Should Student Loan Debt Be Forgiven?
Student Loan Debt: Should We Forgive?
EN1123
Most Americans would agree that higher education is important. Compared to years ago, when a high school education was acceptable in most jobs, a college degree is now required in the majority of positions. But what if you can’t afford to get a degree? What then?
For many, student loans are the only way to finance one’s education. Paying out of pocket simply isn’t a reality for most, so they rely on state and national government to provide them the funds to attend school, buy textbooks, and even pay for room and board. Sign on the dotted line, and suddenly a subsidized or unsubsidized loan shows up as a credit on your student account. Any overage is paid to you by check to cover incidentals. This process gets repeated every semester, for as long as you attend school. It all seems very easy and acceptable - until you graduate (or don’t graduate, whichever the case may be). The day you leave school, a six-month clock starts ticking toward your first payment. Oh wait, you mean school costs money?
Sadly, some aren’t able to secure a position right away that can allow them the economic capability to start making payment on their loans. It can take up to two years for some college graduates to find a job. In the meantime, those loans are still due and payable. There are all sorts of possibilities for repayment: income-sensitive plans, unemployment deferments, graduated payments, and even forgiveness programs for certain occupations like nurses, teachers, and public servants. But what about the rest of the debt holders? What happens to them if they can’t make their payments?
Student loan debt today approaches $1 trillion dollars, according to the Consumer Financial Protection Bureau. Even more frightening, the Wall Street Journal reports about 40% of student loan holders are in default or have delayed their payments. Student loan debt has now actually surpassed total credit card debt in the US. There are numerous calls
EN1123
Most Americans would agree that higher education is important. Compared to years ago, when a high school education was acceptable in most jobs, a college degree is now required in the majority of positions. But what if you can’t afford to get a degree? What then?
For many, student loans are the only way to finance one’s education. Paying out of pocket simply isn’t a reality for most, so they rely on state and national government to provide them the funds to attend school, buy textbooks, and even pay for room and board. Sign on the dotted line, and suddenly a subsidized or unsubsidized loan shows up as a credit on your student account. Any overage is paid to you by check to cover incidentals. This process gets repeated every semester, for as long as you attend school. It all seems very easy and acceptable - until you graduate (or don’t graduate, whichever the case may be). The day you leave school, a six-month clock starts ticking toward your first payment. Oh wait, you mean school costs money?
Sadly, some aren’t able to secure a position right away that can allow them the economic capability to start making payment on their loans. It can take up to two years for some college graduates to find a job. In the meantime, those loans are still due and payable. There are all sorts of possibilities for repayment: income-sensitive plans, unemployment deferments, graduated payments, and even forgiveness programs for certain occupations like nurses, teachers, and public servants. But what about the rest of the debt holders? What happens to them if they can’t make their payments?
Student loan debt today approaches $1 trillion dollars, according to the Consumer Financial Protection Bureau. Even more frightening, the Wall Street Journal reports about 40% of student loan holders are in default or have delayed their payments. Student loan debt has now actually surpassed total credit card debt in the US. There are numerous calls