The Value Of A Degree

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

Matt Taibbi argues in his Rolling Stone article titled “Ripping Off America: The College-Loan Scandal” that the government is the primary source to blame for today’s appalling inflation rates on increasing student debt. Additionally, he argues that the reason the tuition is so exploitative and unfair, is because it was created to benefit two groups. The first being, “…colleges and universities, and the contractors who build their extravagant athletic complexes, hotel-like dormitories and God knows what other campus embellishments” (Taibbi). Next up, the other group that gains from the current system is the government. This is because, “…the government actually stands to make an enormous profit on the president 's new federal student-loan system, an estimated $184 billion over 10 years” (Taibbi). Further, Taibbi goes onto to state that students often have no idea what they are signing up for with student loans, because not all students have access to the same information. Finally, Taibbi mentioned that “because of the poor job market, young people may have less of a chance than ever to actually get a good job commensurate with their education” (Taibbi). This means that with no degree, students have no chance, but with a degree you are forced down a road of high risk, and at the end you are likely to be left with a ton of debt.

This week for PLN I read "Is College Worth It? Clearly, New Data Say" by David Leonhardt is about how college is worth it even with its cost. In the article, it describes how important a degree is. It said in the article that 98% of people with a degree made more money than people without a degree. There is nothing inevitable about this trend. If there were more college graduates the pay gap would shrink. The true cost of a degree is negative $500,000. The unemployment rate for 25 and 34 years old is 3%. That is from having a degree. The average hourly wage for a college graduates has risen 1% to 32.60.

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

An education is one of the most important tools a person can acquire. It gives them the skills and abilities to obtain a job, earn a wage, and then use that wage to better their lives and the lives of their loved ones. However, due to the seemingly exponential increase in the costs of obtaining a college degree, students are either being driven away entirely from earning a degree or taking out student loans which cripple their financial prospects well after graduation. Without question, the increasing national student loan debt is one of the most pressing economic issues the United States is dealing with, as students who are debt ridden are not able to consume and invest in the economy. Therefore, many politicians and students are calling

In order to be successful in the workforce, having a powerful career there are things needed like higher education. Graduating from college is essential to finding a successful job, since more jobs are making college degree a requirement, more people are going to college. The problem is the cost of going to college outweighs the earning from the career you obtain. Very little people are able to pay for college out of pocket. In 2014, 42% of undergraduates paid for college out of pocket (Sallie Mae). The result of this is that students seeking higher education are forced to take out loans. On average, college students borrows $25,000 to earn their degrees (Alexandria). I just don 't get the concept of college tuition or student loans. It

A lot of people will argue, that college is too expensive. Not everyone can go to college, for financial reasons. Also, they may get into college, but end up having to leave because they cannot afford the remaining balances; or, they received financial aid, but end up having to take out loans they are going to be paying back forever. It is like once they graduate they will be working mostly to pay off their student loan debt. This also discourages some students. In some cases, they will not even take the initiative to try because it is so costly. I do not understand why it cost so much to want to better yourself, and possibly put us in debt for the rest of our life just to receive a higher education. Not only has the cost of college risen over a period of time, but it continues to go up. Yes, they have alternatives for paying student debts, but what if you do not qualify? Lastly, you are not guaranteed a job just because you graduate and have a college degree(s).

“By 2020, 65 percent of the jobs in the United States will require at least one post-secondary education Community colleges serve close to half of all American students, enrolling 10 million students each year, but just under 20 percent earn an associate’s degree within three years.”(Georgetown recovery: job growth and education requirements through 2020) In contrast to the 20th century, a high school diploma was sufficed enough to fulfill

Is a college education really worth the investment of time, money and energy? Is a college degree really worth going deep in student loan debts? Higher education is a considerable gamble. For many people it works out well, but many of the other college graduates have found themselves completely unable to get a great job in this economy with a huge amount of debt on their shoulders. The entire system encourages students to take out any kindand amount of loans they need without worrying how they will pay them back. For that reason these people also say that college education is a good investment. For the past few decades, a college education was actually an almost automatic ticket to a job and a middle class life but today, higher education

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

Families are now aiming low when it comes to college- or are simply not going at all. Money could play a huge part in this decision- after all, the cost of college has skyrocketed over the years, and so has the amount of student loan debt. This is something even Leonhardt admits, stating that, because of this, only about 33 percent of young adults get a four-year college degree today, while another 10 percent receive a two-year degree (Leonhardt). And even though many colleges offer financial aid packages, that money may soon be cut and the cost of college will continue to grow. It is true that, in my personal experience, just because a student is awarded financial aid does not mean they have a golden ticket to University. This leaves many desperate students the only option of taking out as many loans as they think they can handle- often more than they should. Debt is not a new issue for America, but it is still a problem. Although David Autor, an M.I.T. economist, laments: “not sending [young adults] to college would be a disaster”, no one can ignore the rising rates of loan defaults, and some think it

When starting college every student makes a very important decision. Whether if they want to get financial aid or to pay the money up front. Having college debt will not only ruin their credit, but he or she may also have to pay off their tuition for the rest of their life. Research says, “According to the College Board, which tracks students’ financing of higher education, undergraduate students in 2013 through 2014 borrowed in the aggregate nearly $63 billion and received $33.7 billion in Pell grants.” By this quote from “Debt, Merit, and Equity in Higher Education Access” it clearly shows the effects College Debt has on their society but, also on their future. Every paycheck they receive, a small portion goes toward paying their college the same college they finished years ago. It’s not worth paying at least one hundred fifty dollars every check when it could have been paid all together. However, many may not have the same opportunities as others.

Not only does a high price tag discourage many from pursuing a degree, but it can affect unemployment as well. The Baby Boomers are reaching an age where retirement is an option and will leave the workforce up to the younger generations. This will be a big blow for the economy if America does not increase participation in the workforce. Unemployment will increase tremendously if the output of college graduates isn’t reaching needed levels to balance the shift out. The amount of student loan debt is at $14 trillion and is continuing to increase. There are 44.2 million American students who have an average $37,000 in student loan debt. Student loan debt can impact major financial decisions for the student whether it be to purchase something like a car or house. Seeing the hefty price tag of a college education can deter many from pursuing a degree. Paying off college can be a real struggle if the student is not from a wealthy family. Some families can’t even provide food to feed themselves. Everyone should have the opportunity to pursue a higher

That causing the students to fault on their loans. Haley Edwards states in “ But can America afford this approach to solving student debt?” Work in public service they can get loan forgiveness in just 10 years.” Public service jobs are jobs that are related to the government, these jobs allow student loan forgiveness after 10 years which is crazy because a college graduates average age is 22 and that puts them debt free by 32. Others it takes well into their middle age years to pay their debts back. Loan forgiveness lifts massive amounts of stress their shoulders. Students don’t know how to handle debt. Most students out of highschool don’t lnow what loans are and the backlash it could have on their futures. They have no clue on how to calculate interest, how long itll take for them to pay the debt back either. “ 71% of undergraduates who graduate with debt or the 1 in 7 who end up defaulting on their loans.” (But can America afford this approach to solving debt, Edwards) This statistic shows that students who are just now entering college that they don’t know anything about loans. Or they don’t get jobs that can pay their loans back. “ The

If an aspiring college student doesn’t have the necessary funds to attend school, there is another option they could use to pay for school. Student loans are a popular choice so that the student can pay for school. While this may seem like a great option for affording school, it can be a devil in disguise for many. The New York Times reports that Americans owe over 1.4 trillion dollars in student loan debt (Kelly 1). This happens when a college student takes loans with the belief that the college degree they get will help them achieve a higher salary which will in turn will help them pay off their debt. This often isn’t the case. A student takes the loans and attends school, but does not receive the salary that they were hoping to acquire from attending school. A standard payment plan for students is to pay off their debt in ten years, but according to a study conducted by US News, the average bachelor degree holder takes twenty-one years to pay off (Bidwell 1). This is a common occurrence as well, a report conducted by The Institute for Collee Access and Success shows that in 2012, seventy-one percent of college graduates had student debt (Serrato 1). The current system that the government offers to help those struggling to afford a secondary education is a flawed program that needs restructuring.