Student Debt Crisis And Its Effects On The Economy

student debt crisis has reached an all time high with debt reaching a total of 1.3 trillion dollars across the United States.With tuition cost increasing,lack of scholarships and unpaid back loans,student debt will continue to increase even higher.The enormous amount of debt put upon each student creates the inability of those students to help the economy grow.Our economy as we know it is a loop and decreasing the student debt significantly will help the economy grow.Instead of putting that money towards the government where it won t be used to help decrease the student debt as we can see by the total debt, it should go to the community, such as purchasing homes,cars,consumer goods,sales tax which will help improve the economy even more.Crippling student debt is stifling the growth of the U.S. economy because it inhibits graduates from being able to spend money on consumer goods and home purchases. To alleviate this, lenders should be required to forgive student loans in cases where students are unable to repay their debts,decrease a cost of attendance,and increase scholarship opportunities from universities.Doing so would benefit the growth of the economy by increasing tax revenues, unfreezing credit markets, and creating jobs. Pineda 2 Students on average have more than 25000 dollars in student loan debt they have to pay back because of this debt; The incredible amount of debt creates issues of students struggling to pay that money back.In order for studentsShow MoreRelatedStudent Debt Crisis And Its Effects On The Economy Of The United States1828 Words   |  8 PagesOver the decades, as the number of students seeking higher education has continued to increase, so has the cost of education and the amount of student debts in the United States (US). This has raised controversy whether the rapidly increasing student debts in the US can lead to another crisis commonly referred to as the ‘higher education bubble.’ More often than not the extent of the student debt crisis is usually overstated, but the concern is justified (Freedman, 2014). The manner in which theRead 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 Loan Crisis1592 Words   |  7 PagesStudent Loan Crisis Beginning in the 1960’s the distribution of federal and non-profit funds have given students all over the United States the opportunity to pursue post-secondary educations. Although this method has given students the ability to go to college financially, the majority of the students are not able to pay the money back when finished causing debt. Currently students in the United States owe more than $1 trillion dollars worth of federal and private student loans. Surprisingly thisRead 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. 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With a troubled economy that is recovering from a recessionRead MoreSolving The Student Debt Crisis Essay1609 Words   |  7 PagesThe student debt crisis has reached an all time high with debt reaching a total of 1.3 trillion dollars across the United States.With tuition cost increasing,lack of scholarships and an increase of government loans,student debt will continue to increase.The enormous amount of debt put upon each student creates the inability of those students to help the economy grow.Our economy as we know it is in shambles and decreasing the student debt significantly will help the economy grow.Instead of debt owersRead MoreThe Financial Crisis Of 20081326 Words   |  6 Pagesbut 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 increasing exponentially. As stated aboveRead MoreGetting into Debt for a College Education1385 Words   |  6 PagesAn estimated 20 million Americans attend college each year, and 60% of those students borrow annually to pay for it (qtd. in asa.org, â€Å"Student Loan Debt Statistics†). Moreover, citizens continuing to pay off debt after schooling brings the overall number of student-loan-borrowers to about 40 million- with a collective 1 trillion dollars in debt (McCarthy, â€Å"10 Fun Facts About the Student Debt Crisis); a fourth of these borrowers owe over $28,000, a tenth owe over $54,000, 3.1% owe more than $100,000Read MoreThe Debt Of Student Loan Debt1168 Words   |  5 Pagesconsumer debt, which help contribute to the large sums of debt countless Americans find themselves faced with. Directly effecting many college students is student loan debt. Student loan debt is now the seco nd largest form of consumer debt behind housing† declares the Federal Reserve Bank of New York (Grisales). This is due to the fact that student loan debt grew 7.1% in 2014 to $1.2 trillion (Grisales). If this statistic alone is not worrisome this next one is sure to be. The amount of debt in theRead MoreMiddle And Working Class Family s Depend On Student Loans Essay1546 Words   |  7 Pages Initial Draft Student Loan Debts Terri Gray Chamberlain college of Nursing â€Æ' Prewriting Assignment What is your narrowed topic? Middle and working class family’s depend on student loans. Loans are the only way to an education for many families not only here in the USA. Also I find it interesting that most minority families do not understand the cost of education. Student loans are aver political issue and many polices and laws have been put in place for people to have access to education yet