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The Pros And Cons Of Student Loan Debt

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“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). Senator Elizabeth Warren is proposing no more than a “4%” interest rate on student loans (Dickinson 37). Average in-state tuition for a full-time undergraduate living on campus is estimated to be about $12,058 (Washington 38-41). Student loan debt is a burden on every student young or old; it may suspend …show more content…

People that take on student-loans know that getting a higher degree will help them in today’s economy, and others say the debt is not worth it (Patton A10-A11). Some students say student loans are a valuable expense for their future ( Jones 57-62). A college graduate degree may be more likely to get a higher paying job over a non-graduate (Jones 57-62). When the recession hit it brought people to go back to graduate school (Patton A10-A11). Houghton College in New York has currently has a high employment for its undergraduates (Jones …show more content…

Adults too still have lingering college debt to pay off (Patton A10-A11). 50 to 70 year olds that are dealing with graduate-school debt say they were laid off from their jobs during the recession (Patton A10-A11). Student loans are increasing mostly amongst adults 60 years and older (Patton A10-A11). The rates for older borrowers has risen from “6 percent in 2004” to “12 percent” in 2013 (Patton A10-A11). Older students tend to take longer to get a degree because they have to work a full-time job and go to school than younger students (Patton A10-A11). Some single parents are help paying for their child’s college while still trying to pay off their student-loan debt (Thomason A6). People’s Social Security checks are vanishing because they are falling behind on paying back their student loans (Patton

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The essay, “The College Debt Trap” written by Janet Bodnar (2014) discusses what Bodnar feels is strategies that families need to pay for the high cost of a college education. A college education is very expensive, and Bodnar suggest that families have a variety of resources available to assist in paying for a college education. The college debt is steadily rising and according to Bodnar, “student‘s loan debt exceeds revolving credit, mostly credit card debt” (p. 286). In an effort to assist parents, Bodnar created a guide for parents to escape the debt trap. In using this guide according to Bodnar, Parents will not only avoid the debt traps but also find “more affordable ways to pay for college education” (p. 287).

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Owen and Sawhill specifically address the advantages of going to college, including increased earning potential, more choices for employment, and personal growth. They do concede, though, that not everyone may experience these advantages. Lehman, on the other hand, presents data demonstrating the growing amounts of student loan debt and its effects on students' financial security. By analyzing both essays, it was made evident by Owen and Sawhill's examination that the cost of college, alternative pathways, and finishing college, helps shed light to Lehman's research on the detrimental effects of higher education. In the end, the true measure of success in addressing student loan debt lies not only in dollars and cents, but in the lives transformed, the dreams realized, and the promise of a brighter future for generations to come.

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In recent years, 70% of students graduated with student loans, and in 2016 graduates on average held $37,172 in debt based on a survey done by Citizen’s Bank; 59% of those graduates do not know when their debts are going to be paid off (Powell). Steve Sacks illustrated a cartoon in the Star Tribune in May of 2012 to inform high schoolers about the struggle brought on in college by student debts. The cartoon, “Student Debt,” shows how hard student debts impact high school graduates going into college; students pile up so much debt, even before graduating the burden hits them hard. In this cartoon, it is viewed from a straight on view that is also looking down on the graduates at an angle.

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The Trap of Student Loans Student loan debt is becoming an increasingly startling problem. Rising costs of college and lack of financial aid is driving students to take out loans that offer only high-interest rates and inflexible repayment options which can trap students in a vicious cycle of debt and default. The best solution to this problem is to have federal funds donated to all public colleges’ endowments yearly to use the money to offer more financial aid, require all public colleges to provide a minimum amount of financial aid based on expected income of the student and family, and to require that all student loans be subsidized with interest rates not exceeding 0.5%. The costs of going to college have risen tremendously and are continuing

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Lehman, first established that student loans and debts cause people to have no freedom and be prevented from achieving in the workforce. Both of these authors have persuasive writing pieces, Lehman’s article was more compelling since, he provides an abundance of evidence, a strong anecdote, and a formal analysis. These two authors had strong, reliable research to support their thesis, in the article “Why Are Student Loans Considered As Good Debt” there are plenty of statistics that validate Johnson’s thesis. One major statistic is “for example, according to the Federal Reserve, the average credit card interest rate was 22.75% in Q3 of 2023, compared to 5.50% for direct subsidized loans and direct unsubsidized loans” (Johnson). While this statistic is significant, there are only a few more statistics that she provides that are reliable.

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Over the last 12 years, federal student loan balances have quadrupled, exceeding $1.1 trillion (Lee and Looney, et al.). America’s student loan debt has skyrocketed to over $1.1 trillion. In the United States, student debt is a known problem that haunts many students and alumni due to the high prices of colleges. Many may argue student loan debt is worth it because of the job opportunities and higher earnings that can justify the debt. In contrast, others believe college prices should either drop or that the government should help with the debt.

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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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Ana Lucia Urizar, author of the article titled We’re Being Punished by Crippling Student Debt presents the argument of Student debt and the importance of remedying this topic otherwise face future detrimental effects. Urizar provided statistics suck as the average amount of loans in dollars the class of 2015 had taken out. Ultimately, Urizar’s main argument is that something needs to be done about the exorbitant cost of attending college because it is impeding graduates’ careers, standard of living and ability to fully engage the economy. This argument does well providing strong statistics found through credible sources such as The Wall Street Journal, however, the article failed to provide a counter-argument or different viewpoint regarding

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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

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More than 40 million Americans have student loan debt which is about 1 in 5 U.S. adults. For as long as education has been pursued, college has been a thing. Along with college comes tuition and other college expenses which are not cheap. Since the early 90s, students and parents have been suffering from student loan debt. In fact, according to the United States Department of Education, the average student loan debt has more than doubled from 1990 to 2010 and is continuing to rise (ProCon.org).

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Under such a cruel financial burden, fewer young people actually complete their college. Those who cannot afford the college and eventually drop out of school become the “forgotten majority” (Kamenetz 500). There is no doubt that the student debt is the culprit that kills many young mem and women’s college dreams. Whereas, the fact that young people can hardly get a well paid job to repay the debt is the other side of the story that should not be ignored. The post-industrial economy revolutionized the way jobs get paid.

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Today, I would like to talk to you about a critical issue that is affecting over 15 million young Americans as we speak - the rising cost of college education in the United States. With tuition costs soaring every year, increasing over 175% in the last 20 years more than three times that of inflation, many students are forced to take out loans to finance their education. While loans may seem like a good solution to the problem, they have significant drawbacks that are hurting the future of our country. First and foremost, the loan system for college education in the United States is not sustainable. The total amount of student loan debt in the United States has surpassed $1.8 trillion according to NerdWallet, and it is growing at an alarming rate.

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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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Currently, there is a rise in the number of students taking out loans to pay for college. This growth in student debt can be attributed to many sociological factors. When applying ideas from the sociological imagination, we can examine how social forces play a profound role in shaping individual lives. Factors such as why students acquire debt, types of people who need loans, and how students are able to receive financial aid influence the rate of student loan debt.

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Over the last few decade, the amount of change and rise of student loans increased significantly and with it increasing is a critical issue and it also increase the tension and stress it comes with because it affects the person mental health and wellbeing, it also puts tension on trying to manage to pay off the debt as soon as possible, and how it has become more of a critical issue to people through the decades but there also can be ways to minimize your student debt . Throughout the years the total number total of student has rised in the United States from 364 billion to 996 billion through 10 years (Andrew H.,2015), a big reason of why people decide that they need to get a student loan is to have enough funds to be able itself-deal with

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