Tutors 21 | - Freelance Writer
Jul 19, 2024 | #1
College is the most important investment that a young American can make regarding his future, at least, that is how it used to be. Within the modern climate, a college degree does not guarantee employment or opportunities that are able to levy the high accumulated costs of student loans and debt accumulated during the entire studying phase. The amounts due to young learners ready to break into the working class world are left with little options. These high levels are very concerning for the federal reserve system.
There are more 44 million borrowers in the United States with 1.3 trillion in the student debt alone. (racocksy). This high statistic is very concerning based on the fact that the numbers are continuing to rise, without the value of salaries increasing with it. Students are loaning high amounts of money to pay for a degree that is not highly rewarded in the labor market. This is concerning due to the fact this hinders the youth from being able to focus their monetary efforts towards saving for emergencies, retirement and the general long term. The starting block is set forward before they can even begin.
When they suffer an economic downturn, it will not end directly in bankruptcy. For example 4.2 millions of debtors did not pay towards their debts for at least 9 months, this is concerning due to the fact this means statistically, 1 out every 10 students are not paying their debts owed timeously. (busca una source).
According to an article by CNBC entitled "Student debt could hold back economic growth"; gives rise to the fact that students who are not able to pay off their student loans, directly affects their credit ratings before they even begin to ever consider buying home or applying for a bond. "It hurts their credit rating, it impacts the entire half of their economic life."
The pressures of this may be off-putting to some students to even begin considering studying and may look towards just trying to penetrate the job market right out of high-school, as to avoid having to loan and pay of debt and instead try build capital towards their future, which for some, may appear to be the end-goal of life after studying or not. According to the article, the New York Fed reports that education debt grew to $1.38 trillion at the end of 2017, with 11 percent of those students owing money behind on their payment. As this grows every year, long term solutions have not yet been created.
Student loan debt is a fascinating prospect, because not only does it affect every young student who enters the tertiary market and the economy, it also can have physical and mental repercussions that inadvertently, affects the economy too.
According to an article by "The Atlantic"- The University of South Carolina that financial strain can have direct negative effects on overall physical and mental health. In the broader spectrum, there are a multitude of students who are not even able to afford studying and have to work part-time jobs around their studies to afford paying off debt, in which some may find to be an extremely taxing experience, robbing them of their apparent "youth" and opportunity to enjoy the constructs centered around socialising, or even simply being able to enjoy their free time and focus on investing in a hobby or sport. There becomes a paradigm centered around not being able to do anything else, almost being confined to a system that some may not want to adhere to.
The pressures of having to pay off student loans while having to focus and perform in their studies, can be extremely taxing resulting in high levels of physical and mental stress, which greatly affect depression and anxiety levels within the youth, who may or may not have adequate support structures or resources in order to cope with these increasing demands. Students studying direct qualifications end up working or getting jobs completely unrelated to their speciality or field of study due to the desperation of having to make monetary ends meet.
Some may argue that the infrastructure of colleges aren't giving students enough support structures in order to cope with these demands, thus resulting in the notion that colleges are based around business-like structures, that are institutionalized to profit and built around brands, with funding directed at marketing and appeal to gain new students, and acting as direct opposition to other college institutions; instead of directing attention and focus towards building structures for the current students to meet their demands and pressures, and given adequate tutoring on how to deal with their adversity within the education system.
In 2015 Barack Obama proposed that all the community college will be free, this was called the "Tennessee program model". In order for students to qualify for this, they must maintain a 2.0 grade point average. Another proposal came by the democrat Bernie Sanders who thought that every student deserves a college education , even if their parents cannot afford it.
He proposed the "college for all act", in which congress will give $47 billion a year to eliminate fees and tuition. This means that the federal government will cover 67% of the cost of school, where the state will only cover the remaining 33% of the cost. This would help a lot of students to go to college, but there is also some complications. This will only apply to public schools, also there will not be housing and food included, that in some cases, costs more than their college tuition. This would give a lot more opportunities to students, but still would not cover every single facet of the impending costs related to education. Some students would still need to work part-time or find other ways of income in order to cover residential costs and living expenses.
In order for funding to be sufficient to cover the free educational programs, governmental funding may directly impact the economy by increasing taxes on different financial brackets. To find solutions that will holistically serve the economy positively and give students a viable avenue in order to meet their financial demands, government will have to look to improving their current infrastructures, as with the current economic climate, some students may even look to apply for education abroad in different countries, who may offer bursaries to foreign students to improve their countries infrastructure and demographic by incorporating skilled people from different parts of the world. As the economy fluctuates and the national debt increases, the problem will only persist until the global entity look to resolve this issue concurrently, as the same educational systems may repeat themselves in other countries that follow these patterns.
Works Cited
The Atlantic: The Mental and Physical Toll of Student Loans.
The Guardian: The harsh truth: US colleges are businesses, and student loans pay the bills.
CNBC: Student debt could hold back economic growth, should be discharged in bankruptcy.
There are more 44 million borrowers in the United States with 1.3 trillion in the student debt alone. (racocksy). This high statistic is very concerning based on the fact that the numbers are continuing to rise, without the value of salaries increasing with it. Students are loaning high amounts of money to pay for a degree that is not highly rewarded in the labor market. This is concerning due to the fact this hinders the youth from being able to focus their monetary efforts towards saving for emergencies, retirement and the general long term. The starting block is set forward before they can even begin.When they suffer an economic downturn, it will not end directly in bankruptcy. For example 4.2 millions of debtors did not pay towards their debts for at least 9 months, this is concerning due to the fact this means statistically, 1 out every 10 students are not paying their debts owed timeously. (busca una source).
According to an article by CNBC entitled "Student debt could hold back economic growth"; gives rise to the fact that students who are not able to pay off their student loans, directly affects their credit ratings before they even begin to ever consider buying home or applying for a bond. "It hurts their credit rating, it impacts the entire half of their economic life."
The pressures of this may be off-putting to some students to even begin considering studying and may look towards just trying to penetrate the job market right out of high-school, as to avoid having to loan and pay of debt and instead try build capital towards their future, which for some, may appear to be the end-goal of life after studying or not. According to the article, the New York Fed reports that education debt grew to $1.38 trillion at the end of 2017, with 11 percent of those students owing money behind on their payment. As this grows every year, long term solutions have not yet been created.
Student loan debt is a fascinating prospect, because not only does it affect every young student who enters the tertiary market and the economy, it also can have physical and mental repercussions that inadvertently, affects the economy too.
According to an article by "The Atlantic"- The University of South Carolina that financial strain can have direct negative effects on overall physical and mental health. In the broader spectrum, there are a multitude of students who are not even able to afford studying and have to work part-time jobs around their studies to afford paying off debt, in which some may find to be an extremely taxing experience, robbing them of their apparent "youth" and opportunity to enjoy the constructs centered around socialising, or even simply being able to enjoy their free time and focus on investing in a hobby or sport. There becomes a paradigm centered around not being able to do anything else, almost being confined to a system that some may not want to adhere to.
The pressures of having to pay off student loans while having to focus and perform in their studies, can be extremely taxing resulting in high levels of physical and mental stress, which greatly affect depression and anxiety levels within the youth, who may or may not have adequate support structures or resources in order to cope with these increasing demands. Students studying direct qualifications end up working or getting jobs completely unrelated to their speciality or field of study due to the desperation of having to make monetary ends meet.
Some may argue that the infrastructure of colleges aren't giving students enough support structures in order to cope with these demands, thus resulting in the notion that colleges are based around business-like structures, that are institutionalized to profit and built around brands, with funding directed at marketing and appeal to gain new students, and acting as direct opposition to other college institutions; instead of directing attention and focus towards building structures for the current students to meet their demands and pressures, and given adequate tutoring on how to deal with their adversity within the education system.
In 2015 Barack Obama proposed that all the community college will be free, this was called the "Tennessee program model". In order for students to qualify for this, they must maintain a 2.0 grade point average. Another proposal came by the democrat Bernie Sanders who thought that every student deserves a college education , even if their parents cannot afford it.
He proposed the "college for all act", in which congress will give $47 billion a year to eliminate fees and tuition. This means that the federal government will cover 67% of the cost of school, where the state will only cover the remaining 33% of the cost. This would help a lot of students to go to college, but there is also some complications. This will only apply to public schools, also there will not be housing and food included, that in some cases, costs more than their college tuition. This would give a lot more opportunities to students, but still would not cover every single facet of the impending costs related to education. Some students would still need to work part-time or find other ways of income in order to cover residential costs and living expenses.
In order for funding to be sufficient to cover the free educational programs, governmental funding may directly impact the economy by increasing taxes on different financial brackets. To find solutions that will holistically serve the economy positively and give students a viable avenue in order to meet their financial demands, government will have to look to improving their current infrastructures, as with the current economic climate, some students may even look to apply for education abroad in different countries, who may offer bursaries to foreign students to improve their countries infrastructure and demographic by incorporating skilled people from different parts of the world. As the economy fluctuates and the national debt increases, the problem will only persist until the global entity look to resolve this issue concurrently, as the same educational systems may repeat themselves in other countries that follow these patterns.
Works Cited
The Atlantic: The Mental and Physical Toll of Student Loans.
The Guardian: The harsh truth: US colleges are businesses, and student loans pay the bills.
CNBC: Student debt could hold back economic growth, should be discharged in bankruptcy.