With the rise of college admission rates in our ultra competitive society pressuring more and more students to attend college each year, an increasing amount of students are facing college debt. With over 40 million students facing a total of almost 1.4 trillion dollars in loans, student debt creates many economic and social problems in the long run. Mitch Daniels, former governor of Indiana and president of Purdue University, stated that home ownership, marriage, child care and the establishment of businesses have declined as a result of the steadily increasing amount of student loans (Daniels). Because college is so expensive, student loans contradict the purpose of higher education, which is aimed at opening new doors and opportunities for
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In 2014, a study showed that many career paths, especially in the business and computer science world, prefer to hire workers with bachelor 's degrees. This study concluded that “many middle-skill career pathways are becoming closed off to those without a bachelor 's degree” (qtd. in Holland). Pressure alone is one of the contributing factors in motivating students to go to college for a longer duration and overwhelming them in student debt. Along with pressure factors motivating students to take out more loans to lengthen their college education, the inelastic demand for college tuition has caused the high price of higher education to not affect the quantity of students who will attend. Since the turn of the century, the average cost of attending a private university has increased over 250%, not affecting the quantity of admitants in the slightest (Holland). Because admission has increased so drastically over the past two decades, 71% of students become engulfed in debt after attending a four year college (Student Loan …show more content…
Schools have been proactive when appealing to these demographics, for Stanford and several other prestigious schools offer free admission to students of families that make less than 125 thousand dollars a year. Obama has also suggested free community college for hard-working high school students with formidable grades. For some laborers in public service jobs, the Public Loans Forgiveness Act offsets forgotten borrow payments to minimize the risk of debt for middle-class workers (Holland). While the United States has not yet entered a college debt crisis, our students’ 1.4 trillion dollar deficit indicates that we are on the verge of an economic predicament. Student debt will impact our economy in the long run, for college graduates have less disposable income and will have lower consumption in markets like the house market. In conclusion, the government has to intervene in controlling student debt, for before we know it, our nation will enter another economic crisis and thousands of private lenders will go
In 2014, a study showed that many career paths, especially in the business and computer science world, prefer to hire workers with bachelor 's degrees. This study concluded that “many middle-skill career pathways are becoming closed off to those without a bachelor 's degree” (qtd. in Holland). Pressure alone is one of the contributing factors in motivating students to go to college for a longer duration and overwhelming them in student debt. Along with pressure factors motivating students to take out more loans to lengthen their college education, the inelastic demand for college tuition has caused the high price of higher education to not affect the quantity of students who will attend. Since the turn of the century, the average cost of attending a private university has increased over 250%, not affecting the quantity of admitants in the slightest (Holland). Because admission has increased so drastically over the past two decades, 71% of students become engulfed in debt after attending a four year college (Student Loan …show more content…
Schools have been proactive when appealing to these demographics, for Stanford and several other prestigious schools offer free admission to students of families that make less than 125 thousand dollars a year. Obama has also suggested free community college for hard-working high school students with formidable grades. For some laborers in public service jobs, the Public Loans Forgiveness Act offsets forgotten borrow payments to minimize the risk of debt for middle-class workers (Holland). While the United States has not yet entered a college debt crisis, our students’ 1.4 trillion dollar deficit indicates that we are on the verge of an economic predicament. Student debt will impact our economy in the long run, for college graduates have less disposable income and will have lower consumption in markets like the house market. In conclusion, the government has to intervene in controlling student debt, for before we know it, our nation will enter another economic crisis and thousands of private lenders will go