The Effect of College Debt on Students
Many people take on debt to pay for college. This debt often affects the choices that students will make once they get out of college. Some manage to pay it off relatively quickly while others deal with college debt for the rest of their lives. Some may even manage to come out of college with zero debt, but that rarely happens. Many factors can contribute to how much college debt a student has and how quickly they can pay it off. Some of these factors include the degree that they choose and the demand for this degree. This means that people who choose a degree that is in high demand will often get better jobs and earn money more quickly than other students who choose a degree that
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After college, most kids will have to consider debt while making decisions about what they want to do with the rest of their life. Kids have many choices they have to make when they come out of college. These choices include where to get a job, whether or not they should go back to school, where they should live, and what kind of house or apartment they can own (Hossler 52). Students who have massive amounts of debt may choose to accept the first job that is offered to them even though that might not be the position that they would like to be in for the rest of their careers. Students who consider going back to school might have to take a long break and get a job to start paying off the debt from their previous years in college. Kids looking to buy a house or apartment might have to buy an apartment that may not be the best option but is the cheapest and the best financial decision for them to make at that moment in time. College debt coming from student loans has risen in the most recent years. A study done in 2016 revealed that the graduating classes cohort is burdened by an average of roughly $30,000 in student loan debt, while the national total has surpassed $1.2 trillion. A figure that most claim represents an economic bubble that could have very negative effects on future generations (Webber). These numbers are making people worried for the future and are putting the likelihood of people attending and graduating …show more content…
College debt can affect students for their whole lives. It affects the choices that they make every day. It also affects whether or not they should accept the first job that comes their way or if they can wait and get a job that they prefer. It also affects their living situations and they may have to live in an apartment with roommates for longer than they had originally planned. The effect of college debt has started to make people wonder if college is even worth it and if it is a good investment and value to
Most college students are already deep in debt before they finish school, as stated by the American Psychological Association, “College students in the United States graduate with an average of $29,200 in student loan debt. ”(American Psychological Association). College students accumulate just under $30,000 dollars in debt before their careers even begin, which means that they have to live frugally to meet the demands of their debt. Their struggles can get so bad that some college athletes report not having enough money to be able to travel home during the holidays or to pay for food (Compensation for College Athletes). College students put their health and well-being aside to work toward their futures.
College debt can have a crucial and long-lasting impact on students’ futures and life choices. Student debt lowers their credit scores and affects their future financial wellbeing, inflicts mental health
The Student Debt Crisis The look into college can be frightening these days. College seems to be an overwhelming topic because of the expenses. Over 50 million college students are in debt in America, collectively owing almost over 2 trillion dollars. The student debt in America is a serious problem for many young Americans trying to get a higher education and continue on with their lives as adults.
However, student loans are not offered to every student and if a student was to receive a loan they still have to pay it back fully or with interest. for instance, “1-3 trillion dollars of student loans, and 6 million vacant jobs that no one is trained to do” (rowe, E). Not only is there over a trillion dollars worth of debt that needs to be paid off, there are also millions of jobs that are not filled because of a large skill gap. it was also stated that, “students today are taking on More debt, and recently Tiding bankruptcy laws make it more difficult to shake that debt” (Wicker, F). All summer saying colleges or cheaper, they are wrong because the initial cost may be cheaper but the amount of debt that is left over is very large and paying off his debt because for a teenager who is learning and looking for a job while making no
Students might be assisted in paying off debt by graduating with a degree that will help them pay off their debt so that they are not in a bad place financially or be in a bad place with their credit score
1). It is hard for many college students to pay off their debt so they take loans out to help them but taking those loans out causes more debt because of their inability to pay the debt they already owe. Student loan debt can effect people through different types of loans like federal and private loans. Student loan debt also affects the economy. It effects the economy by reducing business growth, suppressing consumer spending, lowering credit scores, increasing interest rates, and making it more difficult to save for
Introduction Americans have almost 17 trillion dollars in debt in total in April of 2023, in which around 10% of that debt is student loans. Student loans are a big issue because they contribute to the harm of many student's careers early on, delaying when Americans buy houses, cars and other financial decisions. Student debt is a big dent in the economy, but many say that this is a nessasary evil, required for the population to afford their education. Student debt could mean the difference between your dream school and job but also comes with the downside of debt before your first job. Student debt is problem for many students across the globe but is a big problem In the US.
We have seen that student debt can influence the path on which life lies quite heavily. Student loans can take a fair amount of debt and transform it into lifelong expenses comparable to mortgages. Essentially college debt is the outcome of an extended failed loan repayment. “And unless wages increase and college costs decrease, students will still need to take on debt to complete degrees, and they’ll face greater difficulty repaying loans.” (Helhoski, para. 2).
More than 40 million Americans have student loan debt which is about 1 in 5 U.S. adults. For as long as education has been pursued, college has been a thing. Along with college comes tuition and other college expenses which are not cheap. Since the early 90s, students and parents have been suffering from student loan debt. In fact, according to the United States Department of Education, the average student loan debt has more than doubled from 1990 to 2010 and is continuing to rise (ProCon.org).
Most of my friends who are currently in college have between 5000$-20.000$ in federal and private loans. In many cases, besides for the loans, students have to work and study at the same time, which results in a stressful life for the student. In fact, many students are not able to finish their education because, since they can’t afford it, they have to work over their studies. Out of all the possible reasons to drop out of college, “the No. 1 reason many young adults drop out of college is an inability to juggle school and work” (Johnson). Finishing college is the most decisive forecaster of prosperity in the workforce and the inconsistency in college completion between children of rich and poor families duplicated since the late 1980s (McGlynn 55).
College debt is only increasing, “two-thirds of the class of 2011 owed 26.600.” According to Ellis of CNN Money, “the increase comes at a time when unemployment has remained stubbornly high for college graduates - 8.8% for 2011.” Most kids would rather party when they get out of high school then get a job, therefore students who have parents with steady jobs will have an advantage over the
The tuition and cost of college is detrimental to thousands of families across the country and brings student debt to future graduates. Some students have seen their debt climb over $30,000. Friedman writes, “The average student in the Class of 2016 has $37,172 in student loan debt…” (Friedman). With the debts being over the average income for single people households, college has transformed from a benefit to a burden. Young adults not only have to worry about their education but also paying for the next semester or years of college ahead of them.
Since tuition has risen 3 times higher the rate of inflation in the past 10 years, this increase a student’s chances of not being able to afford higher education and also gives them a better chance of accumulating debt post-graduation. Some people think that the college education they acquired did not fit the amount they paid for it, even if they pulled out loans or were an ideal candidate for a scholarship. This is a scary fact because higher education can determine if you thrive
Loans allow receiving a college education seem like a smoother process considering that such a hefty amount to pay is divided so that it can be paid for in moderation. Despite the fact that it’s split into many payments, it’s still a large quantity all in all so unless indebted students aim for high income jobs, there would many years of difficulty to come after college. For this reason, undergraduates make it their goal to go after jobs which would prevent them from being constantly pressured to pay off debt. Thus, student debt is both a crisis and a reason to encourage persistence towards greater ambitions (Hillman, 41). It is a tremendous thing when a student seeks to be financially comfortable or even rich in the future but not when it is for the wrong reasons.
Student loans can be helpful, but when it's time to pay back, it can lead to future mental struggles and be stressful and hold you back from living the life you want to live in the long run. The student loan debt crisis in now only taking a huge toll on the personal lives of many Americans, but on the economy as well. Whether or not students graduate or not, if they pulled out student loans worth $200,000 they remain in debt for a remainder of years. As the problem continues to grow it becomes more and more critical to find a solution to help the well being of everyone in the nation, student or