Raising Student Loan Debt

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About a few decades ago, colleges and universities began raising their tuition cost, but recently have gotten out of control. According to Steve Odland, tuition has risen triple the inflation rate (26). In addition, more college students are graduating with enormous amounts of student loans. The burden of loans creates more liabilities than assets towards students. Therefore, from the start students are at the bottom of the disposable income graph, which leads to an increase in income inequality and a decrease in economic stability. Although many people believe that a college degree will eventually lead individuals and our nation as a whole to prosper, the consequences of rising tuition on our student loan debt, the effect that debt will have on research and development sector, and our investment sector far outweigh the benefits of obtaining a degree at such high tuition costs. Alternative views …show more content…

For one thing, a college degree provides higher earning potential, in other words, a higher income. According to a U.S News survey, bachelor degree holders earn an extra 1 million dollars over their lifetime than someone who only has a high school diploma under their belt (Peralta). Also, someone with a college degree will have more job opportunities, greater benefits, and stability. All this leads to more satisfaction, which in turn reflects on individual’s families and the economy. These points are indeed misleading because students have to make monthly loan payments for years, which reduces their income and causes hardship throughout the economy. A study done by Pew Research shows that a high school graduates “earns 3,137 more dollars quarterly than a bachelor’s degree holder who pays student loans” (Smith). Therefore, students aren’t improving their stabilities; they are just putting more pressure on their families and

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