November 3, 2016
Dear Future President,
I would like to address the topic of student loans. You have probably heard this complaint many times, but I believe it is an important issue to today's graduates and to future scholars. As a high school student looking forward to furthering my education, I am tremendously worried about debt and how it can be resolved. I believe that student loans should be lowered in order for citizens to have a higher quality of financial stability.
In our nation today, the total of student loan debt is $1.3 trillion dollars, which is spread out among 44 million borrowers. In fact, the average Class of 2016 graduate has $37,172 in loan debt, up six percent from last year. These statistics show just how big of an issue this is becoming. The rising student loans are affecting financially dependent families and many graduates that are not employed in full time jobs. While some believe that student loan debt is not greater than it was two decades ago, it has increased 511% since 1999.
In 2011, 13.7% of student loan holders defaulted by 2013. Out of 4.7 million students who were repaying student loans, 10% had defaulted before the end of the year. In my opinion, I do not think it's fair for students to get away with not paying while many others work diligently to pay off their education. This also affects the holders who default because many loan services report all delinquencies of at least ninety days to major credit bureaus. A negative credit rating may make it difficult to borrow money to rent apartments or get a cellphone plan. While some students say they have to default, why isn't there an easier way to help these students and provide security for financial aid.
Growing numbers show more and more students are having to borrow to get an education. This is delaying important life events such as buying a car or a mortgage on a house. While a few may argue that the earnings from a college degree outweigh short or long term debt, the lifetime earnings of today have increased 75% while cost of school has increased 50%. Although earnings have increased, paying for school takes a majority of the earnings between the ages of twenty and thirty when major purchases should happen. Also, people may argue that economic benefits from earning a degree help society with increased tax revenue, health, and civic participation. Though this is true, finishing a degree could come at a lower cost to benefit the country and individuals as a whole.
As the President, I believe this issue would be very important to fix and could improve the lives of the American people. Although these loans go towards the benefiting the government, it doesn't help those who are severely hurting. Looking towards my future, I would really appreciate if I didn't have to worry about paying for college when I finish, but can instead progress on my life journey to contribute to this country with an education. If interest rates are high, it results in student loans being higher. Lowering the interest rates could lower the amount of student loan debt and help the United States of America move forward to a bright future.
Akers, Beth, and Matthew M. Chingos. "Increased Student Loan Debt Is Not a Big Problem." Student Loans. Ed. Noël Merino. Farmington Hills, MI: Greenhaven, 2016. At Issue. Rpt. of "Is a Student Loan Crisis on the Horizon?" Vol. 3. N.p.: n.p., 2014. N. pag. Opposing Viewpoints in Context. Web. 2 Nov. 2016.
Beck, Christina. "Average Student Loan Debt Increases Again." The Christian Science Monitor 19 Oct. 2016: n. pag. Student Resources in Context. Web. 2 Nov. 2016.
"Student Loans and Default Rates Have Increased in Recent Years." Student Loans. Ed. Noël Merino. Farmington Hills, MI: Greenhaven, 2016. At Issue. Rpt. of "Student Loan Volume and Default Rates." Vol. 190. N.p.: n.p., 2014. N. pag. Opposing Viewpoints in Context. Web. 2 Nov. 2016.