Student Loan Debt in America Millions of Americans are currently knee deep in student loan debt. The number of students leaving college with debt is at an all time high. With the average student taking six years to get their college degree and the price of college tuition being at an all time high it 's hard for students to plan the rest of their without factoring in all their debt. College has always been seen as one of the only ways to ensure a solid future, but when students are needing to take out massive loans in order to pursue their college career it 's hard to not have negative effects. The cost of college for most is nearly impossible to afford without some sort of financial aid, like a loan. Solutions need to arise referring
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Most students feel that earning a degree makes the debt obtained during college worth it. However, having to pay off the student loan debt prevents students from being able to create a savings account and build up extra money. One major misconceptions about loan debt is that students can always declare bankruptcy if their debt becomes overbearing. However, bankruptcy can not be filed on student loan debt. “I can always just declare bankruptcy. Not to solve student loan problems, you can’t. Federal and private loans can’t be forgiven by bankruptcy.” (Barr, 1). Students also think that federal and private loans are the same. Federal loans are not required to start paying off until a student graduates, or quits college, where private loans may require payments while a student is in school. Also, federal loans are generally lower and fixed interest …show more content…
FAFSA gives out $150 billion in grants, loans and study work. Also a student would need to determine if they will be going to a private or a public college, because the price is much different. “If you want a ballpark number, the College Board estimates that a moderate budget for in-state schools will be $22,826 and $44,750 for a private college, depending on the school and its location.” (Barr, 1) Not only is private and public a big decision, but so is going to school in state or out of state. The cost savings by going instate is much cheaper. Living at home or on campus is a major financial decision. By living at home students can save a lot of money. All these ways allow students to save money and not have to take out as much money for a loan. By taking out less money on a loan the likelihood a student can pay back the loan is much greater. Students have many different options as to how to avoid student loan debt and better alternative options, but ultimately something needs to be done about student loan debt. Students can’t continue to pay the costs of schooling and obtain so much debt that they have to sacrifice things like buying a home or starting a family. Student loan debt doesn’t only affect the student but everyone who knows them. The student loan debt is a real problem that will only continue to get bigger until it is addressed and solutions are
Most students feel that earning a degree makes the debt obtained during college worth it. However, having to pay off the student loan debt prevents students from being able to create a savings account and build up extra money. One major misconceptions about loan debt is that students can always declare bankruptcy if their debt becomes overbearing. However, bankruptcy can not be filed on student loan debt. “I can always just declare bankruptcy. Not to solve student loan problems, you can’t. Federal and private loans can’t be forgiven by bankruptcy.” (Barr, 1). Students also think that federal and private loans are the same. Federal loans are not required to start paying off until a student graduates, or quits college, where private loans may require payments while a student is in school. Also, federal loans are generally lower and fixed interest …show more content…
FAFSA gives out $150 billion in grants, loans and study work. Also a student would need to determine if they will be going to a private or a public college, because the price is much different. “If you want a ballpark number, the College Board estimates that a moderate budget for in-state schools will be $22,826 and $44,750 for a private college, depending on the school and its location.” (Barr, 1) Not only is private and public a big decision, but so is going to school in state or out of state. The cost savings by going instate is much cheaper. Living at home or on campus is a major financial decision. By living at home students can save a lot of money. All these ways allow students to save money and not have to take out as much money for a loan. By taking out less money on a loan the likelihood a student can pay back the loan is much greater. Students have many different options as to how to avoid student loan debt and better alternative options, but ultimately something needs to be done about student loan debt. Students can’t continue to pay the costs of schooling and obtain so much debt that they have to sacrifice things like buying a home or starting a family. Student loan debt doesn’t only affect the student but everyone who knows them. The student loan debt is a real problem that will only continue to get bigger until it is addressed and solutions are