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Argumentative Essay: The Issue Of Student Loan Debt

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According to the last recording of student loan debt, the total amount of the United States student loan debt is roughly one and a half trillion dollars (A look at…). Statistics like these present the urgent need to resolve the major financial issue of student loan debt. Solutions have been given by many people to solve this issue but most solutions fail. The main reason behind student loan debt is falling to far into debt to the point where it is almost impossible to come back. The origin behind all of this is a lack of a student loan amount cap. Overall, this issue affects most people living in our world today and must be fixed for our generation and generations to come. Over the span of many years, the world’s jobs have expanded to millions upon millions. Due to this rapid expansion of job growth this has caused education to be expanded in to different fields and degrees. Some jobs require a degree that is harder to earn in an …show more content…

Although debt is a bad thing, it is not unavoidable for everyone. People will fall into debt because not everyone has a solid financial backing. More than seventy-one percent of students graduating from a four year college are graduating with debt (A Look at...) . Setting a cap would cutthat percent far down so the students would have a chance to break even with the income they receive after college. Because there is no student loan debt cap, colleges take advantage of this or they set the cap very high so the students will keep having to pay the college for years. “One reason graduate school debt has grown is that students have nearly unlimited borrowing capability from federal programs — with few credit checks or examinations of ability to repay…” (The Washington Post). Students use the loans unknowing what pay they will get from their future job. By setting a student loan cap, students would take less of a risk with coming back from

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$50,000 per borrower with no cap would cost taxpayers around $1 trillion. And forgiving the whole amount would cost taxpayers more than $1.6 trillion” (CATO Institute). Fourth, it links student debt cancellation to potential inflation in higher education prices, citing research suggesting that increased aid leads to higher costs. Lastly, the article raises constitutional concerns, arguing that only Congress possesses the power of the purse, and unilateral cancellation by the president would be a violation. However, student debt relief is crucial because of its contribution to the mental health crisis, housing crisis, and it would help the economy recover.

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440 Words | 2 Pages

The goal of the tuition cap is to streamline the education financial process, rather than taking it away. Tuition caps should not create artificially low prices in the education market, but there needs to be extra pressure on colleges to contain costs; which there’s not right now. Requiring colleges to stay under the cap can help control the increasing prices of education, as the continual receival of federal funding and tax exemptions can be used as an incentive for those colleges who comply. Furthermore, tuition and fees have grown more than twice the rate of inflation each year (Wolfram, 2005). If colleges and universities choose to increase tuition cost more than the CPI, not only should they lose federal funding and tax exemptions, but also it should be mandatory for them to use money from their endowments to fully fund grants for students on financial aid; instead of the federal government increasing the Pell grant each award year to make up that extra

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Joseph 1 Tre Joseph 1302 Professor Jenkins 10/12/15 New York attorney Robert Applebaum’s and economist Justin Wolfers essay's debate on student loan debt applebaum’s "Debate on Student Loan Debt Doesn’t Go Far Enough”, attests that the U.S. has a financial crisis’ on it's hands and that, unless the U.S waives the present student debt(over $1 trillion) the economy will nose dive. Applebaum writes an over-passionate and panicked paper. Applebaum’s essay is absent of sensible logic, practical validity and is riddled with unreasoned assumptions. Justin Wolfer's "Forgive Student Loans? Worst Idea Ever", argues that forgiving student debt would only contribute to a financial crisis.

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906 Words | 4 Pages

Aidan Autovino Mr.Allen English pd.3 20 April, 2023 Student Debt Imagine graduating college look at the amount you owe on loans for your education is over $20,000.The average federal student loan debt balance is $37,338. That's a lot of money for just one person to pay off! The federal student loan portfolio currently totals more than $1.6 trillion, from loans owed by about 48 million borrowers. Student debt is caused by the astronomical price of higher education that leads to crippling debt for college graduates and even dropouts; however, There are Government plans and scholarship payment programs created to help this issue be forgiven or partially assisted.

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A major issue with this thought is the notion of obtaining a student loan to pay for a higher education and believing it guarantees success. Tilak Jandhyala, former Vice-Chancellor of The National University of Educational Planning & Administration, warns that, “The concept of student loans…has not proved to be a feasible solution to the problem of inadequate resources for higher education nor an antidote to the regressive effects of increases in fees” (Jandhyala, 19). There is no guarantee that a college education will allow anyone to make more money or obtain the career they want. Student loan debt forgiveness offers new graduates a fresh start and improves their chances of a better lifestyle. Not having student loans would mean relief for these individuals and give them the opportunity to buy a home, save for retirement, and invest in small

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March 17, 2023 Student Debt and its Impact on America’s Scholars Americans currently owe a total of $1.7 trillion in student loan debt, and if we focus on an individual borrower, that person would carry an average of $30,000 in student loans. Student debt is a known issue in the university system and affects millions of students every year. As tuition increases and mortgages also rise, students have been resorting to borrowing to make their way through school. However, abusing the privilege to borrow a loan will add up over time, causing long term problems in the future. Although loans can be helpful every once in a while, it would be ideal to try to prevent borrowing.

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The total student debt is $1.75 trillion in federal and private loans. A large portion of Americans ends up paying off their student debt for years and have to worry about paying off loans throughout their life. Many can’t pay their loans though. When borrowers fall behind, their credit scores get hurt, making other forms of debt relief impossible and people keep sinking

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The student loan issues are causing huge problems on both students and society it seems clear enough that students are borrowing a lot of student debt, and they are failing on that debt and aren’t capable of paying it back and that is destroying their ability and threatening their ability to access any more credit in the future. The approaches students are taking to a student loan debt collection are fraught with many problems, including bad recovery tactics and failing on making repayments on the debt. There is no escaping the fact that the cost of college tuition is on the rise and it’s not declining, and that is making it more difficult for students to obtain a degree which is really important to acquire to be able to function in today’s

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Student loan debt is one of America’s biggest issues today. It is a problem that many leading political and economic figures are trying to solve, but have not yet succeeded. The nation’s high record of $1.34 trillion in student debt is not only troubling households but it is also disturbing the economic lifecycle. Students are not required to make payments until they graduate. But once they do, entry-level wages and salaries could take up to decades to pay off loans.

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Loans allow receiving a college education seem like a smoother process considering that such a hefty amount to pay is divided so that it can be paid for in moderation. Despite the fact that it’s split into many payments, it’s still a large quantity all in all so unless indebted students aim for high income jobs, there would many years of difficulty to come after college. For this reason, undergraduates make it their goal to go after jobs which would prevent them from being constantly pressured to pay off debt. Thus, student debt is both a crisis and a reason to encourage persistence towards greater ambitions (Hillman, 41). It is a tremendous thing when a student seeks to be financially comfortable or even rich in the future but not when it is for the wrong reasons.

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442 Words | 2 Pages

Outstanding student debt increased $31 billion the past year to $1.31 trillion. Over 9.7 million students borrow annually. Student loan delinquencies are over 11% and increasing, according to New York Fed President William Dudley. College costs skyrocket above inflation; financial aid fails to increase proportionally. Many of today’s students do not understand the long term impact of financing college.

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771 Words | 4 Pages

The tuition and cost of college is detrimental to thousands of families across the country and brings student debt to future graduates. Some students have seen their debt climb over $30,000. Friedman writes, “The average student in the Class of 2016 has $37,172 in student loan debt…” (Friedman). With the debts being over the average income for single people households, college has transformed from a benefit to a burden. Young adults not only have to worry about their education but also paying for the next semester or years of college ahead of them.

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901 Words | 4 Pages

The total U.S. student loan debt now surpasses $1.2 trillion and there is more than 40 million recipients owing on federal and private student loans (Malone). Most of the college students in the United States can’t afford their education by themselves and, as a result, students end up drowning in student loans in order to earn a degree. Student debt is a major problem in the US, and it is a major influence on the gap between rich and poor. A more accessible college education would help reduce the gap between rich and poor in the United States.

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585 Words | 3 Pages

Some say that interest rates should be dismissed from student loans, unless the student does not pay the loan by the time provided in the contract signed. Similarly, there exists another perspective that states that the amount of money students should be allowed to borrow should be similar to the annual salary they will earn once they graduate college. These perspectives open many door to students. Students would no longer worry about interest rates making the debt bigger with time. Although, the perspectives sound like a very good option, there are some disadvantages: the government will no longer have the accessibility to the money made from interest rates, which can diminish the opportunity for students to obtain student loans.

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1812 Words | 8 Pages

With a college degree playing an ever increasingly crucial role in job placement after graduation, students feel the pressure to go to college, but with the astoundingly high cost of higher education, millions are forced to take out loans- 42 million to be exact. This group of Americans currently hold the 1.3 trillion dollars in student loans on their shoulders. With the majority of college graduates being in their early 20s, the amount of debt per capita, around 25,000 dollars can be crippling, thus leading to higher default rates and less stability as they begin their journey out into the world. Not only will it impact their young adult life, but it is predicted that "students who graduated from college in 2015 will have to delay retirement until the age of 75" (Hess 5). Ultimately, it is this battalion that has to most to gain, as well as lose, should student debt not be controlled.

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