The Problem with Student Loans

The Problem With Student Loans

Student loan debt affects a large portion of the young adults in the united states today, and most of it should not be taken on but everyone is told they have to go to college to be successful even if it means to take on thousands of dollars in debt. This is a problem because it hurts people for years and years of their life even if they did not need to get themself in the financial mess in the first place. They spend all their lives working off the debt and end up realizing they have wasted so much of their life on something that they could of gone without. Student loans are almost never worth the benefit of going to college.

Excessive student loans are extremely limiting and oppressive to the borrower. In the article The Student Debt Crisis. the author explains that college graduates with student loans have a hard time making their payments on time. The author states Upon graduation, 60 percent of the graduating class are struggling to make timely payments. [They] lack the lucrative job offers and competitive salaries, have very few options if they cannot make their payments. Once the deferment period ends??”usually six months after graduation??”borrowers must begin making payments immediately. .

It is hard for someone right out of college to instantly find a job and start making payments the job market is extremely competitive and if they cannot find a job they are penalized due to that debt. Another addition from The Student Debt Crisis.. The author states most outstanding student loans have interest rates of nearly 7 percent or higher...Unlike mortgage and car payments, student loans cannot be refinanced. most have no idea about the financial leap they are about to make for an education and how it will effect them due to how young and naive highschool graduates are. if it does effect them to much they cannot do anything about it. Student loans put the college graduate at a severe disadvantage to anyone that got a scholarship or has no college debt it will also hinder their abilities to getting ahead in life at all.

With student loan debt on top of other liabilities like mortgage and car payments making most of a students income through employment will have them caught in a cycle of paycheck to paycheck cycle. Within Thomas Smale's article Does That College Diploma Really Matter for Success?he speaks about the amount of liabilities a person right out of college has to take on. He explains Even if you can earn a higher salary, you also end up carrying the burden of debt with you.

Young adults may also be looking at the prospect of buying their first car or home, getting married and other major life changes shortly after leaving school. Taken together, these factors can easily wipe out whatever extra earningsyou might generate from your high-paying job.(Smale) There are so many bills for the average adult and adding a hefty $50,000 bill will limit omes chances seeing success in their life.. In the same article Thomas mentions Sprinters launch their careers immediately after college. But Wanderers end up spending roughly five years just to get started, and Stragglers spend most of their 20s wandering aimlessly..(Smale) He saying that unless a student is ready to start their career the moment they leave college then they will have a hard time being on top of all their bills and will most likely fall behind. This is a terrible problem but some say it taking out student loans are worth it for a college education.

Many are lead to believe that they cannot become financially successful if they do not go to college even if it means to take out a huge student loan. In the article by Jennifer Brady Top 10 Reasons Why College is Important She talks about the good reasons to go to college. One of her reasons was Working-age adults with bachelor's degrees are 9.4 times more likely to have a bank account than those with a high school diploma as their highest level of education. She believes that going to college and taking out student loans is worth it because on average college graduates have higher paying jobs and it should even out the debt from college. However a college graduate might make more money, the constant need to pay off a lifelong debt can lead to many mental health problems as stated in the article by Dale part 4 Brilliant Reasons To Not Go To College.

He says having a heavy debt burden in your 20's has shown to push off children and marriage, increase stress and anxiety, and cause a built-up resentment toward life that continues to put people into chronic depression. He is saying that the burden of a extreme student loan debt can be super stressful on a student especially one that just graduates and is still new to the real world. This is one of the reasons that people feel drained at their work because rather then doing their work for the love of it they do it for the need of it due to the fact they have debt to pay off. With that being said people also feel like if someone does not graduate college they are useless to society.
Some think that without a college degree they cannot be a helpful citizen for your community.

Back to the article by Jennifer brady: Top 10 Reasons Why College is Important

She makes the point that people that go to college are less helpful to society then people that do not go to college. She says 40 percent of working-age adults with a bachelor's degree volunteered in their community within the past year, compared to just 17 percent of high school graduates without any college education. (Brady). The statistics show that college graduates are more likely to initially give money to communities. On the surface this statistic makes sense but in reality someone that does not go to college is most likely to pursue a career in entrepreneurship.

As mentioned in the article by Helen Fitzgerald 5 reasons why entrepreneurs improve the economy. he says the most important way in which an entrepreneur helps improve an economy is through the creation of jobs. Their actions, vision, ideas and risk taking if successful can result in employment opportunities for thousands of people for generations to come. He saying that an entrepreneur can help a community greatly without having to give up initial capital for the community. Most successful entrepreneurs never went to college or took out student loans for it but ended up running successful franchises that provided jobs to many local and large communities spreading their help across the country rather than an isolated place. This proves that people that do not take student loans out for college can help the community almost more than people that do.

Student loans are not worth the debt they put one in for the benefits they give one. They cause one to have financial issues, that will stick with them for large portions of their life. They can affect them from getting a home, or car a car in their early 20s. Student loans can also damage their mental health due to the amount of stress the extra hefty liability is. It does way more harm than good and can seriously affect one's life for the worse. Someone that does not go take student loans to go to college and pursues a job in an entrepreneurship field can be more ahead and well off then someone that has massive amounts of debt from loans. They can also help many communities out with the businesses they create.

Works cited

• "The Student Debt Crisis." America, vol. 212, no. 16, 11 May 2015, p. 5. EBSCOhost, search.ebscohost.com/login.aspx?direct=true&db=ulh&AN=102414692&site=ehost-live. Accessed 12 Apr. 2018.
• Brady, Jennifer. Top 10 Reasons Why College is Important. Southern New Hampshire University 2 Aug. 2018
  https://www.snhu.edu/about-us/news-and-events/2017/08/why-is-college-important. Accessed 15 Apr. 2018.
• Smale, Thomas. Does That College Diploma Really Matter for Success?. Entrepreneur.
  3 May. 2017
• https://www.entrepreneur.com/article/293676 Accessed 15 Apr. 2018
• Fitzgerald, Helen. 5 Reasons Why Entrepreneurs Improve the Economy. BizFluent. 26 Sep. 2017
  https://bizfluent.com/info-12014695-5-reasons-entrepreneurs-improve-economy.html. Accessed 15 Apr. 2018

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