Student Loan Debt: Thesis Statement
Attention: Think about that time when you did not have enough cash on you when you were with your friend and they just covered for you. Not a big deal, right? You probably venmoed them back or paid for the next time. Now, what if you needed to pay tens of thousands of dollars? You would probably take out a loan and work hard to try to pay it off. (AA)
Transition: Many college students are faced with this problem when they pay tuition and they are unaware of the options that are available to them to help reduce their costs.
Problem: College tuition has been rising, and it puts students like us in debt after graduation.
The costs of college continue to rise year over year.
Universities have been getting more expensive because of several factors: the increase in demand for higher education, an insufficient number of faculty, and a lack of funding.
According to Forbes in 2018, the average annual cost of a four-year university is $26,120 with a total cost of $104,480. In 1989, it would have been a total of $52,892 after adjusting for inflation.
The cost has more than doubled in less than three decades. (AA)
On average, that would be a 2.6% increase in tuition costs every year.
Student loan debt continues to increase and is getting more difficult to pay off.
After housing debt, student loan debt is now the largest debt Americans owe at $1.4 trillion.
CollegeBoard statistics show that the average amount borrowed for a college graduate in 1983 was $746, or $1,881 in today’s money. (AA) Contrast that with the average amount of $37,172 borrowed for a college graduate in 2017.
As this happens, wages have continued to stagnate. The Federal Reserve Bank of St. Louis reports that the average growth per year in salary was 0.3% from 1989 to 2016.
As a result, Americans have been struggling.
The Washington Post in 2019 reports that young adults cannot afford to buy a house or save for retirement due to student loan debt.
Student loan debt made it more difficult for 400,000 families to qualify for a mortgage or save up for a down payment
With student loan debt, people were only able to save half as much for their 401(k) compared to those without student loan debt.
Transition: So how can we mitigate some of that debt?
Solution: To reduce student loan debt after graduation, we should apply for FAFSA.
Let me explain what FAFSA is.
FAFSA stands for the Free Application for Federal Student Aid and is used by students to help determine eligibility for financial aid for college.
The US Department of Education states that you will receive a Student Aid Report with your Expected Family Contribution, or EFC, after filling out your FAFSA. Based on the information in your FAFSA application, you may receive a Federal Pell Grant, which does not need to be repaid.
Over a third of high school graduates did not submit a FAFSA application.
Even if you do not qualify for federal financial aid, your FAFSA information may still be required to receive other non-federal financial aid programs like scholarships or college award packages.
FAFSA applications can help significantly reduce student loan debt.
According to CNBC in 2019, undergraduate students received an average of $8,440 in federal, state, college, and private grants.
If you are an Illinois resident attending the University of Illinois, the admissions office estimates your total expenses per year to be no more than $36,394. That means the average student here would be able to reduce their tuition by 23%. (AA)
You may think you do not need to submit an application for FAFSA because you will not receive any money or that it takes up too much time, but that is not true.
According to a 2016 article on NerdWallet, over $2.7 billion in aid in total was not taken.
More than $97 million in total Pell Grant money was available for 26,527 Illinois students. (AA)
The average time it takes to complete a FAFSA application is 21 minutes, according to the Department of Education.
It is even simpler now that the application auto-fills the tax information that your family provided the IRS with.
The application opens in October, which gives you more time to find the correct information and fill it out.
Visualization: Spending a little extra time to fill out your FAFSA application will help reduce stress in the future.
Receiving grants and scholarships will help lower the total cost of college. Imagine being able to begin saving money for retirement, while your peers are still struggling to pay off their student loan debts. You would have more spending money to go on vacations or splurge on luxuries or provide for your kids.
You would be a step ahead of others at every stage of life in the future.
Transition: So what can you do right now?
Call to action: When you go home, fill out the FAFSA application if you have not done so already.
Go to studentaid.ed.gov and click “Start here.”
Fill out all the necessary information and ask your parents if you are unsure.
You may be eligible for federal aid or other scholarships.
If you start now, you will have less to worry about in your future.
My main goal in this essay is to present to you three major problems (in my opinion and based from the research I have done) that student loan debt is having on an immense amount of people that we live amongst. To achieve this goal, I organized my essay into four main sections. Two of which include sub-sections. In the first section, I presented three valuable factors that I believe student loan debt is having on individuals. Those factors include...
Student loan refers to money payable on money borrowed out to cover school costs. Student loans are now the only way the majority of students can help pay for college tuition due to tuition fees increasing each year. The majority of federal student loan debt was managed in the United States by a publicly listed firm called Sallie Mae until its debt loan operations and portfolio were eventually handed over to another organization called Navient in the year 2014. College...
Student Loan Debt Earning a college degree is expected after a person graduates from high school. The higher the degree, the more money is earned. It is the goal of many to be a college graduate, however, the financial status of those seems to be a huge factor as to why many do not go to college or take out loans. Student loans can come from the federal government, private sources such as banks or financial institutions, or from other...
Student loan debt is one of the biggest problems in the United States at the moment. There are 1.6 trillion dollars of debt in the country and 44 million are in debt. That’s an average of $36,364 per person. College debt only started in the 80s and it grew very rapidly when President Ronald Reagan made cuts to social programs. Today, student loan debts are persistent because of lack of funding from the state governments. Student loan debt is a...
The average student debt of a recent college graduate is $37,172. Trade Workers and craftsmen are in decline. Without these people, daily life will become very difficult. College was once necessary to be a success. College degrees aren’t necessary because college puts students in debt, they are not required for people to get most jobs and most people can make more money without a college degree if they choose the right jobs. Students are attending college less and less now...
Decades ago, attending college was not a necessity, but rather an optional path an individual chooses to further their education. During these times a high school diploma was a sufficient qualification to receive a well-paying job. Although the push towards liberating student loans and their debt can get put into the cost of living for students and their books with slightly increasing taxes, it’ll benefit the economy. Today, college is a prerequisite for a baseline of profitability. With student debt...
Many students today are faced with an unending monthly payment of school debt. 44,200,00 Borrowers owe $1,520,000,000,000 in student loan debt and the question is how did we end up here? How did we let this happen to our society where so many people owe money for seeking an education? Fact is, is that our government and money lenders make it extremely easy to acquire student loan debt. According to Experian data, the student loan debt has increased by 116%...
Within the next year, a majority of the people in this room will already owe roughly $20,300 in debt, a debt that will take roughly 9 years to pay off. How in the world can an eighteen-year-old accumulate this much in debt, you may ask? Well, the answer is – university fees. This debt, along with the cost of living increasing more and more by the minute, has left us young people option less in regards to our futures, having...
Looking into the student loan debt crisis I found that the total student loan debt in the U.S. is $1.52 trillion. The average student loan debt for borrowers is $31,172 and the time it takes these borrowers to pay off their debt can be from around 10 to 30 years. We can see from this graph that the overall cost of college has increased 145% since 1971, while the median household income has only increased by 28% (Issa) which tells...
01 / 09
Fair Use Policy
EduBirdie considers academic integrity to be the essential part of the learning process and does not support any violation of the academic standards. Should you have any questions regarding our Fair Use Policy or become aware of any violations, please do not hesitate to contact us via email@example.com.
We are here 24/7 to write your paper in as fast as 3 hours.