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Student Loan Debt Case Study

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Around the senior year of high school, you take one of the biggest investment choices in your life. This choice is which college you will attend, but this choice is connected with student loans. According to the New York Times article “The Five Things You Might Not Know About Student-Loan Debt,” they describe the ongoing problems with paying student loans debts. Student loans have increased over the last 30 years. The tuition has gone up by at least 1,000 percent. An average student with a four-year graduate degree needs to pay $25,000 or more. Another factor that has influenced the debt is that colleges and university endowments have decreased. This takes away from students who need scholarships. We will be doing a case study evaluating three…show more content…
Non-Stem GRADUATES assuming have a 40% chance that they will have difficulty finding a high paying job upon graduation. Let’s assume for this case study that STEM graduates will earn $620,000 during the ten years immediately following graduation. Non-STEM graduates over the next decade will earn $500,000. These numbers all depend on if there is a strong job market.” A strong job market is when the unemployment rate in an area is below national unemployment rate and economically doing well. A factor that would influence the market is what degree one has and the level of one’s…show more content…
Under policy one both STEM AND non-STEM borrowers would break even. To arrive at this conclusion one must add good economic conditions repayments and bad economic conditions repayments. Then one must divide them to see if the repayment surpasses 50,000. If the lender gained it would be above $50,000 and if it went under the lender lose money. Under policy three the lender would lose money in STEM and non-STEM borrowers, as well as policy two non-STEM borrowers, cause the lender to lose money. When factoring both STEM AND non-STEM borrowers, policy one, policy two and policy three the lender has the potential to lose money.After analyzing the lender 's and students benefit I arrive at the a conclusion for each
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