College Debt: The Great Recession

While higher education continues to grow in popularity as an important investment in American society, the student loan debt that accompanies this education also continues to grow as a burden to the American economy. Although the plethora of debt most commonly applies to graduate students and college dropouts rather than undergraduate students, student loan debt has accumulated to $1.2 trillion and continues to grow. Student loan debt made up 13% of the debt accumulated for adults between the ages of 20 and 29 in 2005, and has grown to account for 37% of the age group’s debt in 2014. Even though the government made $66 billion in profit on federal student loans from 2007 to 2012, the American economy shows very little positive feedback if any at all. About ten million federal student loans are taken out annually with an average loan balance of $15,900 in 2005 and up to $25,500 in 2014. The debt accumulated from these loans has made a larger gap in economic inequality, has limited entrepreneurship, and has prevented future loans from being taken out because of damaged credit ratings. Student loan

These loans are a growing crisis, having “quadrupled since 2004 to just under $1.2 trillion” (Gorman). At the projected rate, the student debt crisis will continue to rise if the focus of funding higher education remains on loans and not federal or state grants. Without reform on policies that help decrease college prices, the student loan debt crisis will continue to grow and further disadvantage the socioeconomic standing of people who seek the most financial aid.

In her Newsweek article “On the Coming Burst of the College Bubble” Megan McArdle, a Washington, D.C. journalist focuses on the concerns of the crippling financial struggles that college students continue to face. In this intricate article McArdle captures the essence of this crisis. Critical in her reading is recognizing that for some, the school system works, yielding decent jobs and an effective rate of return on investment; for the vast majority, however, too many college graduates are suffocating under a mountain of accumulated debt, with very limited opportunities for employment and no acquired skill. Why then do the vast numbers attend college? Many people believe that one must get a college education in order to gain the benefits that were assumed would go along with it: “an education that would last a lifetime, a better job, and

Back in 1940, the number of graduates numbered only 186,500. And by 1950, the number of college graduates nearly tripled to 432,058. For the population during that time, this meant that less than 5 percent of adults 25 and older in the U.S. only had a college degree. Of that total, about 109,546 of them were just men. However, by 1970, the number of college graduates just receiving a bachelor degree had increased to 839,730. By this time, 68% of federal aid to college students was in the form of

As the demand for workers with college degrees increases the pile of debt students may graduate with gets bigger and bigger. This problem is America’s next sizeable financial crisis, but this crisis however is avoidable. Student loan debt is a financial bubble waiting to blow up just as the housing market collapse did in 2007, which the country is only just now starting to see signs of recovery from. The cost of a four-year degree has seen increases that surpass inflation and health care costs. Likewise, the amount of student loan debt is now greater than both auto loans and credit card debt. So, the question most frequently asked is, how has this happened?

The cost of getting a college education has risen over the past three decades. Comparing it to the housing and medical care markets, it has risen considerably more than them. The current student loan debt, has risen to an astonishing $1.2 trillion dollars, the largest ever recorded. Student loans are just now a burden on our society, yet no one is surprised about the amount of debt the students are in. Yet is is extremely

In this unimaginable generation, we face many challenges to survive, but one challenge that is prevalent is student college debt intertwined with the expensive economy. The idea that a better and furthered education will bring you more success is why millions even make college loans an option. It is believed, that the two elements of education and employment coincide with one another. The idea of being employed is a necessity in modern day. There is a focus on getting an education to determine your success. Although attending school is appreciable, it also comes with its issues that make college appear as a trap; incognito in a sense. Dragging everyone down slowly like a leaf in quicksand. Young adults struggle with college debt, and financial barriers; by avoiding the economy’s false luxuries can prevent the occurrence of running into economic barricades.

Given the ongoing state of education in the United States, one may argue that it has largely shifted its focus from being an institution that focuses on the development of academics and future societal leaders, to one that focuses on financial and bureaucratic growth in which students have become the consumer and the businesses are the universities. This shift has in turn, contributed to an enormous rise in educational debt for US college and university students (Jason Houle, 2014). Houle (2014, p. 53) also states, as cited in (Federal Reserve Board, 2010), that for many students attending a college or university has opened the doors for them to also accept a 1 trillion dollar debt—a debt that has surpassed the credit card debt placing

Researchers started in 2012, Seventy-one percent of all 18 million college students graduating from four-year colleges or universities and had some form of student loan debt. The student loan debt burden in the United States increased eighty-four percent since the recession, hitting an all-time high of $1.2 trillion. The average balance has also increased and now sits around twenty-nine thousand dollars,according to CNN Money. A large portion of these 18 million understudies has been told again and again that an "advanced education" is the way to landing a great position and lifestyle of the American Dream. They have been educated not to stress about the amount it costs and that there is a lot of budget guides.

Over the past decade, it has become evident to the students of the United States that in order to attain a well paying job they must seek a higher education. The higher education, usually a college or university, is practically required in order to succeed. To be able to attend these schools and receive a degree in a specific field it means money, and often a lot of it. For students, the need for a degree is strong, but the cost of going to college may stand in the way of a successful future. Each year the expense of college rises, resulting in the need for students to take out loans. Many students expect to immediately get a job after graduation, however, in more recent years the chances for college graduates to get a well paying job

Good afternoon, 21 million students attended college in the fall of 2014 ("Back to School Statistics"). The total student debt in America is 1 trillion dollars, the majority held by members of the middle class ("Back to School Statistics") (Carrns). Student debt is negatively affecting the economy by encumbering the middle class with absurd financial burden thus widening the wealth gap and decreasing social mobility. America should pursue redefining education through lowering the cost of college and reevaluating social stigmas attached to states schools or community colleges.

Post-secondary education comes at a very high price. The excitement of graduating college to land the six-figure job is soon destroyed when you realize how much debt you are in. Dreams of owning a house and starting a family is shattered by the money borrowed to provide and guarantee students a better future. Instead of waiting to land that perfect job, students are forced to work multiple jobs to help ends meet. Struggling to stay afloat, millions of students are becoming victims of one of the major economic crisis in the United States; Student debt.

Student loan debt in the United States is expanding unrestricted each year. There are 36 million Americans today, holding over $740 billion dollars in student loan debt. (U.S. 2013) The current student loan system is intended to open doors to economic prosperity for those who could not otherwise afford to go to college. Research suggests that the unintended consequence of too much available student credit is real people losing prosperity and languishing in debt for extended periods of their lives. Reducing or eliminating the availability of student loans would have a tremendous impact on improving the lives of Americans. If things continue the way they are now, American’s will soon find college, and its implied ticket to economic

The increasing cost of higher education in the United States has been a continuing topic for debate in recent decades. American society emphasizes the importance of education after high school, yet the cost of undergraduate and advanced degrees continually rises at a greater rate than inflation. According to the Advisory Committee on Student Financial Assistance, cost factors prevent 48% of college-qualified high school graduates from pursuing further education (McKeon, 2004, p. 45). The current system requires the majority of students to accumulate extensive debt with the expectation that they gain lucrative post-graduate employment to repay their loans.

College, originally deemed as the pointer to guaranteed employment, financial stability, and an indicator of success, has been declared in jeopardy. Topping the credit card debt and many household debts, the student loan debt has been pronounced the next potential financial disaster in the U.S. With 2014’s numbers currently exceeding $1.2 trillion, the debt figures have reached about twice of 2007’s remaining debt (Akers, 2014). Gone are the days when a parent could send a child to the state university to study their interests and finish off with a job offer, ensuring a respectable future. The average balance for a 2014 college graduate is $32,500, which will be dragging out of not only themselves but also their families (Rajan, 2014).