The Harmful Effects Of Student Loan Debt And Attainable Resolutions

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

A problem with student loan debt is that students gain more debt because they are not able to pay off the student loans within the given time which also causes them to put certain life decisions on hold. According to Sophie Quinton debt is a problem for the recent college graduates because “There’s currently no way to get rid of federal student debt other than paying off the loans. while some borrowers are paying off their debts just fine, overall they are adding debt faster than they are shedding it”(Quinton). According to Jamaal Abdul-Alim stated that a “survey - titled Student Loan Debt: Who’s Paying the Price?- revealed a number of troubling statistics about the practical ways that student loans are impacting college graduates in their everyday lives. For instance the survey found that: 49

I also found some web sources that have a divergent view. For example, “Debt Burden: Repaying Student Debt”, a report written by American Council on Education, the only higher education organization that represents presidents and chancellors of all types of U.S. accredited, degree-granting institutions. This report describes the borrowing and repayment experiences of 1992/93 and 1999/2000 bachelor’s degree recipients one year after graduation. The author believed that student loan debt did not have discernible impact on graduate one year later. To support his/her argument, the author collects data from U.S. Department of Education and National Center for Education Statistics. Although this source is reliable and

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.

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.

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

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:

Student debt can socially affect a person’s life for years after graduation. Taking out thousands of dollars in loans causes a negative effect in student’s lives. In reference to Natasha Yurk Quadlin and Daniel Rudel, who has a Ph.D. in sociology and both work at Indiana State University, student loans affect persistence and completion for undergraduates. There is a correlation between how students do in their classes, the amount of time spent on their work, and the amount of time working in a job to pay off debt. Students become so stressed that they do not complete their college courses and enter their path of a new career. (Quadlin, Rudel, 2015). When students do not perform well in their classes, they tend to want to compensate for it. However, they cannot because they have to go to their jobs, to help pay off the thousands of debt that they owe and for their everyday necessities. Due to the amount of stress that they have to handle, it affects their personal health. Katrina Walsemann, in a representative study on student loans and early adult mental health, argues that “We are speculating that part of the reason that these types of loans are so stressful is the fact that you cannot defer them, they follow you for the rest of your life until you pay them off,” (Blake, 2015). It also mentions that the students with higher levels of debt incurred, have had higher levels of depressive symptoms. A college student’s overall health is

The typical all-American dream is a great paying career, a happy family, and a good home to raise them in. This is, however, only possible by going to college and getting a good education at a high-cost university that buries you in debt. Often when discussing student loans the general consensus are that students are in colossal financial struggles if they obtain degrees at good universities. The myth of crippling student loan debt is, however, not typical.

What do you think of when you hear the words college graduate? Well, in most scenarios, these words would be exciting to someone that just graduated college who have put in years of hard work and dedication to better educate and promote themselves for their future careers. Sadly enough, this is too far common not the case. In today’s society, students are graduating college with piles of debt at an alarming rate. With a troubled economy that is recovering from a recession and jobs difficult to come by for a lot of graduates with bachelor’s degrees, the student loan debt in the United States is bound to be a major crisis that could severely weaken and crimp the economy even more in the coming years.

Defaulting on student debt can cause companies to garnish their wages, social security, or lower the amount they receive as a tax refund. Plus, there are collection costs and additional interest costs that will add to the total cost of the debt which they will now owe in full. In extreme cases the government can even seize your assets to help pay off the loan balance.

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 debt is pressuring graduates into taking jobs that are stable, low-paying and ironically, do not require a degree. Graduates are becoming anxious about paying off tuition fee loans and accepting jobs that are not right for them in order to begin their repayments.

As tuition has increased over the last decades, loans have become the main source of financing for students looking into higher education. As a direct result of these loans, a majority of students graduate from college with thousands of dollars of debt waiting to be paid off. Culturally, student debt is seen by society as an acceptable means to reach college, and in turn a doorway to high paying jobs. Therefore, American students often take loans without thinking of the burden of paying them back. Over the past decade, the total student debt has escalated from $240 billion to more than $1 trillion dollars (Federal Reserve). This severe rise in the student loan debt has brought attention to the issue, making it a main discussion topic in politics, media and by researchers. Many people in today’s society believe that a college education is a necessity, however as more and more students struggle to pay back their debt, it is beginning to sound questionable.

Studies show that the cost of going to a public university has more than doubled since 1988 and nearly half of adults aged 18 to 34 without degrees, cannot afford to go to college. The student loan debt crisis is real; most college graduates end up with an estimated, average of $28,400 according to “State by State Data” (1). This amounts to a new car while on the other hand Nicole Allan and Derek Thompson explain in the article “The Myth of the Student-Loan Crisis” (2013) that there is no such thing as having student debt, because it is a myth to scare people. In “The Myth of the Student Loan Crisis” (2013) Nicole