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.
In today’s society, many students will go on to receive a higher education after high school, but is the cost of having a higher education worth it? In 2017, the average college graduate accumulated more than 34,000 dollars in student debt (Dickler). ADD. Student loan debt creates early financial difficulties for young adults, leading to many mental and physical issues from stress and overall hurts the economy. With the weight of student debt on a person’s shoulder, they are less likely to be financially successful in the future.
Have you ever wondered what life would be like with a free college education? Seventy-five percent of high school seniors are accepted to their first college choice or university, but less than fifty-seven percent can bear the expense to attend their first choice learning institution. In fact, ”two out of three college students have now graduated with student loan debt. The average tuition is three times higher today than in 1980.” “1.5 million, or about 53.6 percent, of all bachelor 's degree holders age 25 or younger were unemployed or underemployed in 2011.” (Gerber, "34 Depressing Facts About The Job Market For College Grads"). Furthermore As many Americans prepare for the next semester, homework is not the main problem on their mind, it is being able to meet the payments of their college tuition.
Most college students do not have a steady flow of income and almost none can pay for college out of pocket. This makes the student think if college is an investment that is even worth it. Most people are spending at least $50,000 on their college education and high school students can’t even begin to
In America, college costs have been growing at a rate faster than inflation for over a decade. The resulting student loan debt, most of which belongs to young people aged 22-40, is causing a lot of trouble for the whole economy. The average college student is graduating with $32,000 in student loan debt . Not only do they have to pay this back with interest, it affects them in other areas of their lives. Debt forces students to postpone life in several key areas including buying a house, getting married and saving for retirement.
While universities have greatly expanded their populations to include a wider group of students, at the end of the day, they are still the most selective form of post-secondary education. And with many schools, the selection process is not always an accurate judge of character for all students. As a result of this, many students feel abandoned by the very idea of attending a university. Selectivity is not the only deterrent either. In the past few decade, the cost of attending a university has skyrocketed.
For instance, the national debt in the U.S is just above 19.3 trillion dollars which is a number that I can barely comprehend (concord coalition.org). Average credit card debt is right around 15 thousand dollars and student loan debt is around 25 thousand dollars (student loan hero.com ),(nerd wallet.com). These numbers go on to say that Americans love to spend and we only care about our present situation without considering the future consequences of our spending decisions. These enormous debts place a huge burden on individuals, couples and families everyday. People will continue to be burdened when you consider that the cost of a home is around 190 thousand dollars and that an average wedding runs in the ballpark of 26 thousand dollars.
Revenues and benefits go to the wealthy at the expense of everyone else. For instance, the middle class is progressively shrinking. According to White House’s Council of Economic Advisers, the percentage of people who are middle class has fallen from 50 percent to 42 percent. On the contrary, a 2012 report by the Congressional Research Service reveals that the wealthiest 10 percent of households went from controlling 67 percent of the country’s wealth in 1989 to almost 75 percent in 2010. Moreover, this uneven distribution of wealth has contributed enormously to increased poverty and deprivation in the US.
Consider today’s economic numbers. Even though we are the most educated cohort in American history, my generation is entering a job-market where half of positions pay less than $18 an hour. That is the definition of a low-wage economy and makes millennials disproportionately likely to occupy jobs that don’t provide enough income. In addition, many young people start their careers with massive student loan debt, which eats away at whatever wages they
Thao Diep Rena Tillinghast English 1303 02/15/2018 International students are now “subsidizing” public American Universities to the tune of $9 billion a year It is undeniable there are more and more foreigners coming to the United States for many reasons such as business, travel, especially education. Moreover, because of that, there is a dramatic increase in the diversity of most colleges and universities in the United States. However, many oversea students have been complaining about the extremely high tuition they have to pay compared to the in- state tuition for the American citizens. According to the article, International students play a major impact in the United States economy. For example, in 2015, the US universities gained about $9 billion (approximately 28%) from the tuition of the foreign students (Loudenback).