Student Loan Crisis Research Paper - 1332 Words

ï ¿ ½PAGE ï ¿ ½ How to Make College More Affordable Many of the protesters occupying Wall Street and other places say they are upset about the rising price of going to college. There is little dispute today that the number of students who have debt has increased, and that the amount of money they have borrowed has gone up (Billitteri). Many students incur large amounts of debt that will never pay dividends in higher wages or greater job satisfaction, and they graduate into a world with weak employment prospects. Its a betrayal of the American social contract that says if you work hard and invest in yourself through education, youll be able to build a better life. The current system is badly in need of an overhaul, and this paper will present†¦show more content†¦The current rate is around 35%, where it has been for the last decade. (_Historical_). Our current American business model is based upon short-term gains by building capital, and industry has successfully lobbied Washington for lower tax rates for years. However, this is arguably not sustainable in the long term because technology-based business ventures will be forced to shift back to more industrial ones if they dont have a readily available educated workforce. Corporations that do not pay their share of taxes will eventually suffer the consequences as their ability to hire a tech-savvy, educated workforce diminishes. Third, we currently have a bankruptcy system that does not allow student loans to be discharged, and there is no statute of limitations on collections of student debt. The government can legally garnish money from a low-income student borrowers Social Security benefits and Earned Income Tax Credit. Garnishing money from low-income students contradicts the stated U.S. policy goal of reducing poverty, and is therefore hypocritical. Most other kinds of debts can be discharged, but not student loans. Since the beginning of the federal student loan program in 1965, the freedom to change lenders in order to find better interest terms for a loan has also been denied (Caffentzis, 35). To single outShow MoreRelatedStudent Loan Debt1074 Words   |  5 Pagesof Financial Literacy Available in Regard to Student Loan Debt This personal finance paper will concentrate on the insufficient amount of guidance that is available concerning student loans. The purpose of this paper is to illustrate how prospective and current college students are ill prepared in their education and understanding of student loans. Three major issues that will be outlined in this paper include the large majority of college students are no longer able to pay for college out of pocketRead MoreHigher Education And The Consequences Of The Rising Student Loan Debt1280 Words   |  6 Pageseconomic crisis facing our country is the rising student loan debt (Josuweit, 2015). Some refer to it as a â€Å"generational time-bomb ticking with adults under age 35 disproportionately bearing the brunt of escalating inequality† (Collins, 2015). Today’s college graduates are entering an economy with stagnant wages and a government that can no longer afford to provide a safety net. This paper will examine the economic benefits of hi gher education and the consequences of the rising student loan debt toRead MoreRisks Of The Student Loan Bubble960 Words   |  4 PagesIntroduction/Overview I will be examining the risks of the student loan bubble. A bubble in financial terms regards to the rapid rise of asset prices that isn’t backed by fundamentals. This will eventually cause a large sell off leading to a sharp depletion in those asset values. Over the last 5 years the American federal reserve bank has increased spending on federal student loans over 1,000%. From $100 billion to over $1 trillion dollars. According to Kate Hardiman from University of Notre DameRead MoreIntroduction. In The Recent Years, There Has Been An Increasing1016 Words   |  5 Pagespaying tuition fees for college students. This has been brought about by high cost of living and inflation. In addition, college tuition fees today as compared to 50 years back have increased exponentially. As a result, more students are opting to applying and taking student loans provided by the federal government. Consequently, statistics show that the amount of student dept is souring. This has led to econo mists start debating on the impact the ever-increasing student dept has on the economy of theRead MoreU.s. Federal Family Education Loan1657 Words   |  7 PagesBack to the early years of establishing a student-loan scheme in China, the US’s Federal Family Education Loan (FFEL) Program was regarded as a blueprint to follow. This is largely because commercial lenders would use their own private capitals to finance student loans and consequently, the government can invest less and also bear less fiscal burden to initiate a new program. Ironically, the FFEL program was blamed as a wasteful and inefficient system and called for an end by President Obama in 2009Read MoreStudent 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 whet her 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 MoreNot A Student Loan For College Essay1238 Words   |  5 Pagesconcerns with student loans and repayment issues. In electing to secure a student loan for college, prospective students or parents should realistically, forecast or measure probable (anticipated) student debt. In particularly, with students aspiring to attend college, several organizations or subsidiaries, and for-profit institutions cash in on unknowledgeable hopefuls contributing to the student loan debt dilemma/crisis (or student debt). The college costs and financial constraints for student borrowingRead MoreThe Cost Of Post Secondary School Education1176 Words   |  5 Pages(Casselman, 2012). Some of the facets t hat have led to the increasing costs are state and federal revenue shortfalls and wrong use of cost offsetting. A recent article published in the Wall Street Journal indicates that students across America are plunging into more debt due to loans taken to pay their college education. Considering that America has experienced severe shortages of employees in the science related courses, rising costs of higher education continue to create more concern. The issue ofRead MoreAnalyzing The Current And Future Economic Status Of Ohio1276 Words   |  6 PagesMusallam December 4, 2014 Analyzing the Current and Future Economic Status of Ohio This paper will start by tackling the economic situation in Ohio by defining the main terms which we will use from time to time in this economic analysis. We will define recession and depression in order to put these matters in the right perspective. According to the National Bureau of Economic Research (NBER), recession is the period when business activities have reached its peak and a fall starts. ThisRead MoreThe 2008 Recession Affected The Global Economy1532 Words   |  7 Pagesrecession affected the global economy. The unemployment rate in the United States began to skyrocket as well. Below is a graph depicting the unemployment rate in the United States during the 2008 recession. This graph data is from Oregon Economic Crisis Analysis. With lower rats of employment the United States Federal Reserve needed monetary policy to stimulate the economy. With many individuals loosing their jobs primarily in the housing sector the spiral continued through other sectors.