With the rise of higher-education costs in the United States, student debt has grown to astounding levels. In her article, “Is Forgiving Student Debt a Good Idea” Kayla Webley explains the downfall along with some benefits of the government allowing students a one-time bailout. This idea was originally propositioned by Robert Applebaum in form of an online petition. It has made a few circuits around Facebook and other social media sites where it has gathered over half a million signatures in show of their support. It first made its appearance in 2009, and is still gaining momentum as of today. The petition proposed that if the government pardoned every students’ debt in America (which comes out to about one trillion dollars!), then these students …show more content…
government to have to pay back the choices of Americans. To help offset the amount of student debt, state governments should help encourage public universities to keep their tuition reasonable and offer funds to those universities to help prospective students in need. I heard from advisors that universities in Washington state are now trying to lower their tuition rates and specifically for University of Washington, are offering full tuition for students that qualify for FAFSA and show good academia. In Webley’s article, she suggests that the government should use the Income Based Repayment program to help loaners repay their debt based on their income. This is a fair way to allow lower income students to keep up with monthly payments, but this solution helps these students far too late. Students shouldn’t have to suffer from such high tuition rates that are out of their control, it is almost like students are being set up to be largely in …show more content…
Contrary, if the government does forgive debtors for one time, then the next and later generations will keep pulling out loans as their first choice in hopes of also getting a bailout like their previous generation did (Webley 131). Another problem with an all-out payout of student debt is the fairness of it. How would the government choose who gets forgiven? How far out in a generation(s) will the government be forgiving? None of these aspects would equally help each and every student, who all have many backgrounds and situations. Webley pointed out that paying off someone’s debt who has timely paid their monthly bill for ten years compared to someone who is often late with the same amount of debt, is not fair to those debt payers who’ve already dutifully paid so much towards their debt. So, it brings into question the fairness of those who are undeserving are able to get their debt all paid out too? Applebaum’s petition stated that if students were cleared of all debt, they would be able to return money into the economy much quicker, instead of having to put money directly into their debt payments. Although that sounds like a great idea, Webley pulls in a quote from an article written by Justin Wolfers blog Freakonomics explaining how uneven that idea would really be like. I think Ms. Wolfer’s example is very important and well
In the argument, Debate on Student Loan Debt Doesn’t Go Far Enough, author Robert Applebaum, graduate of Fodham University School of Law, asserts that excessive student loan debt should be forgiven after a reasonable repayment period and suggests this would stimulate the economy because former students would have more money to spend(Debate). He backs up this claim by introducing the Student Loan Forgiveness Act of 2012, contending that education should be a right that people of all classes can benefit from, and addressing both the individual and the economic drawbacks of student debt in the middle and working classes(Debate). Applebaum
In the essays “College Debt: Necessary Evil or Ponzi Scheme?” by Dale Archer and “Forgive Student Loans?” by Richard Vedder, the authors show their varying viewpoints towards college debt. Archer’s essay focuses primarily on the correlation between higher education and college tuition, especially describing the upper education and its downsides for average graduates and average students. He also provides a simple alternative for financially burdened students to obtain certificates from trade schools as a better choice in today’s education that involves going into the workforce (Archer 402-04). Vedder’s essay, on the other hand, lists the numerous altercations about the student-loan industry. He rationalized his essay in a succinct manner that tells his general audience that forgiving student loans will bring financial burdens on the federal government (Vedder 405-07). Although, both writers addressed the issue
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
One of the most common dreams of the student loan borrowers is, imagining themselves free from all the debts. This dream of yours can easily be fulfilled by opting for some effective ways to get your student loan debt forgiven.
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.
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.
Should student debt be forgiven? This question has been asked more and more throughout the years. There have been plans created to forgive student debt, and it has even been written about in popular magazines. For instance, a proposal has been made by Appleman to why student debts should be forgiven. In the short essay, “Is Forgiving Student Loan Debt a Good Idea?” by Kayla Webley, she illustrates that student debt is a problem, despite the political and economic flaws in Applebaum’s proposal.
Analyzing all points of view, a great amount of individuals ask themselves why should the government forgive student debts. When our national debt is already sky-high, giving money away (forgiving) will only up the bill our country already has, according to Debt to the Penny (2014) our current debt today is $17,858,510,713,719.34. Another huge concern is the possibility of higher taxes! Government has to find a way to recover the money some way right? Why should the debt free individuals
Does the amount of student loan debt have an effect on the economy? If so would forgiving student loan debt help lower the national debt or would it just increase it? According to Mary Claire Fischer, a writer for Kiplinger’s Personal Finance magazine, “two-thirds of students who receive bachelor’s degrees leave college with an average debt of twenty-six thousand dollars” (Fischer). This means that the average student debt has doubled since 2007 (Ross 24). The total student loan debt is $1.2 trillion with $1 trillion being from federal student loans (Denhart). This debt accounts for six percent of our nation’s $16.7 trillion debt (Denhart). Since student loan debt is such a big part of the national debt, if the student defaults on their loan then the United States tax payer has to carry the burden of the loan (Denhart). Students who are graduating with debt do have a couple of different options that they can choose from. There is a six month grace period after graduation to allow the student time to find a job and programs to try to help eliminate debt. “The Consumer Financial Protection Bureau estimates that one-fourth of the American workforce may be eligible for repayment or loan forgiveness programs” (Atteberry n.p.). The problem with these programs however, is that they are hard to get into and stick with.
Higher education costs have been increasing at a rapid pace, faster than inflation for the economy as a whole, for the past fifty years. It started in the 1960’s when the federal government passed the Higher Education Act to increase the amount of people able to afford and attend college. Regardless of the Unites States Government efforts to increase the affordability of college, federal aid programs have not risen to expectations due to the ever-increasing college prices. To lower the price of college, the government needs to cut back on student financial spending to go only to the lowest income families and create tax incentives for families to start saving up on their own.
Increasing college costs has proven to be a major issue for those who pursue higher learning. With institutions raising tuition and fees, students are forced to make life-altering sacrifices to repay soaring student loans. We have come to a pivotal place in history, where individuals have no choice but to minimize or delay important life decision’s such as moving home with their parents to save money, becoming home owners, retirement saving and forfeiting higher education. The impact of increasing college costs has become so severe that it is at the forefront of politicians, political agenda, inducing conversation and policies like the revised income-driven repayment program. The program proposed to help combat the effects of massive student loans.
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.
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). The debt will only continue to grow with neglect, so the most effective action to take would be eliminating the cost altogether.
To combat the skyrocketing costs of a college education, I have worked hard to save through odd jobs while juggling the rigors of school and community service. Unfortunately, the amount I have saved is nowhere close to the total amount I will need to pay for tuition. Accepting that reality has made me realize that attending a public, in-state college would allow me to graduate as debt-free as possible. According to the Federal Reserve, Americans currently owe close to $1.5 trillion dollars in student loans.
Fees and loans are too big of a load for young people to carry. A lot of students drop out do to the pressure of having to worry about all the loans they have to pay back after they are done with college. This should not be an issue to the student. According Iatham Emmmons, “Even worse, a large portion of students never receive funding at all due to the multitude of stipulations that must be adhered to in order to qualify for assistance. A major flaw in the current federal educational assistance programs is that the students’ parents’ income is used to calculate financial need” (Emmons 3). Even citizens who try to get help by applying for funding never end up getting it because they do not meet the needs required for the funding. Education should be p...