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After four (and more) years of hard work, study and learning, college graduates are ready to face the world and start their careers. However, these college graduates face hurdles after graduation. After years of studying and majoring in a field, their career should be ready for them, but that is not always the case. College graduates are struggling to find careers after college, making it difficult to pay off student loans and start their lives at the same time. Student loans are crippling college graduates and making it incredibly difficult to afford anything.
Growing up kids were always told that without a college degree, there wouldn’t be a stable job for them in the world, a career that would enable them to pay all the bills and support a family. So growing up, these kids worked incredibly hard in school and did extra-curricular activities so that they could get scholarships and grants to pay for some of their school. Even though he has received a scholarship, the tuition for college has skyrocketed, forcing him to take out student loans.
College students owe an average of $38,000 dollars after four years of college. Almost double the amount he took out due to interest. Now it has become a big issue for the students who are just starting their career and starting to provide for themselves. On average, forty-four million students take out loans to pay for college tuition, and college graduates alone have $1.2 trillion in debt for the average year of 2016. A research study was conducted in which college students were surveyed and data was created on how many student loans they had taken out and how much of each. The study showed that 30.5 million students took out Direct loans totaling $911.6 billion, as well as 16.8 million college graduates who took out FFEL loans, rising to $342.6 billion, with Perkins loans totaling $8.0 billion. Borrowing from 2.7 million people (Josuvit, Andy). Now on average this doesn’t sound like a lot compared to the number of kids going to college, but with a crime rate of 11.1% this amount will double by the time they pay it back. This makes it nearly impossible for the average college student to pay off student loans in a short amount of time, creating many problems when it comes to starting a career and taking care of yourself.
Research has found that when comparing four-year universities and private colleges, as well as community colleges, student loan debt was more significant at four-year colleges than at community colleges. In addition, they found that more student loans were taken out with students attending public four-year universities rather than private universities. The research also found that students who received Pell grants were more likely to borrow money than other students. Forty percent of the $1.2 trillion dollars taken out for student loans was used to finance graduate and professional degrees. All of this statistical information revealed that of the forty-four million students who take out student loans to finance their tuition, most attend four-year public universities and rely on a middle- to lower-class scale. Now just because these people fall into the middle and lower class, doesn’t mean they have to pay for it when they go to college and strive for better careers. Student loan debt is an issue that needs some attention and serious problem solving.
The topic of student loan debt for college students is something that hasn’t been widely talked about in recent years. The issue gained attention as the presidential election approached, and Bernard Sanders (also known as Bernie Sanders) began proposing the platform that college should be free to avoid student loan debt. The actual figures of this issue came to the fore soon after the announcement of this proposal. Student loan debt has nearly doubled in recent years due to rising tuition costs, making it nearly impossible for the average college student not to carry student loans. The interest rate for loans has been hiked, doubling the amount withdrawn before even getting a chance to pay it back. Sanders also addressed the idea that a college degree is equivalent to a high school diploma. Arguing that the student should not be forced to pay for the education they should have received in their previous years of schooling.
Many solutions have been proposed to eliminate the issue of student loan debt. Solutions have been looked into by current President Barack Obama, such as student loan forgiveness, allowing college graduates to apply for loan forgiveness to the problem, wiping out the rest of their debt. The requirement is that the college graduate must be employed by a government or non-profit organization, plus they must have made at least 120 monthly payments under a qualified repayment plan while working full-time for a current employer. Although this solution also caused some problems, such as the student loan forgiveness program will not completely remove student loan debt, it will only reduce the burden slightly. While it does some favorable things, the solution will cost taxpayers a whopping $3.5 billion dollars to offset student loans. This idea of taxpayers paying out of their own pocket raised a huge issue on the subject.
Another solution that was proposed was something that was more local. Companies have recently allowed college graduates who started careers with their company right after graduation to be offered contracts to pay off their debts. College graduates who sign contracts with companies allow the companies to pay off their student loan debt if in return the students work for them for a certain amount of time. Many medical students sign a ten-year contract with a company to pay off their medical school loans. Now even though this solution may seem like these students are selling their souls, each student has the final decision as to whether or not they want to take the offer.
Student loan debt can be solved in many different ways, but the most effective way would be to eliminate the idea of student loans altogether and make college tuition free. When Wall Street collapsed, the middle class helped bail them out. Wall Street can help eliminate student loan debt. Bernie Sanders has come up with a great idea, and with the help of a few small modifications, it could be the end of student loan debt for college graduates. Taxing Wall Street, with a speculation tax, would generate enough revenue to allow college tuition to be eliminated. And even if the revenue isn’t enough to eliminate college tuition costs, it would sharply lower interest rates on student loans. Also another way to get revenue would be to increase taxes for the upper class. Both of these ideas would generate a significant amount of revenue to cover the college’s tuition costs.
Although the issue of student loan debt for college graduates is just now coming into their public attention, the problem has been going on for some time. Growing more and more throughout the years. Not much has been done to fix this issue, but some ideas have been proposed to reduce the burden on college students. With the combined efforts of key figures we can find America creating a real solution to the problem, and eliminating student debt and even college tuition in general. Although this idea may not seem realistic in today’s economy, there will come a time when a student can pursue a better education for their future without worrying about what it takes to get there.
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