What to know about Student Debt?

It is 2018, and college students continue to pay more for higher education. This means more people are in need of Student Loans. After graduating from college, students believe it’s time to get money to pay the bills. Wrong, students are required to pay back their Student Debt. According to Student Loan Hero, the “average student loan debt for Class of 2017 graduates was $39,000(approx.).” Students are made to pay the thousands of student debt there number one priority after college.

Student Debt is a huge problem for college student borrowers. Many don’t know about the loans given to them. Students are not informed correctly or are unaware and are given bad loans. Some college students are blinded about Student Debt, as shown in the picture below. Several students don’t know how long it takes to repay and how much is paid monthly. Student Debt shows many problems and effects, that students are highly affected and drowned in them. Students, in order to pursue our wanting careers in which we want to accomplish, we need money. Students should get help with money, but debt only gets us to struggle, rather than to succeed.

Any student can have difficulty paying their student debt for numerous reasons, and sometimes students work to help get student loan forgiveness. Many students try to request student loan forgiveness for their bad loans but, Betsy DeVos, the US Secretary of Education, thinks against. Reported by Forbes, Betsy DeVos wants to “narrow the reasons for which students can contest and perhaps discharge student loans made under bad, false or predatory circumstances.” She believes to make students harder to get loan forgiveness if you are struggling on a bad loan. She thinks it’s better to help the student loan collectors rather than their abused customers.

Betsy Devos should really change her mind. If she wants to cut down the high amount of student debt in the US, she must help those who have requested loan forgiveness and regulate companies who collect loans. Forbes stated that narrowing loan forgiveness could leave students under bad loans “owing more money.” This possible change could affect students rather than help. Not only does it bury people in student debt, but also continues to have a major increase in the national student debt.

Student debt has many significant facts it has to share. Student Loan Hero, the website above, has gained data that could be scary to many. The website listed that $1.48 trillion is the total student debt among 44. 2 million Americans in the US, $449.6 billion being Unsubsidized and $272.5 billion being Subsidized loans. This means that students pay more because there is interest that the government doesn’t pay and instead is added to Unsubsidized loans. This means America owes this great amount of money. This has greatly increased since Betsy DeVos entered as secretary of education. According to Forbes, this number is greater by seven times the GDP of Portugal and equal to the annual GDP of Russia.

An increase in student debt has had many effects not only in student lives itself but also in the economy. Phyllis Korkki from New York Times, explains the different effects student debt has and can cause. Student debt is increasing and as an effect, it hurts the economy. In his articles, he states, “people with student loans are less likely to start businesses of their own.” He believes that the US economy always begins with small business because they create “60 percent of jobs,” but the student debt has lowered the number of people wanting to invest in a business. Students don’t have the money to join the economy such that some even hesitate to try and buy a home after college. Student loan debt also affects choosing a career, because some people can’t afford to pay student debt and rather choose a cheaper career.

Students have now seen the magnificent amount of money in student debt. Many borrowers can’t afford to pay student debt. Students have requested for a student loan forgiveness when faced with great struggles, but the denial is crazy. On an NPR podcast, Ari Shapiro interviewed Cory Turner about the denial in Student loan forgiveness. Turner stated that the Public Service Loan Forgiveness has a “99 percent denial rate,” in the request for loan forgiveness. Many borrowers are not informed right and are not corrected either if making a loan, so all incorrect loan payments are worthless.

A way to create change and avoid the harsh struggle of student debt is to follow the discourse community, Urban Institute. Follow ways to save and how to plan to pay student debt. The U.S Student Loan Hero website above also provides many different resources to manage student loans.

Furthermore, many loan programs, instead of helping, they drown students with money to pay after college. There is no help that will come from the Secretary of Education to help with student loan forgiveness. Student debt continues to increase as well as students who continue to struggle to pay.