Too many banks offer loans and do not think how these students are going to pay back the money. Students can't pay back loans for many years. Then, as a domino effect, there is more debt. Middle class parents , are caught in a tight web because they can afford college on paper but in reality, have no money left for retirement and receive no financial aid. The cost of college has escalated out of control and the cost of college grows faster than the rate of inflation.
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. In the last fifty years the world has gone under many changes but one that is really shocking is the escalating prices of colleges.
Since college tuitions have inflated so much, it is not uncommon for student to ask for a loan to pay college. Consequently, the average student loan from public colleges is 25,550, this number is among the 66 percent of students who have a loan. In private university, the number just increases, 75 percent of students require a loan and the average loan debt is of 32,300 (U.S. Student Loan Debt). We all know how important is to get a college degree, but what we don’t know is how our student debt is going to affect us after we graduate. Unfortunately, when students ask for a loan, they do not have strategies to repay that debt, it is not their fault, but schools’ fault that have not taught financial literacy in their schools.
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
Forgiveness of Student Loan Debt On a global scale, there is a large amount of people who are unfortunate in the sense that they are all regrettably faced with the issue of the struggle to pay for a proper education. Seeing as those who struggle are unable to pay on the spot, whether it be because they are financially independent adolescents or their families have low financial income, a majority of said strugglers resort to applying for student loans. This allows them to receive an education for the time being, but it still must be paid for eventually. As a result, every student who takes a loan for schooling will be in debt until everything that has been borrowed is paid off. Thereupon, student debt is generally defined as a type of debt
College itself is expensive. The way universities continue to make money is by creating a ripple affect. In Williams essay he states “at 46 and fifteen years out of my grad school I still owe around 9,000….” Williams is one of many people who are facing college debt. When deciding to attend a university you are making a commitment to paying back a certain amount each month for numerous years after you receive your degree. During those years more responsibilities come into your everyday life.
Student loans have always seem to be a controversial topic. Many people are in agreement and disagreement over the opportunity to student loans. Student loans can be a great advantage to many students, but it can also drown them in an immense debt, that will follow them for many years. The more we analyze this perspective, we are able to distinguish the advantages and disadvantages of student loans. There is a variety of perspectives on student loans, some involving annual salaries, interest rates, and commodity.
Many people are asking will colleges lower their tuition because student debt has risen to 1.2 trillion dollars. Many students won’t attend college because they don’t want to drown in college debt like, some people that do. Based on research colleges should lower their tuition because it’s not affordable for everyone, the value, and it would allow more people to attend. Inflation has caused the price
An even larger majority -- 75% -- says college is too expensive for most Americans to afford. Similarly, a record of share of students are leaving college with a substantial debt burden, and among those who do, about half (48%) say that paying off that debt made it harder to pay other bills; a quarter say it has made it harder to buy a home (25%); and about a quarter say it has had an impact on their career choices (24%) -- (pewsocialtrends). This just simply shows that it is better that there are no more tuition in college in which will help lessen the percentage of people who suffers difficulty in paying debt. Although we know how great number of people contradicts in giving a free education for college students, it is one of the needs of students and will also be an ease for their parents. Along with this, President Obama made a proposal which offers two free years of community college where this proposal of the President had received lots of different positive and negative opinions, comments, and feedbacks from it.