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Impact of Student Loans

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Submitted By dmincy08
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It is no big secret that, in America today, most high-paying jobs require a college degree. Thomas C. Frohlich of USA Today stated that “graduating from college is a prerequisite for the vast majority of high-paying jobs”(2013). With the cost of a college degree increasing in unison with demand, few can earn a degree without the help of student loans. The American Student Assistance website reports that of the twenty million students enrolled in college, about sixty percent are attending with the help of student loans (2014). Obviously, student loan debt affects the individuals that obtain them. However, it also has severe effects upon the nation’s economy.
Recently, CNBC broadcasted a documentary program entitled “Price of Admission: America’s College Debt Crisis”. The program sought to enlighten and inform students and the general public about the current status of and issues caused by college loans. Several college students were interviewed, telling stories of their inability to pay off these loans and the issues caused by this. It also investigated the role that some or all for-profit universities play in luring and (in some cases) all but lying students into taking loans that they likely cannot pay back. Admissions counselors and school officials were also interviewed, most of whom denied any fault or wrong-doing. A shockingly few number of those students who borrow to pay for college are actually able and/or willing to pay for these loans. Of the estimated $870 billion to $1 trillion in unpaid student loan debt, about $85 billion is past due (ASA, 2014). The issues that this debt causes for the students and their families are catastrophic, especially when the debt cannot be repaid. Many students have acquired loans that, upon graduation, total hundreds of thousands of dollars. Interest accrues on these loans continually. This is a scary

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