Students Dowing in Loan Debt

Student loans are money a person borrows for school and must repay with interest. There are thousands of students taking out loans in our country every day, some from private lenders, others from the government. Since 1996 our student loan borrowing has jumped 40% in the last decade. (StudentLoans.gov 20 March 2014). Studies show that student aid debt has been growing steadily from 1996 to 2009. A 2010 survey, forty five percent American families hold student loan debt. College tuition and fees are growing at a constant rate. The cost of college requires students to take out loans to pay fees. However, what they have to pay back is often more than the degree is worth in terms of income.

The cost of college has increased by three hundred and seventy five percent, but house hold income has raised only one hundred and twenty seven percent. The government continues to tell student to pursue education and society believes that education is the best way to go. However, the value of a college education, based on earning potential, after graduation, is falling. Based on research, some students are intimidated by the amount of money they will eventually have to pay back. Studies also show that college graduates are moving back in with their parents because the jobs they can get do not pay enough for them to pay to live and pay off their loans (Reed, Curtis “students in financial crisis.” 8. 27 February 2008).

However, congress passed a law on August 2, 2011 that raised the ceiling on the amount a student can borrow. In an attempt to help more people afford college. High college tuition rates have prompted concerns that a college education may be an unattainable goal for some. But those loans must still be repaid. This creates a huge bur...

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...her paying jobs and can bring families and communities out of poverty. Can innovate in businesses because more will compete for jobs, so only the best people will be selected for given positions. Higher levels of thought in college promote entrepreneurial culture which create new jobs and growth of the economy.

However, canonical counseling, reform bankruptcy, and if they have with a private student loans, they can demand flexibility and protection from the bank, the best solution for everyone is to support additional federal legislation. Congress has enacted new protections to raise student awareness about private loans, including disclosures of loan rates and terms; colleges have also taken steps to help find alternatives to private borrowing and reduce reliance on private loans, such as increasing institutional aid and providing financial aid literacy.