In present 2016, with the presidential elections coming up, one of the talked about problems is student debt. The U.S. currently owes over 1 trillion dollars in student debt and it is growing by the second (Collegedebt.com). Tuition rates are over the roof and how these politicians plan to act upon them is one of the major deal breakers for this election. Yet as tuition rates keep on soaring, people are questioning, how and when did it become this bad? The answer is simply three factors: The Great Recession, Privatization, and lastly the need for higher education.
The Great Recession was a shocking surprise to the American population when we realized the abrupt and sheer deterioration of housing prices and unemployment rates (Fieldhouse). …show more content…
The post recovery was not as strong as it could have been, but due to the great help of Obama and Congress, we have managed to begin stabilizing the economy (Money.cnn.com). They implemented new policies like the American Recovery and Reinvestment Act which took out tax cuts in order to give help to troubled citizens and states, they also tried to balance the housing market, and reduce mortgage and foreclosure rates. The results were extremely positive as stated by Whitehouse.gov, “This all-out policy response has made a huge difference. Last Friday, we learned that real GDP…grew solidly for the third quarter in a row. Growth at an annual rate of 3.2 percent in the first quarter of 2010 is a dramatic turnaround from the decline of 6.4 percent that we had in the first quarter of last year. Likewise, in March we started adding jobs again. Employment rose by 160,000, and given the other data, we are hopeful that Friday’s April employment report will yield another positive reading.” Yet even though there was growth within the nation’s economy, the states were not getting enough money from the government and had to take out many budget cuts and one of the most affected budgets was the educational funds (Lumina 6). States would originally contribute reasonable amounts of money to schools and that would lead colleges and universities setting tuition rates lower due to most of the expenditures of housing/educating the student being already paid (Lumina 4). Later on as the Great Recession progressed, states were forced to cut down the budget thus making schools raise the price of higher education (Lumina
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Allan and Davis mention the spike of college cost since 1995 has increased by 150 percent; student debt has increased 300 percent since 2003, and with education, second to the mortgage industry in the nation’s debt, America needs to redirect their attention to the future and focus on education (Allan n. pg). Budget cuts from national to state
In recent years, there has been a tremendous increase in student enrollment in higher education after high school effecting the need for financial aid for all students. Education has become a growing part in America where more students want to better their lives with a college education. However, the cost of college tuition has increased and more students find themselves struggling to pay off the enormous tuition rates. In a recent study by the Consumer Financial Protection Bureau, student debt has reached $1 trillion in federal loan debt. Student loan debt has crippled the economy and students are struggling to pay off federal loans. In order to help students with the high tuition rates of college the government and universities offer
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.
According to the Bureau of Labor Statistics, college tuition and relevant fees have increased by 893 percent (“College costs and the CPI”). 893 percent is a very daunting percentage considering that it has surpassed the rise in the costs of Medicare, food, and housing. As America is trying to pull out of a recession, many students are looking for higher education so they can attain a gratified job. However, their vision is being stained by the dreadful rise in college costs. College tuition is rising beyond inflation. Such an immense rise in tuition has many serious implications for students; for example, fewer students are attending private colleges, fewer students are staying enrolled in college, and fewer students are working in the fields in which they majored in.
An education is one of the most important tools a person can acquire. It gives them the skills and abilities to obtain a job, earn a wage, and then use that wage to better their lives and the lives of their loved ones. However, due to the seemingly exponential increase in the costs of obtaining a college degree, students are either being driven away entirely from earning a degree or taking out student loans which cripple their financial prospects well after graduation. Without question, the increasing national student loan debt is one of the most pressing economic issues the United States is dealing with, as students who are debt ridden are not able to consume and invest in the economy. Therefore, many politicians and students are calling on the government to forgive their student loan debts so that through their spending the slowly recovering economy can finally return to its pre-2008 strength.
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...
What caused the Great Recession that lasted from December 2007 to June 2009 in the United States? The United States a country with abundance of resources from jobs, education, money and power went from one day of economic balance to the next suffering major dimensions crisis. According to the Economic Policy Institute, it all began in 2007 from the credit crisis, which resulted in an 8 trillion dollar housing bubble (n.d.). This said by Economist analysts to attributed to the collapse in the United States. Even today, strong debates continue over major issues caused by the Great Recession in part over the accommodative federal monetary and fiscal policy (Economic Policy Institute, 2013). The Great Recession of 2007 – 2009 enlarges the longest financial crisis since the Great Depression of 1929 – 1932 that damaged the economy.
A college education has become the expectation for most youth in the United States. Children need a college education to succeed in the global economy. Unfortunately for the majority of Americans the price of an education has become the equivalent to a small house. The steep tuition of a college education has made it an intimidating financial hurdle for middle class families. In 1986-1987 school year the average tuition at a private university was $20,566 (adjusted to 2011 dollars) while in 2011 the average cost was $28,500 for an increase of 38.6%. Similarly in public universities there has been an increase in tuition: in the 1986-1987 school year the average tuition at a public university was $8,454 (adjusted to 2011 dollars) while in 2011 the average cost was actually $20,770 for an increase of 145.7%. Most families who are able to save for college try to do so, therefore their children are not left with large amounts of debt due to loans. Nevertheless, families are only able to save on average around $10,000, which is not enough to pay for a full educ...
In the essays “College Debt: Necessary Evil or Ponzi Scheme?” by Dale Archer and “Forgive Student Loans?” by Richard Vedder, the authors show their varying viewpoints towards college debt. Archer’s essay focuses primarily on the correlation between higher education and college tuition, especially describing the upper education and its downsides for average graduates and average students. He also provides a simple alternative for financially burdened students to obtain certificates from trade schools as a better choice in today’s education that involves going into the workforce (Archer 402-04). Vedder’s essay, on the other hand, lists the numerous altercations about the student-loan industry. He rationalized his essay in a succinct manner that tells his general audience that forgiving student loans will bring financial burdens on the federal government (Vedder 405-07). Although, both writers addressed the issue
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.
As colleges’ funds dry up, colleges must turn to the public to further support higher education. By raising state taxes, colleges can collect funds to help improve the school’s budgets. The state provides funds from the taxes for colleges to receive a certain amount for each student currently enrolled. All community and traditional four year colleges collect these funds in order to maintain the school’s budget. As reporter, Eric Kelderman states, “less than a third of colleges’ budget is based from state taxes”. The school’s budget is how colleges are able to provide academic support programs, an affordable intuition, and hire more counselors. Colleges must now depend on state taxes more than ever for public colleges. Without collecting more funds from state taxes, as author, Scott Carlson explains how Mr. Poshard explains to senators “our public universities are moving quickly toward becoming private universities…affordable only to those who have the economic wherewithal to them” (qtd. in.) Public colleges must be affordable to anyone who wishes to attend. If colleges lack to provide this to students, it can affect dropouts, a student’s ability focus, and cause stress. The problem of lack of funding is that colleges have insufficient funds. Therefore, the best possible solution for the problem of lack of funding would be increasing and collecting more funds from state taxes.
The federal government must do more to reign in tuition costs at the public colleges, that educate more than 70 percent of the nation’s students. The cost of four-year public college tuition has tripled since the 1980s, outpacing both inflation and family income. The increase in the tuition burden is largely caused by declining sta...