The Student Loan Debt Crisis - 1247 Words

The Student Loan Debt Crisis Student loan debt has overtime become an unpleasant part of life for millions of Americans and especially borrowers. It is possible to identify the types of people who went through college and borrowed financial loans from those that went through college and did not go to college or those that went but did not borrow. The debt crisis directly affects the families of the borrowers, those with high debt burdens and advanced degrees. Despite the increased length in loan payment, the average monthly payment has barely increased (Hansend, 2010) .This essay focuses on the problem of student loan debt and offers a number of viable solutions towards the subject. The emphasis in addressing the issue intendeds to suggest policies that focus on the immediate needs of the students According to the report on Household Debt and Credit Developments released by New York Federal Reserve Bank, trouble seems to have been brewing for students. America owes nearly US $ 1.2 trillion, which is more than three times the amount of debt a decade ago (Roots,2012).The increase in amount of debt is partly as a result of increased student attendance in college whiles the other part maybe due to the borrower who is the individual student, holding more debt (Roots,2012). The department of Education in New York has released a nationally representative data showing that college senior students took loans between the academic years 2007-2008 and 2011-2012, have a median debtShow MoreRelatedThe Student Loan Debt Crisis1873 Words   |  8 Pagesguaranteed employment, financial stability, and an indicator of success, has been declared in jeopardy. Topping the credit card debt and many household debts, the student loan debt has been pronounced the next potential financial disaster in t he U.S. With 2014’s numbers currently exceeding $1.2 trillion, the debt figures have reached about twice of 2007’s remaining debt (Akers, 2014). Gone are the days when a parent could send a child to the state university to study their interests and finish offRead MoreStudent Loan Debt Is A Financial Crisis1700 Words   |  7 Pagesincreases the pile of debt students may graduate with gets bigger and bigger. This problem is America’s next sizeable financial crisis, but this crisis however is avoidable. Student loan debt is a financial bubble waiting to blow up just as the housing market collapse did in 2007, which the country is only just now starting to see signs of recovery from. The cost of a four-year degree has seen increases that surpass inflation and health care costs. Likewise, the amount of student loan debt is now greaterRead MoreStudent Loan Debt Crisis Essay1214 Words   |  5 PagesStudent Loan Debt Crisis What do you think of when you hear the words college graduate? Well, in most scenarios, these words would be exciting to someone that just graduated college who have put in years of hard work and dedication to better educate and promote themselves for their future careers. Sadly enough, this is too far common not the case. In today’s society, students are graduating college with piles of debt at an alarming rate. With a troubled economy that is recovering from a recessionRead MoreShould Student Loan Debt Be A National Crisis?865 Words   |  4 PagesAlthough many people are considering student loan debt to be a national crisis, we must understand the reality behind it. Unfortunately not everyone is fortunate enough to make it through college without accumulating debt. In Robin Wilson’s essay, â€Å"A Lifetime of Student Debt? Not Likely†, she makes a compelling argument that shows how students get involved with really high debt. She claims, â€Å"†¦the pr oblem among students who go heavily into debt is that they are determined to attend their dream collegeRead MoreStudent Loan Debt Is The Biggest Economic Crisis Or Threat?1755 Words   |  8 PagesBureau, student loan debt has reached a new milestone, crossing the $1.2 trillion mark — $1 trillion of that in federal student loan debt. Since 1993, the trend keeps getting higher and higher every year. Student loan debts has been showing a crippling effect on the economy as the debt gets deeper. Student loan debt is known to be the biggest economic crisis or threat. Although you might have not have any student loans, his huge debt could still impact your financial well being. This debt of studentRead MoreHow The Student Loan Debt Crisis Is Undermining Economic And Social Progress Of American Graduates1635 Words   |  7 PagesHow the Student Loan Debt Crisis Is Undermining the Economic and Social progress of American Graduates Currently, higher education is highly valued as a step in achieving success and earnings potential, but attaining a degree comes at a high cost. Although a very valued asset, the cost to attain a college degree for most students includes getting loans, grants from the government, and sometimes even private loans. Most of these loans come at a high price for students as the interest structure forRead MoreStudent Loan Crisis Is A Crisis870 Words   |  4 Pagesthousand dollars in student loans. (Johnson, â€Å"Student Loans†) There is currently a debate about whether or not student loans are a crisis or if this crisis is just a myth. In the article, â€Å"Here’s Your Crisis: Student Loan Debt Isn’t A Myth,† it describes how student loans are a huge crisis, and the article, â€Å"The Myth of the Student Loan Crisis† is about how college students’ loans do not amount to a crisis. The student loan crisis is a legitimate problem, not a myth. College students do not realize theRead MoreStudent Loans For Education Equal Success997 Words   |  4 PagesStudent Loans Assisting For Education Equal Success After reading the articles on, â€Å"The Myth of the Student Loan Crisis† it was stated that student loans are the crisis because of the hundred dollars worth of debt. The second article, â€Å"Here’s Your Crisis: Student Loans Debt Isn’t a Myth† explains that student loan crisis is not a myth but the fear of debts are preventing students from attending college. These articles provided information to prove my beliefs that the government has a responsibilityRead MoreStudent Loan Debt Is A Burden1467 Words   |  6 PagesHave you ever heard of debt? Most people in today’s society have, but what about student loan debt? For too many Americans, student loan debt is a burden; there may be too much interest, not enough income, and a struggle to handle previous bills while staying on time with college payments. According to the Consumer Finance Protection Bureau in the United States, the total amount of student debt amounts to over $1 trillion. In the art icle â€Å"Here’s Your Crisis: Student Loan Debt Isn’t a Myth† (2013) ChrisRead MoreThe Financial Crisis Of 20081326 Words   |  6 Pagesslowly incorporating direct federal loans but still keeping guarantees in place for the banks. After the financial crisis of 2008, President Obama completely eliminated the middleman and fully implemented direct student loans (Kingkade). Although this stopped large banks from profiting off of government backed loans, it still didn’t reduce the supply of loans or the ease of obtaining them. Availability of Credit As tuition has been on the steady rise, student debt to finance the education has been