...Student debt is a serious issue in the United States, especially due to the fact that high unemployment has caused many students in higher education to question whether the debt they are piling on in pursuit of their degrees is worth it if they are still unable to get a job. Alan Collinge, Neal McCluskey, and Andrew Ross have all weighed in on the topic, but none of them has offered real, practical solutions that can assuage the burden that many students and families face. Tackling student debt will require multiple policy interventions, but it is imperative that action is taken. According to Collinge, the primary reason for exorbitant student debt is the removal of bankruptcy protections on student loans, which are no longer dischargeable since changes in bankruptcy law in 1998 and 2005 (federal student loans first underwent the change and private loans followed suit). Likewise, many unethical lenders have profited from defaults even as the nation as a whole has approximately $1 trillion in student debt. Collinge suggests the solution is to reinstitute dischargeable student loans so that students can be “freed” from their education debt if they become bankrupt. The problem with his suggestion is that does not actually solve the student debt problem but provides a way out once the situation is completely out of control and cannot be resolved in any other way. He also fails to mention that bankruptcy can significantly...
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...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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...Across America millions of students have accumulated student loan debt through their years at college. Approximately 40 million people across America have student loan debt to pay off. People wonder how does one pay off all of their debt without freaking out, and worrying how am I going to decently live, and also pay off my debt? Paying student debt off can be extremely difficult, and stressful. The trick is to just stay calm, and pay off a little every month even if it is over 100,000 dollars. An example is becoming a history major. How would one become, and then pay off all of their debt? Becoming a history major will give people more than one option on what they what specific time period they would like to study. All over the United...
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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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...Students that have debt try and get away from going further into debt. This is a normal thing for students to do since paying off debt is a hard thing to do while working a minimum wage paying job. So, to lessen the debt load students are moving towards smaller degrees like that of human recourses and marketing. Instead of higher degrees such as doctors and lawyer that cost more and are for longer. These jobs are still getting taken up by the wealthy rather than everyone (Marcus). This means that lower-class students do not have the same opportunity that wealthier students have like free colleges are trying to endorse. They push away the fact that many students still cannot achieve jobs that need higher education because they fear that they...
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...Eliminating Student Debt Bonnie Heath COM/156 August 29, 2010 Lori Wilson Eliminating Student Debt What I hope to accomplish in this paper is to show the reader that because of the predatory practices and shady deals with the different schools, credit card companies should not be allowed on campuses marketing to college students. The level of debt in society today is high enough and credit card companies do not need to be targeting college students just to increase their number of customers. Even though they should be allowed to market to college students because it is a good way to learn about credit cards and how to handle them responsibly, credit card companies should not be allowed on campuses to market to college students. College students already have enough debt as it is if they do not receive scholarships or help from their parents, and college students, fresh out of high school, do not know enough about personal finance and personal credit to be responsible about credit cards. I happen to agree with this statement because when one thinks about it, college students who do not have scholarships or help from their parents are already in enough debt as it is. One argument for credit card companies being allowed to market to college students is credit cards are a way for students on their own for the first time to establish a good credit score, which then can be used later in life to obtain loans for cars or homes. Credit card companies market to college students in the...
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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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... Title: Student loan Debt Crisis Speaker: Markevia Lee Specific Purpose: To persuade the audience of their choice of taking out student loans. Thesis Statement: College is not something to put off until after you have graduated, students need to find ways to pay for college before they graduate. I. Introduction: Attention-getter: The increasing trend of college students graduating with significant more student loan debt than job prospects is both alarming and detrimental to the future growth of the nation. The cost of education and the widespread of federal student loans have created an education bubble to rival the housing boom that sparked the recession of 2007-2008. The more tuition rises, the more students need to take out loans. This problem is both current and urgent and must be acted upon now. Source: (http://www.usnews.com/news/articles/2014/11/13/average-student-loan-debt.) Establishment of Ethos: I have discovered there are ways student loan debt can be reduced by applying for scholarships and school grants. Preview: first, I will discuss recent graduates should be able to refinance their loans upon graduating, additionally, the government should intervene on behalf of students to encourage policies that lower college tuition, finally, I will you some examples of assisting students in the payment of college expenses. (Transition: “Let me start by showing the steps that should be taken to help recent graduates”) II. Body A. Student debts are exacerbated...
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...Student Loan Debt Over a few decades, there were only so many people who went to college to receive a higher education. The first generation did not have the opportunity to go to college instead they invested their time and money on hoping their children would go on to further their education. I do not believe the first generations realized what the cost of college tuition and fees would be for their children in the future. What is out of hand these days is the cost of a college education. While investing in higher education, we gain knowledge, and future success which is good, but what is the cost? What is affecting, the future of college graduates is the high debt in loans the students must pay off which has a long-term financial effect. We must find a solution for students graduating with these large loans. There is an article “The Debt-free College Degree by Melba Newsome” (Newsome, paragraph 6) in the article for their financial packages they focus on trying to remove loans to their students at Davidson College. Institutions are considering this as a model for other colleges looking for the idea to try to provide solutions to the student loan problem. Giving students their college tuition for free is this a feasible solution? What a college could apply to a student’s financial package could be the large endowment funds that are given to various colleges and universities each year. Expert “Mark Kantrowitz stated Harvard could afford to make tuition free.”...
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...Graveyard Shift Is having student loan debt for the rest of your life worth it for a college degree? Would you work the night shift to get a majority of your school paid for? For the people that work, are they getting enough rest to excel in the classroom? A college degree makes you money while doing less work, but people without a college education usually work tireless hours to make half the amount. It’s Monday morning, a person just finished working a six-hour shift. They have just gotten get off at 5 am, and have class at 8 am, how do they cope? Studies show working more than 15 hours can affect a student’s success in the classroom (Semuels, p. 210). Also, people who went through 35 hours of sleep deprivation saw two letter grade drops in classes (Semuels, p. 211). Working a job, especially the night shift doesn’t seem like a bright idea? Some schools offer programs to work during the night and receive half...
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...many reasons why one to avoid taking on student loan debt, first of all we all know that any type of loan is required to repay to the lender later on. However, student loan debt can be very serious if one did not pay back to the lender. Having too much student loan debt can destroy person life financially and make things worse, and I also personally heard some people stories about their student loan debt. Some of them regretted about loan they took while they were in college. After 5 to 7 years repaying their student loan they haven’t pay off their loan yet. And there are several things happened to some of them such as: been denied from getting car loan or house loans. And because of these types of obstacles some people who graduated from college are having hard time with relationships, have kids...
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...Strategies For Controlling Student Debt Jarett Lopez - 6385761 Dr. E. Bailey ENG 1100F October 5, 2011 Strategies for controlling student debt For those who attend college or university in Canada today, debt is inevitable. Many factors can contribute to this fact; the consistent rising of tuition costs, the marginal average income increase of middle-class families, perpetually rising interest rates, but most importantly, the lack of student debt relief knowledge. The Canadian Federation of Students has an ongoing debt clock which reflects the Canadian student loan debt of over 13.9 billion dollars, with an average debt per student upon graduation of approximately 25,000 dollars. This shouldn’t be surprising, knowing that since 1990, the average net income of middle-class families in Ontario has risen only 12.5 percent, all the while, tuition costs have risen from 2,500 dollars per year, to 6,500 dollars, an increase of an astounding 260 percent. This trend of rising tuition costs is consistent throughout the majority of Canadian provinces. Today’s Canadian post-secondary students are capable of controlling their debts, provided, they decrease their loans by minimizing their school fees and costs of living through being resourceful and staying informed. By being accepted to a post secondary institution, students have demonstrated that they have the intelligence and knowledge to succeed in their studies. Staying at university or college, however, takes...
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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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...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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...Student Loans; Bad Debt Bad debt is borrowing money to pay for something that diminishes or drops in value over time. Student loans are one of the main reasons that place millions of Americans in financial debt and possibly financial crisis every year. Current student loans have grown by 91% in the last 10 years creating an oversupply of college educated student in the labor market. The government wanted to offer Americans accessibility to a higher education, offering loans at a fixed rate that with time went up affecting negatively college graduated students. This idea was sold as the “American Dream”, where people thought success was linked to going to college or university to later on have a white-collar job. According to economist Dusty...
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