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The Pros And Cons Of Student Loan Debt

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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. It has risen substantially over the last decade. In 2007, total student loan debt reached 548 billion. Last year, it hit $1.4 trillion. There are many reasons for the debt crisis such as the high cost of tuition, job unavailability, and low paying salaries. Astra Taylor speaks the harsh truth and says: “The schools slurp up about a …show more content…

For starters, the student could pay back debt without the fear of defaulting on his or her loans. The payments are re-evaluated every year so that if the student became unemployed or had a loss in salary, the payments would decrease. Another huge advantage is that the student would be eligible for loan forgiveness after 20-25 years with this program. This helps alleviate stress on students. Also, with IBR, the government would be getting money each paycheck instead of having students defaulting on loans. This would benefit the economy and take stress off the debt crisis. The IBR plan would take no more than 10% of each paycheck. If students have a hard time finding a job after graduation, they would pay 0$ a month of loan payment. Even if they made between $10,000-$15,000 a year, they would pay 0$. This program takes into account the amount each student makes per year and also the size of the family. If the student has a large family, they would pay much less a month. If they find a great job and are well off, then they will pay off their debt quickly. The IBR plan would take no more than 10% of each paycheck. This program is extremely reasonable and considerate of students and life after

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Hello, Professor Gray, The lost loan repayment plan would have a positive impact on the taxpayers by working with your loan servicer to choose a federal student loan repayment plan to make loan payments more fordable giving the loaner more time to repay their loans based on their income. Student loan debt is referred to as installment debt, which means you have fixed payments for a specific period of time. The interest you pay on your student loans is tax deductible that would put additional funds that could be used to purchase items that would increase spending with will help build the

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It is one of the most closely watched metrics in higher education because schools with default rates of 30 percent or more run the risk of losing access to federal student aid. $1.26 trillion in total U.S. student loan debt was recorded in 2016. That is a big part of our debt. “The latest default numbers represent the percentage of borrowers who began the repayment process Oct. 1, 2012, and fell at least nine months behind

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1402 Words | 6 Pages

Students must pay back the loans, but also interest has been acuminating whether it is a fixed loan or variable interest rate. The people who take out huge student loans to pay for an education that doesn't guarantee a student in getting a job or that it will be of any use after college. Having debt puts burden to many individuals, especially putting into account other types of debt like a mortgage, car loans, and much more. The student isn't saving because they are committed to paying their student debt that they aren't saving for the future or a rainy

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906 Words | 4 Pages

Such as potential forgiveness from high power spots which would be seen to help a lot. Some political candidates and elected officials have advocated changes that would eliminate all student loan debt, while others would eliminate at least some of it. Advocates for student debt forgiveness think it will help the economy ("Student Debt Forgiveness"). Debt will potentially be forgiven to those that are in need of the help. Debt is being discussed to only be helped with for the ones who need it so that loans do not become too affordable, they might be ensured to be a payable and reasonable price for the payer.

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1228 Words | 5 Pages

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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1994 Words | 8 Pages

Forgiveness of Student Loan Debt On a global scale, there is a large amount of people who are unfortunate in the sense that they are all regrettably faced with the issue of the struggle to pay for a proper education. Seeing as those who struggle are unable to pay on the spot, whether it be because they are financially independent adolescents or their families have low financial income, a majority of said strugglers resort to applying for student loans. This allows them to receive an education for the time being, but it still must be paid for eventually. As a result, every student who takes a loan for schooling will be in debt until everything that has been borrowed is paid off.

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The amount of money repaid by previous student recipients is what determines the amount of money current students will be eligible for. In the case that the number of defaulters is extensive, the loan board’s resources will be restricted, causing fewer students to receive assistance (Halligan, 2016). In order to avoid this crisis, the government should use tax payer’s money to pay off defaulter’s

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1032 Words | 5 Pages

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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Every cancellation for student loan debt, no matter how large, has the potential to improve wealth for all borrowers since it frees up funds that would have been used to pay off debt. The stimulus checks the government sent last year, that some experts claim increased inflation in the economy, are not the same as debt forgiveness. There won't be an unexpected deposit into borrowers' bank accounts. Instead, they won't have to worry about making years' worth of debt

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1437 Words | 6 Pages

Students would choose their major more carefully since they are paying for their education with part of themselves literally. Also, without the student debt looking at the graduates behind their backs, they can spend more with less pressure; the more they spend, the better the economy will be. Without doubt, the “Organ for Ed” program is one of the finest solutions to kill two birds with one

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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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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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1265 Words | 6 Pages

Have you ever owed someone $20? Well, imagine owing someone $100,000+ . Many students every year are left in crippling debt that can affect them for the next few decades of their life. Because of the cost of college, many students fresh out of high school can’t go to college. In order to make it easier for the lower-class to go to college, you should do at least one of the following things.

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585 Words | 3 Pages

Every student's circumstance is different; therefore, they should all have different solutions. Some students do not enjoy of a good economy, which provokes them to borrow more money than other students. Also, there are some students that will study careers that do not have a great income, or are very rare in jobs. Their solution would be to maintain the cost of student loans at a reachable price. In this case, every student would be able to pay off their loans without any

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378 Words | 2 Pages

Student loans can be helpful, but when it's time to pay back, it can lead to future mental struggles and be stressful and hold you back from living the life you want to live in the long run. The student loan debt crisis in now only taking a huge toll on the personal lives of many Americans, but on the economy as well. Whether or not students graduate or not, if they pulled out student loans worth $200,000 they remain in debt for a remainder of years. As the problem continues to grow it becomes more and more critical to find a solution to help the well being of everyone in the nation, student or

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