The student loan crisis is growing every day in America and it crossed $1.7 trillion in debt. And college costs are growing each day making it harder for high school students to earn a degree. Without a college degree, it is impossible to earn enough living wages with jobs as college graduates earn almost 80% more than high school degree holders.
Why is a Student Loan a Risk?
College is important but it is equally expensive making it difficult for students to pursue their goals. Hence, obtaining college student loans is the only solution that they are persuaded towards by the organizations. This increases the risk of going into debt as most people can’t afford to pay back so, they miss out on the benefits that come with college degrees.
Rising College Costs
It is labeled as a “crisis” by the experts and people are filed for unemployment due to the current financial trends. Even if they want to get a college degree, they can’t due to the rise in college costs that have increased by 25%. This also increased the student debt by 107% and the borrowers owe almost $1.7 trillion in debt.
Why is it getting out of hand to deal with the increased access to student loans? Students think it is easier to get a college education as the loans are easily available, but they forget that repaying them will be a life-long hassle. As colleges and universities have increased the cost of education, students take higher loans to be able to afford education, resulting in haunting results in the end. The students also ignore the fact that with federal loans, the government puts the same interest rate for every student loan borrower. So, the higher credit borrower may pay more for their student loans while the lower credit borrower may pay less, which is unfair.
How Student Loans are Affecting Students?
There are many side effects that student loans have caused on the lives of the borrowers. Surveys found that 21% of the borrowers delayed their marriages, 26% decided against having kids, and 36% does not buy their own homes. As these are the most important decisions in one’s life, student loans are affecting them immensely. These individuals are worried about where to get their education from, what to do to pay off student loans, later on, etc which is causing a toll on their mental health as well.
Who to Blame?
It is a tough question. We can blame the government, rising costs of colleges and universities, easy access to college student loans provided by the institutes, organizations, society, anyone can be the culprit. But, all we can say is, that it is affecting our society and it needs to be stopped somehow before it devours everything.