One Way the American Economy is Being Destroyed
College debt is a very serious problem because it is increasing yearly, leaving students swimming in debt when they get out of college. With this being such a big problem I think that you should take a closer look.
Dear future President,
College debt is a very serious problem because it is increasing yearly, leaving students swimming in debt when they get out of college. With this being such a big problem, I think that you should take a closer look.
As years go by, the amount of student debt has been growing. According to Ticas, the amount of debt is increasing yearly. “Seven in ten seniors (68%) who graduated from public and nonprofit colleges in 2015 had student loan debt, with an average of $30,100 per borrower. This represents a 4% increase from the average debt of 2014 graduates”. With this growing problem, many seniors who are leaving college have large amounts of money they now have to earn and give back. This can cause a major problem because a lot of seniors don’t have good paying jobs when they get out of college. The amount of debt a student has coming out of college can stunt them from progressing in life. Once a student gets out of college, they focus more on paying back student loans than buying a car or house, or even starting a family.
According to Ticas yearly, college debt is increasing twice as fast as inflation. To keep up with this, ⅔ of all students take out more money, and are now in debt with an average of owing $25,000. “Student Loan Debt Averages $28,950 for Class of 2014 Debt Levels Rose More than Twice as Fast as Inflation Over Last Decade.” As years go on, graduates from college will have to pay more debt because the cost of colleges go up. With the amount of college going up, more students will have to get student loans leaving them with more debt when they get out of college. Students getting out of college have so much debt they have to pay. According to Newsweek, “Millennials face higher university tuitions and student loan debt than ever before, as well as stiffer competition when they enter the workforce.” Because of this, college grads are having a harder time finding jobs. This could lead them to poverty.
Student debt has increased so much that it is now a major national problem that needs to be taken care of. According to Forbes the money of student debt is very high and they not only have to pay back that debt, but they also have to pay back other types of debt. It read “Of this $1.2 trillion in student debt, about $1 trillion is in federal student loans. This figure does not tell the full story, however, as the $1.2 trillion does not include funds students must divert away from retirement savings, parent borrowing, or credit card debt”. As the amount of college debt increases students are scrambling to pay back the money that they need to finish their education. A major problem in the nation is the lack of jobs, and it has been talked about that college graduates are less likely to start small businesses that could help this problem because they are trying to make ends meet to pay back the large amount of debt they already have.
A way to stop student debt is not by having free tuition, but to have higher wages so that students have more money to give to debt and have enough left over to have the bare necessities they need to live on their own.
College debt has become a big problem and must be controlled. If this problem is not looked into,
“Student Debt and the Class of 2015”
Wright, Gretchen Hayes, Kim Serrato, Shannon “Student Loan Debt Averages $28,950 for Class of 2014 Debt Levels Rose More than Twice as Fast as Inflation Over Last Decade” http://ticas.org/sites/default/files/pub_files/student_debt_and_the_class_of_2014_nr_0.pdf
Denhart, Chris “How The $1.2 Trillion College Debt Crisis Is Crippling Students, Parents And The Economy” http://www.forbes.com/forbes/welcome/?toURL=http://www.forbes.com/sites/specialfeatures/2013/08/07/how-the-college-debt-is-crippling-students-parents-and-the-economy/&refURL=https://www.google.com/&referrer=https://www.google.com/
The Student Loan Crisis Foundation for Economic Education