Multiple factors contribute to student debt. The growing problem of student debt has become more prominent and inspired many documentaries to investigate the cause and effect. One factor is the rate of the loan. Other factors include the emerging guidelines develops by the government. There are current new regulations that determine who can borrow and how much debt to pay. Colleges and universities have increased the cost of enrolling student in school, which increase the number of debts that those students receive as a student loan. A report shows that borrowers who complete college in the early 1990s can manage student loans without a huge burden. I chose this topic because I want to know how student debt can affect student life and some of the benefit and disadvantages of taking a loan without paying back as a freshman in college. There are a lot of problems facing the student debt crisis in the united states, and it is the fasted growing segment. A student with a lot of debt turns to have a lot of problems after college, some of those problems are, Student debts crisis decrease the chance for an individual not to be able to afford things such as cars, first homes, it affects a career choice of the student.
Firstly, According to Ulbrich, Timothy R. the ‘’Average student loan debt at graduation has been growing steadily over the last two decades. In 1993-94, about half of bachelor’s degree recipients graduated with debt, averaging a little more than $10,000. This year, more than two-thirds of college graduates graduated with debt, and their average debt at graduation was about $35,000, tripling in two decades.’’ Ulbrich, Timothy then explain how the student debt affects the student, Student debts crisis decrease the chance for an individual not to be able to afford things such as cars, first homes, and many other. Across the board, most college graduates with debt find it very difficult to purchase items such as cars, house, 21.6 million young adults between the ages of 24 to 34 are still living at home with their parents. This is a much larger number than in previous generations. Many of these young adults aren’t leaving the nest because they aren’t making enough money to pay back their student loans and pay rent. Furthermore, according to president Lyndon B Johnson, he explained a solution college student should consider before taking a loan, to help reduce the rate of student debt in the united states and other parts of the world. Colleges or financial intuitions should be able to provide better information for student and their parent, to help them understand the implication of the agreement they are making as freshmen. “Universities and colleges with huge endowments could also consider following the Stanford University model; the university now offers free tuition for families making less than $125,000. While not all schools can afford to be so generous, it is incumbent on administrators everywhere to look for creative and prudent ways to contain the cost of a degree”. Example, Before I can take a loan, I need the financial institution should be able to explain more details on the loan am taking, the deadline and their consequences of not paying back on time.
In addition, research stated that the legislation was made to limit the economic division between the poor and the rich American families by providing better financial support for lower-income students seeking higher education. However, the federal student loan debt has really increased rapidly over $800 billion in 2012. Average debt has risen by 58 percent over the seven years of 2005 to 2012. In 2012, student debt has increased from 17,233 dollars in 2005 to 27,253 dollars. If student debt remains unchanged due to inflation since 1992, graduates will not face such a debt level. A problem with the student debt crisis is that it affects the career choice of the student. Student debts crisis affect more than your standard of living and your goals in life, it determined which dream you need to pursue. For example, you might have the crave to work in a very big business organization or in other countries; however, you are likely to forgo those goals for a job that pays more to cover your student loan payments. According to Rep. Hansen Clarke, D-Mich, explain a solution that can help student whiles taking a loan. colleges must give a better tool to limit student borrowing. For example, college financial aid administrators must be permitted to reduce federal loan limits based on the student’s enrollment status and academic major. Students who are enrolled half-time should not be able to borrow the same amount as students who are enrolled full-time.
Thirdly, the crisis in student loans has grown to the point that outstanding student loan debt will likely exceed $1 trillion in early 2012. The greatest atrocity is the credit and debt system. Foster, John, in his essay on the America dream of a college loan and economies. He revealed that the average student left the institution of higher education and accumulate an average of our debt by 26,00 dollars. John also reported that one in ten graduates will be paying more than 40,00 dollars. A professor of urban and regional planning at the University of California, anana explains that debt is not new. College debt has increased since social change is occurring at a time of historical moment, in most cases, university education is essential for today’s labor force and schools are using it.
In conclusion, the factors that contribute to the student debt crisis, their problems and how it affects college students. the student debt crisis is one of the fastest growing segments in the united stated. I think students should pay critical attention when borrowing for loans. By understanding the agreement between the loan, they are taking, another alternative to help the student is that they need to know the deadline and the consequences if they don’t pay on time.
Work Cited
- “Easing the STUDENT DEBT CRISIS.” Plan Adviser, Nov. 2014, p. 25. EBSCOhost, ezproxy.madisoncollege.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&AuthType=cookie,ip,cpid&custid=s6246812&db=bth&AN=108913893&site=ehost-live&scope=site.
- “The Student Debt Crisis.” America, vol. 212, no. 16, May 2015, p. 5. EBSCOhost, search.ebscohost.com/login.aspx?direct=true&AuthType=cookie, ip, cpid&custid=s6246812&db=tfh&AN=102414692&site=ehost-live&scope=site.
- Foster, John, and Anne Gielczyk. “Accelerated Learning Opportunities and Prior Learning Assessment.” Techniques: Connecting Education & Careers, vol. 90, no. 4, Apr. 2015, pp. 20–22. EBSCOhost, search.ebscohost.com/login.aspx?direct=true&AuthType=cookie, ip, cpid&custid=s6246812&db=tfh&AN=101977304&site=ehost-live&scope=site.
- Ulbrich, Timothy R., and Loren M. Kirk. “It’s Time to Broaden the Conversation About the Student Debt Crisis Beyond Rising Tuition Costs.” American Journal of Pharmaceutical Education, vol. 81, no. 6, July 2017, pp. 1–5. EBSCOhost, ezproxy.madisoncollege.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&AuthType=cookie,ip,cpid&custid=s6246812&db=ehh&AN=125158839&site=ehost-live&scope=site.
