Student Loan Crisis Essay

543 Words2 Pages

Many Americans are taking out loans to fund their college fees. These loans account for more than $1 trillion in debt, making student loan debt the second largest in consumer category debt behind mortgage loans. Surveys have revealed that the largest student loan debt has been experienced in 2017 whereby the crisis has encompassed borrowers across all demographics (Friedman, 2017). The adverse effects of rising student loan debts on an individual are the financial obligations of a person to remit monthly income towards servicing the loans. Consequently, the ever-increasing student loan stifles spending, slows down the growth of the housing market, holds back entrepreneurship, and creates unemployment. Therefore, it is important for policymakers to formulate and implement measures to curb the student loan crisis to improve the economic health of the country.
According to Gregory Dehn, founder and chief executive officer of Kaleidoscope, loans are an outdated and ineffective way of solving financial problems because they create a future debt burden for individuals, …show more content…

Many students have to study part-time while working to supplement some of their educational expenses (Shawn, 2017). Therefore, providing students with grants will be instrumental in allowing them to fully concentrate on their education since there are no financial problems or obligations. In addition, grants will ensure that they have adequate time for school. The burden of the student loan debt can potentially prevent people from realizing their dreams and full potential (Shawn, 2017). Therefore, they do not forgo other opportunities and also do not need to meet monthly financial opportunities in the form of paying up loans. They can further their potential through internships and do not have to stay longer in

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