It has Become Evident

It has become evident to students in America that in order to attain a profitable job they must pursue higher educations after graduating from high school. College tuition is drastically rising, and many students have difficulties paying for their tuitions. According to CNBC.com, the student loan rate more that doubled between 2003 and 2011, and forty percent of borrowers are expected to fall behind on their loans by 2023. To pay their tuitions, students have to take out loans and at the end of college these students end up in debt.

Many speculations and myths revolve around the crisis of student loans. Some say that the crisis is not as bad as it seems, and others say it is worse than it seems. The student loan crisis is real and it is getting worse ever year. There are 3 specific problems that occur with student loans: how long and difficult it takes students pay them, how people lose their jobs or have trouble finding jobs, and the penalties of not being able to repay the loans.

There is a common belief that most students can pay back their loans within ten years (the standard repayment period for student loans). But now, according to the Department of Education, it appears that the average student loan takes longer than 10 years to pay his or her loans. Student loan borrowers make big sacrifices to pay off their debts. In a survey done by writer Elysian Kirkham, 43 percent of survey respondents delayed buying a home and 15 percent put off parenthood. Respondents also sacrificed non-necessities such as taking vacation (46 percent) and eating out (36 percent).

The burden of student debt also holds people back from working towards other important goals such as: saving for a house down payment, emergency funds, retirement savings, and paying for health insurance. These are just some of the problems student loans can cause. Due to student loans, many people might be fired from their jobs or have difficulties even getting a job.

For most people, student loan debt can be the scariest right after graduation. Finding jobs to pay the debt off can be even scarier. However, the most frightening might be that people can actually get fired from theirs jobs because of student loan debt. The reason for this is that most companies assume if students are struggling to pay their loans, then they are not as focused on their jobs. Other reasons one can lose his or her job is because of the country laws. According to studentloanshurpa.com , about half of the country have laws that can seize professional licenses if a person has missed too many loan payments. Getting fired or not being able to find a job because of student loans can create even bigger problems.

People are penalized for not paying the debts they owe, and sometimes are put into even more debt.
According to cnbc.com , more than three thousand people default on their federal student loans everyday. Missing a student loan payment hurts peoples credit scores, and makes it more difficult to borrow money in the future. When a loan payment is ninety days overdue, it is considered delinquent.

Employers, cell service providers, utility companies and even landlords may deny any applications or contracts requested if they do not consider the customer creditworthy. When a payment is over due two hundred and seventy days it is considered to be in default. The federal government can get involved when this happens. As stated by investopedia.com, the government can garnish people's paychecks, meaning the government can contact the person's employer and arrange for a portion of that person's salary to be sent directly to the government.

The student loan crisis is very real and is only worsening by the day. Thousands of students are drowning in their debt. People that have been out of college for years are still being affected by student loans. People are being penalized for not being able to pay their loans and their jobs are being taken away. Some spend their whole lives paying the debt, robbed of time for anything else. As Mark Pocan stated , By making colleges unaffordable and student loans unbearable, we risk deterring our best and brightest from pursuing higher education and securing a good paying job. The increase of student loans is leading America away from a successful future.

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