Student Debt Effects

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Student Loan Debt Crisis in America
Student’s debt crisis is a growing concern in America. Debt crisis is a general term for accumulated money owed relative to income or revenue. Students are finding it difficult to self-fund their education because of rising costs of college. Many students turn to student loans for further education in an attempt to achieve success. In the process of completing their degrees, students accumulate extremely high debt and struggle to pay it back. It is one of the highest debt many American with college degrees face as they begin their life. Some may argue that the cost to attain college degrees is not worth the debt accrued along the way. The student loan debt may have an effect for future economic growth.
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Debt gives people the opportunity own things that are otherwise unaffordable. Good education is one of those things. Loan for education has been a tool for students to afford good quality higher education, which otherwise they may not be able to afford. Therefore, such loans have served as instruments to leverage career prospects and improve quality of living in the end.
However, the negative effects of the student loans are felt strongly today, for individuals and economy as a whole. There are three negative effects of student loans on individual students. First, it increases financial risk for them for their lifetime. Young graduates and professionals have ambition to enjoy in materialistic pleasures after they get a good job. However, student loan burden prevents them from splurging in any luxuries of life. The loan repayments take away whatever savings they make after paying for other expenses. The capability to accumulate wealth for retirement also reduces. These young professionals are sometimes unable to come out of their parent’s nest and make their own one. Second, loans reduce the student’s willingness to participate in learning. The negative effect of loans has been observed in public college students who have taken student loans and their college attendance has suffered (Zhang, 2013). It also has an impact on student’s choice of career and degree
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Especially for the middle-class families, college degree has become like a “default activity” (London, 2013). They believe that they feel higher education is necessary for achieving their career goals. They feel it is the only mode of economic empowerment for them. While this works for a few students, it is an illusion for others. Because of this illusion, they tend to ignore the risks involved with the loans they take and fall victim to debt

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