Student Loans And Its Effect On The Nation 's Economy Essay

Student Loans And Its Effect On The Nation 's Economy Essay

Length: 1011 words (2.9 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

As the years pass by, more and more college universities are gradually becoming more expensive in tuition, and other school-related expenses. Across the nation there are millions of college students who are in a way, “forced”, to take out loans through banks, their personal universities, or other financial aid services, because of their inability to fully pay for these colleges’ overwhelming expense fees. These loans being taken by students and parents across the nation may or may not always be paid back immediately-- some adults give testament admitting that they are still paying off their student loans from ten or twenty years ago, up to this day. Our goal, is to analyze and assess the specific numbers of student loans taken for given years, its direct effect on the nation’s economy, and come up with potential solutions for how to fix any negative problems that may be created.

[Description of the economic issue (key facts, diagrams)]
According to Barbara O’Neill, a financial resource manager at Rutgers University, from 2004-2014 Student Debt has quadrupled and the student default has doubled. The amount of average student debt has increased from about $15,000, for a student with a bachelor 's degree, to about $27,000. This negatively affects the economy because after graduating these students aren’t able to buy things that makes the economy move. For example, people are buying less houses, cars, and are less likely to start up a small business as a result of the amount of debt they have accumulated. To add, because of the amount of debt each person has, they are less likely to borrow money in the future or take bigger risks financially.
Things like investing in themselves or their goals, in companies/stocks, or in doing small ...

... middle of paper ...

... monthly stipend from Denmark’s government. While things like obtaining a higher education in Denmark are nearly free, the mandatory taxation
[our solution & why it could potentially work]
****The Federal Reserve Bank of New York released a study in 2013 stating that 43% of 25 year olds had student debt in 2012. Which was a huge increase from the 2004 number which was 27%.
To get a handle on the student debt problem, the federal government needs to provide relief programs for private loan borrowers too. The federal Consumer Financial Protection Bureau announced in 2013, that it was soliciting ideas from policy makers and others for a plan that would give private loan borrowers some relief. Such a plan, which would most likely involve a public-private partnership that freed up capital for refinancing, would have to be part of any solution to the student debt crisis.

Need Writing Help?

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

Check your paper »

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]

Strong Essays
1255 words (3.6 pages)

Education Is Essential For A Nation Essay

- The youth of the nation are both the backbone and living representation of what the future will hold. A teacher once told me, that the reason why she teaches is because the knowledge she gives us will greatly affect the world and she hopes it is for a positive effect. Education is essential for a nation to survive and thrive. What that education consists of is determined by what society views as important for the future. Therefore, why is it that the government is more concerned about funding and the other nation 's views than on the young 's people is education....   [tags: High school, Education in the United States]

Strong Essays
1545 words (4.4 pages)

Student Loan Debt Of Households Essay

- This bar graph represents the comparison student loan debt of households throughout three years (1989, 1998, 2010). My three categories are college graduates, people who completed some college but didn 't earned a degree, and all households. This demonstrates that as time passes more people take out student loans due to the college tuition increasing every year, and many Americans can not afford to pay college out of pocket. As a result, many Americans have large amount of debts and loans. The students in the purple are the ones who face more troubles in paying back their student loans and many of them can face economic struggles that will eventually affect the nation as whole. Nelson Man...   [tags: Higher education, University, United States, Debt]

Strong Essays
1218 words (3.5 pages)

Essay on Colllege Students Struggling with Rising Costs

- Colllege Students Struggling with Rising Costs Kristen Carlow, a 20-year-old former Northeastern University student left Boston last spring after her freshmen year, because of overwhelming tuition prices. “My parents make a decent amount of money and I’m an average white female student. I’m nothing special, where the government or Northeastern was going to give me enough money to pay for school,” Carlow said. This is the current situation that many college students face across the United States....   [tags: Finances Financial Loans Education Essays]

Strong Essays
1831 words (5.2 pages)

Student Transfer And Problem Structuring Policy Analysis Essays

- Chapter 2 provides a review of literature related to degree attainment, the efficiency of student transfer and problem structuring policy analysis. In addition to a review of different methods of studying degree attainment, individual and societal benefits will also be touch upon, including findings from other researchers on graduation rates and time to degree completion. This chapter will also examine the effect of transfer policies in relation to degree completion. Also, a summary of major variables, both student and institutional, that prior research has found to have an impact on the efficiency of degree completion....   [tags: Higher education, Academic degree, University]

Strong Essays
1264 words (3.6 pages)

National Organization Of Collegiate American Students Essay

- I have recently become increasingly concerned with the steady increase cost that follows going to a college or a university. I have decided to take matters into my own hands and form an interest group called NOCASH; standing for the National Organization of Collegiate American Students Needing Help. In this paper I will discuss how I will overcome obstacles that I will face with forming this group, how I will increase and retain membership, and how to increase the group’s reach on the nation and it’s respective audience....   [tags: University, Student, Debt, Lobbying]

Strong Essays
831 words (2.4 pages)

Student Loans And Its Effects On Students Essay

- Student loans affect students in a variety of ways and causes students to go into distress and frustration with fear of the future. Additionally, student loans cause many students to go into debt and it is a huge responsibility on their shoulders. Furthermore, the number of students in debt in the United States has increased over the past twenty years (Black, 2016). It causes them to borrow so much money until it affects their future. Student loans cause many students to go into debt, but there are many ways to reduce it such as applying for scholarships and grants, saving money and applying for work-study....   [tags: Debt, Loan, Education finance, Default]

Strong Essays
743 words (2.1 pages)

Student Loans Are A Cancer Essay

- Student loans are a cancer. Once diagnosed, they have the ability to consume your entire life. Sure, there is a “cure”, however it comes with a long list of unavoidable sacrifices and if not acted upon, it’ll be crippling. It will spread to every part of your being, taking your freedoms and abilities away only making it more impossible to make ends meet. Although Cancer is not fair, nor forgiving, there are differences between it and student loans, cancer kills, student loans leave you suffering....   [tags: Debt, University, Student, College]

Strong Essays
1019 words (2.9 pages)

Credit Scoring Models For Student Loans Essay

- The discussion of student loan defaults started in 1986 and since then became a priority for education ministries to look over in order to adjust and broaden eligibility for subsidized loan and increase loan limits (Shen and Ziderman, 2009). It was found that the factors that contributed to student loans default were much more complicated than a typical retail credit product as the factors are much more specific (Gross et al, 2009). Credit scoring models for student loans – Important considerations In order to create a good credit scoring model for student loans, one needs to understand what has been done in the past and in this case, the best way to understand who to grant a loan to, one n...   [tags: Debt, Loan, Student loan default, Credit]

Strong Essays
1640 words (4.7 pages)

Essay on Student Loans

- Student Loans The federal government has the power to cutback the funding of student loans. There are several different ways the government can go about doing this. One way is to keep the amount of each loan the same and reduce the number of loans granted. Another option the government has is to reduce the amount of each loan and issue the same number as in the past. Either way, students that belong to a low-income family will be greatly affected. Cutbacks in the funding of student loans have several effects....   [tags: Papers]

Strong Essays
463 words (1.3 pages)