Why Do Students Lead To Recession

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

Because of the nation’s national rising debt, student loan forgiveness has been a significant topic of debate because of how much it can affect our nation’s debt and doesn’t always help the student. Student loan debt is one of the highest debt causes, but sometimes we forget that we are the ones that sign the line on the contract to be in years of debt. This is because we value our education. But this does not mean that just because we can’t find an amazing, high paying job right out of college that we should have our loans forgiven. We want the easy way out of something that isn’t easy, so why should the government pay for our debt? Yes, college is very expensive and that is the governments fault, but again we are the ones that signed the line on the loan papers. (Sam Adolphsen, 583)

In the short essay, “Is Forgiving Student Loan Debt a Good Idea?” by Kaya Webley, she illustrates through validations that student debt is a problem, but Applebaum’s proposal brings about political and economic problems. One of her validations is that most people can afford their student loans. She also states that only a small handful of graduates leave school with an unbearable student debt. Webley touches upon programs that are already in place to help pay off college debt. Another one of her validations is that the bank does not care if the student can not pay the student loan, the banks will get the money one way or another. In addition, because of the banks colleges have no motivation to lower tuition. Lastly, she writes about

Each semester the student loan debt increases, and the scary part is that in some cases students will never be able to pay off their debt. Previously, young people would attend college to increase their chances of success in the future; however, now a days it seem like it is more of a financial burden than an investment for the future.{If something is not done to manage the increasing student loan debt, the economy as a whole will also fall into a financial crisis}. Something needs to be done about the student debt in the United States. A proposal should be done to insure that the number of students who fall under student debt have a way to come up from it without the struggle of increase interest rates and a bad credit score. Student loan debt is increasing every year, and some students don’t understand the burden that could come from borrowing money to pay for college. Student loan debt is not just harming students, but also families and the United States economy as a whole, a solution to this problem would be to cancel student loan debt.

An estimated 20 million Americans attend college each year, and 60% of those students borrow annually to pay for it (qtd. in asa.org, “Student Loan Debt Statistics”). Moreover, citizens continuing to pay off debt after schooling brings the overall number of student-loan-borrowers to about 40 million- with a collective 1 trillion dollars in debt (McCarthy, “10 Fun Facts About the Student Debt Crisis); a fourth of these borrowers owe over $28,000, a tenth owe over $54,000, 3.1% owe more than $100,000, “and 0.45 percent of borrowers, or 167,000 people, owe more than $200,000” (Haughwout, “Grading Student Loans”). While some view this predicament as the result of laziness or carelessness, the bulk of this substantial group are not at fault.

Student loan debt is becoming more and more of a problem as time goes by. Evidentially, it is only its interest fee that student loan debt is becoming known for. According to Student Loan Hero, “Student loan debt is mostly for four-year or graduate degrees (“Student Loan Debt”). Student loan debt does have effects to people’s lives, but only because they allow it to build up from not paying it. Student loan debt is not something people has to live with, but it is what they choose to live with it can be taken away nothing is permanent. Most people do not understand what Student Loan Debt really is, and the confusion it brings in people’s lives need to be distinct; this problem can simply be done by colleges protecting students from going into debt, and loan company’s should allow them eight years after graduation before putting them into debt.

With the 2016 presidential election looming in the near future, the subject of student loan debt has become a major issue on the campaign trail. The national amount of student loan debt is 1.08 trillion dollars, with 11.5% of that amount in default or in 90+ day delinquent. To put that in perspective, total consumer debt at the end of 2013 was 11.52 trillion .(Forbes, 2014) According to an in class poll, only 7 students out of 169 students were completely confident in their knowledge of student loans. However, if we had lower tuition and expenses students wouldn’t have to take a loan out in the first place.

Tuition and student debt at colleges and universities in America have been rising far more quickly than inflation for over four decades. This is a trend that will continue without intervention. Student debt drastically affects students’ lives and decisions from getting married, to buying home, or to starting a business. The amount of debt held by students after graduating not only negatively affects the individual, but the economy as well. Loads of economic activity is currently halted by students working to pay off their loans. This is a consequential problem and the increasing number of student debt in America must be addressed.

Students High in Debts Crisis "The only good thing about student loans is that the day I die my children will not have to pay for them” (Block). The problem with everyone not being able to go to college is the cost of it. Many High school graduates don’t even think about going to college because of how crazy expensive it is. Many students drop outs later on due to not being able to keep paying and the ones who do graduates struggle in paying off their student loans for years.

Many families have been left with few options due to the enormous obstacle placed before them. These problems have deterred many aspiring college graduates, some are left too afraid of the price tag associated with higher education to complete their education. And for some even begin it. Good paying careers are the major push for college education however,  "The bar is getting higher for well-paid jobs, with most requiring a college degree..." (Biola and Rodriguez 5-6 ). This leaves America's youth with a decision that should not be as hard to make as it actually is. Is the risk of staggering debt in their future really worth it when they have seen others before them struggle to find good work even with a degree? With all of the talk of high tuition up to the national level many critics have decided to add their two cents into the debate. In "Democrats' loose talk on student loans", the author points out that, "44percent of students at two- and four-year institutions do not borrow at all," (paragraph 2) While this is a factual statement, having 44% of college students not borrowing money is nothing to sneeze at. Despite the fact that the number is smaller than what one would normally expect it does not make the effect of student debt any less important or devastating in some extreme situations.  The author continues by stating, "And of those who do, 59percent borrow less than

Debt is a major issue most college students face throughout their pursuit. Both during and after college, multiple student/ graduates have outstanding loan amounts that could take a lifetime to pay off. Many of them wonder if college is actually worth the time and the degree. This has become an issue for a lot of students because in return they become less motivated to continue. In order to make this least likely to happen, their future payments could actually be broken down from the amount to the years they be paying towards. Once this is taken in affect, they could also raise the budget amount given to the students. Just the slightest increase could increase the success for future students.

According to CNN, “Almost 19% of student loan borrowers owe more than $50,000.Only 6% of borrowers had that much in 2001.” (Gillispe, 1). Why has student loan debt increased so much? Student Loan debt has become a national problem with no solution. Many students are borrowing more money to keep up with the rising cost of tuition in universities, leaving themselves with thousands of debt after graduation. Students after gaining this debt, have to find jobs to support it which can come at a challenge after the financial crisis of 2008. So there stands a problem between students having massive amounts of loan debt and getting jobs to pay this debt off. Advocates or liberals think forgiving this debt is a good idea, while opponents or conservatives think it is not even an option. This essay will focus on the controversial topic of forgiving student loan debt and why something should be done about the massive debts graduates have. It is important to first look at the history of student loans and how the student loan crisis came about in order to understand the controversy.

Over the preceding few years, there has been a swift surge in the level of student debt in the United States. Student debt has now exceeded credit card debt in order to become the second largest volume of household debt only lagging to mortgage debt. (Figure One) The idiosyncrasy that makes student debt stand out from other types of debt and liabilities is the fact that it cannot be resolved via bankruptcy. A consequence of this is the financial burden that an individual will have until the burden is repaid. This financial burden will not only affect individual economic outlook but also on the whole United States economy. Currently, more than forty million people in the U.S have student debt that totals $1 trillion. (Dynarski) This upsurge

Taking out student loans is a common practice for many countries, but the US has the most borrowers behind on their loans. This is because other countries have established student loan systems that are more manageable, working with students to make repaying the loan as painless as possible. The biggest issue is the repayment system, which in the US has not been modified at all, and as a result have taken what should be minimal debt and turned it into a complete calamity for most students. The student loan debt crisis could be better managed if the United States updated its every outdated repayment system. This is because the US system “… was built when students borrowed little; many did not borrow at all” (Dynarski). While everyone else has altered the borrowing system to fit student needs, the US has not, and students and the economy are paying for

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.