Children of the twenty first century spend nearly 13 years in school, preparing for what is college, one of the only ways to achieve the so-called “American Dream”. College is the best way to start an advanced career and go further than one possibly could if college degrees were not available, allowing people to achieve their view of the American Dream; whether it be large houses, shiny cars, multiple kids, or financial comfort, college is the stepping stone to achieve the American Dream. But all great things come with a price, college dragging along debt. Students who attend college struggle to find ways to pay for it, leading to applying for student loans. These loans a great short term, paying for the schooling at the moment but eventually the money adds up …show more content…
and the students are left in thousands of dollars of debt to pay. This debt has to be paid off along with other expenses, making it extremely difficult for someone to get much further than their college degree. So, how does one overcome this roadblock to achieving greater things? College debt is one of the toughest forms of debt burdening college goers of the United States. People with the debt have an extremely hard time paying for everyday things or lifelong future investments such as homes or cars. Author of the CBS MoneyWatch article, Why College Loans are the Worst Debt, John Wasik, talks about just that and more. Talking about the debt, Wasik states, “[…] it’s nondeductible. Even worse, […] you can’t get rid of it even in bankruptcy. It will stay with most people for decades if they don’t pay it off […]” (Wasik). This factor hinders a fair chance for people with debt to achieve their American Dream; their debts hold them back and while they are paying the debt fifty years into their futures, they are missing out on opportunities that should feel normal, such as starting a family, buying a home or moving to a new place. Wasik presents this point when he says, “It prevents them from buying homes and settling down. […] they get burned even more by a damaged credit rating, which puts low-cost credit out of reach for those saddled with loans and other debts” (Wasik). Wasik finishes his poin by quoting a new report, “student debt is particularly damaging for individuals who struggle to repay their loans” (Wasik). Students who use the student loans are students who cannot afford college in the first place. So the students are having money stacked onto their futures when they couldn’t even afford the price in the beginning. The debt that students receive when using student’s loans is ruthless; because college is such a big thing in the American culture and it’s very difficult to have a secure future without receiving a college degree, it’s hard to walk away from college without owing if a student used loans. College debt’s biggest holdback is the fact that it’s extremely difficult to become a homeowner, or owner of any large ticket item, with the debt riding on one’s back. Because the debt has to be paid off in a timely matter or consequences will arise, people with the debt struggle to make ends meet and to succeed at their own American Dream. Lisa Prevost, author of the article College Debt and Home Buying, Prevost discusses the statistics between different age groups and home buying, saying, “While homeownership is down nationally since the housing market collapse, the drop among younger adults is particularly striking. […] Over the same period, student debt soared by more than 400 percent to top $1 trillion” (Prevost). This correlation is not a coincidence; college tuition is so expensive that it is very difficult to attend college without some sort of financial aid. So because students feel they must apply for student loans to get through college, they end up stuck with debt and this keeps them from being able to become home owners for example. A possible solution to the college debt crisis is to simply think more clearly when deciding how to approach college and how to pay for it.
In the article, “Is student loan debt really stopping people from buying homes?”, written by Jillian Berman, she discusses how being more cautious going into the college life will definitely benefit the student, quoting another author, “Instead students should be mindful of the cost and the amount they’re borrowing when choosing a school” (Berman). Berman goes on to quote, “[…] no, you should not skip college” (Berman). Because skipping college is a nasty idea in the twenty first century and could potentially lead to debt, it is a good idea to think of the smarter options when choosing a college to attend. Many students choose a college based off of if it sounds good or if it’s far enough away from their parents, and this most definitely leads to more cost, especially if a student decides to attend an out-of-state school and does not have the money. Choosing smarter and cheaper paths are the easier way to go when thinking of college. Not everyone, however, will decide to choose the cheaper path, so there are other things that could possibly help the financial
crisis. If students still decide to take out student loans, the article called “How The $1.2 Trillion College Debt Crisis Is Crippling Students, Parents and The Economy” written by Chris Denhart explains the smartest and safest way to do it. Denhart uses quotes from another author named Lauren Asher, saying, “’Federal loans are subject to income based paycheck, fixed interest rates, and take nine months to default on, making them a much safer loan for students to take” (Denhart). Because of this, students have at least nine months after a late payment before the loan will be defaulted, leading to bad credit score. The nine months gives the student time to pay the money without being penalized; this is not the same if a student were to choose private loans. Denhart explains, “private loans have done away with late fees, and in the fine print have redefined the right to claim default on the loan after missing a single payment. Default is a one-way ticket to bad credit” (Denhart). Because most college students are so young, a bad credit score is not something they need when pursuing a future in anything, whether it be a job or family. If a student must choose to use student loans due to personal financial problems, the smartest and safest way is to go through federal loans, not private loans. Years ago college was free, because it was seen as a public good. In a TEDx Talk done by Sajay Samuel, he discusses this fact and many others. Samuel mentions how a friend of his was able to attend college many years ago for free, but his daughter who just recently graduated now has a whopping debt. Samuel discusses the issue that higher education is now seen as a “consumer product”; it is something that people have to decide whether they want to invest in it or not. This is where the problem lies because now that college is seen as an “investment”, the debt students receive is now profitable. Samuel says the most beneficial solution to the college debt crisis is to know what one’s income will be after graduation. Samuel suggests linking up the cost of the major and the cost of the income received in that major and from there the student can decide if they are able to move forward. Samuel also says different tuition for different majors is the way to go. He discusses how, for example, and engineering student uses a large amount of resources at the college compared to a philosophy student. The philosophy is subsidizing the engineering student, and at the end of it all, the engineering student will end up being paid more in their field than the philosophy student. Evening out the tuition fees would make a drastic impact on student loan users and the amount of debt students receive. Of course the data has to all be put together in a correct manner, but on the surface and at the beginning, this may be the solution to put an end to college debt. Higher education is desired by so many students in the twenty first century; people aspire to achieve more and be able to experience but the college debt is intense. It is insanely hard to create a life outside of college if a student has debt to take care of. Stacking up the costs of college and the interest rates on student loans not only ruin the economy because of all of the students in debt, but it hinders so many lives in the process. It is time to think up a solution for this national crisis because it can only get worse if it won’t get better.
Martin and Lehren’s article “A Generation Hounded by the Soaring Cost of College” addresses the issue faced by current and former college students dealing with large amounts of debt 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 of high amounts of student loans students have had. The article gives a very hard reality check to anyone reading as to how bad the problem of student debt is.
The second chapter of this book advocates students to attend college, even if they must take on a moderate amount of student loan debt. They give statistics showing the tremendous gap in wages between a college graduate and a non-college graduate. The third chapter of this book argues the opposite viewpoint of the second chapter. The author states that the cost of college today is too high and that there are too many college graduates flooding the job market causing many of them to go unemployed or seek low level jobs that do not pay enough to pay off their student loans. Both of these chapters will help me to show the two main ...
In recent years, there has been a tremendous increase in student enrollment in higher education after high school effecting the need for financial aid for all students. Education has become a growing part in America where more students want to better their lives with a college education. However, the cost of college tuition has increased and more students find themselves struggling to pay off the enormous tuition rates. In a recent study by the Consumer Financial Protection Bureau, student debt has reached $1 trillion in federal loan debt. Student loan debt has crippled the economy and students are struggling to pay off federal loans. In order to help students with the high tuition rates of college the government and universities offer
Everyone knows that going to college and getting a degree is the most effective and guaranteed route to ensure a prosperous financial future, right? College is considered by most to be the best investment you can make in life, but what happens when that investment leaves you drowning in thousands of dollars in debt right after graduation day. This is the situation that millions of college graduates are faced with in 2016. Rising college tuition perpetuates student debt and is on a sharp incline and it seems to have no ambition of ever slowing down. The effect of this catastrophe is felt by millions of families across the country who now question, “is college really worth it?”
Today in America, “The average Class of 2016 graduate has $37,172 in student loan debt, up six percent from last year. $1.28 trillion in total U.S. student loan debt...44.2 million Americans with student loan debt”(U.S. Student Loan Hero, 1). We spend our lives working, learning, and trying to survive. In order to survive, we need to be educated. In order to be educated, we need money. To collect money, we need a good paying job. And in order to have a job, we need to be educated. It’s a large cycle that goes around in circles, and we can’t seem to find a steady way to help provide these things for everyone. While we all strive to make the best of every situation, money has become an issue, creating problems in many lives around the world. “According to the College Board, the average cost of tuition and fees for the 2016–2017 school year was $33,480 at private colleges, $9,650 for state residents at public colleges, and $24,930 for out-of-state residents attending public universities” (COLLEGEdata, 1). And it’s not easy to have a positive look on the American dream when our own president in spouting things like “Sadly, the American Dream is dead” (President Donald
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.
Employers consider a degree necessary for getting a job at their company. However, not many people can afford college. The solution is to take out loans, then college becomes affordable. These loans create a whole different issue, student loan debt. This can affect people their whole lifetime and has been happening for years upon years. But, in the more recent years America is starting to shed more light onto the issue and are becoming curious on why colleges charge twenty five thousand dollars, or more, for a year of education. Many different countries offer free college, but in America student loan debt keeps getting worse.
With tuition rising every year, students face the challenge paying the debt achieving a college degree comes with. “Student debt surpassed credit-card debt in June 2010 for the first time in history, rising to about $830 billion — or nearly 6 percent of the nation 's annual economic output”(Clemmitt, Marcia). Not everyone has a ton of money just laying around. Being that financial trouble is the biggest problem for students, they begin to question whether college is worth it or not. In recent years, students have taken out loans to help with expenses. Most students choose to attend a community and junior college to help minimize the debt. Even after graduating with a degree, students still face the struggle of finding a job in this economic time. For higher class families this may not be a problem to them. But for the middle class and low income families, they face tougher times being that they don 't have the financial help like higher class families do. For the middle class and low income families, it makes more sense attending a community and junior college rather than a four year university.
It is a norm and expectation in society today for students to pursue higher education after graduating from high school. College tuition is on the rise, and a lot of students have difficulty paying for their tuitions. To pay for their tuitions, most students have to take out loans and at the end of four years, those students end up in debt. Student loan debts are at an all time high with so many people graduating from college, and having difficulties finding jobs in their career fields, so they have difficulties paying off their student loans and, they also don’t have a full understanding of the term of the loans and their options if they are unable to repay.
Overburdening loans of college students is a mind boggling issue. According to Bigelow, “37 million current and former students in the U.S. are now burdened with a total of $1 trillion in student debt, and they are finding it difficult to reach the lifestyle they dreamed of” (1). This is an issue that will probably never be solved completely, but it can be dealt with. If it is dealt with in a proper way, it
Student loans are the bane of my existence. I graduated with $206k in student loan debt from undergrad and law school, and I’ve spent the last three years repaying my loans and the balance is now at $124k. There have been periods when I felt overwhelmed and didn’t know what to do. I didn’t know how I would be able to make my payments let alone get myself out of debt.
With the ever-increasing tuition and ever-tighten federal student aid, the number of students relying on student loan to fund a college education hits a historical peak. According to a survey conducted by an independent and nonprofit organization, two-thirds of college seniors graduated with loans in 2010, and each of them carried an average of $25,250 in debt. (Reed et. al., par. 2). My research question will focus on the profound effect of education debt on American college graduates’ lives, and my thesis statement will concentrate on the view that the education policymakers should improve financial aid programs and minimize the risks and adverse consequences of student loan borrowing.
A diverse array of arguments concerning the costly price of college and its equivalence to the ultimate result of attending persists along a vastly debatable spectrum of economic and social influences. Those seeking a better standard of living by the means of higher education often find themselves in conditions that are more adverse than their lifestyle prior to attending college. Efforts to dwindle the expenditure of college education have the potential to produce a heightened reality of the world, with intellectual knowledge as a pivotal key. The expensive cost and limitability of a college education has potential to invoke incentive to work harder in one’s studies; however, the cost can crush individuals enrolled, obtaining a college degree does not ensure employment, and an excessive number of individuals are hesitant to attend college in the first place due to the prevalent debt tied to its completion.
When college students finally graduate from college they are excited to apply what they learned in the classroom to their chosen fields. A vast majority of graduates find themselves facing student debt. This is a debt larger than students have ever faced before. America’s student loan debt has reached over a trillion dollars. This incredible burden weighs heavily on many millennials. The average student loan balance is in the five figures. This is enough to hold off on life’s milestones. The rise is college cost will result in a decrease in homeownership and hold back new businesses among college graduates in the future.
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).