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The Pros And Cons Of Student Debt

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Emily Fischer Writing 122 Mr. CD 08 March, 2024 Student Debt Relief Student debt relief is a SAVE plan policy which provides relief for those who have taken out $12,000 or less in student loans. The Supreme Court recently struck down this bill, stating that, “the Biden administration does not have the authority to wipe out nearly half-a-trillion dollars in student debt.” (CBS News). Student loan forgiveness should be instated as it would benefit millions of people financially, which would help the current economic situation and allow people to purchase houses for the first time in their lives. As prices rise, people are struggling to afford college tuition and the cost of living continues to rise, all while wages have stayed the same. This …show more content…

$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. Despite facing legal challenges and Supreme Court setbacks, the Biden administration continues to explore alternative measures, including income-driven repayment plans. The evolving nature of Biden's initiatives and the complexities surrounding debt relief are underscored, emphasizing the pursuit of solutions to address student debt while recognizing the varying economic and social

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With student loan debt on the rise across the United States of America, measures must be taken to address the issue of millions of Americans facing tens of thousands of dollars in debt immediately after finishing college. According to Robert Applebaum, a man that began a petition for the United States federal government to offer a one time deal of forgiving all student loans, to forgive these loans is a necessity and may prove to boost the economy. In Kayla Webley’s “Is Forgiving Student Loan Debt a Good Idea?”, the journalist and correspondent for Times magazine takes a long hard look at Applebaum’s proposal and just how forgiving the student loan debt is likely to play out. Throughout her article, Webley dissects the argument for forgiving

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04 Dec. 2016. In USA Today’s article by Sandra Block and Christine Dugas titled “Five Proposals to Solve $1 Trillion College Loan Crisis,” the authors mention five ways to solve the student debt crisis in America, illustrating things like Bankruptcy reform, loan forgiveness, increasing federal pell grants, and the education of borrowers. Evaluating this article, it provides an informative view on the solution of student debt, and overall expresses many different spectrums on ways we can solve this social problem. The five ways to solve this problems

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I have chosen Janet Bodnar’s article The College Debt Trap for this unit’s discussion assignment. This is the third quarter that I am taking college classes. After I completed the process of applying and enrolling for on-line classes it was now time to figure out how I was going to finance my education. I never knew what a FAFSA was or what it meant. It took weeks to understand the process of applying for financial aid and luckily I now understand how it works.

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According to the Center of Economic and Policy Research, recent college graduates owe 85% more in student loans than their counter parts did a decade ago” (Time 6). Recent college graduates owe more in their student loans than the previous generation because millennials experienced an inflation of 85 percent or more in their student debt. This inflation of student debt demonstrates just how much more money millennials invest into their education as opposed to previous generations. For example, Adam Davidson of The New York Times emphasized: “Nearly 45 percent of 25- year olds, for instance, have outstanding loans with an average debt above $20,000” (2). Illustrating why millennials are so far behind in their transition to adulthood because more money is going towards their education than ever

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Thus, these institutions produced vital social and common good (Berdahl, 2014). Hence the public investment in higher education was significant. Students paid their tuition instead of state financial support. As a result, student debt management had become an emerging policy matter (AASCU Government Relations, 2017). Several states sought legislation to allow students to refinance their student loan debt.

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In the American Bankruptcy article titled, Student loan debt the next bubble, it states that “ Outstanding student debt is also at an all-time high; it is approaching $1.2 trillion.” (Grant, Jennifer, Anglin, Lindsay, 2013,pg.44). The recent financial crisis in the past few years has lead many to lose jobs and savings that would allow them to make their payments, with effects still being felt by some today. I propose that their should be more borrowing rules as to not let the debt cost become to high leaving the borrower in a bind right

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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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We all know that attending college leads student bankrupt. Although some parents can afford to provide the economic needs for their child to attend college, most parents are not prepared and students are faced with the costly expenses of college. “It’s time to drop college for all crusade” touches a little on student debt. The reader's attention must been caught when Robert gave additional information on how student goes to debt throughout their adulthood. “ Student Debut” comments that financial assistance from the state and local governments towards students tuition drops by 20 percent, forcing students to take out loans if they want to pursue higher education forcing students to take out thousands of dollars in loans.

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In an effort to reduce this crises, financial experts believe that students should be permitted to use pre-tax income to pay off student loans. Parallel to the transit assistance and 401 k pre-tax incentives, many Americans believe that authorizing scholars to use their pre-tax dollars to pay off their student loan debt would have two massive benefits. First, it would help recent graduates with repaying their school loans while expanding their economic activity. Secondly, it would benefit local, state and federal governments through improved economic growth, cost-reductions, and employment opportunities. Even more, lawmakers are discussing the possible implementation of an act called the Employer Participator in Student Loans Act that could significantly decrease the student loan debt in the United States.

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According to the Federal Reserve Bank of New York, student loan debt in the U.S. lies between $902 billion and $1 trillion, this leaves each student with an average of $28,000 in debt. In order to resolve this ongoing debt crisis for American students that do decide to further their education in order to gain higher-income, Obama unveiled a new proposal to make the first two years of community college free for responsible students across the United States. States would be required to commit 25 percent of the necessary funding for the proposal. If they followed the government’s requirements which include improving students’ outcomes in school and providing occupational training, then the federal government would pay the remaining 75 percent of funding for tuition and fees. This proposal can possibly be a solution to a continuous debt crisis in the United States because students would now have their first 2 years of college paid for, therefore lowering their college 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.

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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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The funds will be received from the student loan reform. “Over fifty percent of recent graduates are either unemployed and underemployed’.(Chapman 2) Even though the students went to college and graduated, their expensive education gave them no

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Student loan debt loads have been spiraling, doubling over the last decade, and the enrollment rates of young people from lower socio-economic groups are rising far slower than middle and upper groups. Governments must recognize the renewed public investment in post secondary education is an economic and social imperative. 6.7 million borrowers in repayment mode are delinquent (Snider 1). The sad fact is that many lenders aren't exactly incentivized to work with borrowers. Unlike all other forms of debt, student loans can't be discharged in bankruptcy.

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In his argument, “Forgive Student Loans? Worst Idea Ever” mentioned how the importance of college student loans should be paid off. Due to the amount of irresponsibility that may happen. Believing if students were not to pay student loans, they would waste an amount of money per year, an amount that will increase. Together, the two debates profound sufficient information, to catch their audience attention, but only one debate had the enough statistics to prove it’s point.

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