This article talks about how the student loan "crisis" is really just a myth. There is no denying that the amount of student debt has gone up in the past few years however it is not and economic disaster like some make it out to be. Since 2007 student loans have increased from $600 billion to over $1 trillion. Also the amount of undergraduate students have risen from 19 million in 2007 to 22 million in 2010. This increase in students has had a great effect on the amount of student loans which explains the large jump in overall debt. Individuals' debt was averaged at $27,200 per student for the 2010-2011 school year. This may seem like a high average but only 10% of borrowers owe more than $45,000 this large outlier has brought the average way up. About 90% of students owe less than $31,000. Most Students are also able to pay there debt after graduation. In 2009 the default rate on student loans is only 8.8% most of which comes from for-profit schools whose default rate is 15% nationwide. Because of this, the government has begun to place new rules and schools with high default rates can loose federal loan programs.
My probing question is how do you feel about college debt? Does it worry you or do you think that it will be manageable?
I do not feel that college debt is as big of an issue as it was in the past. My personal plans are to apply for financial aid and as many scholarships as I am eligible for. I also plan on working all throughout college, including graduate school, if that so happens to be the path I take. I think that college deb after graduation is a lot more manageable then it has been in the past. I think it is not easier than ever to handle and pay off your college loan debts as soon as possible rather than having to still be paying them off later in life.
ReplyDeleteI believe that after scholarships and grants that students loans will be more manageable. I believe when time comes for paying the loans back that they should not be too much to handle , depending on what kind of college or how expensive that college is of course. The question also depends on the interest on the loans and when you are going to pay them off. I agree with Laura in that they will definitely be more manageable if they are payed off as soon as possible.
ReplyDeleteI completely agree with Alex and Laura. I think that college loans are worth having if it means going to a good college. I think that education is worth taking out loans, but people sometimes have trouble paying them off. I think that it would be the smartest move (and what I plan to do) to work throughout college and pay off the loans as soon as possible. This will decrease the total amount you have to pay off because the longer you wait, the more the interest will affect the loan. I think that I could be happy with college debt for a few years if it meant getting a higher education. Overall, I do not think the price of college will deter me from it and I believe that loans will be worth it once they are all paid off.
ReplyDeleteThe debt "crisis" isn't a crisis at all. With under 9% of people defaulting, I wouldn't consider that a problem. I also did a little research, and there are multiple ways to pay off your loans. Some examples are 10 year low intrest, 25 year high intrest, 10 year increasing payments over time, etc. With multiple methods like this, it can't be too hard for someone with a college degree to find a payment that works for them. Once the economy makes a recovery, the amount of defaults will drop even lower.
ReplyDeleteI somewhat agree with my peers that the crisis isn’t even a crisis! I agree with Alex that scholarship opportunities will make college more affordable, but I also agree with Laura’s statement that financial aid offers a great assistance to those who need the financial help; however, my opinion differs from that of my peers because both of these resources have a catch: not everyone can have them. For example: If a mid-intelligence student enters the medical field in pursuit of becoming a doctor, he may not get a scholarship to his college. Also, his parents might have an income level that voids his eligibility for financial aid. In this situation, this student will have accumulated a massive amount of student loans in order to complete all of his schooling. As displayed by this situation, I think that depending on people circumstances that some students should be a lot more worried than others about this so called “crisis.”
ReplyDeleteI agree with everyone that college debt will not be a "crisis" unless however as Lauren mentioned if a student's only availible option was to aquire too many student loans. Students applying for college have many options to spending and providing money towards their tuition; such as working throughout college, finnacial aid, applying for scholarships, and as Kevin stated going on either a ten or twenty five year program to pay back the college loans. I strongly agree with David too that the sooner a college student pays of their loan, then the easier it will be to pay off the loan. Years after college and still paying off ht estudent loan debts would be harder to manage, because then that student has to also pay for other expenses to live. Student loans and debts depends on the student and what kind of school and degree they are aiming for, but I do not think I would worry about this "crisis" as there are many ways of managing money and loans.
ReplyDeleteI completely agree with Lauren. College debt, as of right now, isn't that much of a crisis. The only problem is, who is and is not eligible for certain loans and scholarships. If you aren't eligible for financial aid, you might have a tougher time paying off your loans in the future. As long as the student works through college and pay off his loans as soon as he possibly can, he will be okay. If he waits too long, then lots of interest will accumulate, and eventually he will end up owing a lot more than he did to start with. College debt isn't a huge crisis, unless the student doesn't know how to manage his money correctly, then it could get to be a problem.
ReplyDeleteI agree with everyone above, college education is very important in today's society. If you want to make a good amount of money during your career its better to go to college. I believe as long as student who take loans work during college and don't take out ridiculous loans they should be fine. The college students also need to be careful with their money and make sure that the loan comes first, then play.
ReplyDeleteI agree with Lauren and somewhat agree with Alex and Laura. It’s accurate that college debt is only a partial problem right now; it’s not much of a crisis. The problem is who is available for financial aid- like loans and scholarships. Students who aren’t eligible for financial aid form their college; will have a much harder time paying off their loans in the future. I think if students work through college and pay off their loans as soon as they have enough money too, they will be okay with money. If students wait too long of a time, interest will definitely build up and eventually the student will end up owing banks way more than just their education! College debt is a lot of money but I wouldn’t really classify it as a problem unless the student can’t manage their money appropriately, or work during college; because then it will become a financial struggle to pay off.
ReplyDeleteI believe that college debt is a huge problem in today society. To me college is very important and i do worry about being able to attend an expensive school. I also agree with Allie that there is a problem with who can receive financial aid and scholarships. I think that my college debt will be manageable because i plan on spending my money wisely.
ReplyDeleteI agree with all of my classmates that have commented so far. As we near our decision making time regarding college, I think that the topic of student loans has weighed heavily on many of our minds. Because not all students are guaranteed scholarships or grants, many people have to make the decision about how much money they are wiling to spend to get their education. For those in excessive student debt, making the decision to go with a pricier school may not have been very smart. On the contrary, there are things that students can do to pay off their debt if they have any. The most obvious would be to work through school. If a student can get a part-time job while in college, that student may not have a very difficult time paying off college debt. This may not be an option for all students, so acquiring debt is very risky and can often backfire as seen in the statistics above. From a personal standpoint, I am not too worried about college debt. Although I plan to go to a school where the cost is upwards of $50,000, I have a lost of money saved up and a lot of people supporting me. I also hope to receive grants which will only help me when it comes time to paying for school.
ReplyDeleteI agree that college debt is not an issue. I think that many people do end up paying it off somehow. Like Laura F stated, she plans on working during her schooling. Many people may take this approach and be able to pay of the money that they owe. I think that with the education that people get during college, they use to get a job and pay off the money. It would be hard for a college student who just got out to pay off all that money. They are just starting life and have to start paying for much more than they did before. For example they would have to pay for a place to live and all the expenses that come with the home, also they would have to pay for their car. I believe on an individual level that college debt it hard to get through but on the national level I believe it gets dealt with on its own. I just wonder how the money that is given in scholarships gets paid off.
ReplyDeletei think that college debt is an issue because college is far too expensive. i understand that its knowledge youll need for a life time and happy career as opposed to a job that you settle for an i fully intend on attending. however, USA has colleges that are outrageously expensive and many people, more than you would think can ont pay off their debt to the banks. Some people dont get job right out of college and a lot more people dont have the time or the opportunity to work during school. I have already been employed at a place i could most likely make in to a career if i so choose, and i make decent money to pay off my college debt, like books and such because my parents are paying for my school for the first four years. in no so recent news, Obama has raise the idea of having a new rule that peopl who gets jobsworking for the public, such as working in a hospital, will only have to pay of their college debt for the first four years our of college. this is a genius idea, and will certainly get more people for work for the public and attend college. which will lead to a better community as a whole. if this plan come in to activity, the college debate wont be so much of an issue.
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