The Student Loan Debt For The United States

In February, 2006, the Deficit Reduction Act passed through legislation. This act would ultimately cut $12 billion from federal student aid. This act increased interest rates on student and parent borrowers. The Stafford Loan interest rates rose from 5.3% to 7.14% on existing loan and 6.8% on any loans taken out after this act passed (Talia Berman). What this act did do was lower income taxes to those that made more than $1 million!

Student debt is a topic that generates a lot of debates. From politicians to lenders to students, everyone has an opinion on the topic. With a trillion dollar national debt, it’s not surprising why the topic is such a huge issue and the solutions are even greater. The student debt is a form of debt that is owed when a student has completed college or drop out. The average interest rates for the ungraduated and graduated are 4.45% to 6% (Quadlin). To pay off all the students’ debt, it will take 10-25 years to complete it. College students will have at least six months before they have to make the first payment. Student debts can be a real problem for those who aren’t preparing for them. Student loans debt should have a longer grace period, lower monthly payments and repayment programs that apply to all because students will be able to manage and repay their debts in a timely manner.

Student loan debt affects college students all over the United States. Today students are having to take out loans in order to pay for all of their college expenses. It can be a pain to deal with the hassle of paying back the loans. The problems with student loans include causing students to go into debt that they are not able to pay them off in the given time which makes them put major life decisions on hold, and the debt stay with the student even through bankruptcy. A solution that would solve these problems is the idea of debt forgiveness which is the idea that the government will get rid of all the loan debt for college graduates.

Today, the number of people who have borrowed money to pay their expenses for college, has been rising. In addition, colleges have been increasing the amount charged on students who receive an education. An article states that “tuition is increasing at a rate double that of inflation”, for this reason, the amount of money a student has to pay back has been increasing (Webley). According to the article “Even if you don't have student loans, you should want them to be forgiven”, the author, Lisa Schmeiser, states that “Approximately 44 million people in the U.S. have borrowed for student loans... debt standing at approximately $1.3 trillion today”.

Student loan debt relief is a controversial issue in America today. Student loan debt affects twelve million college students, roughly 60% of all college attendees, per year (Student Loan Debt Statistics). Student loan debt relief rose to the forefront of economic news during the financial market crash of 2008. The U.S. Government has developed a debt relief plan that extends payments over a 25-year period, with a full forgiveness of all remaining debt at the end of that 25-year term (Ensuring That Student Loans Are Affordable). During this repayment period, payments can be suspended during times of unemployment, giving hardship students a break from their student loan payments. Many people feel that student

Americans have amassed more than $1.3 trillion of student loan debt (Clements). A lot of graduates are postponing life events like having kids, buying a house, to deal with the debt. About 14% of student are in default. Default means failing to make payments on your loan as scheduled. Defaults usually results in larger loan balances. With this upcoming election, it 's crucial for candidates to address student loan debt and their solutions. As a potential voter, it’s important I select the candidate that will benefits me and get rid of my loan debt.

Student loan forgiveness is a terrible idea. Sure, in an idealistic world it would be great if the country could forgive all student loan debt and thus bring relief to all students across the nation. Realistic? Not necessarily! Instead of the fairytale notion of student loan forgiveness being the answer to all the problems, America would fair better in taking the initiative in making reforms to the educational loan system that are a bit more realistic. Student loans are a massive predicament in the U.S. that can no longer be ignored. The Atlantic 311.2 article “The myth of the student-loan crisis(CHARTIST)(Statistical data)” by Allan, Nicole, and Derek Thompson states that to date student loan debt surpasses all other forms of debt with over a one trillion dollars sum (2013). The United States should stop being complacent on an issue that has affected and ruined so many lives and begin finding ways to relieve the proverbial and ever-present menacing “Student Loan” pitfall.

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.

The problem with today’s current level of student loans is that it causes so many people that took out loans to go into debt later on in their life. Now when the former students go into debt, it creates a domino effect. The students going into debt means that the government will be able to get their money paid back to them which causes the country to be buried in an even deeper hole of debt. The nation is currently over 20 trillion dollars in debt and student loan debt is more than 1.5 trillion dollars as well according to the United States Debt Clock as of November 2017. The issue of student loan debt needs to be addressed sooner rather than later to help the country gradually come out of debt. A start to help reduce the amount of debt in

Author Kayla Webley writes the article title "Is Forgiving Student Loan Debt a Good Idea", on page 129. It is about whether student debt should be paid back by students or forgiven by the government. Student loan forgiveness has become a topic of conversation lately. Kayla Webley shares her kindness and her compassion to the public on behalf of the college graduates to hold some appeal against forgiven student loans debt. She writes this essay because of a comment posted on her Facebook wall "Urging the government to forgive all student debt"(129) and related stories and because she was in support of the student load debt forgiveness.

Student loans are becoming an increasingly heavy burden for their borrowers in the United States. In a personal interview conducted on October 20th, 2015, a close personal friend, Cory Hays, and the sister of the author, Melissa Korpela, were interviewed regarding their student loan debts and status of re-payment. Hays has $80,000 in student loans, but cannot pay them back because he was unable to find a position in his field, kinesiology (Hays, 2015). To make ends meet he works as a server and works less than full-time and also has a second job being a caretaker for the building he lives, which provides a small salary and a reduction in his rent (Hays, 2015). As such he is able to be in forbearance until such time that he can get full-time employment (Hays, 2015). Also, the author’s sister has $65,000 in student loans for her bachelor’s level teaching degree

In Kayle Webley’s article Is Forgiving Student Loan Debt a Good Idea? published in Time magazine in 2012, she analyzed the possibilities and the effects of student loan being forgiven. The author first discussed the way in which this could happen and whether the government could potentially be able to take away everyone's student loans from college. This would then be able to boost the economy. Webley then discussed how people would be more willing to spend money, when they don’t owe thousands of dollars, and in return the economy would be able to continue to grow. To conclude, she analyzed the logic behind the idea of citizens having their debt removed and being able to start over financially. Webley’s purpose of writing this article is to

In the United States today, the number of students graduating college with student loan debt is quite astonishing. In the article titled, “How the $1.2 Trillion College Debt Crisis Is Crippling Students, Parents And The Economy”, we will examine and break down the student loan debt crisis by the numbers. Today, almost two-third’s of students graduating college are graduating with an average of $26,000 in debt. For most students, $26,000 is a lot of money when the average annual income for a first year graduate is only in the mid $40,000 a year range. According to the Consumer Financial Protection Bureau, student loan debt has reached a new milestone, crossing the $1.2 trillion mark (Denhart, 2013, Introduction, par. 2). With student loan debt levels

I would like to bring your attention to the H.R. 5487 bill; Student Loan Fairness Act. It is in the peoples’ best interest for you to cast a vote in favor of this legislation. May it be enacted by the United States House of Representatives, of the Congress, that this bill becomes a law. The bill provides a payment plan in accordance to individuals’ income and forgiveness for student loans after ten years of being in loan debt.

In 2016, an accumulation of almost 1.4 trillion dollars of student loan debt was outstanding in America (Kess). Students from all over the nation, and the world for that matter, are going to higher education without the financial ability to do so. One of the few options for financial aid available to these prospective college students is to take out student loans to pay for the high tuition of most universities and colleges. While these loans are a modality for attending higher education, they often come with strings. Along with being several thousand dollars in debt, interest also accumulates into the total amount of the owed financial total. Until these loans are repaid the interest keep accumulating and the debt grows. With debt still affecting students negatively well after they finish their higher education, the price of college tuition should be abated.