Student Debt Essay

There is also evidence to support the claim that graduate students are contributing to a substantial amount of the outstanding debt. The amount of graduate school attendees has risen since the collapse of the housing market in 2008. Many recent undergraduate students were unable to find work during this time. This lead to the increase of master’s degrees in the job market on the basis that historically, graduate degrees were much more attractive to prospective employers. This increase in graduate degrees should theoretically lead to higher earning potential, which leads to safer borrowers. Therefore, graduate students are given a much longer leash when it comes to federal loan limits. The government offers very little information on the loan

Mortgage lenders are forced to take into account all debt obligations when considering qualified mortgage applicants. This forces those, who would otherwise buy, to either rent or substantially lower their living arrangement expectations. Due to this, younger people are avoiding buying. According to the Census Bureau, between 2005 and 2015 the percentage of homeowners under the age of 35 plummeted from 43.3 percent to 34.6 percent. Granted, there could likely be several other factors contributing to this decrease. However, the National Association of Realtors released a survey that found 23 percent of first-time buyers said it was hard to save for the first down payment and 57 percent of those said student debt was one of the major influences in their

The fact is, these days the average student has to borrow money in order to obtain a higher education. However, the expectation of a college degree in the work place is only growing. To cut corporate costs, more and more human labor jobs are moving to technological and automated operations. As these non-technical jobs dissipate, the value and importance of a higher degree grow. Due to the ‘inelastic demand’ of a college degree and decreased institution funding, the costs of the degree are growing as