The Government Should NOT Forgive Student Loan Debt Essay

The Government Should NOT Forgive Student Loan Debt Essay

Length: 1745 words (5 double-spaced pages)

Rating: Powerful Essays

Open Document

Essay Preview

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.
To understand the student debt crisis, one must first understand what caused it and what results from it. College undergraduates use student loans to finance the cost of tuition, room, board, transportation, and personal expenses while attending (Gage and Lorin). Student loans are different from other forms of debt because basic consumer rights like bankruptcy protection don’t apply to students who default on their loans. As a result, students are virtually locked into their debt, offering them little to no ability to refinance it. Solutions to debt problems like consolidation are available to students but that process doesn’t involve shopping for a better deal from competing lenders like it does in other debt areas. Therefore, interest rates often remain high and the loans remain with the original lender (Vanegeren). As Kayla Webley expl...


... middle of paper ...


...inessweek.com/articles/2014-01-16/student-loans-the-next-big-threat-to-the-u-dot-s-dot-economy>.
Schou, Solvej. "Finally, a Law That Would Protect People From Student Loan Hell." Takepart.com. Yahoo News, 12 Feb. 2014. Web. 16 Feb. 2014. .
Vanegeren, Jessica. "Wisconsin's 'Higher Ed, Lower Debt' student loan bill set for Wednesday hearing." The Cap Times. madison.com, 3 Feb. 2014. Web. 16 Feb. 2014. .
Webley, Kayla. "Is Forgiving Student Loan Debt a Good Idea?" Educational Financing. Time: Business & Money, 20 Apr. 2012. Web. 16 Feb. 2014. .

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Graduation Speech : Student Loan Crisis

- Student Loan Crisis The choice to attend college is one that has increasingly become solely about whether a family is able to afford the cost of college or not. When deciding where or if one should attend college, there are a number of factors that play an important role. For example, one must think about cost of tuition, travel expenses, living arrangements, food, and many other necessities. In today’s economy, most families are not able to afford these expenses; therefore, students turn to student loans and scholarships....   [tags: Debt, Loan, Education finance, Default]

Powerful Essays
700 words (2 pages)

Essay about Forgive Students Loans By Richard Vedder

- Student debt is more and more popular with nowadays. Education becomes necessary, so it is the reason why more students have to take out the loans to helping for their education. The article " Forgive students loans" by Richard Vedder was written to oppose the current student loan program for college students, and he argues for legislation proposed to forgive loans. He thinks that the impact on student loans debt to the economy of America is seriously, and it can be a big trouble for finance of America....   [tags: Debt, Education finance, Student loan]

Powerful Essays
720 words (2.1 pages)

Student Loan Debt Should be Forgiven Essay examples

- Does the amount of student loan debt have an effect on the economy. If so would forgiving student loan debt help lower the national debt or would it just increase it. According to Mary Claire Fischer, a writer for Kiplinger’s Personal Finance magazine, “two-thirds of students who receive bachelor’s degrees leave college with an average debt of twenty-six thousand dollars” (Fischer). This means that the average student debt has doubled since 2007 (Ross 24). The total student loan debt is $1.2 trillion with $1 trillion being from federal student loans (Denhart)....   [tags: Student Loan Debt Essays]

Powerful Essays
1255 words (3.6 pages)

Benefits Of Repaying Your Student Loan Essay example

- Once the repayments start knocking on your door, you should have a plan in place to deal with them. Below we’ll discuss some of the tips that can make repaying your student loan slightly easier and definitely less stressful. Create a repayment schedule First, you should draft a repayment schedule for paying back the loan as soon as you get in debt, irrespective of whether you need to start the actual repayments yet. The plan will help you stay on top of the loan at all times and make you more aware of the things you need to do....   [tags: Debt, Money, Loan, Student loan]

Powerful Essays
1453 words (4.2 pages)

The Problem Of Student Loan Debt Essay example

- 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. Before World War II student loans did not exist. After the war people started chasing the American dream....   [tags: Debt, Loan, Default, Student loan default]

Powerful Essays
1728 words (4.9 pages)

Student Loan Of High School Loan Debt Essay examples

- 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....   [tags: Debt, Loan, Default, Predatory lending]

Powerful Essays
837 words (2.4 pages)

Student Loan Debt Is Not A Good Idea Essay

- education we say is the key to success, it is said that you cannot put a price on a good education but unfortunately today’s education has a huge price. Education as turn out to be one of America’s biggest problems because most of the students today do not end up going for their pre-college desired career, reasons which can be mainly attached to financial needs. Most students apply for loans so as to meet their basic needs while they pursue their career, some do not even have enough and still have to work full time to meet their needs and that of their family....   [tags: Debt, Loan, Default, Education]

Powerful Essays
1056 words (3 pages)

The Student Loan Crisis Is Not A Myth Essay

- The student loan crisis is not a myth considering the average debt of a college student is equivalent to someone buying a new car. Students today average a debt around $23,000-$33,000 along with student debt rising to $1.2 trillion ("Heaviest U. Debt Burdens Fall on 3 Types of Students"). The rise in student loans have proven not just a problem for students but also an economic and political problem. College debts also have frightened the future students into not applying for college. Almost half of all adults 18-34 cannot afford the price of college anymore ("Here 's Your Crisis: Student Loan Debt Isn 't a Myth")....   [tags: Debt, University, Money, Loan]

Powerful Essays
747 words (2.1 pages)

Essay on The Problem Of Student Loan Debt

- One of the biggest issues that America currently faces involves the student loan debt. It is very unfortunate that although the purpose of loans are to help students achieve their goals and dreams, it may very well be the one thing that holds myriad of college students back. As quoted by Martin O’Malley, former governor of Maryland, “ Today, our kids aren’t getting the same bargain. The vast majority of students — 70 percent — are graduating with debt. Although average tuition at a public four-year college has more than tripled over the past 30 years, a typical family’s income has barely budged.” Now the real question posed is: how exactly does one solve the problem of student loan debt in...   [tags: Debt, Loan, Interest, University]

Powerful Essays
856 words (2.4 pages)

The Cost Of A Student Loan Essay

- As Bob sat there looking at the cost to go to the college that he has wanted to go to, he realized that he would never be able to pay the staggering amount of money this will take to go to college. That is, without help from other people. Bob then started calling his friends and family, hoping that he could find someone who is able to help pay for college. Sadly, no one could spare any money to help him. Bob knew that the only way he was going to this college was to ask the bank for a student loan....   [tags: Debt, Money, Loan, Credit]

Powerful Essays
1381 words (3.9 pages)