A Plan For Student Loan Debt Burden - 995 Words

Marco Rubio has a plan for students. Since the 1980s, the student loan-debt burden has risen to $1.2 trillion, which is nondischargable, meaning that the debt could follow you for the rest of your life. States have cut education funding and in response, universities raised tuition. And it does not seem that politicians are taking any meaningful action to ameliorate this debt burden. Rubio wants businesses to invest in individual students and after graduation; the student â€Å"will pay a percentage of my salary over a defined period of time in return for that investment.† (The Wire) There are several problems with this arrangement not the least of which: It smacks of indentured servitude. The arrangement puts the student in the same financial place as traded securities: i.e. bought and sold. In addition, investing in an individual student would be on its face a more risky â€Å"investment† if the student were from low-income families. This plan might work for student from high-income families: Students from high-income families can use their family income, and assets as tangible collaterals; and goodwill, namely, family name and reputation as intangible â€Å"collaterals.† So in institutions of higher learning, the poor would be underrepresented in the student population if the Marco Rubio model is deployed. According to an article in (USA Today), in 2013, the government’s profit from student loans was $41.3 billion: It was $49.9 billion in the previous years. But should the governmentShow MoreRelatedThe Debt And Interest Of Student Loans1164 Words   |  5 Pages The amount of student loans that one accumulates throughout post-secondary education can become a heavy burden. In addition, the study conducted by Scheresberg, Lusardi, and Yakoboski (2014) show that a surprising amount of students are not aware of the financial burden that they have acquired until they are deep in debt and interest. They summarize that: Overall, there is a notable mismatch among college-educated Millennials between their perceived and demonstrated levels of financial literacyRead MoreBenefits Of A Student Loan Debt991 Words   |  4 PagesWhen a student finally graduates from college there is this excitement that comes to you. You finally graduated and now can apply the things you have learned in the job or career you plan on. Unfortunately, it’s not that simple, many graduating student finds themselves in hug student loan debt. The numbers are staggering: more than $1.2 trillion in outstanding student loan debt, 40 million borrowers, an average balance of $29,000. Men and women laboring under student debt are postponing marriageRead MoreCollege Graduates Suffering From Excessive Financial Burden As A Result Of Student Loan Debt1657 Words   |  7 Pagesâ€Å"Over the past decade, the total volume of outstanding student loan debt has tripled and is now over $1 trillion† (Jaquette and Hillman). This a larming trend illustrates the immediate need to address the issue of college graduates suffering from excessive financial burden as a result of student loan debt. According to Ozan Jaquette, Ph.D., assistant professor of higher education in the Department of Educational Policy and Practice, and Nick Hillman, Ph.D., assistant professor of Educational LeadershipRead MoreCollege Tuition1075 Words   |  5 Pagesin this essay is my own work. If I have used outside sources, I have acknowledged them through correct documentation.† Student Loans Today college tuition prices are rising. Paying for college can often be a stressful responsibility. A college education is very important for many students, but when stressing on how to pay for college gets in the way, it becomes more of a burden. Kim Clark effectively states the rising prices of college tuition in her article, â€Å"The Surprising Causes of Those CollegeRead MoreReducing The Burden Of Student Debt1526 Words   |  7 PagesStudent debt has been growing over the years rapidly, not just because the majority of people attending college but also because the prices of college have gone up. One of the reasons is that parents don’t really look into making a college fund. Most parents haven t saved a penny for education or for anything else in recent years. There has been so many students today that are in major debt and don’t know how to get out of the hole they have made. Student debt is still going up here recently inRead MoreEducation Loan Debt Impact On Graduates Lifestyle, Income, Career Satisfaction1253 Words   |  6 PagesI. Title: Education loan debt impact on graduates’ lifestyle, income, career satisfaction II. Introduction The return on investment for a college degree has grown however the cost of higher education has increased at faster rate. The growth in tuition and fees has led to an increased need for students to take on educational loans to fill in the funding gap; federal loans now make up 45% of student aid packages (Baum O’Malley, 2003). Educational loan debt has transitioned from an individual problemRead MoreEducation Debt: The Problem and Solutions Essay1125 Words   |  5 Pagesever-increasing tuition and ever-tighten federal student aid, the number of students relying on student loan to fund a college education hits a historical peak. According to a survey conducted by an independent and nonprofit organization, two-thirds of college seniors graduated with loans in 2010, and each of them carried an average of $25,250 in debt. (Reed et. al., par. 2). My research question will focus on the profound effect of education debt on American college graduates’ lives, and my thesisRe ad MoreWhy Is Not Student Loan Forgiveness?1161 Words   |  5 PagesStudent loan forgiveness remains such a vital topic to many individuals because the exorbitant costs of post-secondary education require a majority of students to take on debt in order to simply improve themselves and advance intellectually. Thousands of students are graduating college every year, each with several thousands of dollars in debt. This area is important to research because it will provide insight into the futures of all college students immersed in the deep debt that appears to consistentlyRead MoreA College Education Is Not Only An Absolute Requirement1253 Words   |  6 PagesToday, students and graduates face long lasting consequences when it comes to student loan debt, which in recent years has become increasingly problematic and inevitable regardless of the precautions a student takes. No amount of awareness or understanding can change the lasting impacts that taking out student loans has. Purs uing a college education today, is nothing like it once was or once promised to be. Before, getting a degree meant an almost guarantee to find a good paying, stable job. NowRead MoreIs College Education A Tax Policy Program? Essay1635 Words   |  7 Pagesgoing to make their lives easier by taking all the previous burden away, leading them to establish themselves and save for the future with an early start. THIS should be the reality, the outcome after graduating. Unfortunately, unless people come from a rich family or gained a rare full ride to college, the realities of the aftermath are not that bright. Because almost all students can’t afford to attend college, the consumption of student loans comes back to haunt them in the end. Since the government