“The number one problem in today's generation and economy is the lack of financial literacy.” (Alan Greenspan). Since kids, we are taught by our parents to study hard so we can earn excellent grades. With those grades, get accepted in a well-known university so at the moment we graduate, get an offer for a high paying job. By completing those steps, we “will be financially successful”.
“With more than $1 trillion in student loans outstanding in this country , crippling debt is no longer confined to dropouts from for-profit colleges or graduate students who owe on many years of education”. Students or future college students are struggling to figure out solutions to pay off college debt. With rates increasing every year , it is becoming extremely difficult to receive an education and overcome tremendous debt at the same time. However , there are several possible solutions that can help solve the issue of high tuition fees. The first solution is to attend a group called the Scholarship Sharing.
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.
Rising college tuition costs is an issue that hits close to home for many of us. Being a student, will always coincide with money struggles. During ones college search, numbers are all we are told to focus on. These numbers include ACT scores, GPAs, AP tests scores, and the biggest number of all, the cost of college itself. The rising cost of college has three main effects; debt through student loans, less people attending college, and an increasing number of college graduates moving back home.
Society often believes college is a necessary experience for a better future, but I argue that the future will not be any better when student debt becomes a part of life for those who follow that mainstream belief. Most parents often dream of the great colleges and universities that their children will get accepted into; however, they fail to think of the cost to attend those institutions. Financial aids! Financial aids! Yes there are financial aids that students can apply to lessen the student debt.
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.
The biggest problem resulting from the student debt crisis is you hear stories of new graduates who have to stay with their parents so they can cut back on costs in order to pay off their student loan. When you take out student loans to help pay for college, it’s easy to forget that that money will eventually have to be paid back. Student graduates can’t do many things due to these student loans such as buying a home, getting married, or having children. But for right now giving students more information about their debt may help students say no to loans. Borrowing less may make it harder for students to graduate if, for instance, they spend more time working and less time studying.
These issues carry over into the most important part of the loan as well: the repayment. All Stafford Loans offer benefits such as no interest until graduation, fixed interest rates, flexible repayment plans, and loan deferments and forbearances, but just because a student graduates college does not guarantee that he or she will be able to find employment after graduation, and it also does not guarantee that his or her salary will be sufficient to repay the loans. Such is the case for one in eight borrowers who default in their loans within three years after graduation and suffer dire consequences. From ruined credit to diminished wages, life can be pretty difficult for a graduate who risked it all to strengthen his or her future and that of
Over the past decade, the federal government has lost a considerable amount of money from student loan defaulters. This matter has raised countless questions about who should pay for these defaulted student loan amounts. Analysts argue that the tax dollars should be used to satisfy the losses since they will limit other students from accessing the same benefit (Rowan, 2013). Other individuals claim that using taxpayers’ money to pay in the event of student loan defaulters would encourage more defaults. This paper seeks to decisively discuss the pros and cons of whether tax money should be used to pay off loans backed by the federal government in the event that a borrower defaults on his or her student loan.
There are a lot of misconceptions about student loans. A lot of people hate them, a lot of people need them. The majority of people don 't understand every facet about them and that can lead to trouble. Given that there is over $2 trillion in student loan debt, and that the average graduate has almost $35,000 in student loans, borrowers need to understand these facts to make sure they are making the best decisions possible.