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Controversies on rising college tuition
Effects of rising tuition costs
The effects of rising tuition
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In our society the overwhelming student debt puts graduates in a position where they feel financially trapped. While attending Going to college, it is common for students to take out loans due to the increasing price of the tuition. These loans often weigh down graduates as they find jobs; they assume these jobs will easily pay off their debt over time, but this is not the case. According to U.S News, the average student loan debt coming out of college approaches $30,000. The average income of one quarter of students who graduate is $40,000. When the average cost of living in the U.S is $20,000-$40,000 a year, it makes it very difficult to pay that debt off. Inflation is one of the leading causes as to why student loans are increasing, …show more content…
I believe this approach is fundamental to begin social change, however I object as to say that action does not only start by leaders being leaders but by people developing their conscious as well. At times it is the leaders who want action more than the people do, and the people are not always willing to meet them …show more content…
The only way student loans problem could be fixed is by stop raising tuition costs at the stake of students best interest and not the economies and inflation. Inflation is affecting the whole economy; the price of gas is increasing, the price of houses, property value, basic commodity items etc. It only makes sense for tuition to increase as well; however, again it should not because the focus should be on students receiving their education, not making a profit of it. Its very easy for the university system’s to want to raise tuition and follow inflation, but the hard thing is keeping tuition and cost low for the biggest investment yet. Students are the future, and when they have to worry more about debt and finances than actually receiving their education it is not helping the future of the world. Bernie Sanders is an example of a great leader of social change with student debt. His focus is to make tuition free at public college and universities, stop the federal government from making a profit on student loans, and cut student loan interest rates. What makes him an exceptional leader is that he focuses on action with the best interest being that of the people. His best interest is creating a government that serves the people, not one that goes with the best interest of profit and that of
As McArdle points out, the cost for a college education has gone up over the years, leaving students in debt. I agree with this statement, because a college education was more affordable years ago and now it has doubled it’s cost. According to the article, McArdle states “The average price of all goods and services has risen about 50 percent. But the price of a college
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.
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.
Doyle states in his article, “As of this writing, the total amount of outstanding student loan debt has been estimated at $960 billion (Kantrowitz, 2011).” Right now, there is only 7.4 billion people on earth, but not all of those people are in debt. So, massive debt with not near enough people to even cover the debt on the whole planet put this issue into perspective. Many people talk about applying for scholarships but scholarships can only cover so much of the price, and even then, the scholarships aren’t guaranteed. Now what about paying off the loans? How will that take? “First, incomes vary tremendously across different choices of majors and professions. Second, the incomes of individuals starting out in the labor market vary according to the state of the labor market at that time.” There are many different factors that go into this process. As stated in the previous paragraph, those who do both work and school are more apt to pay their debt off at a quicker pace. But, how much they make and how often they paid is another contributing factor. If the average college student is making minimum wage (part time) and is going to an in
Student loan debt makes up a large portion of the debt in this country today. Many defaulted loans are the demise of high interest rates, poor resources to students in educating them on other avenues and corruption in the governmental departments that oversee education and financing. There are many contributing factors that lead to the inability to pay off student loans which need government reform to protect the borrower’s best interests.
Most people today accept the debt that comes from college. Students consider student loan debt as a “good debt.” They see other students make this mistake but follow their path anyway. Nearly 80% of college-bound students have not projected the total amount of money they will need to graduate college.
That is five thousand dollars more than previously. Five thousand in only four years, mind boggling. If a student wanted to pay off that amount in ten years, it would be $167.36 a month, versus in 2012 it would have been $116.05. Many students and their families live paycheck to paycheck, and they do not have that money to spare each month. The increase in price will hurt more than it would help.
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.
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.
“More than 44 million Americans collectively owe over $1.3 million in student loans” (the best schools). Debt is continuing to increase as time goes by. If unable to pay off your student loan it will not just go away. “ 96% of college students are determined to finish college, only 46% feel they have the financial resources to stay in school.” Student loans are not the only way to go to college, but they are a good way to go into debt.
In twenty years from now, I will hopefully have children and a wife. A family can be a large financial burden, so planning for it ahead of time could save me from struggle and grief later on. If I go to a less expensive community college and then transfer to a university for a Bachelor’s degree, I could save money compared to just going to a university for four years. With a small student debt, I should be able to focus more of the money I earn on my family’s needs. Children can incur many unexpected costs, so it is important to be prepared for them.
The problem with this is why should the people who do not pay their loans receive forgiveness and the people who do, do not receive anything? If the government just starts giving money to the poor they become reliable on the government. Now it is not all the governments’ fault it was a choice that was made by an individual. Must students today will not own up to their debt, instead they will whine hold
Introduction Followed by home mortgages, student loan debt is the second largest type of consumer debt. It has been shown that taking out a student loan to pay for higher education is a good investment because it provides numerous economic and social benefits for graduates (Insler, 2017). Attending a college is not inexpensive, but many people feel it is the best way to obtain a good job especially with a degree in business. There is much concern about the amount of student debt loan that people have and this amount is predicted to increase as the costs of higher education are ever increasing. This is resulting in a greater number of bankruptcy filings and more people defaulting on their student loans (Insler, 2017).