The Negative Effects Of Student Debt

Some people don’t need to go to a four-year college because it's not for everyone. It does not also guarantee a job which means you will get your hopes up and won’t like the results. In addition, there are blue collared jobs that offer good pay as well. Therefore, success does not require a college degree. Students today believe that continuing higher education promises success.

The nation's financial aid system currently fails to provide an equal opportunity to everyone qualified. with high amounts of student loan debts has been shown to reduce a person's chances of owning a home, getting married, having children, and accumulating wealth. The earnings for a full time minimum wage worker is $15,080 at the federal minimum wage of $7.25. Full-time work means working 2,080 hours each year, which is 40 hours each week. A better educated population could result in smarter decision making at every level of society, which could lead to

The tuition and cost of college is detrimental to thousands of families across the country and brings student debt to future graduates. Some students have seen their debt climb over $30,000. Friedman writes, “The average student in the Class of 2016 has $37,172 in student loan debt…” (Friedman). With the debts being over the average income for single people households, college has transformed from a benefit to a burden. Young adults not only have to worry about their education but also paying for the next semester or years of college ahead of them.

And with the help of subsidies, from state governments that go to the school, they can boost the pay of college graduates with a four year degree and even those who don’t have a degree at all (Rampell, Catherine.). But in recent years the subsidies haven’t been catching up with the cost of living in America which forces the colleges back to having the students pay most everything they do on campus (Rampell, Catherine.). Moreover for the poor of America who can’t afford to go half ends up still poorly. Giving the stone cold truth college is not a choice anymore. That if people want to move up the ladder to a decent paying job where they can support themselves and their family college is the only true means of doing

In the past few decade, the cost of attending a university has skyrocketed. Richard Fonte (2011) published a peer-reviewed article titled, "The Community College Advantage." In this article he writes the following statistic, "The average annual cost of tuition and fees for a fulltime student at a community college is $2,713, while at the public university the cost is $7,605." Cost presents an issue for two reasons. The first is the burden on those students whose families are supporting them.

If students used the student loan money wisely they would not be in so much debt as well as not having to take so much out and paying so much back in the long run. For example, if you receive your loan and are spending it on luxuries items all the time it’s only going to hurt you because you will end up having to pay back more than what you should have had to in the first place. Many young college attenders face this situation because they have no past experiences with handling money more responsibly. Learning to budget their money more has helped graduates successfully.As many stress of the inflation of college we all learn to live with it. Even though tuition is increasing we all attend college at the highest price.

In addition withunemployment expected to remain above 8% well into 2014 it will likely be many years beforeyoung college graduates-or any workers- see substantial wage growth as illustrated in charts twoand three. This can be attributed to the recession of 2008 (Kroeger) (Bennett 6) this recession hascaused student to not see the high return on the pricey investment of college education.Chart one(Shierholz) Avila 5Chart two (Kroger et al Figure A)Chart three ( Kroger et al Figure

From kindergarten to beyond high school, a majority of adults push students to go to college. The pressure grows for teens. High school students are expected to know what they want to do by their senior year. Today it seems as if college is a teenager or a student’s only option, but they might spend the rest of their lives paying off student debt. There is no doubt that college tuition today is substantially higher than ever before, making future students think twice about whether college is right for them.

There is a variety of perspectives on student loans, some involving annual salaries, interest rates, and commodity. Some say that interest rates should be dismissed from student loans, unless the student does not pay the loan by the time provided in the contract signed.Similarly, there exists another perspective that states that the amount of money students should be allowed to borrow should be similar to the annual salary they will earn once they graduate college. These perspectives open many door to students. Students would no longer worry about interest rates making the debt bigger with time. Although, the perspectives sound like a very good option, there are some disadvantages: the government will no longer have the accessibility to the money made from interest rates, which can diminish the opportunity for students to obtain student loans.

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.

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.

Drowning in Debt: What are the Consequences of Student Loan Debt in the U.S.? Student loan debt has a big impact on students decisions, student debt influences a lot on how they spend their money. American Student Assistance (ASA) recently made a survey, with this survey they found out that the Students with loan debt are postponing important decisions in their lives. Many of the students that participated in the survey are waiting to buy a home, get married, have children, save for retirement, and some of them haven’t been able to enter the career field that they wanted all because of their debt. Student loans were created to help out students who want to go to college by giving them money that has to be paid back.

Various authors today are still writing about the ongoing issue of poverty and the ways to climb out of it. Brink Lindsey, the Cato Institute 's vice president for research, writes about not only the importance of a college degree, but also the financial strain it has on the families funding it. Brink Lindsey, has written that the income of college graduates has risen from below 50% in 1980 to 85% in 2008, and those without an education are barely able to attain a menial income, insufficient of their needs. “Tuition costs have galloped far ahead of inflation, while many in the working class have seen their incomes stagnate or slip” (Lindsey). “A lack of money is the

Raising the minimum wage is something that should’ve been done a long time ago. By doing so, raising wages will actually help solve this as credit reliance will drop, and people with newfound spending power will be able to go out and buy what they want and desire. Let’s say that a student (specifically a college student) has to worry about grades, and can hardly balance their work-life. But however, that student can’t quit his/her job because that person needs help to pay for their college tuition. Financial Aid is helping her lower her tuition money, but however will soon graduate with a large amount of student-loan debt, which is a college student’s worst nightmare!

As a capitalist country, most of our American goods are processed in other countries because the labor force is cheaper. This leaves American citizens with less jobs, more competition, and less money for spending on goods necessary to maintain a lifestyle that of the middle class. Thus, if one is eligible for loans and credit cards, debt will be inevitable. Debt must begin somewhere in our lives and where else would it begin other than when we are students? Students obtain debt early