Student Loans In America

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Student Loans in America The problem of student loans in America is increasingly becoming more urgent. Collectively, US citizens owe 1.2 trillion in debt from student loans alone (Wegner 750). The amount of student loan debt has even surpassed that of credit cards. As college graduates are weighed down with debt, they are unable to make major life decisions, including buying a house, a car, or having kids. In just a 10 year period between 2005 and 2015, the percentage of homeowners under the age of 35 has gone from 43% to 34% (Wegner 750). Graduates are also less inclined to start their own businesses, in favor of safer jobs. The problem with student loans is hurting the country economically and socially, and will eventually cause huge problems …show more content…

They are a halfway fix to a nationwide problem. An organization named Kaleidoscope aims to provide students with grants. The company’s goal is to provide students around the country with more than $1 billion in grants and scholarships. 90% of first-generation students don’t graduate on time as a result of having to keep up with full time jobs while in school to pay off student loans (Carter). The creation of more companies like Kaleidoscope, who can provide high school student with grants, could greatly help the student loan crisis. It is in many millennials best interest to apply for as many scholarships as possible, before taking out loans. For students receiving cheaper tuition due to scholarships, it is more likely they will graduate on time because they are working fewer hours to pay off student loans, thus giving them more time to focus on academics. Providing with more benefits like this will also encourage high school students to work for better grades to receive better scholarships, thus high school graduates will have a better …show more content…

The average yearly tuition for public schools in 1988 was at $3,190, adjusted to 2018 dollars. In 2017, the price is at $9,970 (Martin). These prices are increasing much more rapidly than consumer goods, food, or medical expenses. Why is college becoming so costly? A college degree is becoming more and more of a necessity to live comfortably, and students are encouraged as early as grade school to seek out a baccalaureate. Universities are aware of this, and take no shame in taking advantage. As schools are marking up their tuition costs rapidly, they are still flocked with applications, to the point where many colleges are picky with admissions. If congress placed limits on how much public universities can charge for yearly tuition, or tied the rates of tuition increase to the rate of inflation, the student debt crisis would slowly improve. Some states have even implemented free community college, including Tennessee, Oregon, and New

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