Student Debt In Young Adults

Student Debt an Issue Facing Young Adults What is the biggest issue that faces young adults today from the ages of eighteen to twenty-five? It seems like this age group is always the one to face some form of struggle in their life. Some people think that it is money, employment, or social life, but the biggest issue young adult’s face is student debt. It is defines as money that a college student borrow either from the government, school, or a private loaner. It accounts for nearly 40% of totally debt for this age group, and it impacts their economic future. In addition, Student debt effects students and graduates ages eighteen to twenty-five and beyond with evidence showing that students will graduate with some form of debt, and will estimate …show more content…
The total amount owed seems to vary depending on certain factors especially degree of study and location. In a study conducted in 2013, colleges and universities on the east coast of the country had a higher debt compared to the west coast. New Hampshire, Delaware, Pennsylvania, Rhode Island, and Minnesota were the states that had the highest student debt average while compare to New Mexico, California, Nevada, the District of Columbia, and Oklahoma. On the contrary, they are not required to report what their debt average is of their graduating students thus it is hard to pinpoint what the exact average is for student debt. In addition, some people leave out private loans they receive while on school which also effects the average debt of a graduating …show more content…
Both public and private loans are used by students to pay their tuition. First, public loans are granted through public agencies and donors mainly from the government. Government programs such as FAFSA and other public donors offer the loans to college students to help pay for their tuition and living cost. However every pro has a con, public loans, like all loans, have interest rates attached with them. In addition, college students do not have a credit history which causes the interest rates to be high which is why student loans are the main issue that leads to debt. What is another alternative to public loans? The answer is private loans which are even worse for young adults. When the average student debt is calculated and determined, it has been discovered that majority of the debt is from private loans. Private work similar to public loans, however they have higher interest rates, and are easier to obtain compared to public loans. Overall, they contribute to the biggest issue that face people eighteen to twenty-five which leads to student debt which is the biggest issue that this age group faces, but this issue can be avoided with self-education, saving for college, and looking at different college’s tuition