The government is literally telling students that regardless of the variability of their income – or if they even have one at all – that they must pay back their loans. Now, how exactly is a student supposed to pay the government back when they may not even have a job? Why should students be punished for being unemployed because the economy might be experiencing a recession? The government’s predatory-like approach to having students repay their debts is asinine to say the least. The government should be trying to alleviate the problem instead of merely blaming it on students.
Although many people would argue that perhaps students shouldn’t have attended such an expensive school or should have obtained better grades in order to find a good
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After graduation, most students go into the workforce where they help increase economic production, whether it be by working for a company or starting one of their own. In fact, in a study conducted by the University of Colorado, Boulder, it was discovered that college graduates not only lower the unemployment rate, but they also contribute more to society. Of course, aside from economic benefits there are also societal benefits. In addition to lower crime rates and greater social mobility, greater civic participation is also one of the positive consequences (Kent Hill et al. 2005). Therefore, the government should readjust their stance on student debt by correcting decades of financially oppressing …show more content…
With more students unable to repay their loans with each passing day, the default rate will continue to increase until a great enough number of students default, at which point the tax payers will be forced to bail them out. In addition, there might also be a social regression. A report conducted by Stanford Progressive editor Michael Albada found that as the number of people who pursue higher education decreases, the less competitive the American economy becomes. That is due to the overall decline of labor capital for competitive jobs that require a higher education such as doctors or lawyers. The fewer people who go to college, the scarcer important positions in society will become. Fewer teachers might lead to a continued decline in education, fewer doctors might entail a deteriorating health care system and so forth. Society will experience an intellectual decline and although that would certainly assist alleviating the student debt crisis, it would only prove to be detrimental to the
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
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.
Over the past decade, it has become evident to the students of the United States that in order to attain a well paying job they must seek a higher education. The higher education, usually a college or university, is practically required in order to succeed. To be able to attend these schools and receive a degree in a specific field it means money, and often a lot of it. For students, the need for a degree is strong, but the cost of going to college may stand in the way of a successful future. Each year the expense of college rises, resulting in the need for students to take out loans. Many students expect to immediately get a job after graduation, however, in more recent years the chances for college graduates to get a well paying job isn’t nearly as high as it used to be. Because students can no longer depend on getting a job fresh out of college, it has become harder to repay the loans. Without a steady income, these individuals have gone into debt and frequently default loans. If nothing is done to stop colleges and universities from increasing the cost of attending their school, the amount of time it takes for students to pay off their loans will become longer and longer. The extreme expenses to attend a college or university may leave a student in financial distress: which may ultimately lead to hardship in creating a living for them and affect the country’s economy.
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.
Imagine stepping into the halls of college, filled with dreams of a promising future, only to be met with the harsh reality of overwhelming student loan debt, as shared by individuals like Philip Rogers and Chloe Peterson. In recent decades, the landscape of higher education in the United States has undergone significant changes. The cost of college tuition has skyrocketed, far outpacing inflation rates. This trend has led to an unprecedented surge in student loan debt, with graduates facing substantial financial burdens upon completing their education. Additionally, job prospects and median salaries have not kept pace with the rising costs of education, exacerbating the challenges faced by recent graduates in repaying their loans and achieving financial stability.
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.
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.
In an article written by Andrew Lehren, the author provides the bold statement that “the only thing worse than graduating with lots of debt is not going to college at all” (Lehren). In today 's society, many families lack the funds to provide a full ride for their children in terms of college. Due to this fact, many people turn to alternate solutions such as loans or diving straight into the workforce instead of attending college at all. These solutions, however, may greatly affect a person throughout the course of their life. The problem of college debt is increasing rates in regards to tuition, however, fortunately there are various solutions accessible in order to decrease or eliminate the debt that many american students face.
Daniels Jr.’s editorial regarding college student debt, it is clearly stated that college student debt is known as one of the biggest financial burdens on adults in the world today. In fact, “After tripling in just ten years, college debt totals more than $1.3 million” (Daniels 2*). That is more money than credit card and auto loan debts combined. Daniels illustrates this fact with pathos, drawing out the seriousness of the situation and the effect on the national debt. A solution for college student debt is almost immediately introduced following the presentation of facts. Daniels introduces Income-Share Agreements, which is a program under which, “A student contracts to pay investors a fixed percentage of his or her earnings for an agreed number of years after graduation, offer a constructive addition to today’s government loan programs and perhaps the only option for students and families who have low credit ratings and extra financial need” (Daniels 2*). Here, Daniels approaches the situation by persuading his audience to understand the seriousness of the situation, and open their minds to this idea of controlling how debt is paid off so that the effects of it are not detrimental to the student. Daniels concludes his editorial with an emotional appeal, stating that without implementation of the ISA, student debts will continue to rise, thus hindering not only their life progression, but the progression of the country’s
The higher education system (or lack thereof) is not serving the country and its citizens. The increasing number of admission standards, exponential tuition increases, the financing of the cost through loans, and the boasting of turning students away all contribute to rising disparity between the quality of education that upper class families can afford compared to lower and middle income families. The rising costs of higher education in this country are problematic in that they fuel a disparity between economic classes. Capitulating the problem is the amount of debt college graduates have accrued at the time of graduation. The Institute for College Access and Success (2013) reported that 70% of graduates had and average of $29,400 of debt. This number primarily focuses on non-profit and private institutions. The average annual salary of a college graduate is $57,616 (United States Department of Labor, 2014). So many college graduates have accumulated a debt worth half of what their starting salary may end up being. The Institute for College Access and Success (2013) reported that 20% of that debt “is comprised of private loans, which are typically more costly and provide fewer consumer protections and repayment options than safer federal loans3” (p. 1). This is an oversimplification in that it is looking at a very general population. Based on the degree and the subsequent employment, income will vary as does the institution attended and the student’s economic status affect the overall individual debt.
The student debt crisis led to most people not buying houses or other purchases to help the economy grow and develop. Student loans seem to perpetuate economic problems in many ways. Such as if student debt continues to increase the opportunities for young entrepreneurs and future graduates will be limited. A multitude of kid’s parents will tell them to do well and school so they can go to college for free. Most parents believe college is key to success in this society. Without these opportunities for these tremendous and hardworking students the chances for them going to college is slim. The student loans have been a sufficient payment to the government, but with it so high the money might stop coming to the government all together. With so many students scared of future loans the government could lose money. Even if more people accept the loans only 37% are paying on their loans today ("How Student Loans Could Cripple the U.S. Economy"). With no payments coming in and the future of less money, the economy may weaken and the country will slowly sink into more
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.