Why Do Student Loan Debt

This essay will overview the accounts of multiple experts concerning student loan debt, including how it affects the economy, and possible solution to student debt. Included in the experts are Dave Ramsey, Beckie Supinao, Hardeep Walia, and Allison Linn. Student loans begin back in 1965 with the Federal Family Education Loan (FFEL) program, and have since grown to what it is today. With more and more student taking out loans in order to get an education, some experts have begun to call the situation a crisis due to the amount of money being borrowed, but there are some who believe that the amount being borrowed is not so much of a crisis as others have stated. Although some may disagree, most experts have similar ideas on solutions to the crisis,

It is as easy as walking in and asking or applying online and waiting till school start and receiving the money on the first day of class. But while doing this is hurts not only the student but also the economy (Ramsey). When borrowing money it hurts the economy in more ways than one. When borrowing money debt is accumulated, while paying on debt that money is unable to be invested which doesn’t allow the economy to grow. While having debt doesn’t allow for items to be bought in full instead more money must be borrowed in order to purchase the item. Student are borrowing more now than in recent years such as in 2001 $4 billion dollars was borrowing were as recently that number went to $17 billion

But when looking at someone majoring in fields such as fine arts the job market just isn’t there. When loans are handed out students that fall within a science, technology, engineering or mathematics degree is evaluated the same way as if there degree was fine arts, education, or a social work. When the latter only leads to a starting salary of $20,000 students have a difficult time paying back student loans when they are thrown into the same category as a degree that the starting salary is $98,000 (Walia). Linn also has a similar outlook when it comes to how much money is borrowed compared to the major that was chosen. Linn writes about a couple named the Christmans specially Vanessa Christman who works as a social worker for a law library. The required education for the job that Vanessa needed to obtain did not necessarily guarantee a huge pay in return. The median pay for social workers at a library is $54,500. Although when looking at taking on debt of a graduate degree in theory should pay its self-off due to higher education meaning higher salaries. But as more students struggle to pay of student loans some are questioning if borrowing is getting out of hand (Linn). As Walia stated all majors being evaluated as the same the time to change that might be here due to not being able to repay student loans on a salary that doesn’t allow