The Importance Of Student Loan Debt
In the 1980’s, the government provided a large amount of assistance to those who needed it. Pell Grants in the 1980’s covered about two thirds of a student’s first year of tuition. However, recently student debt has become commonplace. The Institute of College Access and Success claims, “Seven in 10 seniors (69%) who graduated from public and nonprofit colleges in 2013 had student loan debt, with an average of $28,400 per borrower” (“State”). These figures do not represent students who dropped out or only obtained a two-year degree. On top of federal loans, many students are turning to credit cards to cover rising tuition costs. The United States government reportedly spends about 69 billion dollars a year on federal aid programs for public colleges, not including federal loans. Yet, during the 2012 academic year, colleges reported collecting just 62 billion dollars in tuitions (Weissmann). The Government spends an additional 107 billion dollars on backing federal loans; money better spent on grants to alleviate the financial burden from college tuition. Students often times utilize student loans to pay for living arrangements so they may attend college without having to work. If a student chooses to take this course of action, it should be considered a responsibility the student must fulfill, as many students attend college full time as well as hold a …show more content…
These nations also have high standards on who attends these colleges by use of entrance exams. Nations that sponsor tuition also have a higher overall tax and lower college attendance rates compared with the United States. Germany, for example, has a tax rate of 49.3 percent compared to the United States’ 31.5 percent; Germany’s college enrollment rate is also 62 percent as opposed to the States’ 94 percent (Jackson). The amount of money the United States would have to spend to make tuition completely free is prohibitively expensive. However, the government could lessen the amount students are currently paying by reorganizing its current plans and doing away with the more wasteful programs it currently uses.
Wasteful spending is a problem that plagues the educational benefits presented to students. In 2007 The U.S. Senate conducted an investigation on who is receiving federal aid to pay for tuition. The study found for-profit schools consume 25 percent of federal aid awarded to students; these schools also have among the highest tuition costs. The summary