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Effects of rising cost of college tuition
Effects of rising cost of college tuition
Effects of rising cost of college tuition
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Many people ask themselves, “should college tuition be free”? If universities had no tuition, it could turn out to be very problematic and it’s somewhat impractical, but what the people should be asking is how to reduce college tuition to more realistic costs. Tuition is getting completely out of hand, for what reason? Plenty of students are suffering and it is something all of us must take into consideration. Everyone should be extremely concerned with today's student loan debt crisis because of the immense growth in tuition overtime, which lead to major debt increase, then ultimately negatively impacted the student’s availability of achieving certain life goals as a result. With tuition on the rise, so has the bigger burden put on the average person. Most college graduates are leaving school owing more than $35,000 and many (nearly seven million) have defaulted on their student loans. With these outrageous amounts of money being owed, mental health could be an extreme factor in here, as well. Patty Lambert, author of Depressed About …show more content…
Students are in a panic, wondering; “How can I pay off my student loan debt?”, “How much student loan debt is okay?”, “How long will it take to pay off my student loans?”, etc. The price of college has increased while the inflation has not kept up. Therefore, the middle and lower class have been crippled in debt. According to the article 6 ways your student debt hurts (and helps) the Economy by Elyssa Kirkham, about 44 million Americans are putting a large chunk of their paychecks to pay off their student debt. This affects the economy by that they are not able to purchase a home, cars, and other economy boosting goods or services. They will have less money and be much less likely to start their own business, save or invest. These student debts not only cripple the individual, it is crippling our
Martin and Lehren’s article “A Generation Hobbled by the Soaring Cost of College” addresses the issue faced by current and former college students dealing with large amounts of debts due to student loans. The article presents the reader with stories of former college students who have either graduated or dropped out, and their struggle to pay off their student loans. The article also talks about issues such as students not being informed about high amounts of student loans and why student debts have increased. Martin and Lehren also make the issue of student debt more intimidating by giving examples
Mark Kantrowitz indicates in his article, Why the Student Loan Crisis Is Even Worse Than People Think, that “Student loan debt is increasing because government grants and support for postsecondary education have failed to keep pace with increases in college costs”(Why 1). This means that the government no longer covers for college tuition fees. College graduates are 20% more likely to work at a job that is outside of their major by the debt they are in. Kantrowitz also mentions that “students who borrow to attend college, it appears that more than a quarter (27.2%) of them are graduating with excessive debt” (Why 1). In reality, leads to student saying that the financial cost was worthless, ending up with a job that is especially not what they went to school
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 on the government to forgive their student loan debts so that through their spending the slowly recovering economy can finally return to its pre-2008 strength.
The debt associated with higher education is one of the biggest factors of deterrence for most people who are interested in college, and it is not at all surprising. 71 % of college seniors who graduated last year had student loan debt, and the average debt for a college student with a four-year degree is $29,400.This number has gone up an average of 6 % each year. Keep in mind that this is just the average debt, and there are students who are in debt upwards of $30,000 dollars (projectonstudentdebt.org). Now in order to understand why the debt is so high it is best to break down the different costs of higher education. The first and most important of which is tuition.
This causes many students to consider taking out private loans both subsidized and unsubsidized to cover the remaining balances. According to the WhiteHouse.Gov, “As a result, more students than ever before are relying on student loans to pay for their college education. Today, 71 percent of students earning a bachelor’s degree graduate with debt, which averages $29,400.” It seems virtually impossible for middle or lower class families to put students through college without accumulating an overwhelming amount of
The student loan "debt has passed $1 trillion... Nearly 20 percent are in default on their student loans" in the United States. Many schools and jobs encourage students to further on their educations but how could students keep up with the total cost of college? Ironically, a strong educated workforce is what will help maintain America in shape but college prices have been going nowhere but up. This can create a strong effect on many of the younger students thinking about attending college, "today 's teenagers might be experiencing more and more "financial anxiety" and aversion to debt than previous generations."(Jake
In that year, the number of college graduates was only 432,058 (Sourmaidis) and ever since the demand continually increased as did price. This trend allowed for the student loan crisis to occur, which is a problem we face today. As of 2016, American students have accrued a massive 1.3 trillion in student loan debt. Just 10 years ago, the nation’s balance was only $447 billion (Clements). This ever-present cumulative burden has caused many post graduate Americans to delay important life events such as marriage, homeownership and children because of this substantial encumbrance (Clements).
When it comes to a college education for someone, price is usually the first thing that interferes and can lead to many other problems. In the state of Tennessee, free community college has been in effect for the past few years and has been successful for them. In an article found in the Huffington Post, Snyder writes “Republican Governor Bill Haslam instituted Tennessee Promise in February 2014, making the state the first in the nation to provide free community college.” This “shows us the first state that provided free community college.” After this state acquired free community college, it became a hugely controversial topic for other states. Some people say that community college should not be free because of the rise in taxes. this is stated by trade-school. “The government would take in a lot of extra tax revenues”. Others say that all community colleges should be free because it will lower the amount of students that go in debt because of
Today in the United States two thirds of graduating students leave colleges and universities with student debt. The Institute for College Access and Success began an initiative called “the Project on Student Debt” to estimate just how much student debt has been accumulating over the years. What they found was that the average student will graduate with $26,000 in debt and in more extreme cases, over $100,000 dollars in unpaid loans. These numbers have serious underlying implications, not only for student borrowers and their lenders but rather the entire national economy. With more than a quarter million graduating students every year, the national student debt has amassed to over $1.2 trillion dollars – or about 6 percent of the country’s total debt, and twice the size from 2007. While Americans already struggle to pay credit card and auto loan debts, the national student loan debt is larger than both, second only to mortgage loan debt. Those burdened by unpaid loans aren’t the only ones affected however, business owners, corporations and employees alike will be touched by the stresses a huge debt can put on an economy. As unpaid balances accumulate people will spend less money where they can. Consumer spending drives the economy; without it businesses will profit less, employee wages will be cut and loans will continue to go unpaid.
The student debt crisis led to most people not buying houses or other purchases to help the economy grow and develop. Student loans seem to perpetuate economic problems in many ways. Such as if student debt continues to increase the opportunities for young entrepreneurs and future graduates will be limited. A multitude of kid’s parents will tell them to do well and school so they can go to college for free. Most parents believe college is key to success in this society. Without these opportunities for these tremendous and hardworking students the chances for them going to college is slim. The student loans have been a sufficient payment to the government, but with it so high the money might stop coming to the government all together. With so many students scared of future loans the government could lose money. Even if more people accept the loans only 37% are paying on their loans today ("How Student Loans Could Cripple the U.S. Economy"). With no payments coming in and the future of less money, the economy may weaken and the country will slowly sink into more
The cost of college tuition continues to increase each year. If this keeps increasing the way it has been, students will be indebted the rest of their life. Author of “The Looming Student Loan Crisis”, Jackson Toby states that student loans have increased along with the increase of tuition costs. In 2004, the average unpaid student debt was approximately $18,650...
Student Loan Debt is a massive problem in this country, and it is something that needs to be figured out. Nearly 40% of Graduates under the age of 25 have student debt. That number has climbed 26% since 2004. The average student loan debt in the country is $26,600. That is a lot of money, that could be used in many better ways by the young minds of the U.S. Not only that but when leaving college it is becoming harder to find a job. College graduates under 25 years old have a 9% unemployment rate. There are nearly 2 million college graduates that do not have jobs right now. So not only do they have massive amounts of Debt but they don’t have any way of making the money to pay it off. However student debt would not be as much of a problem if it weren't for the cost of tuition going through the roof.
Many young adults say they are upset about the rising price of going to college. There is a little dispute today that the number of students who have debt has increased, and the amount of money that they have borrowed has gone up. Many students incur large amounts of debt that they will never pay dividends higher wages or greater job satisfaction, and they graduate into a world with poor employment prospects.
I’ve routinely seen estimates that two-thirds of students take out loans for college. The New York Times, however, conducted an analysis that concluded that 94% of students who earn a bachelor’s degree borrow. That’s up from just 45% in 1993.Only 7% of students at public colleges and universities graduate without borrowing while only 5% of grads at private schools can pull off this feat. The average debt is $23,300, but 10% of students borrow more than $54,000 and 3% borrow more than $100,000” (O'Shaughnessy 1). This number is increasingly high compared to what many people think. People do not realize how much money is actually borrowed in order to complete
Depression, regret and failure. The culture in our society today is encouraging students to set unrealistic expectations. College tuition in 2005 was $17,233 and now in 2016 it’s $44,740. College is more expensive than it’s ever been before and it’s going to keep increasing in expense. Which means debt will keep growing.