Student loan Debt and Percentages
How much student loan debt do you have? Today we are going to talk about student loan debt and how it affects Americans today and how it has changed in the last 10 yrs. Over the past 10 years the amount of student loan debt has nearly tripled. The main reason for increasing student debt is this. people finding it hard to pay off their loans than they realized. Just 10 years ago student loans stood at $240 billion. About $150 billion of the total is comprised of private student loans made by banks and other financial institutions according to a report by the Consumer Finance Protection Bureau last year. So from 10 years ago to today it has changed dramatically.
The reason student loan debt is so different then 10 years ago is because we have the Obama forgiveness plan yea so fun. Earlier in his presidency Obama announced a plan one that has become known as the Obama student loan forgiveness program- for students who were unable to complete their student loan payments or had already completed a sig...
Martin and Lehren’s article “A Generation Hobbled by the Soaring Cost of College” addresses the issue faced by current and former college students dealing with large amounts of debts due to student loans. The article presents the reader with stories of former college students who have either graduated or dropped out, and their struggle to pay off their student loans. The article also talks about issues such as students not being informed about high amounts of student loans and why student debts have increased. Martin and Lehren also make the issue of student debt more intimidating by giving examples
Many people would agree that our country’s young adults have and continue to incur a lifetime of debt by enrolling in college. It’s become an almost acceptable understanding that if you plan to attend college, you might as well expect to graduate with an enormous amount of debt. Robin Wilson, a reporter for the “Chronicle of Higher Education,” and author of “A Lifetime of Student Debt? Not Likely” suggests student loans are very real and can be life altering.
Employers consider a degree necessary for getting a job at their company. However, not many people can afford college. The solution is to take out loans, then college becomes affordable. These loans create a whole different issue, student loan debt. This can affect people their whole lifetime and has been happening for years upon years. But, in the more recent years America is starting to shed more light onto the issue and are becoming curious on why colleges charge twenty five thousand dollars, or more, for a year of education. Many different countries offer free college, but in America student loan debt keeps getting worse.
If you are not paying completely for your college tuition, then your parents are helping and or you took out loans and eventually have to pay them back. Seeing how most college freshman are 18 or even 17, means you do not have much money saved if any at all and your parents are stuck paying for everything you need, going to college for more than four years or even at is going to cost you, or should I say your parents. Undergraduate loan borrowing crossed the $100 billion edge in 2010 and aggregate loans surpassed $1 trillion U.S. dollars a year ago. “This (student loans) increase has put a disproportionate burden on students and their families—hence loans. The median household income for a family of four is about 24,300 in 1980, 41,400 in 1990 and 54,200 in 2000. In addition to the debt that students take on there are few statistics on how much parents pay and how they pay it” (Williams 2006). It's not advanced science. It's the economy, Undergraduates and laborers looking for more schooling are obtaining lots of cash through government and private advance projects to help take care of the continued raising expense of school and preparing for careers. Much of the time, parents in charge of the undergraduate loans are in or are close to
The cost of college tuition continues to increase each year. If this keeps increasing the way it has been, students will be indebted the rest of their life. Author of “The Looming Student Loan Crisis”, Jackson Toby states that student loans have increased along with the increase of tuition costs. In 2004, the average unpaid student debt was approximately $18,650...
Tuition and fees has extremely risen over the past years which makes it extremely difficult for both social economic groups to invest in a higher education for their families. Today’s college students borrow and accumulate more debt than previous years (The White House). For instance, “In 2010, graduates that borrowed money graduated with owing an average of more than $26,000”(The White House). As a result, President Obama has expanded federal support to help more families and students to afford higher education (The White House). Also, he believes that it is a shared responsibility of the federal government, states, colleges, and universities for making higher education
Should student debt be forgiven? This question has been asked more and more throughout the years. There have been plans created to forgive student debt, and it has even been written about in popular magazines. For instance, a proposal has been made by Appleman to why student debts should be forgiven. In the short essay, “Is Forgiving Student Loan Debt a Good Idea?” by Kayla Webley, she illustrates that student debt is a problem, despite the political and economic flaws in Applebaum’s proposal.
Student debt today is at it’s worse, as it doesn’t matter who you are, your circumstances, or your status; if you have a student loan debt, by default you can’t lose everything. The government will not let you file bankruptcy, as people like Sallie Mac made sure of by paying lobbyists millions of dollars.
Morici, Peter. “Forgiving College Debt Won’t Help Students.” CNBC. 14 May 2013. Web. 24 Feb. 2015.
Why has our generation become so immersed in debt? Student loans are a major contributing factor. 40 million Americans now hold student loan debts (The Institute). In 2014 the average student loan debt per student was $28,950 (The Institute). However these numbers are declining, student loan debt is and has been continuously rising each and every year. If a student wanted to pay off their $28,950 of debt off in 5 years they would have to pay $559.68 month. To put this in perspective, 559.68 is more than the average car payment. Even if students wanted to pay off their loan in 10 years they would still have to pay $321.40. This is 10 years of hard earned money that students will never get to see because of the cost of education.
As people of many ages wish to further their education outside of high school, they tend to take out student loans in order to fulfill this wish since the large tuition payment is not in their budget. Paying for an education that presents a degree seems easy to many by taking out large loans to pay for their education. Recently, student loans have challenged the economy of Americans. Education is perceived as a necessary expense to many, in which they do not mind putting a burden on the economy for. Many people believe those loans can be paid off in a matter of a couple years. However, this idea is misguided as many people do not pay their student loans off until their early forties.
In the U.S today the growth of students taking out student loans to help with daily finances and living expenses are increasing each year. That makes these young students to have an increasing debt on their name each year. To help students that are unable to pay back their student loans for any reason, lenders should have a forgiveness policy. If lenders would forgive student debt, it is said that this would stimulate the economy immediately. If this happened then credit markets would unfreeze, more jobs will be created and tax revenues would increase.
When it comes to achieving success in the working industry and accomplishing a successful career an education is important. Getting a degree is essential to be successful. The issue is the higher the education the person wants the higher the cost is. Nowadays, not everyone can afford paying out of pocket for an education, which mean that students are forced to take out large amount of student loans to achieve that degree. Student debt is an ongoing problem, students are gaining oversized debts that most of the time if not ALL are defaulting and jeopardizing future credits. How much debt it too much debt? Everyone should have the liberty to
As of 2016, American students have accrued a massive 1.3 trillion in student loan debt. Just 10 years ago, the nation’s balance was only $447 billion (Clements). This ever-present cumulative burden has caused many post graduate Americans to delay important life events such as marriage, homeownership and children because of this substantial encumbrance (Clements). The debt will only continue to grow with neglect, so the most effective action to take would be eliminating the cost altogether.
With the ever-increasing tuition and ever-tighten federal student aid, the number of students relying on student loan to fund a college education hits a historical peak. According to a survey conducted by an independent and nonprofit organization, two-thirds of college seniors graduated with loans in 2010, and each of them carried an average of $25,250 in debt. (Reed et. al., par. 2). My research question will focus on the profound effect of education debt on American college graduates’ lives, and my thesis statement will concentrate on the view that the education policymakers should improve financial aid programs and minimize the risks and adverse consequences of student loan borrowing.