One in five households in America owe students loans. Student debt is a rising problem in the United States. Back in 2008 there were 40 million people that had outstanding student loans (CNN). Since 2008, that number has gone up to 43 million (Irwin). The numbers keeps increasing as the years go by due to the rising cost of attendance. Since those numbers keeps on increasing it makes it hard for people to better themselves. Six months after graduation, the lenders expect the borrower to start paying on their loans if they decide not to continue their education after their first degree. Compared to other countries, what has government done to help those in need when it comes to the rise of student debt?
In other countries, such as Germany and …show more content…
With the Student Aid Bill of Rights being sat in motion it will give the borrowers a simple place where they can go a file a complaint, which will provide student feedback to lenders, services, collection agencies, and even their schools (Douglas-Gabriel). Which is a step in the right the direction. If young adults better understood the process it would better assist them. Even though the president signed a presidential memorandum it does not stop the growing interest rates on the student loans. Interest rates have rose from 3.86 percent to 4.66 percent on both the subsidized and unsubsidized loans (Berr). The average student debt loan is about $30,000 and about one out of seven people default in their loan (Berr). To default is the failure to promptly pay interest or the principal when it is due. It is estimated that the U.S. Government will earn $127 million at the expense of borrowers …show more content…
As a country the United States will never be like Germany, or the other countries that allows their students to go to school for free due to higher taxes, or like Britain that base their payments on gainful employment. President Obama is taking the necessary steps to help those that are in debt but what happens next year when he is no longer in office and the next President takes his spot. How are people suppose-to trust the lenders if they are causing them to pay more? When people don’t truly understand they tend not to be consistent. Student debt is a serious matter, and should not taking likely. This debt will dictate what is done, and how it is done until it is paid off. So people will continue to default in their loans until the United States hears what the people are saying and takes into consideration ways to work with each other to either lower how much money each person requires to be able to attend school or find a better payment
In other countries, such as Germany and …show more content…
With the Student Aid Bill of Rights being sat in motion it will give the borrowers a simple place where they can go a file a complaint, which will provide student feedback to lenders, services, collection agencies, and even their schools (Douglas-Gabriel). Which is a step in the right the direction. If young adults better understood the process it would better assist them. Even though the president signed a presidential memorandum it does not stop the growing interest rates on the student loans. Interest rates have rose from 3.86 percent to 4.66 percent on both the subsidized and unsubsidized loans (Berr). The average student debt loan is about $30,000 and about one out of seven people default in their loan (Berr). To default is the failure to promptly pay interest or the principal when it is due. It is estimated that the U.S. Government will earn $127 million at the expense of borrowers …show more content…
As a country the United States will never be like Germany, or the other countries that allows their students to go to school for free due to higher taxes, or like Britain that base their payments on gainful employment. President Obama is taking the necessary steps to help those that are in debt but what happens next year when he is no longer in office and the next President takes his spot. How are people suppose-to trust the lenders if they are causing them to pay more? When people don’t truly understand they tend not to be consistent. Student debt is a serious matter, and should not taking likely. This debt will dictate what is done, and how it is done until it is paid off. So people will continue to default in their loans until the United States hears what the people are saying and takes into consideration ways to work with each other to either lower how much money each person requires to be able to attend school or find a better payment