers financially. Whereas the value of a higher education was once clear, in today's environment

In the past decade, the student loan “crisis” has been a popular topic in media. There is a constant talk of how terrible the debt is on students, and that free college is the perfect solution, but none of these are true. Student debt is rarely crippling and is a necessary part of the economy. It is often said that the cost of college is too much, or that most graduates don’t have jobs that use their degrees. Chris Lewis and Layla Zaidane state that “The employment prospects for young grads are pretty gloomy,” but it’s not young graduates that need to worry about their loans.

Another aspect of valuing an education, in particular a college education, is a monetary one. The earnings potential of receiving a college degree drives many students to pursue a post-secondary education. Cheever points out that college graduates are likely to make much more money in their lifetimes than those with only a high school education (103). One thing that needs to be factored into that calculation though is the amount of debt a student will have to repay after graduating. Student loans usually have a 5% to 6% interest rate that adds up through the years. For example, one of my cousins who graduated from college in 2000 is still repaying student loans. Even though they may be earning a decent salary, in our current economy, it may make it more difficult for a college graduate to purchase a home, have a family or save for retirement when overloaded with educational debt. This issue makes a case that the cost of education may be too high for those that cannot pay the tuition without going into debt. Students and parents should be expected to pay for the largest portion of a college education; however, the costs need to be less

This leads to missing loan payments which result in a lower credit score and more which in turn result in an even worse debt problem. What counters this is the fact that on average, college graduates make more money, about $30,000 more annually or roughly $500,000 more throughout a lifetime. College graduates also have lower poverty rates because families that are lead with both parents having a bachelor’s degree annual income was over $100,000, which is more than double the average income of a family without bachelor’s degrees. Poverty rates for families with bachelor’s degrees are also much better, standing at 1.8% compared to high school graduate families whose poverty rate is at 7.2%