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Effects of student loan debt essay
Effects of student loan debt essay
Effects of student loan debt essay
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Is Debt Driving Recent Graduates to Move Back in With Mom and Dad?
The growing total student loan debt in the United States has many experts worried about the future of both higher education and millennials entering the work force. In 2016, more 18-34 year olds moved back home than ever before and the total student loan debt market crossed the $1.4 trillion mark. To combat this, many students have moved home after college to cut costs and get a head start on loan repayments, but is it the best decision long-term?
Saving Money
The obvious reason many millennials are moving home is to save money. Recent graduates with jobs near city centers will likely find it cheaper to live with their parents in the suburbs than to try find a place to rent
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Students who did were seen as irresponsible or unable to make their own way. Nowadays, many parents welcome their children back home. Seen as a fiscally responsible move by some, graduates who spend a few years at home try to put more money towards their first home, marriage, or a larger move in a few years. Student Loan Debt One of the largest drivers of graduates moving back home with their parents is rising student loan debts. After college, many graduates are immediately on the hook to start the repayment of their federal student loans. While some loan programs offer deferment, graduates who are unable to find a job immediately after completing a degree program may find themselves moving back home to reduce their expenses and to start paying back their loans. Is Moving Back Home a Smart Choice? One study shows that student loan debt is not a reason to move back in with mom and dad. The federal student loan program in the US anticipates a 10-year repayment program for loans issued to students pursuing a bachelor's degree. In reality, repayment times are often closer to an average of 21 years. As a parent, it may seem novel to have your millennial move back in with you to help them start the repayment process, but you may actually be preventing them from pursuing better
Many people would agree that our country’s young adults have and continue to incur a lifetime of debt by enrolling in college. It’s become an almost acceptable understanding that if you plan to attend college, you might as well expect to graduate with an enormous amount of debt. Robin Wilson, a reporter for the “Chronicle of Higher Education,” and author of “A Lifetime of Student Debt? Not Likely” suggests student loans are very real and can be life altering.
If you are not paying completely for your college tuition, then your parents are helping and or you took out loans and eventually have to pay them back. Seeing how most college freshman are 18 or even 17, means you do not have much money saved if any at all and your parents are stuck paying for everything you need, going to college for more than four years or even at is going to cost you, or should I say your parents. Undergraduate loan borrowing crossed the $100 billion edge in 2010 and aggregate loans surpassed $1 trillion U.S. dollars a year ago. “This (student loans) increase has put a disproportionate burden on students and their families—hence loans. The median household income for a family of four is about 24,300 in 1980, 41,400 in 1990 and 54,200 in 2000. In addition to the debt that students take on there are few statistics on how much parents pay and how they pay it” (Williams 2006). It's not advanced science. It's the economy, Undergraduates and laborers looking for more schooling are obtaining lots of cash through government and private advance projects to help take care of the continued raising expense of school and preparing for careers. Much of the time, parents in charge of the undergraduate loans are in or are close to
For many young people, the idea of moving is absolutely forbidden. Why would anyone want to start over, again and again, having to make new routines, meet new people and somehow learn to accept that you won’t be with your friends anymore? Most of us would rather avoid the topic all together, but occasionally, it can’t be helped. People move for many reasons; maybe a tragic event occurred that needs to be escaped, maybe job opportunities popped up, or a job itself even requires the move.
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.
When you graduate from college that is the time you start your life but many are not able to. Some people want to get married or start a family but cannot afford it at the time. By the time they receive their first check they instantly have to start paying their loans back. They are not able to afford rent/mortgage, utilities, or transportation because of it. Mishory O’Sullivan and Invincible (2012), “Found the average single student debtor would have to pay close to half of his or her monthly income toward student loans and mortgage payments. As a result, he or she would not qualify for an FHA loan or many private loans” (Elliott). A Survey ASA did on college students stated, “Student Loans were created to be an engine for social mobility, but they are, in fact, limiting young people’s ability to achieve financial success” (The Impact of Student). A student graduate mentioned, “Student debt weighs on every decision I make from
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
As people of many ages wish to further their education outside of high school, they tend to take out student loans in order to fulfill this wish since the large tuition payment is not in their budget. Paying for an education that presents a degree seems easy to many by taking out large loans to pay for their education. Recently, student loans have challenged the economy of Americans. Education is perceived as a necessary expense to many, in which they do not mind putting a burden on the economy for. Many people believe those loans can be paid off in a matter of a couple years. However, this idea is misguided as many people do not pay their student loans off until their early forties.
College debt is a universally known issue that remains one of society’s largest burdens today. Over the past ten years, high school students and graduates realized that they must seek a higher education in order to find a job that keeps food on the table. Attending a college or university is practically required in order to succeed in life today. Millions of people seek a higher education to pursue a degree, graduate, and acquire a quality job that supports their everyday needs. It often means a lot of money to pursue and earn a degree nowadays. What they don’t realize, is that paying their tuition and housing deposits is essentially signing a contract, costing them thousands of dollars in the near future and leading them down the dark path
When a student gets out of college the game plan is supposed to be, get a job in the field that you went to school for and make money so you can start your life. That particular situation is rare considering not all students get a job fresh out of college. For the students that don’t, they have to go back home and settle for a regular job and start paying off their giant student loans and put their life on hold. Even with having the job they wanted the student loans come right around the corner. After college is when the student’s life is supposed to start and the part where you get a car payment, pay rent, utilities, but none of that is possible when you add the enormous amount of money that the student will be in debt by. With the amount the students have to pay fresh out of college, more students are sacrificing more time struggling to pay off the student loans then they spent in school. Student loans are set-up in a way to be flawed and not always completely necessary to the student.
In today 's society, many young adults pay thousands of dollars to go to college to be able to get a good job in the future. However, as society continues to move forward many young adults are leaving their campuses with expensive degrees, while also still struggling to get a job. One of the things contributing to the growing risk of going to college is how increasingly expensive it is to go to school. Things like student loan debt are a major contributor to that expense. Casey Bond stated how “The growth of student loan debt is being compared to the recent housing crisis because of the significant growth of subsidized lending,” The primary goal of college used to about gaining new knowledge and becoming a better member of society. However,
Over the last few decades, college tuitions and fees have increased by over one thousand percent, surpassing every category associated with the cost of living including food and medical. This unprecedented rise in cost has resulted in an avalanche of issues for young and middle-age adults. As, a result of steep student loan amounts, graduates are being forced to move back with their parents, fewer young people are becoming homeowners, they are delaying retirement saving, and are dropping out of college at an alarming rate of nearly fifty percent. With all the controversy surrounding the topic of increasing college cost, the revised income-driven repayment program has been created to help borrowers pay back student loans according to their income.
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).
can just get through college and pay the loans off easily after they graduate since they will be
The number of young adults living at home has consistently increased since the recession, despite a seemingly improving economy (Shah, 2013). According to Lisa Wade, an associate professor at Occidental College in Los Angeles, CA, approximately 17% of young adults between the ages of 25 and 44 still live at home (Wade, 2013). There are several unrelated issues that contribute to this staggering number. When trying to live out on your own there is much to consider. If you are living alone, then all the bills are solely your responsibility.
Individuals in my generation that decide to go away for college may graduate with a degree, but they also graduate with debt and have a hard time finding work in their area of study. College graduates are young, and many may not have much experience in their field. It is a bittersweet option to go to college and further your education, I am all for it, but I am not for getting yourself in tons of debt, that will cause you to live your whole life paying off student loans and such. Which is one of the reasons why I chose to stay at home and go to community college, I’m saving money while still getting a great education. In earlier generations, people may not have felt that college was important because they needed a job to support themselves and their families.