The United States of America is facing an immense problem that could potentially devastate the economy. Around forty million people in the United States have it because they wanted to have a higher chance at having a better standard of living; they decided the only way to do so was to go to university (Dickinson). However, with the extremely high prices of tuition the only way they could pay for university was by getting into lots of debt. They graduate, only to realize they do not have the money or the job to repay the student loan that they got when entering university. Since the year 2003, student debt has increased by an astonishing 300% (“Sad for Grads”). The total amount owed in student debts in 2013 was $1.08 trillion. Both undergraduate
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Since he is unable to pay for university, even after applying the scholarships that he has received, he applies for loans so that he can get through. He graduates from university only to realize he is still unable to find a job and has a total of $26,500 in debt that he needs to repay. The average debt for someone who has graduated from university with a student loan is $26,500 (“Sad for Grads”). After being unable to rent a place for himself because he is unable to pay his student loan, making his credit score look bad, he ends up having to move back in with his parents. According to Tim Dickinson, an American political correspondent, “In America today, a young person needs more education after high school to have a chance to make it in the middle class. Not a guarantee, just a chance to make it.” Also the rates on student loans could potentially rise to 7.25% or an unbelievable 8.8% in the next five years (Taibbi). This would cause major problems for those who decide to pay for university with loans as they will have to pay a lot …show more content…
Nearly 69% of families in the United States decided on what university to go based on how much it costs to attend (Adams). One way is by getting many scholarships by applying to the ones being offered by the university and using different scholarship searching sites to get outside scholarships. Others decide not to live on campus and continue to live in their home so that they can save money by not having to pay the dormitory fees (Adams). Many other students try going to a community college so that they can gain college credits and then transfer to a university as a junior and only have to pay for two years of it instead of the full four years. Another decision that some students take to save money for university is getting a job and then going to school after a couple of years of working. President Barack Obama also tried to fix the student loan industry when he passed a bill in 2010 which gave students loans from the government without having a 3rd party involved that would gain more money (Taibbi). Senator Elizabeth Warren also tried to pass a bill that would allow students with current debt to refinance their loan at the same rate that students who are just entering university are getting (Dickinson). After being unable to pay for their student loans some people file for bankruptcy thinking that that will eliminate the loan; however, student loans cannot be removed
Since he is unable to pay for university, even after applying the scholarships that he has received, he applies for loans so that he can get through. He graduates from university only to realize he is still unable to find a job and has a total of $26,500 in debt that he needs to repay. The average debt for someone who has graduated from university with a student loan is $26,500 (“Sad for Grads”). After being unable to rent a place for himself because he is unable to pay his student loan, making his credit score look bad, he ends up having to move back in with his parents. According to Tim Dickinson, an American political correspondent, “In America today, a young person needs more education after high school to have a chance to make it in the middle class. Not a guarantee, just a chance to make it.” Also the rates on student loans could potentially rise to 7.25% or an unbelievable 8.8% in the next five years (Taibbi). This would cause major problems for those who decide to pay for university with loans as they will have to pay a lot …show more content…
Nearly 69% of families in the United States decided on what university to go based on how much it costs to attend (Adams). One way is by getting many scholarships by applying to the ones being offered by the university and using different scholarship searching sites to get outside scholarships. Others decide not to live on campus and continue to live in their home so that they can save money by not having to pay the dormitory fees (Adams). Many other students try going to a community college so that they can gain college credits and then transfer to a university as a junior and only have to pay for two years of it instead of the full four years. Another decision that some students take to save money for university is getting a job and then going to school after a couple of years of working. President Barack Obama also tried to fix the student loan industry when he passed a bill in 2010 which gave students loans from the government without having a 3rd party involved that would gain more money (Taibbi). Senator Elizabeth Warren also tried to pass a bill that would allow students with current debt to refinance their loan at the same rate that students who are just entering university are getting (Dickinson). After being unable to pay for their student loans some people file for bankruptcy thinking that that will eliminate the loan; however, student loans cannot be removed