...Dr. Kathy Langston English 102 17 February 2014 Student Loan Debt: A Threat to the American Economy And the College Education. As the ever increasing ceiling of student loan debt rises, it bears more of an impact on the generation known as the “Millennials” and the rest of the economy. Many individuals who have decided to embark on earning a college education, whether it is a bachelor’s degree or higher, have had to contemplate on how they would finance such an endeavor. An increasing number of institutions, including private and federally supported bodies, now offer student loans to help many students obtain a college education. Some students find themselves in what can be considered a downward spiral of increasing debt, as these loans continue to mature over time. Many times payments spread over a number of years, equal what some have spent on what use to be the American dream, which was purchasing a home and having the satisfaction of becoming a proud property owner. At the alarming and increasing rate that students spend on education nowadays, it will eventually be safe to say that many individuals will have some very difficult decisions to make concerning what purchases take precedence over the other. Evidence has shown that earning a post-secondary education will be increasingly harder for students to accomplish overtime. There are many obstacles that have developed in modern times for today’s college students. Obstacles include but are not limited to the ability...
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...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. According to Kelly Holland, the time for someone to get ahead financially is when they are twenty to thirty years old, however, their student debt can prevent them from doing so. Having to pay off their debt and...
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...Financial Counseling Should be Provided to All College Students A growing number of college students today are facing unnecessary hardships upon graduation from college because they lack preparation, and the necessary skills needed to manage their financial circumstances. Lack of knowledge combined with distracting, busy study schedules have led many college students to make poor decisions, leading to costly consequences upon graduation. According to the Project on Student Debt at The Institute for College Access & Success (TICAS) in the college graduate class of 2011, two-thirds had an average of $26,600 in student loan debt upon graduation; at the same time the unemployment rate among new graduates was at 8.8 percent ("Average Student Debt Climbs to $26,600 for Class of 2011"). As a result, thousands of new graduates are forced to face huge amounts of debt on student loans that they cannot pay, immediately after graduating. There has been talk on Capitol Hill about federal loans to help graduates with their debt. Government involvement to fix the problem seems very retroactive considering that universities could and should have taken a more proactive approach. Universities must better prepare their students for the foreseeable financial hardships they could face upon graduation by providing mandatory financial planning counseling to all students. Without proper counseling and direction, it is very easy for students to make big mistakes when it comes to seeking financial...
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...2014 Student Loans Rising An Overview of Causes, Consequences, and Policy Options William Gale, Director, Retirement Security Project, The Brookings Institution, and Co-Director, Urban-Brookings Tax Policy Center Benjamin Harris, Deputy Director, Retirement Security, The Brookings Institution, and Fellow, Urban-Brookings Tax Policy Center Bryant Renaud, Research Assistant, Economic Studies, The Brookings Institution Katherine Rodihan, Claremont McKenna College The authors thank Elizabeth Akers, Matthew Chingos, Donald Marron, and Russ Whitehurst for helpful comments. The authors also acknowledge generous research support from the Ford Foundation. Introduction As of 2013, outstanding student loan balances in the US exceeded $1.2 trillion, more than any other type of household debt with the exception of mortgages.1 Following several years of rapid growth in outstanding loan volumes, student debt burdens have attracted increased attention in recent years. This policy brief reviews trends, issues, and policy options related to student loans. Federal student loans offer several important benefits. They help students attend institutions of higher education and help families cover or defer the costs of attendance. However, like other loans, student loans need to be repaid, which can strain borrowers’ income and affect other economic choices. From the outset, we note that isolating the impacts of student loan debt is a difficult exercise. Student loan debt represents debt undertaken...
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...There are various higher education institutions that offer student loans as a pay method for students who cannot afford college. Ultimately, this leads the average student into thousands of dollars in debt and being forced to live in debt. Approximately two thirds of college students graduate with the burden of student loans. Most students can’t pay off their whole loan debt until their late forties. By paying for your education in cash, you will not have to worry about being in debt when you graduate, and you can go straight to the field of work you studied so hard and paid so much to be in. Currently, there is eighty-five billion dollars of student loan debts are past due, and thirty percent of students have missed a payment. Student loan debt becomes a routine part of your life, and you will have to realize that there might be a time where you will not always be able to make a payment by a specific deadline....
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... a surplus, or a debt, businesses and individuals are affected differently. “The most important budget in the world is that of the United States government. The U.S. budget impacts not only the United States of America but foreign investment, trade, and the economies of nations throughout the world.” (Boothe, 2003) The objective of this paper is to provide examples of how the United State’s deficits, surpluses, and debt affect individuals and business both domestically and internationally. Deficits, Surpluses and Debt; an Overview Summary measures of a budget are denoted by deficits and surpluses. Whereas a deficit is a shortfall of revenues under payments, a surplus is an excess of revenues over payments. Debt is accumulated deficits less accumulated surpluses (Colander, 2010). These summary measures indicate the health of an economy. This indicator helps both domestic and foreign companies determine if it is beneficial to invest in United States assets. Heading into the year 2000, the United States was running a surplus. This quickly changed as the government invested in The War on Terrorism, consumers changed spending habits, unemployment rose, and growth decreased. To increase the money supply, government implemented monetary policy and to get the economy moving again, implemented fiscal policies. These policies have wiped out the surpluses and created large deficits. Effects on Domestic Automotive Manufacturers In discussing the effects on an exporter such...
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...and so many college graduates leaving school in debt of student loans and no prospect of getting a job in his or her field of study, is a college degree really worth all the hassle? The thought of going back to school has always crossed my mind, but I kept putting it off because of all the fearful stories I’ve heard about student loans over the years. I myself was afraid to venture into the same fearful situation, I’ve always heard about and so I put going back to school on the back burner, because I wanted nothing to do with student loans. The year is 2018, and Americans today are more weighed down by student loan debt than any time in history, statistics show that Americans owe over $1.48 trillion in student loan debt, that’s stretched out over about 44 million borrowers. {“U.S. Student Loan Debt Statistics for 2018.” Student Loan Hero, studentloanhero.com/student-loan-debt-statistics/.} That amount is about $620 billion more than the total U.S. credit card debt. The average student from the class of 2016 graduates has $37,172 in student loan debt, A jump of six percent from the previous year. Here is how four-year or graduate degrees break down, percentage wise of overall...
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...Forgiving student loan debt has become an America crisis that affects everyone who has ever been a student to acquire more debt. At this time more people are trying to get financially stable so that they can secure a better future for themselves without increasing their debt. According to Wolfer, the article Applebaum wrote lacked effectiveness, and was pointless in his response to Applebaum student loan forgiveness petition. Convincing his argument against Applebaum proposal, Wolfer included that giving one thousand dollars to fifty unfortunate students may help with the crisis of student loan debt. Wolfer proves his personal opinion in remarks towards students lacking to want to pay back student loans debt and because of his remarks I think...
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...have difficulty obtaining mortgages. Because of student loan debt and mortgage regulations, many young adults are unable to qualify for a mortgage. They cannot meet debt to income ratio or they are not able to save the required down payment. (Valenti, et al.). In the past, carrying student loan debt was not quite as burdensome as it is today. It used to help a young person obtain a mortgage and improve their credit score. However, following the recession this changed. Regulations are stricter when a person goes to finance a house and many do not qualify (Norris B1). Overall, fewer young adults have purchased homes since...
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...bankrupt paying for it. Since the institutions are allowed to set rate on tuition it is only becoming more difficult for students pay. As a result, students have to seek alternative ways to cover the hefty costs. It seems as tuition went from affordable to sky high overnight and because of such an exponential increase it has forced a negative effect on students by: having to join the military, taking out student loans, developing health issues, and even selling drugs....
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...Fiscal Policy Paper Deficit can affect multitudes while a surplus creates positive results for those on the receiving end. A debt requires the liability to be paid or the liability may be repossessed or rendered bad credit to the individual. While Americans face issues with debt, surplus, and even deficit it is important to know that the United States deals with it first hand as well. Several areas the three topics affect include tax payers, unemployed, Social Security, Medicare, imports, exports, and the GDP. A synopsis of Team B’s discussion of the topics follows. Tax Payers Taxes are imposed on the United States by three categories; federal, state, and local government. Tax payers are taxed on their income, payroll, property, sales, imports, estates and gifts, as well as various fees. Tax payers are required to file tax returns whether it be for a business, corporation, or individual. Tax payers are affected by the U.S. deficit when there is a shortfall in revenue which is the result from the National Debt increasing. Additionally when there is a surplus tax payers are affected as well. Future Social Security and Medicare Users Social Security Administration figures that by the year 2040 the SS trust fund will be used up causing utilizing one of three options: borrowing, increasing revenue, or lowering benefits. The Medicare program is estimated to be much closer to crisis than the SS trust fund. In contrast to current Medicare and Social Security benefits budget...
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...Rising Student Loan Default Rate: The Next Financial Crisis in the United States Rebecca Richards QBT1 - Language and Communication: Research October 1, 2012 Rising Student Loan Default Rate: The Next Financial Crisis in the United States Introduction Higher education is an important resource for career focused people here in the United States. In order to attend college, most students have to take out loans in order to cover the cost of attending. However, the rising rate of student loan defaults has recently become a serious issue that needs to be addressed. Economists agree that the rising amount of student loan default can prove to be a good indicator when seeking to predict future payments on student loans (Ismail, Serguieva, & Singh, 2011). Recent studies have shown that the growing rate of student loan default on higher education loans could cause another financial crisis in the United States because the loans are government backed, the cost of higher education is on the rise, and unemployment rates are on the rise preventing repayment. Taking on student loans can feel like and endless cycle of entrapment to the borrowers and they are often left with the belief that they have no other choice than to default on their loans. It is impossible to say with 100% certainty where the culpability lies for this unfolding crisis. One point of view is that the students may be at fault for not fully understanding the magnitude of the debt they are taking on...
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...The student loan debt crisis is a major issue in the United States. Every day, students are dropping out of college because they cannot afford college. Ever since college tuition went up in the 1960s, the student loan debt has risen. Student loan debt takes a major effect of student’s lives after college is over and they must start paying their loans off. On average, students take out as much as $28,000 to $30,000 of student loans (Holland). Taking out these large amounts of loans cause students to dig a hole of financial debt for themselves. From the history of student loan debt to the current solutions that could solve the debt issue, student loan debt will always be a constant issue in students’ lives unless drastic measures are taken to...
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...Argument Analyzes In the article Student Loans Pack Surprising Benefits written Katy Hopkins, Hopkins says college debt may not be necessarily a bad thing if students borrow an amount that they can afford to finish a four-year college degree. Hopkins thinks students should take advantage of student loans because there are many benefits that students should experience while they’re still in school. In Hopkins’ article, she explains the four benefits of taking out loans to get a higher education and uses rhetoric appeals to support her points. Even though Hopkins successfully shows the good ethos and pathos to the readers, but the article still lacks logical appeal. The thesis of Hopkins article Student Loans Pack Surprising Benefits is...
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...CAUSES AND EFFECTS Determining Causes and Effects Lila Thompson Rodney L. Baker ENG 115 English Composition May 22, 2016 CAUSES AND EFFECTS My research on determining the cause and effects of stress on college students is complied at the request of the President of Strayer University. The purpose of presenting this research paper to senior administration is to help students have a more positive college experience. College is a new and exciting time, but it can be overwhelming. Among all of the new experiences, learning, and growing opportunities available in college environment, many may lead to unhealthy levels of stress which hinder students’ abilities to socialize and to achieve their academic goals. Recognizing the source of stress is important in preventing it from becoming unmanageable or debilitating. There are several reasons why students are stressed out in college, therefore this research paper seeks to explain the major causes and effects of stress on college students, the economic effects of the cause, and the effects on people. What is Stress? Stress is the body’s reaction to a challenge. Though stress is often perceived as bad, it can actually be good in some respects. The right kind of stress can sharpen the mind and reflexes. It might be able to help the body perform, or help us escape a dangerous situation. Stress produces a physiological reaction in our body. Hormones are released, which result in physical manifestations of stress. These can include slowed...
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