The American Dream: Student Loan Debt

A problem with student loan debt is that students gain more debt because they are not able to pay off the student loans within the given time which also causes them to put certain life decisions on hold. According to Sophie Quinton debt is a problem for the recent college graduates because “There’s currently no way to get rid of federal student debt other than paying off the loans. while some borrowers are paying off their debts just fine, overall they are adding debt faster than they are shedding it”(Quinton). According to Jamaal Abdul-Alim stated that a “survey - titled Student Loan Debt: Who’s Paying the Price?- revealed a number of troubling statistics about the practical ways that student loans are impacting college graduates in their everyday lives. For instance the survey found that: 49

The increased costs of tuition and fees are making it more difficult for individuals to attend college, and they are being forced to drop out, having a major impact on graduation rates. Data stated that was stated in FACT SHEET on the President’s Plan to Make College More Affordable: A , Better Bargain for the Middle Class (2015), “The average tuition at a public four-year college has increased by more than 250 percent over the past three decades, while incomes for typical families grew by only 16 percent” (“Fact Sheet”, 2015). This is causing major stress and becoming a burden on the finances of the student and their families. In order to attend college, a large percentage of students will have borrow money because of

In the U.S. students are encouraged to earn a college degree, but the cost of an education turns many away. “Driven by the allure of a decent salary with a college degree, Americans borrowed to go to school. Outstanding student debt doubled from 2005 to 2010, and by 2012 total student debt in the U.S. economy surpassed $1 trillion” (Mian, Sufi 167). There are plenty of opportunities to obtain funds for college, including one of the most common, student loans. A student loan is defined as “a common way to fund education, specifically college and graduate school, and they provide educational opportunities that you otherwise may not be able to afford” (Barr). Student debt is at an all-time high in America. Over half of all lower income

In 2016, college grads graduated with an average of $37,172 in student loan debt. This is a 6% increase from the previous year, and the rates increase as colleges become more expensive. Going to a University or College is looked upon as a luxury or a privilege nowadays. Good paying jobs that supply good living standards are requiring at least a bachelor’s degree to be considered for hiring. Any persons, including college students, should not be forced to live with, be pressured by, or be under the control of student loan debt. Student loan debt has been proven to have an impact on a person’s mental health. It keeps the less fortunate from having a chance to prosper in a competitive workforce, and the system that provides financial aid (FAFSA) doesn’t always meet a person’s needs completely. College should be an earned right for those who have stuck through the education process as an adolescent.

For hundreds of years people have been migrating into the United States in search of the American Dream. The idea of this American Dream is so strong that it is even written in the Declaration of Independence. The Declaration of Independence, written on July 4th 1776, states, "all men are created equal, that they are endowed by their Creator with certain inalienable rights, that among these are Life, Liberty and the pursuit of Happiness." Life is the right to live in peace and free from harm: the ability to grow and change. Liberty is the power to choose and do what one wants: the quality or state of being free. The pursuit of happiness is to follow, catch or capture happiness, usually for a long period of time (Dictionary). Because of these ideals, an individual can live life to its fullest capacity. Most of our dreams refer to owning our own home or business, having a family, a dog and a substantial bank account. The American Dream should be achieved through hard work and sacrifice though many times it is achieved through heavy financial debt. Getting a loan or borrowing money from a creditor such as a bank, to buy that nice car or bigger home is not as difficult as it should be. Many people even borrow more than they know they can afford to pay back risking losing it all when payments go into default. Americans can recapture the American Dream by borrowing less money and

The American dream perceived by many is to obtain a college degree to have a successful life. However, many people cannot afford to go to college and are left no choice but to get a student loan. Student loans are intended to help students pay for a higher education, but is it worth the risk of being in debt? The dictatorial definition of debt in the Merriam Webster’s dictionary as a state of being under obligation to pay or repay someone or something in return for something received (“Merriam-Webster”). A borrower is disadvantaged from the beginning of his or her career due to being bombarded with payments. In many cases, people drop out of school or are struggling to find jobs while they owe thousands of dollars in

Statistics exhibit that majority of people are unable to pay for their further education. Pew Social and Demographic Trends state, “A majority of Americans (57%) say the higher education system in the United States fails to provide students with a good value for the money they and their families spend.” Tuition rates for colleges hyperbolizes its values comparatively to the money families spend. It also proclaims, “An even larger majority- 75%- says college is too expensive for most Americans to afford.” College snatch away the money of American families at a value too high and too much for the average family to spend. Not only does college seize the money many family don’t have to begin with, but it forces families to go into debt. Working extreme hours and trying to pay for college wearies the family’s way of living. According to Pew Social and Demographic Trends, “A record share of students are leaving college with a substantial debt burden… about half say that paying off that debt made it harder to pay other bills… about a quarter say it has had an impact on their career choices.” Debts triggers a person to change their profession and causes hardships to their life in the future. High tuition rates and debts stir students away from college and jobs that they truly want. College acquire families money at an

“On average, a college graduate with a bachelor’s degree earned $30,000 more per year than a high school graduate…” (Is College Education Worth It?). Usually that sounds grand and would also make somebody very ecstatic yet, learning the other side of the story might make you cringe. Within nine, to ten years, student debt has risen about ninety-percent since 2003. Around sixty-percent of the students that graduated in 2011, have a debt that is nearly sixty-percent of their yearly income. With debt that high, it may result in late payments (which increase

In less than a decade the loan debt has increased tremendously by 56% and there will be a greater increase as the years go by. According to The Institute for College Access & Success they found out that at least 70% of students graduate with a loan debt of at least $28,000. The average median income household earns $56,000 in a yearly salary, however, a low income family of four only makes $24,000 a year. According to the college board it cost $17,000 a year which covers tuition, fees, room. For many students that is almost impossible to pay because they have other expenses to pay besides school.

An essay on Issues and Controversies states, "the college degree remains the most important credential associated with the American ideal of upward mobility" ("Value of a College Degree"). This has become the central focus of people wanting a career and a future, but when going to attend college, the price is so high, that the only option for those wanting their education is taking out student loans. Student loans should be there to help students who cannot pay for their entire education, not hurt them. According to Christine Armario, four- year university prices have increased 15% between 2008- 2010 ( "Average Cost of Four- Year University up 15%"). This means that students are going to be paying more for an average college education that is necessary to get a job in the field that interests that student. Student loans seem to be the only option for students who want and need a college level education to begin or further their careers, so why are student loans so hard to pay

The Consumer Financial Protection Bureau made a report about education fee, indicates that credit card debt amount has been surpassed by the $1 trillion mark and growing college debt. $150 billion of the total contributed by private student loans. This figure doesn’t include capitalized interest(How bad is).The average amount of debt was $26.682, while the median was $13.410, meaning the majority of household owed less than $14.000 .However ,about 10 percent of households owed more than $62,000.Total national student loan debt grows by roughly $2,853.88 per second, based on calculations(Project on Student Debt). These data are shown that the investment in college is beyond affordable.Many students are still in dilemma of education .These condition will bring a gap between the rich and the poor. Because there will be only the rich people that can afford the college. the inequality will grow into an enormous mountain.People have

Bill Bennett stated of higher education, “ The higher amount you put into higher education, at the federal level particularly, the more the price of high education will rise. It’s the dog that never catches its tail.” Bennett asserts that while the prices of education are rising, they are not going to start falling as a result of, the amount the government puts in (Student Loan Quotes, 2015). The average student leaves college with an average of $35,000 of debt. With this debt, students have to put off major life decisions such as starting a family or buying a house, for the reason that their debt has accumulated from their college years (Protective). Parent’s advocacy and smart money planning in earlier years, students could overcome the amount of college debt.

Bill Bennett stated of higher education, “ The higher amount you put into higher education, at the federal level particularly, the more the price of high education will rise. It’s the dog that never catches its tail.” Bennett asserts that while the prices of education are rising, they are not going to start falling as a result of, the amount the government puts in (Bennett). The average student leaves college with an average of $35,000 of debt. With this debt, students have to put off major life decisions such as starting a family or buying a house for the reason that the debt they have accumulated from their college years. Parent’s advocacy, perceptive, and smart money planning in earlier years, students could overcome the amount of college debt.

There are many other ways to help pay for a college education: You can work through college, choose to attend a cheaper state school, or take time off to earn money before or during school. While aggregate student debt has reached $829 billion, which is higher than the country’s collective credit card debt, the burden faced by individual students coming out of college is relatively small. By keeping student loan rates artificially low, the federal government is contributing to the rapid increase in college tuition and forcing today’s workers to subsidize the educational choices of tomorrow’s workers.

If an aspiring college student doesn’t have the necessary funds to attend school, there is another option they could use to pay for school. Student loans are a popular choice so that the student can pay for school. While this may seem like a great option for affording school, it can be a devil in disguise for many. The New York Times reports that Americans owe over 1.4 trillion dollars in student loan debt (Kelly 1). This happens when a college student takes loans with the belief that the college degree they get will help them achieve a higher salary which will in turn will help them pay off their debt. This often isn’t the case. A student takes the loans and attends school, but does not receive the salary that they were hoping to acquire from attending school. A standard payment plan for students is to pay off their debt in ten years, but according to a study conducted by US News, the average bachelor degree holder takes twenty-one years to pay off (Bidwell 1). This is a common occurrence as well, a report conducted by The Institute for Collee Access and Success shows that in 2012, seventy-one percent of college graduates had student debt (Serrato 1). The current system that the government offers to help those struggling to afford a secondary education is a flawed program that needs restructuring.