How The Student Loan Debt Has Become Essay

1787 Words Jan 27th, 2015 null Page
In the fall of 2014, some 21 million students are expected to attend American colleges and universities, an increase of about 5.7 million since fall 2000. Of those students, 71% of all students going to four-year colleges will have student loan debt. The average debt level for those students is nearing thirty thousand dollars. Imagine starting your work and rest of your adult life thirty grand in the hole. And these numbers are definitely not decreasing; they are actually up 25% from the year 2000. [1] How could we let this happen to our nation’s future? How can we let this go on? In this paper I would like discuss how wild student loan debt has become, how detrimental it can be to a young adult and how we can fix it. The crisis of student loans began in 1958 where the first federal student loan program was created by the National Defense Education act and was then expanded in 1965. [2] In 1965, as part of Lyndon Johnson’s “war on poverty”, the ways the federal loan program was changed in the way it was financed. Instead of the government paying for student loans, the loans would be made by bankers. Then Richard Nixon brought forth “Sallie Mae” in 1972; this is the Student Loan Marketing Association in order to help college student borrow more money. This turned student loans into another business for bankers. Private companies began to handle government-backed loans and made the process more complicated and cost more money. For a long time, the banks we’re doing well…

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