Final Project

Before the 20th century, pursuing a college degree wasn’t as important as today. Today, college degrees are essentially a requirement for the majority of careers. And As the demand for college increased, the cost became less affordable, which made student loans a necessity. “The average published tuition and fee prices at public four-year institutions for the 2015–2016 school year is 40 percent higher than it was a decade ago”(Camera). “The average published tuition and fee price for full-time out-of-state students at public four-year institutions is about 2.5 times as high as the price for in-state students”(Camera). Student loan after college usually becomes student debt that takes most of your life to pay off. “In average, if you are a student who completed all four years of your undergraduate degree and about to graduate with $25,000 in debt + 6.8% interest, if you pay $150 monthly, your debt will be paid off in 43 years 8 months and your would have paid an interest of $51,000. If you pay $200 monthly, your debt will be paid off in 18 years 3 months and you would have paid an interest of $18,000”(Consolidated Credit Counseling Services, Inc.).

When I graduate, I will probably have about $40-50,000 in debt. I am almost certain I will not be able to pay off my debt before I reach the age of 60. Because in addition to repaying the debt, there will certainly be other bills I will be needing to pay throughout my life. Even if I get a decent paying job, it won’t be enough to pay everything.

Roughly “41 million Americans owe $1.2 trillion in student loan debt. The median debt burden among borrowers was $20,000 in 2014, compared to $13,000 in 2007”(Morgenson). “The biggest problem cited by borrowers and their advocates was the failure of student loan servicers to advise their customers of all the repayment plans available to them”(Morgenson). Some include “repayment plans for federal loans based on a borrower’s income and family size, or debt forgiveness programs for borrowers who work in public service. Military service members also have a right to lower interest rates while on active duty”(Morgenson). There is an estimate that “51 percent of student loan borrowers nationwide are eligible for income-based repayment plans, but only 15 percent are enrolled”(Morgenson).

“As debt levels increase, young people are forced to delay starting a family, purchasing a home, starting a small business and saving for retirement”(Maloney)

This illustration demonstrates the pressures students have on getting a job and recieving an education all at the same time. Sometimes older generations just don’t understand the burden of student loans on the younger generation.

“Undergraduates received an average of $14,210 in financial aid in 2014–2015 school year, including $8,170 in grants, $4,800 in federal loans, and $1,170 in education tax credits and deductions, and $70 in Federal Work-Study”(Camera). The total Pell grant expenditures for low-income students are declining. “The percentage of all grant aid coming from the Pell program increased from 24 percent in the 2004–2005 school year to 33 percent in 2010–2011 school year and to 24 percent in the 2014–2015 school year”(Camera).

Some Republicans have suggested “we should shrink access to federal loan programs and expand the private loan market”(Maloney). They also say that “federal loans are too easy to get and that the easy money allows colleges to raise their prices”(Maloney). But “private loans typically carry higher interest rates, sometimes more than four times than federal loans”(Maloney). Repayment plans such as income-based and extended loan terms are usually not available with private student loans.

I think that colleges should set a tuition cost and stick to it no matter how easy it is to get federal loans. Just because students are taking out loans colleges think they can raise the tuition cost? I think that’s pretty greedy. Sure students can pay of tuition but the cost of that students education is extreme debt. The government should hurry up and figure out a way to help the next generation of students attend college without so much debt.

With all of debt student loans create, the question “Is college worth it?” pops up all of the time. College does not necessarily guarantee you a job in the work force, but it does guarantee you debt wether you graduate or not. People still attend college because it give them a chance to get into the career that they are interested in.

Interview

Q: How much debt do you believe you will have by graduation?

A: I would have to estimate $30,000 more or less.

Q: Do you think college is worth it?

A: Yes, because of the college experience. Meeting new people as well as getting a higher education.

Some people still think college is worth the debt they are paying. Some value the experience more than the cost. I suppose many people go to college for the “college experience”. But I am going mainly for the education.

I am still not quite sure if I think college is worth all of this debt I am gathering. To be honest, if it was really up to me I would have probably not gone to college and found a job and just worked up the ladder. My parents are the ones that pushed me to go to college. They say they want me to have a career, not just a “job”.

The answer to student debt is “to strengthen our public commitment to higher education — making tuition free at community colleges, increasing investments in Pell Grants and partnering with the states to ensure that a college education is accessible to anyone who wants it”(Maloney).

[YouTube:_tV6L-wzfHY]

This video is include because expresses how many people feel after attending college. Sure you have a degree but how axactly is it helping you in your life. Many people in the video have debt and they aren’t even using their degree to help pay off the debt. College just creates an unnecessary burden in peoples lives.

This cartoon illistrates the fact that students will graduate with two things in hand, a diploma and a huge load of debt. In they end money is the most valuable thing in life. Without money life is a struggle. Im pretty sure everyone can relate.

Bibliography:

Morgenson, G. (2015, October 9). The New York Times. http://www.nytimes.com/2015/10/11/business/a-student-loan-system-stacked-against-the-borrower.html?ref=topics

Maloney, C. (2015, October 4). The Student Debt Crisis Solution. Politico Magazine. http://www.politico.com/magazine/story/2015/10/the-answer-to-the-student-loan-debt-crisis-213217

Camera, L. (2015, November 4). College Costs Rise, But Student Borrowing Declines. U.S. News and World Report. Retrieved November 6, 2015, from http://www.usnews.com/news/blogs/data-mine/2015/11/04/college-costs-rise-but-student-borrowing-declines

Josuweit, A. (n.d.). History of Student Loan Debt and College Education Costs. Retrieved December 6, 2015, from http://studentloanhero.com/featured/history-of-student-loan-debt-and-college-education-costs/

AJ+. (2015, Jul 9)Faces Of The Student Debt Crisis In America. Retrived December 6, 2015, from https://www.youtube.com/watch?v=_tV6L-wzfHY