The Benefits Of College And The Costs Of Attendance

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Student Loan Crisis Nearly thirty-nine million people residing in the United States hold student debt, coming to approximately $1 billion. Naturally, other forms of consumer credit declined in the recent years, most notable during the recession, and non-surprisingly, student debt continued to rise. Due to this, student loans are now, next to mortgages, the largest source of debt, outstripping credit cards and auto loans. I say that there exists a debt crisis, and a repayment crisis. Student’s are expected to repay outrageous amounts of debt when their incomes are at their most lowest and fickle. There is a discrepancy between the benefits of college and the costs of attendance. Ironically, this discrepancy is the same motivation for even providing student loans to begin with. It’s fair to say that education is an investment. Education demands costs to paid in the present in return for potential benefits in the future. While students are in school, expenses include typical costs such as tuition, books, and sometimes rent. Potential benefits for the future typically include access to higher earnings. To pay the current costs of their education, most students need liquidity. Typically in a business deal, to be borrowers could put up collateral in order to pay for a promising investment. This collateral could include any goods used, typically buildings or even tools of trade. Almost similarly, homeowners use their home as collateral when they take out a mortgage. Students are
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