National Student Debt

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RESOLUTION ANALYSIS
Background of Controversy: As the cost of education is on the rise students and their parents are trying to come up with the money to go to college. The usual steps are to seek grants from the government, private organizations, and from organizations setup through the colleges themselves. There are also loans that are made through the private sector and those from government based organizations. Some students go as far as trying to pay for college using credit cards. In the end students seeking higher education graduate with enormous debt, creating a larger burden on the economy and those struggling to pay off these bills. If the situation concerning the national student debt is not handled correctly then this country will find itself with a much larger problem in the near future. Proposition of Policy: The Federal and State government should institute policies to significantly reduce the national student debt. Definitions:

The definition of default is provided by Business Dictionary.Com “Borrowing: Failure to meet the terms of a loan agreement. Its two types are (1) Fiscal: Failure to make repayment on the due date. Generally, if a payment is 30 days overdue, the loan is in default. (2) Covenantal: Failure to live up to one or more covenants of the loan agreement such as exceeding the prescribed total borrowings.” Business Dictionary.Com provides a definition for endowment as “Gift of money or income producing property to a public organization (such as a hospital or university) for a specific purpose (such as research or scholarships). Generally, the endowed asset is kept intact and only the income generated by it is consumed.”

Claim 1: The national student debt is a large problem.
Sub Claim A: The national student debt is a large problem because the cost of tuition is becoming more expensive.

Grounds A1: The research gathered by Matthew Reed in his paper, “Student Debt and the Class of 2007,” published in October 2008 by the Project on Student Debt website states, “Our analysis indicates that for colleges reporting data for both the class of 2006 and the class of 2007, the average debt of students graduating with loans rose from $18,976 to $20,098, a six percent increase. The increase was roughly the same for both public and private nonprofit four-year colleges. Average debt for the class of 2007 was $18,482 at public colleges and $23,065 at private colleges. Data limitations cause these averages to be lower than actual levels. We estimate that the actual average student loan debt level for the class of 2007 is nearly $21,900: $19,400 for borrowers at public universities and nearly $25,700 for borrowers at private colleges. While it is still generally true that college graduates earn much more than those with only a high school education, student debt is rising faster than starting salaries for new graduates. While average student debt at graduation rose by six percent between 2006 and 2007, earnings for 18- to 24-year-olds with bachelor’s degrees rose only three percent.”

Grounds A2: Information provided by Marcia Clemmit in her paper “Student Aid” from the CQ Researcher dated January of 2008 states, “As the cost of higher education rises, grants for needy students have lagged behind, and more students are dependent on loans to finance their education. At the same time, worries about college costs have been reaching higher up the socioeconomic scale. In response, states and private colleges have launched new merit-based scholarships that shift some aid from the neediest students to middle- and even upper-income families. In-state tuition and fees (excluding room and board) for public, four-year schools average $6,185 for the 2007-2008 school year, up 6.6 percent from 2006-2007; out-of-state tuition averages $16,640. At private four-year schools, the average 2007-2008 tuition and fees is $23,712, up 6.3 percent from 2006-2007. The cost of college has nearly doubled over the past...
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