Student Loan Crisis - 1592 Words

Student 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 this number has surpassed the country’s credit card debt which is $852 billion dollars. This years presidential election has many serious amp; interesting topics being discussed such as gay marriage amp; immigration, but the topic of student loan†¦show more content†¦The youth unemployment rate for African Americans is almost doubled compared to the youth unemployment rate for white Americans. This makes it that much more harder for black Americans to find sources of repay ment since white Americans are able to get jobs easier. According to Adams, the average African American graduates with roughly 30,000 dollars worth of student loan debt (Adams 1). As the younger generation of blacks leave college with student loan debt that they are unable to payback, their ability to become homeowners and their ability to increase their wealth has diminished. Charlene Crowell explains, â€Å"The domino effect of debt begins with a student loan and then delays the ability to qualify for a mortgage†¦the ability to gain wealth is limited if not stymied†. The domino effect is the main reason the majority of the black community is unable to reach the middle class. A college graduate in debt and not having the ability to pay their loans off in time because no jobs are available is the scenario for many blacks causing them to experience poverty. Julie Margetta Morgan says, â€Å"With high unemployment and underemployment and so few options for dealing with d ebt, it should come as no surprise that the delinquency rate on student loans is so high† (Morgan). The below average economic state of the United States doesn’t give African Americans the ability to successfully pay their debt back on time. Student loans are not only a detriment to African AmericansShow MoreRelatedStudent 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 MoreThe Student Loan Debt Crisis1247 Words   |  5 Pages The Student Loan Debt Crisis Student loan debt has overtime become an unpleasant part of life for millions of Americans and especially borrowers. It is possible to identify the types of people who went through college and borrowed financial loans from those that went through college and did not go to college or those that went but did not borrow. The debt crisis directly affects the families of the borrowers, those with high debt burdens and advanced degrees. Despite the increased length in loanRead MoreThe Issue Of The Student Loan Crisis1762 Words   |  8 PagesAs of 2016, the average college graduate owes thirty-seven thousand dollars in loans (Glum). As a whole, Americans owe a grand total of 1.3 trillion dollars. These are figures that grow every year, and worse, the number of people who are defaulting on their payments grows as well. The issue of the student loan crisis is serious, which is why potential solutions are now being discussed. Presidential candidates for the election of 2016 have discussed so lutions that range from Hillary Clinton’s debt-freeRead MoreThe Student Loan Debt Crisis1873 Words   |  8 PagesCollege, originally deemed as the pointer to guaranteed employment, financial stability, and an indicator of success, has been declared in jeopardy. Topping the credit card debt and many household debts, the student loan debt has been pronounced the next potential financial disaster in the U.S. With 2014’s numbers currently exceeding $1.2 trillion, the debt figures have reached about twice of 2007’s remaining debt (Akers, 2014). Gone are the days when a parent could send a child to the state universityRead MoreStudent Loan Debt Crisis Essay1214 Words   |  5 PagesStudent Loan Debt Crisis What do you think of when you hear the words college graduate? Well, in most scenarios, these words would be exciting to someone that just graduated college who have put in years of hard work and dedication to better educate and promote themselves for their future careers. Sadly enough, this is too far common not the case. In today’s society, students are graduating college with piles of debt at an alarming rate. With a troubled economy that is recovering from a recessionRead MoreStudent Loan Debt Is A Financial Crisis1700 Words   |  7 Pagesincreases the pile of debt students may graduate with gets bigger and bigger. This problem is America’s next sizeable financial crisis, but this crisis however is avoidable. Student loan debt is a financial bubble waiting to blow up just as the housing market collapse did in 2007, which the country is only just now starting to see signs of recovery from. The cost of a four-year degree has seen increases that surpass inflation an d health care costs. Likewise, the amount of student loan debt is now greaterRead MoreThe Problem Of Student Loan Crisis1574 Words   |  7 PagesThe student loan trouble is surely a big problem in our society: college students are struggling giant quantities of student debt, and they re defaulting on that debt and making their potential to get admission to future credit score awful already. The procedures to student loan debt series are filled up with problems, in addition to wrong recovery strategies and critical concerning compensation alternatives. However, the recent public procedure discussions pass over among the key problems thatRead MoreShould Student Loan Debt Be A National Crisis?865 Words   |  4 PagesAlthough many people are considering student loan debt to be a national crisis, we must understand the reality behind it. Unfortunately not everyone is fortunate enough to make it through college without accumulating debt. In Robin Wilson’s essay, â€Å"A Lifeti me of Student Debt? Not Likely†, she makes a compelling argument that shows how students get involved with really high debt. She claims, â€Å"†¦the problem among students who go heavily into debt is that they are determined to attend their dream collegeRead MoreStudent Loan Crisis Research Paper1332 Words   |  6 PagesMore 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 theRead MoreStudent Loan Debt Is The Biggest Economic Crisis Or Threat?1755 Words   |  8 Pagesto the Consumer Financial Protection Bureau, student loan debt has reached a new milestone, crossing the $1.2 trillion mark — $1 trillion of that in federal student loan debt. Since 1993, the trend keeps getting higher and higher every year. Student loan debts has been showing a crippling effect on the economy as the debt gets deeper. Student loan debt is known to be the biggest economic crisis or threat. Although you might have not have any student loans, his huge debt could still impact your financial