20 April, 2023
Imagine graduating college look at the amount you owe on loans for your education is over $20,000.The average federal student loan debt balance is $37,338. That's a lot of money for just one person to pay off! The federal student loan portfolio currently totals more than $1.6 trillion, from loans owed by about 48 million borrowers. Student debt is caused by the astronomical price of higher education that leads to crippling debt for college graduates and even dropouts; however, There are Government plans and scholarship payment programs created to help this issue be forgiven or partially assisted.
Student debt are funds that are owed on a loan taken out for their education. student …show more content…
Such as potential forgiveness from high power spots which would be seen to help a lot. Some political candidates and elected officials have advocated changes that would eliminate all student loan debt, while others would eliminate at least some of it. Advocates for student debt forgiveness think it will help the economy ("Student Debt Forgiveness"). Debt will potentially be forgiven to those that are in need of the help. 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. 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. 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
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Preston Harris 6/13/2023 ENGL 200 ZA Mrs. Martin Rough Draft You and I, as college students, probably keep up with the finances related to our higher education. Setting oneself up for success as a student is crucial, and this includes preparing for potential debt. The issue of student debt and what to do about our outstanding loans is causing a serious financial problem in the United States. After completing their studies, more than 65 percent of college graduates average $28,650 in loan debt.
Throughout many years there´ve been many laws or events that have contributed to the student debt crisis, whether it be good or bad. Laws like the National Defense Education Act and The Higher Education Act of 1965 originally created student debt and the many accessible options to end up with student debt. Events like The Great Recession and The Coronavirus pandemic have aided many in-debt students to lose their jobs, not being able to pay their monthly debt or basic human necessities. Those events alone were devastating because people weren't able to have shelter or pay for food while they were also stacking up their debt trying to survive in the world.
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
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).
Students often leave school or graduate school with loads of debt. High schoolers going into school notice the debt that they will leave school with but they can not do anything about it because the colleges make money off of the student loans. Colleges often charge a lot to go to their school and, “The average graduate student owes up to $90,170 in cumulative federal student loan debt. 54.2% of all graduate school completers have federal student loan debt from graduate schools; 60.5% have debt from their undergraduate studies” (Hanson). Students leave school with tons of debt and students rarely leave without student debt.
“Today, 45 million people collectively owe nearly $1.7 trillion in student loan debt. Every 26 seconds, one of those student loan borrowers defaults on their loan” (The Student Borrower Protection Agency). These are terrifying numbers that affect everyone not just individual debtors. Student debt is a ripple effect that will affect generations to come. Such problems become even worse for individuals; “these are ‘kitchen table’ financial issues that affect every aspect of their lives” (The Student Borrower Protection Agency).
Some ways to help understand the graduates' situation better is to calculate the total debt, and come up with a schedule and plan on how to pay it back when payments are due (Epstein). Identifying the interest rate and payment rules of each loan taken can help to avoid interest and fees when paying back your debt (Epstein). For graduates, considering a consultation may help to push back and lower payments for now (Epstein). “But there's really only one bad option if you are having difficulty paying your student loans: to do nothing and hope for the best. Your debt problem won't go away, but your creditworthiness will” (Epstein).
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.
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.
Colleen Rookerson College Financial Debt Linda Shepard 22nd, April 2023 College Financial Debt Student debt is on the rise, what are we going to do about it? Students face an increasing amount of debt and struggle to pay it back due to low finances and high interest rates. Some students struggle financially to pay back student loans and eventually need to drop out of school due to the high costs. What options do they have?
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.
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
There are many people out there that completely disagree with the Act or even the idea of fixing the crisis itself. people are saying that forgiving students from their debt would make them irresponsible with the extra money they’ll be making The fact of the matter is that if the Act were to pass, it would: eliminate many of the awful consequences of educational indebtedness. In doing so, it would give Americans greater purchasing power, helping to jumpstart the economy and create jobs. Of course, it does have some restrictions, but it will help the student loan debt crisis and the national debt crisis. The solution is that students will continue to pay their debt flexibly comfortably by paying ten percent of their income, and after twenty years of paying, the debts can be forgiven.
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