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The Pros And Cons Of Student Loans

1264 Words6 Pages

In this essay, I will discuss a topic many people know all to well the burden of student loans, and should the government forgive all student loan debts. I will explain why I think that it is not totally a one-direction issue with a simple right or wrong answer. There are many factors to consider before you can totally blame the government, for loans that an individual choose to take on their own free will. On the other hand, the government should do a better job of making those aware of the pitfalls that exist in the reality of repayment. The aspiring college student has much to ponder in their quest to realize their dream of a successful career in the field they desire. Does the cost of education out weigh the choice of going for the degree. Should the federal …show more content…

Some have suggested an income based loan system would help the problem we now face. I fully understand that the situation is fully out of control for someone people as we can all make bad decisions. The question is should the government do more than they are already doing. “If the federal government shoulders the entire burden, we are adding a trillion or so more dollars in liabilities to a government already grievously over extended.” (Vedder, 2001, pg.570.). 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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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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Before starting my research for the debate, I stopped to think to myself what forgiving student loan debt meant to me. I thought about how forgiving a student’s loan would affect me and if it is a good idea or not. The words “forgiving student loan debt” was logical to me but what came with the debt being forgiven I had thought about. Nobody would turn down having their debt gone but maybe they would be against it if it weren’t their debt being taken away. For the first debate in class I was assigned the pros side to forgiving student loans.

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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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The Federal Government gives out financial aid based on the students’ parent’s income every year. Which it is not fair to some student because they are not all equal, some parents have a higher income than other, which should not reflect on the student’s ability to receive financial aid. The Federal government provides help to the ones in need. Which is why the

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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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According to the article, around 60% of american undergruduates are under debts which indicates that most of college students can hardly afford college tuituion nowadays. If universities continue to increase tuition with a high rates, it might cause more students cannot afford a college degree. Author points out that accessability to student loan is one of the reason which caused dramatic rise in tuition. Therefore, author thinks that Congress should regulate college and spend more on educations. The source is new and creditable.

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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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Even considering the numerous factors which contribute to the current state of educational descent in America, current fallacies in the economic facets of educational policy are strongly correlated to faults in the American education system. State government budgeting constraints contribute to downward trends in academic funding and student financial aid, born of a desire to alleviate taxation on the local populace and the presence of innumerable budget pressure points which vie for limited funding. The financially exclusive nature of private non­profit colleges and universities are characterized by an increase in net tuition and a shift in the responsibility for college expenditures towards students and their families. The disparity

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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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817 Words | 4 Pages

According to the New York Times, “about two-thirds of bachelor’s degree recipients borrow money to attend college, either from the government or private lenders, according to a Department of Education survey of 2007-8 graduates.” On average since 1980, college tuition prices rise 7% a year. In comparison, the inflation rate is just 3.2%. But we have to remember that as long as the demand for higher education continues to rise, the price will also rise. In order to pay for the absurd prices of higher education, students should not have to end up turning to loans.

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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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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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(usnews)” Many students have decided to take the student loan but they cannot afford to pay it back after they graduate from college. According to Wall Street Journal, more than 40% of student borrower are not making payment for their student loan. In this case, the government is suffering under pain because it cannot get the loan back from students. The conflict between student borrowers and the government is because of the interest rate.

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