Title: The Student Loan Debt Crisis: A Sociological Analysis
The student loan debt crisis is a complex sociological problem that has been affecting millions of Americans. According to recent statistics, student loan debt in the United States has reached a staggering $1.5 trillion, making it the second-largest consumer debt category after mortgages (Federal Reserve, 2021). This problem is significant and important because it affects the financial well-being of millions of people, particularly young people who are just starting their careers. In this paper, I will critically analyze the student loan debt crisis and propose a solution to this social problem.
Thesis statement: The student loan debt crisis is a significant sociological problem
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For example, in 2019, a news story reported that one in five Americans had student loan debt, with an average debt of $35,000 (CNBC, 2019). Additionally, during the COVID-19 pandemic, many students have been struggling to make their loan payments due to job loss or reduced income.
Proposed Solution
To solve the student loan debt crisis, a comprehensive solution is needed that addresses the root causes of the problem. This solution should include policy changes, financial education, and debt relief programs.
Policy Changes: The federal government should make policy changes that make higher education more affordable and accessible. This could include increasing funding for public universities, expanding financial aid programs, and reducing interest rates on student loans. Additionally, the government should explore the possibility of forgiving some or all of the student loan debt.
Financial Education: Students should receive better financial education before taking out loans. This could include teaching them about the long-term financial consequences of borrowing money, the importance of budgeting, and how to manage
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Additionally, the benefits of debt relief would be significant, as it would stimulate the economy and give millions of Americans a fresh start.
Conclusion
In conclusion, the student loan debt crisis is a significant sociological problem that requires a comprehensive solution. The solution should include policy changes, financial education, and debt relief programs. While there are valid arguments against debt relief programs, the benefits of such programs far outweigh the costs. By addressing the root causes of the problem, we can ensure that future generations of students are not burdened with debt and can achieve financial stability.
References
CNBC. (2019, August 14). One in five US adults have a student loan. Retrieved from https://www.cnbc.com/2019/08/14/one-in-five-us-adults-have-a-student-loan.html
Federal Reserve. (2021, March 19). Consumer credit - G.19. Retrieved from
04 Dec. 2016. In USA Today’s article by Sandra Block and Christine Dugas titled “Five Proposals to Solve $1 Trillion College Loan Crisis,” the authors mention five ways to solve the student debt crisis in America, illustrating things like Bankruptcy reform, loan forgiveness, increasing federal pell grants, and the education of borrowers. Evaluating this article, it provides an informative view on the solution of student debt, and overall expresses many different spectrums on ways we can solve this social problem. The five ways to solve this problems
According to the last recording of student loan debt, the total amount of the United States student loan debt is roughly one and a half trillion dollars (A look at…). Statistics like these present the urgent need to resolve the major financial issue of student loan debt. Solutions have been given by many people to solve this issue but most solutions fail. The main reason behind student loan debt is falling to far into debt to the point where it is almost impossible to come back. The origin behind all of this is a lack of a student loan amount cap.
And this will help tremendously (Mitchell). Students may start to get assisted with debt by better education. Officials plan to help pay off student debt for those who need it so the government will save money. Debt is being discussed to only be helped with for the ones who need it so that loans do not become too affordable, they might be ensured to be a payable and reasonable price for the payer (Mitchell). Another great solution is ensuring that the degree they graduate with is able to help them pay off debt with the job they get and this could help tremendously.
The largest group of borrowers by debt amount included 9.9 million borrowers with student loan debt in 2022, ranging from $20,000 to $40,000 (Zanetis 1). Poor Americans have been unable to freely and confidently plan their futures because of the ongoing battle with poverty. Student debt has plagued American students for years. The Federal Reserve Bank of New York revealed that in the first quarter of 2022, the total amount of household debt in America increased
There is an action taken to help with the student loan debt that keeps affecting graduated students and the economy. According to Bassaline (2022), “Recently, President Biden started considering an executive order to do a loan forgiveness of student debt under 10,000 dollars” (para. 7). The loan forgiveness would help decrease people’s debt that they owe. Bassaline (2022) also says, “Overall, it will cost the government $321 billion dollars. If we were to have a 10,000 debt forgiveness of student debt, it would mean more spending for consumers, and there would be a boost of entrepreneurship” (para. 7).
Student debt needs to be lessened, because it negatively impacts
During the presidential election debates, one of the main topics is the problem of debt, specifically debt for college students. According to The Institute for College Access & Success, 7 out of 10 college seniors graduate with student loan debt. Granted you can save money by going to an in-state university, but even in-state tuition can be difficult to pay without student loans. In January of 2012, I began my first classes at Normandale community college in Bloomington, MN.
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).
The student loan issues are causing huge problems on both students and society it seems clear enough that students are borrowing a lot of student debt, and they are failing on that debt and aren’t capable of paying it back and that is destroying their ability and threatening their ability to access any more credit in the future. The approaches students are taking to a student loan debt collection are fraught with many problems, including bad recovery tactics and failing on making repayments on the debt. There is no escaping the fact that the cost of college tuition is on the rise and it’s not declining, and that is making it more difficult for students to obtain a degree which is really important to acquire to be able to function in today’s
The total U.S. student loan debt now surpasses $1.2 trillion and there is more than 40 million recipients owing on federal and private student loans (Malone). Most of the college students in the United States can’t afford their education by themselves and, as a result, students end up drowning in student loans in order to earn a degree. Student debt is a major problem in the US, and it is a major influence on the gap between rich and poor. A more accessible college education would help reduce the gap between rich and poor in the United States.
These issues have been a problem since the 1950s with no true solution having been put into work yet. However, hope survives as experts are still working on fixes today, including President Biden, U.S. Senators, and economy experts. Student debt has not always been a problem within the United States. In fact, as CNN explains in their article “How Student Loan Debt Became a Trillion-dollar Problem for Americans”, Student loans did not even exist until 1958 when the National Student Loan program was introduced during the Cold War. These loans were created under the National
College is one of the most important and life changing times in the life of an American. Leaving high school behind and venturing out to the adult world is an amazing experience that every individual should experience. However, young adults from every corner of the country leave college with crippling debt or do not go to their preferred college of choice. College education should be cheaper as it will help families and students financially and give them the satisfaction with having the opportunity to go to their first choice for college.
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.
Every student's circumstance is different; therefore, they should all have different solutions. Some students do not enjoy of a good economy, which provokes them to borrow more money than other students. Also, there are some students that will study careers that do not have a great income, or are very rare in jobs. Their solution would be to maintain the cost of student loans at a reachable price. In this case, every student would be able to pay off their loans without any
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