Student Loan Debt Analysis Essay

The story of student loan debt isn’t too often talked about, students don’t take it too serious like they should. College students that barely have time to work spend four years thinking about the student loan; how it will affect their life after college; how they will manage to pay it later. Seven in a total of 10 seniors that graduated back in 2015 had a student loan debt average of $30,000. It had increased 4% comparing to 2014 graduates. Within the years, student loan debt has grown at twice; America colleges graduates are lucky if they have some money left to pay the bills, or even to eat regularly.

Every year the debt is increasing, but when this will stop? “I believe we have a higher education bubble,” says Derrick Handwerk, managing partner of Handwerk Multi Family Office in Lansdale, Pennsylvania. “When the average family cannot afford the average education or a home that is a bubble. The government is enabling the prices of a bachelor’s degree to grow significantly above inflation by having loans available that many students cannot pay off when they graduate.

The debt causes many students who are unable to find employment, because of the poor job market, to fall deeper into debt which negatively impacts their credit score. It’s a problem because the recent graduates have to get a good paying job, in order to be able to pay their own bills and still pay the debt that they accumulate within the four years in college. And we know that recent graduates don’t get really good jobs at first, it won’t be easy for them to get a good paying job and then having a nice life without having to worry about bills and money.

The only way out is working in multiple jobs, and with that they will lose a lot of time, putting out their social life, put off having a kid, car purchases because they cannot afford to pay car payments and any more loans, put off buying a house or even getting better opportunities in business. The money that they make go straight to the government, so how are they supposed to have a better life conditions like this? Those loans are not allowing people to live the normal lives that they should be living but are rather burdening themselves with debt.

But if all those recent graduates keep worrying about their debts and how to pay it, how they are going to manage to live without stressing about it? If they work in two jobs, at first they won’t have a social life, they will be either working or resting, and that’s not a good life for any human being, it’s cruel, even more for a recent college graduate. All those factor can lead to bankruptcy, on a really young age. Some students choose to work while they are in college, so they can pay off their debt still while they are in college.

But we all know the struggle that can be for a student, working and studying is not an easy task for anyone; and that can make them demotivated to graduate or they can even drop out. So pretty much something that it was supposed to help you out while you are in college, help you to get a good paying job, a nice life, a bright future it’s the opposite. Student’s loans can ruin your life. Student loan debt in the United States has surprisingly reached 1 trillion dollars, that’s more than the entire national credit card debt, the total spending on the US Public Education System, and even the entire national debt of Greece.

And the average is 44. 2 million Americans with student loan debt. “Total student loan debt in the U. S. currently stands at more than $1. 3 trillion, a staggeringly large number that represents millions of college graduates unable to work toward financial independence from financial institutions,” says Jeffrey Zucker, the president of Green Lion Partners in Grand Junction in Colorado. “It’s not surprising that people with student loans are less able to invest their savings in profitable ventures.

If the governments gave more time to the students to pay off the loans it wouldn’t affect the students as much as it does in this moment. Giving students more information about their debt may help students not get loans. But either way it could go bad. Borrowing less may make it harder for students to graduate if they spend more time working and less time studying. And students with that young age, they don’t know much about loans and how it could impact on their future.

They need to learn and have more information about loans before graduating from high school, so at least they will know what they eventually will face in the future. The government proposed many solutions that, so far, haven’t helped a lot. The mainly problem, is not with the government solutions, or either with the colleges, the problem is with the students. If you cannot afford a shoe, would you still buy it? It’s pretty much the same way when you are in college, if you can’t pay or will have trouble to pay it, don’t do it so you won’t have financial problems in the future.

But I’m not saying just to work and don’t study at all. What I’m trying to say is that students have options, they can go to a community college, paying a relatively low cost for two years, and after go to a four year school. They could get a full time job and get online classes at a not so expensive and more affordable university. I think that’s the time that students need to say “no” to students’ loans to prevent future impacts.