Student debt has become a massive problem in the United States. With nearly 5,000 schools currently operating in our country, the sum of current student debt amounts to more than the sum of current credit debt. While our debt numbers increase exponentially, the rate at which current students are finding and landing jobs is decreasing at a dreadful rate. With the decrease in available jobs, actually being able to pay off your student debt. While our debt numbers increase exponentially, the rate at which current students are finding and landing jobs is decreasing at a dreadful rate. With the decrease in available jobs, actually being able to pay off your student debt has never been more difficult.
Most people don’t understand that college tuition is placing our economy in the red zone, and quickly becoming the number one source for debt in our nation. Everyone seems to be under the notion that it’s “worth it” to go into debt if you’re getting a college education. This isn’t always the case, though. The typical student loan allows the borrower to begin paying off the loan within six months after the graduation date. This gives the graduate a maximum time of six months to acquire a job, and start paying off their loans. The problem with this, however, is that a lot of students are unemployed for a year or longer before being able to acquire a job in their desired field, which makes paying off the loans a difficult task and thus drives graduates to low-skill, underpaid public service positions (fast food, car wash, etc.)
This project will review the main causes of student debt in our nation, and the dreadful statistics and information to back up our problems. It will then go into how necessary a majority of our debt really is, and basic steps to avoid it that many college students are now taking. I will evaluate whether or not the current level of debt in our nation is “worth it,” and discuss how the education system has changed. With the rate of debt increasing at such a large number, something has to be done to avoid ruining our economy, and placing an unnecessary weight on our educational system.
U.S. Sen. Elizabeth Warren said Saturday she is shocked that the federal government is earning an estimated $66 billion in profits from student loans originated between 2007 and 2012.
The Democrat from Massachusetts was reacting to a Government Accountability Office report Friday. A previous Congressional Budget Office report estimated that the government will pocket an additional $185 billion in profits on new student loans made over the next 10 years.
‘‘This is obscene. The government should not be making $66 billion in profits off the backs of our students,’’ Warren said in a statement. ‘‘This report reinforces what we already knew — instead of investing in our children and their futures, the government is squeezing profits out of our young people and adding to the mountain of debt they will spend their lives struggling to repay.’’
Warren and eight other U.S. senators committed to wring government profits out of student loans and address a $1.2 trillion in outstanding student loan debt they say is crushing families and putting a strain on the economy.
Warren has been fired up about student loan debts, which she said is leaving new graduates with a suffocating obligation that can stifle their futures. She has filed what she calls a ‘‘skin-in-the-game bill’’ that tries to pressure colleges to keep costs down for students and ensure they get a meaningful diploma when they graduate. As part of the bill, colleges that don’t meet on-time graduation rates and other criteria must refund a portion of a student’s loan.