Increasing Student Loans

A problem with student loan debt is that students gain more debt because they are not able to pay off the student loans within the given time which also causes them to put certain life decisions on hold. According to Sophie Quinton debt is a problem for the recent college graduates because “There’s currently no way to get rid of federal student debt other than paying off the loans. while some borrowers are paying off their debts just fine, overall they are adding debt faster than they are shedding it”(Quinton). According to Jamaal Abdul-Alim stated that a “survey - titled Student Loan Debt: Who’s Paying the Price?- revealed a number of troubling statistics about the practical ways that student loans are impacting college graduates in their everyday lives. For instance the survey found that: 49

College debt has risen significantly since “The Great Recession” in 2009. Due to the high college fees, students are faced with lifelong debt. If the rise continues, only the rich will be able to obtain a higher education, resulting in American education to take several steps backwards instead of improving. Although many have tried to fix college debt problem, it has mostly gone unnoticed. Specifically targeting the nation’s youth, college debt is destroying the chances of the lasting effects on the economy from fully recovering.

In fact, USA today reported that, “the nation’s record high $1.34 trillion in student debt is also casting a long shadow over the economy, delaying home purchases, crimping consumer spending and inhibiting business formation” (Davidson). Students come out of college unable to purchase a home or participate in increasing the economy because they are so far in debt that they have no extra spending money. The economy cannot rebuild if young people are not able to purchase non-essential items. Therefore, student debt is also causing a problem for the nation as a whole. Students come out of college with a degree and are not able to get a job immediately.

How the Student Loan Debt Crisis Is Undermining the Economic and Social progress of American Graduates

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?

In the U.S. students are encouraged to earn a college degree, but the cost of an education turns many away. “Driven by the allure of a decent salary with a college degree, Americans borrowed to go to school. Outstanding student debt doubled from 2005 to 2010, and by 2012 total student debt in the U.S. economy surpassed $1 trillion” (Mian, Sufi 167). There are plenty of opportunities to obtain funds for college, including one of the most common, student loans. A student loan is defined as “a common way to fund education, specifically college and graduate school, and they provide educational opportunities that you otherwise may not be able to afford” (Barr). Student debt is at an all-time high in America. Over half of all lower income

But the student loan debt crisis has far reaching implications for our economy. Young adults who finish college burdened with debt hold back on purchases that were once common for young families, like buying cars and houses—things that make our economy stronger and our middle class more secure.

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

What do you think of when you hear the words college graduate? Well, in most scenarios, these words would be exciting to someone that just graduated college who have put in years of hard work and dedication to better educate and promote themselves for their future careers. Sadly enough, this is too far common not the case. In today’s society, students are graduating college with piles of debt at an alarming rate. With a troubled economy that is recovering from a recession and jobs difficult to come by for a lot of graduates with bachelor’s degrees, the student loan debt in the United States is bound to be a major crisis that could severely weaken and crimp the economy even more in the coming years.

Student loans are one of the top three national debts in the United States. Total student loans have reached an outstanding of one trillion dollars and are still on going. It would take the United States hundred-fifty years, twenty million dollars a day to fully cover this national debt. Student loans are intended for students to go to college but they come with a rising social and economic cost. As the expectancy of high return and tuition are increasing, more students are ending up with a mountain of debt and without a degree. It is risking our countries’ future; we will face another recession if the trend of student loans continues to grow exponentially. We will have a future of Millienials who are in debt and unable to invest their money into the economy. In order to have a stable and working economy, we need people to spend money. Young adults are the “masters” of spending money and have a huge contribution in stabilizing our economy. If young adults are spending their money in paying off their debts, there will be definite consequences. So people might ask, “what aspects of the economy are being affected due to rising student debt?” Despite the social cost that student loans promote, through in depth research and analysis, I have concluded that our economic cost will evolve around the housing market, small businesses, and students’ career choices. These are extremely valuable industries that

Student debt is slowing the growth of the U.S economy because it makes graduates not able to spend on goods and progress their lives. The obvious problem, supported with statistics, show that the increasing of tuition costs and student debt balances to be harming to the growth of America’s economy and its people. How? Statistics show that Americans owe more than $1.45 trillion dollars in student debt, shared amongst 44 million people. You would think by knowing this fact students will reconsider attending a four-year college, yet it doesn’t affect enrollment at all. What’s more concerning is college graduates leaving school with an average of $34,000 of student debt, according to Federal Reserve’s Bank of New York, effecting young Americans in many ways leaving them stuck in excelling at life.

Going to school full time with a heavy load of classes and working 20-30 hours a week can be very challenging. In addition, I must be able to save enough money to put back for student loans that I have to pay in the future. My parents are only able to contribute a little with the job of raising my brother and going through the burden of a recent separation. Any extra financial assistance would be extremely beneficial in helping me reach my goals of getting a bachelor's degree. I greatly appreciate the committee reviewing these financial needs I have

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.

Student loan debt forces graduates to live at home, delay independence, marriage, and preparing a family. Living at home induces people to not experience more adventures in the outside world. Missing or being late for loan payments results in lower credit scores and fees, extending debt problems and jeopardizing future investments (Driscoll). In the twenty-first century, due to the rising cost of universities, loans constitute a growing proportion of higher education financing (College). Most citizens would rather arrange for teens to just finish high school than owe huge amounts of funds.

Currently, the difficulty to pay for higher education are hindering not just thousands of students, who cannot afford the tuitions, but also the economic growth of the United States. Since 1970’s, the income of American families has been stagnant and the price to attend universities has increased three times, which has led the student debt to an incredible rise, and now it is bigger than $1 trillion. The effects of this huge student debt are terrible for the economy, and will prevent a sustainable growth, because the students enter the labor market owing money, so they avoid making risky investments that could have been successful.