As Of 2015, The Average Amount Of Student Loan Debt In

As of 2015, the average amount of student loan debt in America alone was 1.2 trillion dollars and the average balance for each of the roughly 40 million borrowers still paying back loans was $29,000 (Holland 2015). John Oliver of â€Å"Last Week Tonight† makes a point that student loan debt exceeds that of both credit card and auto loans. However, despite the negative financial effects, achieving a college degree is vital to the National Economy and the job market. According to studies by the Hamilton Project, â€Å"The cost of not going to college is rising just as much as the cost of going,† (Greenstone Looney, 2012). This is because employers are increasing the credentials of future employees which, in turn poses two issues. First, it is†¦show more content†¦They discovered that the return of the investment of college education is decreasing. Over a 30 year period, the price of college increased by nearly 50%. Since tuition rates are increasing, student loa ns are becoming something that is simply a part of becoming a college student. It is almost expected that going to college means having an unimaginable amount of student loans. The reason that this stereotype exists is because it seems to be true. Between 2005 and 2011, the amount of federal student loans for private school students increased by 84.3 billion dollars. The other issue with increasing prices pushing for the acceptance of more loans can be said to be derived from ignorance. The Consumer Financial Protection Bureau says that, in 2012, many students most likely lacked the understanding necessary for deciphering the difference between private student loans and government loans and that â€Å"default rates on private student loans have spiked significantly† since our 2008 recession. Not only are debts from student loans making it difficult for graduates to get onto their feet in the short-term sense, but in the long-term as well. Long-term does not mean that by age 4 0, people are paying off debts. Long-term means that as of 2015, more than 2.8 million Americans over age 60 still had student debts to pay off. This is not entirely due to the debts of the people personally, but also the loans taken out forShow MoreRelatedEssay on Student Loan Debt Should be Forgiven1256 Words   |  6 Pages Does the amount of student loan debt have an effect on the economy? If so would forgiving student loan debt help lower the national debt or would it just increase it? According to Mary Claire Fischer, a writer for Kiplinger’s Personal Finance magazine, â€Å"two-thirds of students who receive bachelor’s degrees leave college with an average debt of twenty-six thousand dollars† (Fischer). This means that the average student debt has doubled since 2007 (Ross 24). The total student loan debt is $1.2 trillionRead MoreStudent Loan Debt Is A Burden1467 Words   |  6 PagesHave you ever heard of debt? Most people in today’s society hav e, but what about student loan debt? For too many Americans, student loan debt is a burden; there may be too much interest, not enough income, and a struggle to handle previous bills while staying on time with college payments. According to the Consumer Finance Protection Bureau in the United States, the total amount of student debt amounts to over $1 trillion. In the article â€Å"Here’s Your Crisis: Student Loan Debt Isn’t a Myth† (2013) ChrisRead MoreThe Is Not Like The Fast Food Workers1383 Words   |  6 Pagesabout business and finances. They give a definition for student debt, â€Å"money owed on a loan taken out to pay for educational expenses.† With how fast the cost of tuition is increasing each semester student loans are just about the only way for a student to afford to go to college. With the interest rates being ridiculously high, the student cannot afford to pay the loans along with other bills and end up with an insurmountable amount of d ebt. When an individual goes across the stage to get their diplomaRead MoreStudent Loan Debt Of The United States1746 Words   |  7 Pagesor would like to win that amount in the lottery. What was bought with this $80,000? Not a car or two, not a house or even a home equity to improve one’s house, and not having a child. This $80,000 is the amount paid for tuition for one’s college degree(s). Compared to other countries, student loan debt in the United States is skyrocketing due to over-inflated tuition costs, dismal grant/scholarships availability and lack of beneficial repayment programs. Body Student loans are becoming an increasinglyRead MoreHigher Education And The Consequences Of The Rising Student Loan Debt1280 Words   |  6 Pagesour country is the rising student loan debt (Josuweit, 2015). 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