The recent data released by the department of education shows that the federal student loan program recently hit a staggering 1.53 trillion dollars. The complaint is that the public student loan forgiveness rescue is not really solving the predicament, while students with a massive debt are still in a quagmire.
Student loans have been exponentially in growth by 153% in the past 11 years. Comparing it with auto and mortgage debt can yet be regarded as a vigorous perception. Statistics indicate that auto debt has grown by 52% while mortgage and credit card debt inversely dropped 1% during the same time period.
It would not be a surprise that many students are struggling with their whopping debts based on the above facts. Since the student loan program is the only consumer debt in cumulative growth, the tuition expenditure continues to rise, and students are now burdened with a snowball that gathers as they go along.
Coincidentally, a survey conducted by NeighborWorks America finds a fact that mutually echoes what it demonstrates behind bare numbers. 57% of the inquired young adults express a burden concern with their debt.
“More than 1 in 3 respondents said they had delayed purchasing a home due to student loan debt or know someone who has done so,” said NeighborWorks America.
Gina Macisaac, a political science undergraduate student inthe University of Redlands, said she feels lucky because her loan debt is very small due to the support of her parents. However, she shows a complete understanding of students with staggering debts.
“My dad is helping me so much with the cost of tuition. But, I know some students around me are not as fortunate as I am and have reckoned thousands of dollars in students’ loans.
It is extremely stressful, and it is something that holds you back. Once you have a job, you have all these payments to make right after, and that’s a lot to handle. Unfortunately, that’s the way that the system works right now,” she explained.
Sean Flynn, a candidate running for the 31st district of the Congress, is one of those who strongly suggests an amelioration toward the plight.
He explains that the current student loan program is totally out of control, for the data shows that from 1978 to 2008, the number of teachers within the Cal State System increased only by 4% while the number of education bureaucrats increased unbelievably by 232%.
It is obvious that the university raises tuition fees when students enroll with more loan money. This leads to a less affordable dilemma for students to get college and vocational training.
“The last time I looked at the data, there were 839,000 Americans over age 65 still paying the student loan. It is hurting parents and family,” he stated.
“The intention for the federal student loan program was originally good because it assumed that students would graduate on time and find a good job right after graduation to easily pay back their loans. Unfortunately, that is not always the case.
Students are struggling to find good-paying jobs. Only 16% of student graduate within four years and about 50% within six years. On top of that, students that take one extra year of study have to pay on average $50,000 more in loans.”
Gina Macisaac reveals that her boyfriend is currently studying at Cal State LA and he is supposed to graduate this year. But due to limited class resources, he has to wait for another one and half year to graduate.
“My boyfriend has seen the issue on his field. He is studying engineering and he could only take certain classes because they only offer it once a year. If you miss it, you have to wait for a whole year to take that class. Now, he is going to graduate in five and a half years instead of four.”
Spencer Hoff, an economic student in Cal Poly Pomona, on the other hands, says it is the compound interest that makes students debt-ridden.
“Compound interest is the most powerful force on earth. It grows really quick.
When students have the compound interest in the loans for 30 years, I don’t think people understand how powerful it is and how much money they are going to pay back. It grows exponentially.”
In this case, the intractability seems to be in a desperate need for improvement.
Sean Flynn, therefore, appeals to a new vision that it should be vital to reducing bureaucrats by increasing the supply of education instead of demand.
“Students should not have to mortgage their futures to get an education. Government higher education funding should once again flow toward increasing the supply of education rather than the supply of debt.”