Author Adam Harris (2018), wrote “The lifelong Cost of Getting a For-Profit Education.” Serval student who gets into a loan cannot pay it back the payment that they took. Their life got stuck form working for their entire life to pay back the money. Author Adam Harris wrote people don’t seem to know about their mortgage. The interest of student mortgage can significantly over its life span.
Author Adam wrote a lot of first-years student who got enrolled in for profitable collage are the results of advertisement. Some people who stay at home haven’t started going to college normally play or watch TV program. The commercials often play indicating to get out of your room to start your school in collage. According to the article, there are a story that is relating to the people up to the age of 50 years old. Americans are looking for a chance to catch a job, although no one is hiring them as a result of they don’t have the educational background. Adam wrote divorce parents are trying to adjustment their lives to get a greater education for their kids. People who are in collage applying for a student loan at any cost through message or by make a call. Adam discuss a lot of the undergraduate could not afford college fees which makes them consider student loan. To be a benefited in life to get into the right roadway
Adam wrote the students who get a student loans make a clear consequence decision, but they don’t see that is a big deal because of their inexperience. According to the article, it claims for pro-profit students who enroll in college leave with a pile of debt. The article further state, when for- profit denies divorce parents or black people it was a good thing, so they are not increasing their debts. Since Profit cost a lot it makes the student borrow more money. Even low-income the student who apply for Pell Grant are sometimes motivated to take out more loans than they need. For example, the rest of the money is for school supplies, equipment or other needs.
Adam stated there is a federal limit on how many times the student can get Pell Grant and how many time they can get a loan. The federal government would not give the students a Pell Grant when they reached their limit. So the student will have to pay their college fees out of pocket or borrow the money form relatives. A bachelor’s degree in college, the student has more debts before the student graduate from college. Author Adam wrote one of the examples, Tressie McMillan Cotton was a sociologist and she say the student who graduated with high debt, the money they are making is not enough to pay it off. According to the article, some of the students get into college, but they don’t finish their major and now they don’t have a degree and have a hard time paying it off because inexperience. Most of the student lose interest in attending class, but they are more focus on paying off the debt. The school principle gives a word that, if they went back to college they will get a better life when they profit was offering, but the student that who went back to college only leave them with a lot of debt burden.
According to the article, after they mess up, they don’t know what to do and a lot of the student receive the report about the meeting income repayment saying they still must pay it back. Or even when they have low interest. The article says, if they get a lot of phone call form Loan Company, and their school directory saying it was okay not paying off now, they must pay off the rest of their life. Author Adam wrote that the people who let them get a loan was getting impatient for waiting for the student to pay off the debts. Sometime the loan service often holds back a tone of the paper and tireless. One of the companies says that “according to the report she has worked for 10 hours and everything that is overwhelming”. (pg. 3/7).
In this conclusion the consequent of getting for- profit of knowledge to pay off their debts. A lot of collage people can’t not pay off the money they took form Loan Company. Their whole life doesn’t get to go anywhere beside work. A lot of college student quits school and start work 10 time harder to pay off their debts. The student might take a little loan, but they must pay it back with their entire life.
Student Debt Crisis Essay
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.
Why Student Loans Should Be Canceled
Associates, bachelors, masters, doctorates. These words sound great, don’t they? Empowering? They seem to be the dreams of many but—why doesn’t everyone go for it? Unfortunately, the biggest factor in this decision-making process isn’t due to intelligence, distance or motivation, it’s money. Average student debt after a four-year education is around $38,000 (Students & Debt, 2019) with a four percent interest rate. Since that amount is typically paid off in installments, that means the average graduate will be paying that amount for almost ten years. With those statistics, why wouldn’t many look for an alternative?
To better understand the reasoning behind much of the upcoming points, it is important to note the statistics on the current cost of going to college and the people who usually don’t have the luxury of pursuing a higher education. The onerous debts sabotage the ability of a college education to serve as an instrument of upward mobility for many disadvantaged groups. The students from the poorest families are forced to take on the highest amount of debt. Women hold about two-thirds of all student loan debt in the United States, and since they still earn less than men make for comparable work, women pay their loans off more slowly, incurring higher interest payments (Heuvel, 2018). Currently, the average tuition rate in the United States for public colleges is $9,650 for state and/or community colleges and $34,000 for private colleges not including schooling for a master’s or doctorates degree. This brings the total current student loan amount in America up to $1.6 trillion with no end in sight (Backman, 2017). The idea of canceling student loan indebtedness would not only bring in a new wave of qualified students that were never able to afford higher education but provide the financial freedom to focus on one’s growth and career after graduation.
Although the decision of pursuing an education is ultimately up to one’s self, the burden of additional financial strain should not be something that a future valuable member of the society should have to deal with regardless of the career choice. Due to such high tuition rates, so many potential students now choose to not go to college. People who may have become great doctors, professors, engineers, etc. are not even an option in the work field due to the fear of the price tag that comes with it. If colleges and universities have a selection process in place to make sure they are accepting motivated students, then they know they’re accepting students based on talent and drive, not money.
When students are given such a heavy financial burden to carry, it usually comes with some anxiety and/or depression. According to a study done in 2019, 65% of student loan borrowers lose sleep at night due to stressing over how they are going to repay their student loans and over 43% of student loan borrowers say their loans have interfered with purchasing things they want or need such as a car, home, etc. because it worries them to have additional debt (Bond, 2019). This is not to say that if a student does have a mortgage payment, food and other necessities, then this stress would only be doubled. Student debt causes a stress that may also be projected onto the workplace and home and it may hinder a person from showing their full potential due to having debt on their mind. Going for a master’s degree or even a doctorate only adds on to the amount of debt, time needed to pay off the loan off and stress.
With having such a large national problem, many businesses and universities have taken initiative to try to put an end to this growing issue. There are many successful plans that are currently in place and are in the process of being placed. For example, New York University’s medical school announced that they are a tuition free school (Doubek, 2018). What this did is it stopped being an option to mostly higher income applicants and became available and at reach for lower income students who also had to earn their place at NYU with their grades. Another example of solutions that can be placed is the Public Service Loan Forgiveness (PSLF). The PSLF was established in 2007 for public sector and nonprofit enterprise employees to pursue educational loan forgiveness. They examined what the difficulties were for physicians what they needed to be eligible for that program. The data showed that the program limited maximum loan forgiveness but the people who applied for the program were offered complete forgiveness only after 120 monthly payments towards their student debt. The data also showed that participation in the PSLF among medical school graduated grew over 20% per year since 2010. The most advertised repayment programs are income driven plans including ‘Pay As You Earn’, which allows graduates to pay a minimum of 10 % of their monthly discretionary income to loan repayment which allows physicians to achieve loan forgiveness after 240 payments that fluctuate with the income being earned (Freidman, et. Al. 2016). Many other businesses are starting to add a student loan forgiveness program (SLFP) in the workplace and it is being used as a recruitment tool and job retention mechanism without pressure on the potential employees. This mechanism gives the employee a positive incentive to simultaneously work to make income and removing their debt (Fakunmoju, et. Al. 2016).
Although the motive of this paper is to enlighten the reader as to why student debt should be cancelled, it is also important to note the difficulties that lie under this idea. With loans being on an upward trajectory, budgets are not able to fulfill the goal of trying to solve this national problem. Taxes and budget cuts cannot keep getting cut from other areas to meet the growing number. Along with that, according to some plans that have already proposed, if it were done on an income basis, the more you make, the less you’d get in cancellation. This plant wouldn’t penalize people who over-borrowed for their college education, it penalizes people who put their higher education funds to good use (Farrington, 2019). There has yet to be a perfect middle ground that wouldn’t hurt all taxpayers and the students.
Another downside to student loan forgiveness programs are job limitations. If a graduate want to enroll in a federal student loan forgiveness program, it limits the jobs that one can take. While it is great for graduates who are interested in working in the public sector or who are passionate about teaching, these career paths may not be everybody graduate’s first, second or even third choice. It can be a major compromise.
Conclusion
Overall, student debt is and continues to be an issue with students in the United States and it is causing the nation to miss out on potential doctors, accountants, nurses and so many more employees just from the fear of not being able to pay back student debt. With more scholarships being given out and canceling student indebtedness overall, the liberation and drive that comes with it can only benefit the work force which can then benefit society.
References
- Backman, Maurie. (June 22, 2017). Now even high earners can’t afford college. Retrieved from: https://money.cnn.com/2017/06/22/pf/college/afford-college/index.html
- Bond, Casey. (May 14, 2019). 7 Scary Numbers That Show How Bad Student Loan Debt Is For Mental Health. Retrieved from: https://www.huffpost.com/entry/student-loan-debt-mental-health_l_5cd60660e4b0796a95dc15a0
- Doubek, James. August, 2018. NYU Medical School Plans Free Tuition For Those Studying To BeDoctors. NPR. Retrieved from https://www.npr.org/2018/08/17/639467023/nyu-medical-school-says-it-will-offer-free-tuition-to-all-students
- Fakunmoju, Sunday B.; Kersting, Robert C. October 2016. Perceived Effects of Student LoanForgiveness on Turnover Intention among Social Workers in Massachusetts., 61(4): 331-339. 9p.
- Farrington, Robert. (June 6, 2019). The Moral Hazard of Student Loan Forgiveness. Forbes.Retrieved from: https://www.forbes.com/sites/robertfarrington/2019/06/25/the-moral-hazard-of-student-loan-forgiveness/#150fd453364c
- Farrington, Robert. (June, 6 2019). Most Total Student Loan Forgiveness Plans Are A Bad Idea. Forbes.Retrieved from: https://www.forbes.com/sites/robertfarrington/2019/06/06/most-total-student-loan-forgiveness-plans-are-a-bad-idea/#790c53277c66
- Friedman, Ari B., Justin A. Grischkan, E. Ray Dorsey, Benjamin P. George J Gen. 2016 Oct, 31. Forgiven but not Relieved: US Physician Workforce Consequences of Changes to Public Service Loan Forgiveness. doi: 10.1007/s11606-016-3767
- Heuvel, Katrina Vanden. (June 2018). Americans are drowning in student-loan debt. The U.S. should forgive all of it. The Washington Post. Retrieved from https://www.washingtonpost.com/opinions/americans-are-drowning-in-student-loan-debt-the-us-should-forgive-all-of-it/2018/06/19/82565218-7314-11e8-9780-b1dd6a09b549_story.html
- Students & Debt. 2019. Debt.org. Retrieved from https://www.debt.org/students/