As Graduation comes near we all like to believe that our careers begin debt free behind that glass door, and we turn the knob and all our hard work will have paid off. When in fact, the glass door shatter and the student faced with the reality of paying back student loans. There is little dispute today that the number of students who have student loan debt has increased.
Kayla Webley touched on a topic that I too soon will be facing along with many of my other fellow graduates and that is the dreaded payback of student loans. While Webley makes some very good points regarding responsibility of student loans and the negativity that the media portrays student debt median ranges up to $80,000? I still am not on board with simply saying “No …show more content…
This petition was created by a college graduate who felt his education worth $80,000 should be free. The proposal was if college graduates were not burdened they would be the ones to jump start our nation’s debt by stimulating the fiscal economy. The graduate now lawyer is urging the government to free us of our obligations to repay our outrageous out of control student loan debt, which according to the article, the student loan debt for graduates was, at the time, valued at $1 trillion.
Webley shares source Justin Wolfers Freakonomics blog, he states debt forgiveness would not pump money back into the economy in a short amount of time to make a more efficient stimulus. Time has shown that in the case of tax rebate checks, does little to stimulate the economy, and you would assume that the same would hold true with student loan forgiveness. She also addresses the possibly that more loans will be taken out by students while crossing their fingers in hopes they will receive a bailout. Of course, she is more than likely correct and I feel this would cause more damage to our economy, money would be loaned out with the potential to never be paid back by the …show more content…
These students are paying a high price and not receiving the higher education they are entitled to. There are many days in a student’s life that something so simple can become drawn out and take a week to resolve. For example; a student walks into registration and is told one thing, sent over to their financial aid department and is told something completely different, told to go back to registration. By the time, the information is back to your instructor, it’s too late to start the class because registration did an override on what the instructor indicated and now she is angry, not at you but the department who doesn’t have a clue on how to run a class yet overrides her instructions it’s a constant merry go round at times. In the end your now short on credits and paying back money before you can even begin the quarter. I see this happen too often and thru no fault of the student is a costly outcome for the student to
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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
Along with scholarships, fellowships, and grants, student loans are an important method of financing post-secondary education. With tuition costs rising, more students are borrowing to pay for college education today. However, not all students realize the burden of paying back their student loans. Many are defaulting.
In the argument, Debate on Student Loan Debt Doesn’t Go Far Enough, author Robert Applebaum, graduate of Fodham University School of Law, asserts that excessive student loan debt should be forgiven after a reasonable repayment period and suggests this would stimulate the economy because former students would have more money to spend(Debate). He backs up this claim by introducing the Student Loan Forgiveness Act of 2012, contending that education should be a right that people of all classes can benefit from, and addressing both the individual and the economic drawbacks of student debt in the middle and working classes(Debate). Applebaum
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
Carneval, director of Georgetown University’s Center on Education and the Workforce agrees that going into debt until you’ll be earning more money is the way to pay for your education. “The only thing worse than borrowing is not borrowing and not going to college at all,” stated Patrick M. Callahan, president of the National Center for the Public Policy and Higher Education. Lauren J. Asher, President of the Project on Student Debt group, states that the financial risk has increased. Ms. Asher points out that more students graduate with at least $40k in student-loan debt, “People lose control of their finances, and sometimes they make choices you wish they hadn’t made.” Darla M. Horn, an organizer of the student-loan-debt art show in Long Island City, NY realized she hadn’t been aware of how much money she had borrowed while in college. Referring to herself as financially illiterate, she found herself “just signing the documents and faxing them
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...
Student loan debt makes up a large portion of the debt in this country today. Many defaulted loans are the demise of high interest rates, poor resources to students in educating them on other avenues and corruption in the governmental departments that oversee education and financing. There are many contributing factors that lead to the inability to pay off student loans which need government reform to protect the borrower’s best interests.
In an article written by Andrew Lehren, the author provides the bold statement that “the only thing worse than graduating with lots of debt is not going to college at all” (Lehren). In today 's society, many families lack the funds to provide a full ride for their children in terms of college. Due to this fact, many people turn to alternate solutions such as loans or diving straight into the workforce instead of attending college at all. These solutions, however, may greatly affect a person throughout the course of their life. The problem of college debt is increasing rates in regards to tuition, however, fortunately there are various solutions accessible in order to decrease or eliminate the debt that many american students face.
To this day, countless college graduates are still paying back their school loans from years ago with no foreseen future of the bills ever ending. To many, college is believed to be the best time of your life, where young adults get to be who they are with no adults to tell them what to do. However, years later when the bills start to seem like they are getting too much, it is probably because they are. School loans are ridiculous for the small snippet of what people actually learned and leave the universities with. All high school graduates in the United States should be given an opportunity for a tuition-free college education, following the model used in European countries.
It is a norm and expectation in society today for students to pursue higher education after graduating from high school. College tuition is on the rise, and a lot of students have difficulty paying for their tuitions. To pay for their tuitions, most students have to take out loans and at the end of four years, those students end up in debt. Student loan debts are at an all time high with so many people graduating from college, and having difficulties finding jobs in their career fields, so they have difficulties paying off their student loans and, they also don’t have a full understanding of the term of the loans and their options if they are unable to repay.
Analyzing all points of view, a great amount of individuals ask themselves why should the government forgive student debts. When our national debt is already sky-high, giving money away (forgiving) will only up the bill our country already has, according to Debt to the Penny (2014) our current debt today is $17,858,510,713,719.34. Another huge concern is the possibility of higher taxes! Government has to find a way to recover the money some way right? Why should the debt free individuals
I have heard many people suggest total student loan forgiveness. Of course, this sounds like a very easy way out especially because supporters of such a move have a clear illustration on how loan forgiveness will not impact the economy. I on the other hand beg to differ. I think that cancelling all student debt without any sort of payout to the creditors will result in economic catastrophe. Perhaps, it will even trigger another recession.
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.