Preston Harris 6/13/2023 ENGL 200 ZA Mrs. Martin Rough Draft You and I, as college students, probably keep up with the finances related to our higher education. Setting oneself up for success as a student is crucial, and this includes preparing for potential debt. The issue of student debt and what to do about our outstanding loans is causing a serious financial problem in the United States. After completing their studies, more than 65 percent of college graduates average $28,650 in loan debt.
In the U.S, there is a huge problem facing the government: student debt. College students are graduating from school with huge amounts of debt and loans borrowed from the government. Many students have a hard time finding a job upon graduation and have no way to pay back their loans. This hurts the students as well as the government and the economy. The student loan crisis keeps getting worse and worse.
According to Harriet Stranahan, a professor at the University of North Florida, and two of her colleagues, “Students leaving college today [2019] are burdened with the highest levels of student debt in recorded history. The statistics are frightening: 44.2 million people in the US have student loan debt, total student loan debt is over $1.3 trillion, second only to housing debt in the US and over $32 billion of the debt balance is currently in default” (Beal, et. al, p. 219, 2019). As a result of these overwhelming numbers, students must work to pay off their student debt. According to Liberty University’s Student Financial Services, the average cost of tuition for undergraduate students is $23,800 per year, which averages $815 per credit hour (About Liberty).
“Forty Million people in the United States are dealing collectively with $1.2 trillion in student loan debt” (Dickinson 37). College tuition has rocketed to “66 percent” (Noah 11-13). College Tuition is up “500% since 1985” (Dickinson 37). The rates for older borrowers has risen from “6 percent in 2004” to “12 percent” in 2013 (Patton A10-A11). “40%” of American households have a student under 35 that has student loan debt (Jones 57-62).
College debt is developing into an immense issue in the United States with about 1.3 trillion dollars worth of college debt across the country in 2015, which is about a 39% increase since 2011 (Redd, 2016; Goldrick-Rab and Kendall, 2014). This debt is not just piled on a small portion of people; according to Redd, “about 10 million college students took out student loans” in the 2012-2013 school year (2016). The average tuition at in
Are you drowning in student loan debt? Have you received solicitations by student loan debt relief companies offering to help you get out of it? The Consumer Financial Protection Bureau has issued the following warning signs to consider before you decide to use one these companies: • Avoid working with companies that require you to pay them before they actually do anything to help you. You really should not pay anyone to help you with your student loan debt as you can access free assistance through your student loan servicer. • Never sign up with any company that guarantees loan forgiveness or debt cancellation.
Student loan debt is a crippling crisis, and it has affected many college students, especially those who find themselves unable to repay their loans. For many college students, access to higher education is the gateway to a better life, and education is necessary to improve their socioeconomic status and obtain better-paying jobs. Asha Banerjee, policy analyst for the Center for Law and Social Policy, says, “Today, more than 45 million Americans are struggling with student loan debts” (Banerjee 1). The increasing cost of college/higher education is forcing students to borrow and finance their education at a costly rate. The student loan debt crisis is slowing the national economy, and consumer spending is linked to personal finances.
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.
In today’s society, many students will go on to receive a higher education after high school, but is the cost of having a higher education worth it? In 2017 the average college graduate accumulated more than 34,000 dollars in student debt (Dickler). ADD. Student loan debt creates early financial difficulties for young adults, leading to many mental and physical issues from stress and overall hurts the economy. With the weight of student debt on a person’s shoulder, they are less likely to be financially successful in the future.
Every year, thousands of students are affected by student loans. College debt is now the second form of consumer debt, right behind mortgages. Surprisingly, textbooks are part of the reason college students lose so much money. On average, students take eight classes a year. Given that textbooks are roughly $150 each, that puts students at spending nearly $1,200 annually (according to a Chicago Tribune report).
This change will never be possible, if every year millions of bright young students cannot afford to go to college. As, million more leave school badly in debt. We need to find a way to fix this so that we do not abatement as a country. Because I’m for sure tried of sitting back and noticing other countries like Germany and Sweden gaining a better economy then us. As our economic becomes fragile, because we are about 1.2 trillions in students loans.
Society often believes college is a necessary experience for a better future, but I argue that the future will not be any better when student debt becomes a part of life for those who follow that mainstream belief. Most parents often dream of the great colleges and universities that their children will get accepted into; however, they fail to think of the cost to attend those institutions. Financial aids! Financial aids! Yes there are financial aids that students can apply to lessen the student debt.
The phrase “education being worth it no matter the cost” has been drilled into students as well as their families. This has led to student loans eclipsing a total of $1 billion every year, and in total reaches more than $1 trillion. While most loans don’t have to be paid off until after graduation, many students aren’t able to find jobs to subsidize the loan payments once they have
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.
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.
