Student Loan Debt Has Become A National Problem With No...

Join the Club Introduction: According to CNN, â€Å"Almost 19% of student loan borrowers owe more than $50,000.Only 6% of borrowers had that much in 2001.† (Gillispe, 1). Why has student loan debt increased so much? Student Loan debt has become a national problem with no solution. Many students are borrowing more money to keep up with the rising cost of tuition in universities, leaving themselves with thousands of debt after graduation. Students after gaining this debt, have to find jobs to support it which can come at a challenge after the financial crisis of 2008. So there stands a problem between students having massive amounts of loan debt and getting jobs to pay this debt off. Advocates or liberals think forgiving this debt is a good idea, while opponents or conservatives think it is not even an option. This essay will focus on the controversial topic of forgiving student loan debt and why something should be done about the massive debts graduates have. It is important to first look at the history o f student loans and how the student loan crisis came about in order to understand the controversy. History: The student loan system came about in the Higher Education Act or HEA of 1965 (Wenisch, 2). This act allowed â€Å"federal loan guarantees to extend to private lenders so as to encourage them to lend funds for the specific purpose of financing college education† (Wenisch, 2). The HEA was inputted so that more people, from lower income families, could still get a higherShow MoreRelatedFinancing For Loan And Debt Crisis1269 Words   |  6 Pagestoday, the total consumer debt was $11.52 trillion, and of that, student loans account for $1.08 trillion and that number is growing larger and larger every year (Hiltonsmith, Robert). A large portion of the population undoubtedly feels the burden of these statistics. Seven out of every ten college seniors has reported having to take out one or multiple student loans so that they can to afford to go to college (Hiltonsmith, Robert). The results of this outstanding amount of debt does not just affect theRead MoreShould Student Loan Debt Be Forgiven?1344 Words   |  6 Pagesï » ¿Student Loan Debt: Should We Forgive? EN1123 Most Americans would agree that higher education is important. Compared to years ago, when a high school education was acceptable in most jobs, a college degree is now required in the majority of positions. But what if you can’t afford to get a degree? What then? For many, student loans are the only way to finance one’s education. 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The student loan bubble is a huge problem and has been for quite some time. According to the Consumer Financial Protection Bureau (CFPB), there are approximately thirty seven million student loan borrowers with their student loan debt running over a trillion dollars collectively – nearly seven percent of the national debt, and a nervous jolt should be running down our spines. The