Elliott states, “A college education should offer to all graduates similar opportunities to achieve financial success in the long run.” It does not in fact to that at all. Having high debt holds students back from that. It is sad you cannot go to school for what you are passionate about cause the fear of debt and not having good money after graduation. Article mentions, “two students investing similar levels of effort and ability in college and yet achieving dissimilar outcomes upon graduation. Obviously, there is a different in the post-graduation lives of students with and without debt” (Elliott). It would not be worth it to the one with debt because they cannot use their degree. All of your loans would not be worth it because of loan debt. I feel it would only be worth it if you had means on paying it back instead of struggling. Loans are not …show more content…
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
One statistic that Owen and Sawhill presented was “Hamilton Project research shows that 23- to 25-year-olds with bachelor’s degrees make $12,000 more than high school graduates but by age 50, the gap has grown to $46,500 (Figure 1). When we look at lifetime earnings—the sum of earnings over a career—the total premium is $570,000 for a bachelor’s degree and $170,000 for an associate’s degree. (Owen, Sawhill pg 641). Owen and Sawhill also mention that “with tuitions rising faster than family incomes, the typical college student is now more dependent than in the past on loans, creating serious risks for the individual student and perhaps for the system as a whole, should widespread defaults occur in the future. Federal student loans now total close to $1 trillion, larger than credit card debt or auto loans and second only to mortgage debt on household balance sheets” (Owen, Sawhill pg 642). Basically, what the authors are saying is college is expensive, but for some career paths, the training and education received in college is necessary to have that job and the benefits outweigh the costs. With a high paying career where a college education is necessary, paying off student loans is no problem. On the other hand, people who go after low paying careers that don’t necessarily need a college degrees,
"Debate on Student Loan Debt Doesn 't Go Far Enough." Applebaum, Robert. Hill (2012). Print.
Individuals are struggling nowadays to acquire an education higher than a high school diploma. One of the main reasons for this issue could be very well the price it is to attend college. Prices have skyrocketed throughout the years. A lot of the people who attend college have to take out a “student loan,” just so they can get by. I believe one should not need to be in serious debt before they even graduate, all because they want to go out and further their education, and become successful in their life.
Even though choosing to go to college is something that takes a lot of thought, there’s still the idea of how to pay for it. That topic is touched by Robin Wilson in his article, “A Lifetime Of Student Debt? Not Likely.” In his article he talks about how taking out student loans isn’t as bad as it sounds. He argues that taking out student loans is something that you won’t notice in the future, they’ll just be like other bills that need to be paid. Most people who do have student loans, are still able to live a comfortable life, not scrabbling like most would
College is worth the debt because in the end you will have so much to show for it, money, education and happiness. You won 't even be worried about the money you owe because you will be able to pay it off at any time. You will be able to show your kids a better life and help them strive for a higher education too. You will also be able to spend more time doing fun things with your family and not stressing over bills. More college means more money, more money means more education and more education means more happiness. The college education will always be worth the debt at the
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
Is it all worth it? According to the US Bureau of Labor Statistics, an employee with a college degree will earn about $457 more per week which calculates out to about $1 million over the span of one’s career. It is definitely worth pursuing a degree to be competitive in today’s job market. One of the best ways to eliminate some of the debt is to apply to apply for as many grants and scholarships that are available to assist with reducing your cost for college.
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.
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.
On the Sixth Avenue in Manhattan, there is a national debt clock that shows the amount of United States national debt. The clock was first installed in 1989, and can show up to ten trillion dollars. It ran out of digits in October 2008 when the sum of debt exceeded the amount. A new clock with two extra digits is going to be installed (Izzo 2 ).
Right now in the United Sates the average student loan is about $30,000 dollars. This number multiplied by the amount of college students (approximately 18 million) leaves the national student loans debt at almost over 500 billion dollars (Financial Times). At this rate, many students start to struggle to repay loans because they do not have adequate jobs in their field of study. This is caused by the economy not having enough jobs to provide recent graduates with and if they even do it does not do very much financially for the student.
Being forced to move back home after college graduation is one of many obstacles students face while getting accustomed to the new debt they inherit after school. Imagine, upon graduation of high school the excitement one must feel about finally being away from the watchful eye of mama and papa bird. Headed to college to live on their own, freedom to be an adult and make decisions as such. If lucky enough to be one of the one’s who will make it through the entire four years of higher learning with a degree, evidence of long nights, dedication, and hard work, great rewards are expected, right? Wrong, many students in modern society will be met with a harsh reality and be bound to the nest which they took flight from four years prior. Student loans will become the new chain holding them captive to their parents. Unable to afford to live independently right after college graduation is a price some must pay for pursuing higher education.
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.
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).
“About forty-one percent of borrowers fall behind on their student loan payments in the first five years of payment” (nytimes.com). Statistics also show that nearly thirty percent of student loan borrowers wind up dropping out of school. These facts help show that student loans are not a reward for you but are a burden. Student loans can be avoided by obtaining as many scholarships as possible, saving for college before you get there, and working to get money to pay cash for college.