Taking Out A Loan For College - 1795 Words

An education expert recently told me that low-income families who won t borrow for college just don t understand the concept of investing now for returns in the future. We need financial literacy, so they can see that the debt is temporary. Over the long run, they ll be far better off with that college degree, he said. While this is a common refrain from the highly educated, the reality is not so simple. The problem is that taking out a loan for college requires a leap of faith that is not entirely justified. Yes, it is true that a college graduate, on average, earns close to a million dollars more over a lifetime than a high school graduate. But there are two trick words in that sentence. First, you have to graduate from college, a feat that barely half of those who start college currently achieve within six years. Second, the high economic returns to education are an average. Actual salaries of college graduates vary enormously because of career and life choices, skills, geography, fluctuations in the economy, and plain old luck. While it is in our nation s economic and social interests for more Americans to seek advanced education and training, the incentives and risks faced by individuals are more complicated. Most potential students who see college debt as too risky a gamble are not being short-sighted. They are being careful, a commendable attribute. While they recognize the potential gain is high, they also worry about the cost of failure: WithoutShow MoreRelatedStudent Loan Debt On College Students887 Words   |  4 PagesStudent Loan Debt on College Students Student loans are becoming more and more of a problem for college students all across the United States. As college tuition has significantly increased over the past years, it has become extremely common for most college students to finance their education through student loans. Tuition has become so expensive that it is almost unheard of for a student to pay for their tuition out of pocket or by working for their education part time. As the result ofRead MoreThe Problem Of Student Loan Debt940 Words   |  4 PagesGoing to college has been taught to be the next step in education after graduating high school but is it truly that easy? The main factor to attending college now is the money issue. In today’s generation receiving a scholarship would be the best way to get through college without the burden of student loan debt piling up as you get further into college. Even though financial aid is available for students seeking college education, some of those students will not all qualify for financial aidRead MoreShould Colleges Be Free For Every Students?922 Words   |  4 Pagesâ€Å"Help, Help† Colleges should be free for every students. There are many obstacles that students face during each semester. Some of those obstacles are the work for classes, time management, and mostly stress. However, there are enormous numbers of people who are suffering from students loans after graduation or dropping out from colleges. Some cannot afford to repay for loans because their income is low and there are also many other bills to pay for such as rent, heat, and water. In other cases,Read MoreThe Problem Of Student Loan Debt1271 Words   |  6 Pagesweighing college students down. The problem is student loan debt. This is the highest of all debt, passing up auto loans and credit card debt. There is approximately $1 trillion in student loans in America and the number is growing every year. It has been said that most of the student’s in debt were dropouts and graduate students, but now has broadened to students still working on their degree. Is getting a degree worth the fin ancial burden? The biggest question asked about student loans is, â€Å"HowRead MoreThe Problem Of Higher Tuition855 Words   |  4 Pagesto the College Board and U.S. Census data, over the last few decades, the cost of a 4-year college degree has risen by 250 percent (Washington and Salmon 38). According to the same data, the average family income has only risen 16 percent during that time period (Washington and Salmon 38). This information proves that there is a serious problem going on, as there is clearly a shortage of income needed to pay for college. Therefore, students are having to take out larger educational loans. As a resultRead MoreHow Do People Pay For College?984 Words   |  4 Pagesmeans going to college. But, how do people pay for college? A lot of people pay with loans, which means interest payments, debt, and stress. People are paying with loans, but is the loans they are borrowing becoming a macroeconomic issue? These loans are obviously a choice made by the student, but do u s students really have any other option? There are many ways to pay for education, loans being one of the biggest ways. Going to college, and paying with loans and having to pay these loans off are puttingRead MoreThe Ethics Of College Debt1299 Words   |  6 PagesStephanie Jones Period 7 1081 words. College is where you go to get higher sources of education. Many high school students dream of attending college in order to attain more knowledge, yet so many people fail to realize the cost of college. Attending college, currently, is nearly impossible to do without being in some sort of financial debt or seeking out government help. According to the American Association of University Professors, â€Å"two-thirds of American college students graduate with substantialRead MoreLifetime of Student Debt Essay649 Words   |  3 PagesDebt,† Robin Wilson interprets the different views on taking out loans for college students. The recent worry has been that taking out student loans are â€Å"threatening the financial future of today’s college students† (Wilson 256). However, recent studies has shown that one-third of college students will have no debt after their academic experience. College student nowadays are willing to take any means necessary to attend their â⠂¬Å"dream college, no matter the cost†(257). Mark Kantrowitz touches up onRead MoreStudent Loan Vs. Private Loan990 Words   |  4 Pagessociety people must take a risk. That risk may include taking out student loans in order to acquire the necessary degree for their wanted job. For some taking out student loans in the only way to achieve their goal of going to college. There are many different types of student loans that a person could qualify for, for example, a federal loan or private loan. No matter what type of loan is being offered before someone should accept any type of loan and the responsibilities that come along with it theyRead MoreThe Rising Costs Of Formal Education1649 Words   |  7 Pagesrising every year. Many Americans are struggling with a large amount of student loan debt weather they graduated with a degree or not. The only way to secure the future of students today is to invest in the students themselves rather than investing their money into the corpo rate market. By preparing students for higher education and providing financial resources students will have the knowledge to deal with student loans and the debt they may be accruing while in school. The rising costs of formal