The Benefits Of Student Loan Debt

While this is often true, it can create problems when a student does not have the money to pay for a quality education. The cost of college has risen an estimated 250-500% over the last 30 years while consumer price index has only increased by 115 percent during the same time frame (White, 2015; Eskow, 2014). The amount of student loan debt is increasing, along with the cost of college. The income of many young people today cannot keep up with the rising costs of college education and housing. Part of the problem with student loan debt begins when students choose to attend a college that exceeds their financial resources and rely on federal student loans as well as private student loans to make up the difference. Eskow found that even public colleges and universities are becoming difficult to pay for without taking out student loans often averaging $30,000 for tuition, room, and board (2014). Since many people do not have enough money to cover college education expenses, they rely on student loans, both federal and private, to fill the gap. Financial advisor Ramsey stated that often the loans students take out pay “for an off-campus standard of living, and no debt was needed to get the degree” (2013). “The Project on Student Debt reported in 2013 over ⅔ graduating seniors were leaving school with student loans” averaging approximately $28,400 (White, 2015). Taking on almost $30,000 in debt before even starting a career can have a significant impact. It can force people to get a job just to pay off the student loans, not based on what they got an education for prepared for or what they studied. This also can cause a setback in future plans, having to delay many adult milestones due to lack of

oday, society stresses the importance of postsecondary education to students due to the countless ways that an associates, bachelors, masters, or doctorate can enhance an individual future. For an individual to reach financial security in the United States’ economy it is basically mandatory that they have received a college degree. Postsecondary education will provide skills and knowledge that will prepare individuals to be successful within their career as they compete for leading positions. Overall as an individual receives a college degree they will become more likely to experience job security and financial security, and this is important to most as they hope to live a stable life. In college, students are taking as many as one hundred credit hours which contributes to most also accumulating student loan debt as they try to finance their education. Even though the completion of a postsecondary education will contribute to a graduate obtaining a respectable income it may also cause graduates to suffer from high student loan debt which will negatively impact their finances far into their adulthood. R.J. Matson created the image above to emphasize how student loan debt negatively impacts student and changes need to be made to avoid stress caused by the debt.

Financial support has played an important role for college students, especially for university students, whose family could not support their education after they have graduated from high school. Due to this situation, students have to go through a lot of problems with their tuition fees to be able to continue with their education. They always need a large amount of money besides paying for the tuition but also for living, and students have to go through a lot of problems with their tuition fees in order to be able to finish their career on time and earn a better living in the future. Some students will choose to go to work part time while at school, so they can pay for their fees and their own expense, such as gas, foods, and clothing. On the other hand, most of students will choose to take out loans from somewhere else, such as the bank or federal loans. This way, students who choose to take out a loan could focus on their education without worrying about how to pay for their fees. It is very important for students to acknowledges and be aware of the different types of student loans, and all the requirements before students decide to obtain a loan. Because of the raise in tuition leads to the existence of the student loan debt is a burden that is a financial impact on lifestyle changes, such as postpone couples to get married, to have children, to buy a house and to save for retirement.

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 debt has led to many negative consequences for students attending college. Senators tend to have different views when it comes to solving the student debt issue. Elizabeth Warren, a Democratic senator from Massachusetts, has been concerned about the constant rising of interest rates on student loans throughout the years. She proposes a certain bill to help cut down such rates. Bernie Sanders, another Democratic senator from Vermont, focused on the importance of the young generation earning an education. He attempts to make college more accessible for everyone. Lastly, Robert Reich, a former United States Secretary of Labor, has pointed out that college is not for everyone. He believes that individuals should have a choice rather than being forced into college due to society.

Is college worth incurring significant at debts? Student are wondering if going to college is worth getting debts. Student who wants to go to college is taking loans to pay for college, but the problem is that it might be impossible to pay back the loans. Going to college is worth having a debt because lifetime earnings, job opportunities and good for your community.

On the end of the Democratic Party, both Hillary Clinton and Bernie Sanders presented comprehensive plans to help eliminate student debt, although they vary on how to deal with the cost of education and how much the government should pay (Josuweit, 2016). Clinton created the “New College Compact,” to address both the current and future educational costs, her main focus on addressing existing debt and allowing borrowers to refinance student loans at the rates allowed to students taking out new loans, which Clinton claims would provide to relief to twenty five million borrowers (Josuweit, 2016). In addition to this, Clinton wants to reduce interest rates on new student loans which would facilitate enrollment in IDR plans (Josuweit, 2016). On future tuition, Clinton claimed she would provide help so that students never have to borrow to pay for tuition and other fees attending a four year public college in state (Josuweit, 2016).

Interest rates are constantly on the rise along with the cost of tuition and the income levels of students are not increasing in order to make ends meet. Therefore, student debt is spreading rampantly across our nation and is becoming a tremendous issue. Student debt is a topic that is relevant in today’s society because it affects such a large portion of the population. Furthermore, it is affecting the country 's economy in many ways. With the accumulation of debt, students are unable to afford to purchase a home, or at times, a brand new car because there is simply no way that they can afford such a large investment while they scramble to pay their loans.

Student loan debt can be an overwhelming thing to face when you first graduate from school. You have spent the previous three to seven years or all the more focusing on your future attempts and now wind up toward the finish of your scholarly street with a heap of obligation and searching for a vocation.

Most of the student debts are a result of loans to fund their education. Student loans are significant for education funding because it is a form of investment. However, the students are normally left with huge debts after completing their studies and have to struggle financially to acknowledge the debt when it falls due. This has a negative impact on an economy as these students will minimally contribute towards their retirement savings due to the financial burden accelerated by the current high unemployment rate. It is also stated that the students’ delinquency and defaulting rates are high compared to other housing debts (Elliott & Nam, 2013). This is bound to have an adverse effect on economic growth, and the

“College is part of the American Dream, it shouldn’t be a part of a financial nightmare for families” - Barbara Mikulski, United States Senator. Student debt is a rising issue in America; 43.3 million students are in debt at this moment, and this number increases every year. In other developed countries, education is free or low cost and works well economically. Countries like Germany, Sweden, Australia, Denmark, and France have extremely affordable college tuition, so what do these countries do to make education so affordable? What do American politicians and citizens find wrong with free or lower cost college education? How should America go about solving this issue and follow other countries footsteps? Just how bad is America’s student debt

"Debt is a trap, especially student debt, which is enormous, far larger than credit card debt. It 's a trap for the rest of your life because the laws are designed so that you can 't get out of it. If a business, say, gets in too much debt, it can declare bankruptcy, but individuals can almost never be relieved of student debt through bankruptcy." This compelling statement was made by American activist, linguist, journalist and philosopher, Noam Chomsky. On the topic of student debt, I realize that it is by far one of the most largest and most considerable issue plaguing college graduates today. That is why my number one goal is to graduate college, not only for my bachelor 's, but also my master 's and doctorate 's degrees, debt free. I

Many college students face this same struggle of deciding the rest of their future right out of high school. Unfortunately, freshman college students are under educated about their finances and tend to over borrow when they come to college. Student loan debt is a major problem in America that could easily be fixed by educating students before they are allowed to borrow large sums of money.

Financial support has played an important role for college students, especially for university students, whose family could not support their education after they have graduated from high school. Due to this situation, students have to go through a lot of problems with their tuition fees to be able to continue with their education. They always need a large amount of money besides paying for the tuition but also for living, and students have to go through a lot of problems with their tuition fees in order to be able to finish their career on time and earn a better living in the future. Some students will choose to go to work part time while at school, so they can pay for their fees and their own expense, such as gas, foods, and clothing. On the other hand, most of students will choose to take out loans from somewhere else, such as the bank or federal loans. This way, students who choose to take out a loan could focus on their education without worrying about how to pay for their fees. It is very important for students to acknowledges and be aware of the different types of student loans, and all the requirements before students decide to obtain a loan. Because of the raise in tuition leads to the existence of the student loan debt is a burden that is a financial impact on lifestyle changes, such as postpone couples to get married, to have children, to buy a house and to save for retirement.

Student loans generally begin showing up in your mailbox before you even graduate from high school. You may be happy to have all these offers of financial help. But prior to going into debt, it's important to read these tips to help.