The Pros And Cons Of Studen Student Debt

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

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.

There is a critical financial trend in the United States: student debt is at an all-time high. For the first time in mid- 2013, student debt rose to 830 billion, surpassing the credit-card debt (Clemmitt). Many economists and scholars compare the student debt crisis to the housing bubble, which resulted in a nationwide recession 2008. In a senate hearing regarding the current student debt crisis, Illinois Attorney General Lisa Madigan said, “The warning signs are there, just like they were before the housing crisis, and congress needs to act before it is too late” (Bidwell). After graduation, many students find it difficult to repay their debt, due to the bleak job market. According to a report published on the financial website Smart money, ten percent student loans borrowers defaulted in 2010 (Clemmitt). The percent was larger for students that attended a for-profit educational institution, like a career college; fifteen percent of these students defaulted (Clemmitt). Although the default rates do not contribute to the increasing student debt, one can compare it to the mortgage crisis when people stopped paying their mortgages and the American economy crashed. This exemplifies the critical problem that the student debt bubble if burst; it can have devastating impacts on the vulnerable American economy. Three causes for the increase in student debt are due to recent trends in college attendance, the increase of for-profit colleges and the rise of tuition due to spending

“The United States has created a new generation of people that have more student loan debt than at any other time in our history” (Murphey). A vast majority of students are graduating with debt. On average, students are carrying loan amounts big enough to buy a nice car or cover the down payment on a house, but instead of making those investments, or starting a family or a business, they’re struggling to keep up with student loan payments (O’Malley). Student loan debt is a major problem. Student loan debt exceeded credit card debt in 2010, auto loans in 2011, and it passed the $1 trillion mark in 2012.

Throughout the United States, student loans have been show to drag this economy down. Student loans have been a big problem through many of the years. It has been showing a trend and it is raising and exceeding many of the debt types each year. Many problems that students that have loans cause are, “ 20 percent of respondents indicated they cannot get a loan for other items, are unable to purchase a home, and student loan debt negatively impacts their credit. 18 percent of individuals indicated they are living paycheck to paycheck, “drowning” in debt, and have a large debt load. 13 percent indicated they have a lower quality of life and are unable to afford the extra things. 12 percent indicated they are unable to save for their retirement or their children’s education and feel less secure.” Students that have

In mid-2010 higher education debt surpassed credit card debt at $830 billon dollars(Clemmitt 877-900). Debt has become an increasing problem for students who want to attend college. As more students try to further their education, tuition rises and so does the amount of loans taken out each year. According to Belkin, “Students attending public four-year institutions this academic year are paying an average of $12,620, up $220 from last year, for tuition, room and board,” meaning that tuition is only growing not decreasing from previous years(Belkin n.p.). Many people debate over whether they should attend college and be in debt or if they should get a job somewhere that allows them to live a comfortable life debt free. Two-thirds of college graduates have to take out loans in order to get through college(Dwyer, McCloud, Hodson 1133-1155). Many people question, “Does rising college debt limit who attends and completes college?”, while many people have different opinions on this particular subject, I believe that it depends on the student and their situation if college debt limits who attends and completes college because it depends on their financial stability, it depends on if they are borrowing the right amount and it depends on if their degree provides them with the means to pay back their loans, however, many people would disagree with me and say that yes, college

In the year 2007, 18.2 million students enrolled into college. About thirty-nine percent of those students were between the ages of eighteen to twenty-four (Marcus). College is seen as something one must do to be able to have a successful life or career. Student debt is almost guaranteed for anyone that goes into college. Seventy percent of bachelor's degree recipients graduate with student debt. Student loans in just the U.S. alone are up to 1.2 trillion dollars, this is the second highest level of consumer debt, just trailing behind mortgages (Snyder). Student debt has been an issue for anyone thinking about going into, that is attending, and graduating or leaving college. How to solve this issue is very simple, which is to save money, lower

Student debt is an increasing problem in the American education system. As the times keep changing one thing becomes clearer and clearer: going to college is becoming less and less of a choice for recently graduated high school students. Unfortunately for us students that also means by the time we graduate we will have thousands of dollars in student loans to pay off when we are trying to start fresh in our new jobs. According to a story reported by the Daily News, approximately 70 percent of college students owe around 30,000 dollars by the time they graduate. This number

The rising cost of tuition has lead to more and more financial problems with students causing them to take out more loans and go deeper in debt. Highscool graduates are skipping college because of the extraneous stress of financial problems that it causes. College is a necessity now a days to get a job, but college is also one of the biggest causes of debt. A college graduate has tons of money in debt but when he graduates he gets a mediocre job that cant keep up with the interest rates on the loans. The problem of student debt will only be solved by loan forgiveness, more financial aid, and students being more educated on loans.

Some may argue student loan debt is crippling graduates (Procon Con 1). Student loans are crippling seniors because they cosign with the student (ProCon Con 7). More than just crippling graduates it’s crippling seniors and parents of the students. Student loans might cause crisis because they are at $620 billion as of 2012 (ProCon Con 10). Student loans could cause a depression because how much students are borrowing money. People who don’t go to college are more likely to be homeless (Oachs 15). Being without college education it can be harder to find jobs because college is practically required to have a good paying job. Although some people apply for colleges they can’t afford they might create another depression because of how much student loan debt there

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

In today’s society there is a lot of pressure on the current generation of students to go to college so they can get a high paying job. Students have two options: go to college to get a bachelor’s degree (or an even higher level degree) and go into tons of debt or, don’t pursue a college degree and avoid debt but not be able to have the lifestyle or career they might desire. The current debt of students today is higher than it has ever been. “Most students are graduating with average debts of over $24,000” (Jackson 535). Student debt not only hurts the borrowers by delaying the students’ life but the debt can also hurt the economy.

Today, a 4-year degree is a necessity to be considered for a stable, good paying job, but the amount of student loan debt creates challenges that are just as overwhelming as finding a good paying job would be without a degree. Additionally, tuition increases have students borrowing more than ever, which means that student debt is on the rise. Since most students graduate with $30,000 of debt, students purchasing power is compromised. As a result, fewer individuals plan to become homeowners, start a business, buy a car, or proceed with continuing education because of the impact that their student loan debt has on their everyday lives. Financially it would be irresponsible, if not impossible, for them to even consider any of these things with the debt they have accumulated. The student loan debt crisis stems from a very outdated borrowing system, which has turned what should be manageable debt into complete financial disaster. With rising tuition rates, and no solution in sight, students purchasing power will only continue to diminish and the economy will deteriorate as a

College debt is hurting the life after college of students. Students who have graduated from college with a debt are experiencing a rough life. For example, debts can lead to students not being able to buy their own home or provide a sustainable life for their family. According to Washington statistics “2015 graduates with student loan debt: 57% Average debt: $24,600” (USA Today). If people were not in debt, they would be able to pursue the life they want, and be able to use their talents. Today, many students would not able to provide their talents to the public because they would be doing a job they did not want to pursue for financial reasons.. Without student debt we would have a better country, less people would be on welfare, due to

Student loan have been skyrocketing since 2006, and it keeps increasing each year. To make matter worse between 2010 and 2013 student loans rose rapidly, from being 830 billions of dollars to 1 trillions which is not so far from the national debt. In a few years to come student loans might even surpass the national debt. Furthermore the government intends to increase the student loan interest rate from 3.76 percent to 4.45 percent starting this July 1. According to CNBC an undergraduate who borrowed 25,000 dollars with this academic year interest rate of 3.76 percent would pay a 5,032 dollars interest over 10 years, however a student who borrows the same amount for the next academic year which is 2017-2018 with the interest of 4.45 percent would have to pay more than 1,000 dollars in interest. As of right now the student debt is almost 1.5 trillions of dollars and there might not be an end to it increase if something is not done. Because student will not pay their entire loan in 10 years as planned, their interest money rises as well adding thousands of dollars to their debt, because it mostly takes student 21 years to pay off their debt.