Essay On Student Debt Crisis

There are two things that make every college students smile go up side down, tuition and student loans. It is something that makes everyone worry and sad. Right now in America there is a student debt crisis, colleges keep raising tuition every year while people aren’t making more money. The average undergraduate who borrows leaves school with about $30,000 in debt, which is manageable with a regular job. But that is not that case for Liz Kelly, a Missouri high school teacher and a mother of 4 who owes the government $410,000 in student loans. Liz Kelly’s circumstances are not unique, of the 43.3 million borrowers, 1.8 percent of people (799,000) owe $150,000 and 346,000 owe more than$ 200,000. The debts get worse with the interest rates with some students paying 8.25% the same as bank rates. According to the Federal Reserve Bank of New York, the number “of active borrowers enrolled in college has declined to roughly nine million today from about 12 million in 2010.” …show more content…
The Government needs to understand that student is going to school to live a better life and improve the future of this country’s economy. Putting students in a position where they are broke and incapable of purchasing living necessities will lead to a downfall in the future. I’m not saying the government should just throw money at people because that will just cause more problems but instead charge lower interest rates. Instead of charging people 8.25% interest and make profits like corporate banks, charge a standard 1% interest rate which will still let the government money while keeping the people happy. Doing this will help the economy, because when people have more money they are able to spend more. Also something that the government should do is set a plan with each borrower to automatically take a small percentage of their paycheck instead of coming after everything they own and their social