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The Problem Of Student Loan Debt

Decent Essays
Today, there’s an issue that has been weighing college students down. The problem is student loan debt. This is the highest of all debt, passing up auto loans and credit card debt. There is approximately $1 trillion in student loans in America and the number is growing every year. It has been said that most of the student’s in debt were dropouts and graduate students, but now has broadened to students still working on their degree. Is getting a degree worth the financial burden?
The biggest question asked about student loans is, “How did it get this bad?” It started back in October 1957 when the satellite, Sputnik, went up. After that, students worried that they might not be as intelligent to go up against Russian rocket scientists. So, President Eisenhower made a low-interest college loan program through the National Defense Education Act of 1958. The money for the loan came straight from the government. Years went on, and in 1965 Lyndon Johnson’s legislation “war on poverty”, came into play. The student loans increased due to the president’s Great Society initiatives.
Due to the increase in college students, the Higher Education Act expanded. Loans and grants were made to help students who really needed it. Also, something else made a change. Instead of the government financing the loans, bankers were now responsible. It was also said that if students defaulted, the government would cover the tab. The lawmakers supported the idea because outstanding loans
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