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.
College, unfortunately, is very expensive; However, in America we have many options for students to pay for their education, almost all ways of paying tuition put students in debt. A chart that uses information from The U.S bureau of labor statistics shows that “The bottom quarter of earners with a college degree don’t make more money than the average high school graduate.” If someone is getting put in debt
A college level education has many perks. “Education is essential for personal and national well-being. We live in a highly competitive, global economy, and if our economy is to be strong, we need the best-educated workforce in the world. We won’t achieve that if, every year, hundreds of thousands of bright young people cannot afford to go to college while millions more leave school deeply in debt” ( Sanders). If every young person is
Without these numerous factors that vary vastly among different colleges and universities one simply may not assume every student that finances a loan goes into long term debt. College admission may be a hard decision when it comes down to price. Many other students fail to attend their dream school due to the financial struggle. Ultimately there are students that pay the full price for admission no matter what the cost just to attend their dream school. To many students college is worth the price for admission.
You now have skyrocketing tuition costs and loans. Totally wrong and unfair. As an example: Yale 's endowment is now $23.9 billion as of June 30, 2014, net of spending. The University benefited from investment gains of approximately $4.0 billion. Yet how many students will be able to EVER pay back their loans that go there.
Debt forces students to postpone life in several key areas including buying a house, getting married and saving for retirement. On top of all this, college degrees are more common than ever; record numbers of Americans have a college degree and its impact on future earnings is not what it used to be. So, college students are paying more for a degree that will earn them less than the same degree did a generation ago. And we want to go into debt getting this degree? This is absurd.
In today’s worldwide economy, there is a high demand for the best-educated post-graduate students in our industry. Hundreds of thousands of intellectually savvy students cannot afford to go to college, and those that can leave school with a colossal debt that haunts them for years after. As stated by presidential candidate Sanders, “That shortsighted path to the future must end. I will fight to make sure that every American who studies hard in school can go to college regardless of how much money their parents make and without going deeply into debt. This isn’t a radical idea.” We see worldwide that this burden of debt has hindered society for too long.
When they go to start the path of finding a career, they find instead piles of debt from their education. So many student borrowers are falling further and further behind in their payments, postponing purchases of cars and places to live, or putting their social lives on a shelve. Jason Delisle, who wrote the New America paper, “blames skyrocketing graduate school debt on changes to federal loan programs that essentially allow grad students unlimited borrowing. The more students can borrow, the more schools can charge.” Americans almost universally believe that a college degree is the key to success and getting ahead—and the data shows that, generally speaking, college graduates still fare far better financially than those with just a high school diploma. But for those who are saddled
In America there is a very real financial divide among the people. Financial stability starts with education, although a large portion of the American population cannot afford it. Depending on your parents economic standing you may or may not be able to afford college, among other things. College opens the door for many opportunities, including having the capacity to provide for your family. Various authors today are still writing about the ongoing issue of poverty and the ways to climb out of it.
For example, A majority of Americans say the higher education system in the United States fails to provide students with good value for the money they and their families spend (Pew social & demographic Trends, is college worth it? (The value of education, 40). If people do pay for college it will be hard to pay for other things as well. For another example, About half say that paying off debt made it harder to pay other bills (Pew social & demographic Trends, is college worth it?) When people pay for college they find it really hard to pay off things like bills and debt.
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.
Debt. That is what 70 percent of students who graduate, have to deal with according to MarketWatch. Debt has increased over the years because more and more individuals strive to accomplish their dream and goals. Moreover, Student Loan Hero says that approximately 44.2 million Americans are in student debt. Many students are unaware how tremendous this issue is, and how it can have a significant impact on your future.