Cause and Effect Essay: Student Debt

The average cost of student debt is over $30,000 after graduation. Students make the decision to go to college to continue and pursue their education in order to get better jobs and eventually achieve their dream job. College is where students are able to get a feel of adult life and a small taste of what their career holds, but the tables are gradually turning. The percentage of students who attend college is decreasing as each year goes by. The cost of college is ridiculously high and the loans needed to pay for college have a negative effect on these students after college.

Many students are not in control of their situation and are forced into taking out loans for college; College is supposed to be where they better themselves. Most students need the money due to the tuition cost, their lack of income, their school choice, their financial education, and other necessary expenses. Most college students are on their own and taking on these obstacles and have no other choice but to depend on loans.

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This effects the society and economy, their life after graduation, and chasing their dream job. One of the main sources of student debt for most college students is tuition. The average cost of tuition around $30,000 and is increasing each year. In the article “The Student Debt Delemma: Debt Aversion as a Barrier to College Access”, written by Pamela Burdman, states “the increasing prominence of loans could actually narrow their options and decrease their chances of attending and completing college.

” (Burdman) This statement provides an insight to how the costly loans needed to pay for college tuition is a big reason why students are being pushed away from college. “Loans are a central component of college finance.” (Dowd) Many students wanting to attend college do not have a job and most parents do not have the funds to entirely pay for their child to attend college. The lack of income is a big cause of student’s needing to take out loans; eventually leading to a mass amount of debt. “Young people make optimal educational investment decisions if they are able to finance these investments by borrowing against future earnings; the presence of debt has income effects on future decisions.” (Rothstein).

The need for money blinds people and leads them taking out loans in large amounts. It is unfair for students because the lack of funds is not their fault; it is entirely out of their hands. The cost of going to college requires and binds students to taking out loans. Taking out loans not only burdens the students but also the parents. A college graduate will most likely not have their profession started immediately after college and that is when the interest on loans begins. The parents are going to be the ones having to begin paying off the loans until their son or daughter can. The lack of income causes student debt in the long run and may hinder them from starting their life. Most jobs offered to college students do not pay enough for them to begin paying off the loans. These jobs are not a big help and constrict students to still not having the proper funds. Most students going into the school of their choice do not factor in the financial cost of living or attending there. Student are ambitiously naive. They do not think ahead of the crucial outcomes that may have an effect on them in the future: “Many students are struggling to pay back their student loans during very difficult economic times.” (Grant).

Students are interested in attending the best college, which usually is more expensive, to impress employers in their job field. The choice to attend a big name, costly school is completely up to the student, but is ultimately made because of the pressure put on them by society to attend a prestigious school. It is also believed that “debt affects students’ academic decisions during college.” (Rothstein). If the amount of units exceeds the amount recommended and covered by the tuition, students are requires to pay for those said classes. The thought of having more debt is a big reason why students do not attempt to strive for more. Students can easily get into financial trouble with debt and credit cards and unknowingly acquire more debt. Most students get caught up with loans because they assume they can pay it back. Students are not usually financially smart and may get into economical trouble after graduation. Most focus on the now and getting school paid for and over with. The accumulating debt, over the multiple years of college, is not thought of until the negative effects are in play when the college student begins to start his or her own life. “No borrower can completely forecast what surprises life might throw at them that could make loan repayment onerous.” (Dowd).

There are a wide variety of various college expenses that require money. Dorm life may not seem costly, but the charges add up. The simple necessities are not sought to be expensive, but will add up: toilet paper, shampoo and conditioner, tooth paste, food or snacks, freshening products, etc. Going out with friends is a costly process. College students want to have fun and spend time with friends, even if that means eating out. Books are one of the most expensive aspects of going to college. Most colleges do not supply the books required for certain classes, leading students to find a way to pay for them on their own. Most people do not realize what an effect this will have on these students as well as other adults once college graduation comes around. Student debt is seen as an economic drag and a social drag. Student debt can not only effect the student but also people around them; making it a domino effect. Student debt has an effect on students economically by hindering them from getting a job and constantly having monthly payments to pay off loans.

Socially, student is effecting students pursuing going to college and forcing students to get regular, minimum wage paying jobs. “Students who fear borrowing may not seriously consider the benefits of higher education, relegating themselves to lower-paying jobs and fewer opportunities.” (Burdman). Student debt effects students after graduation from achieving life milestones. Statistically, most students cannot and do not purchase a car or purchase a house because of the debt they already have. Student loans do allow students to have some type of credit to make buying houses and cars possible, but the total cost of the loan is a negative toll. With paying back loans, money is now tight and needed strictly for paying off the debt already there. Most people after college wait on having kids. The price of having a kid is rather expensive and may be pushed aside to future years because of the debt already attained. Many college students will get a job, for the time being, simply to pay off the loans. This effects people on getting their dream job.

Most people get complacent and settle with the job already attained and never actually have their dream job. This effect of student debt is not fair to the student who already worked hard to get the degree they have. Settling on anything in life will not get anybody anywhere. Student debt have present problems and future problems. I do agree with all the articles and disagree with the amount of money needed to pay off student debt. The amount, in my opinion, is ridiculous. Student debt is a rope tying students down from accomplishing and achieve the dreams and aspirations they have. I do agree on idea that student loans have significantly greater amount of negatives than they do positives. Student debt is not anyone’s fault, but can be changed. The cost of living is increasing, as well as the cost of attending college. In order for the U.S. to change for the better, something has got to give. As of right now the only change in education, is the decreasing number of students choosing not to attend college due the many restraints it can lead to. Student debt is an important topic because of the fact that the youth is our future.

Education is an important part of anybody’s life. The fact that many are not wanting to pursue a higher education is only going to negatively affect society more so than the person. With student debt trapping students, there will be no positive outcome. Student debt should be looked at as a serious problem in America. Students go to college to better themselves and the costs/debts are conflicting with that. Students are stuck with paying outrageous amounts of money for loans because they chose to attend college. Attending college should benefit students, not hinder them. Many critics will argue that student debt is a part of growing up and a “pat on the back” from adulthood. They might argue that the hard work will pay off and lead to bettering the graduates. Paying off student debt might be seen as a learning experience. Debt is the current way of life and could be the new way of living. Most are accustomed to taking out student loans and see it as a normal thing to do when trying to attend college.

The average cost of student debt is over $30,000 after graduation and will only increase as the years go by. Students make the decision to go to college to continue and pursue their education in order to get better jobs and eventually achieve their dream job. It is unfair for the college students to be chained to paying an outrageous amount of money to pay back their student debt. College is where students are able to get a feel of adult life and a small taste of what their career holds, but the tables are gradually turning. The percentage of students who attend college is decreasing as each year goes by. The cost of college is ridiculously high and the loans needed to pay for college have a negative effect on these students after college.

Many students are not in control of their situation and are forced into taking out loans for college; College is supposed to be where they better themselves. Most students need the money due to the tuition cost, their lack of income, their school choice, their financial education, and other necessary expenses. Most college students are on their own and taking on these obstacles and have no other choice but to depend on loans. This effects the society and economy, their life after graduation, and chasing their dream job. Students go to college to better themselves and the costs/debts are conflicting with that.

Works Cited Page
Dowd, Alicia C. "Dynamic Interactions and Intersubjectivity: Challenges to Causal Modeling in Studies of College Student Debt." Review of Educational Research. 78.2 (2008): 232-259. Print.

Merlini, Kevin, and Sajay Samuel. The Indentured Students of America. University Park, Pa.: Pennsylvania State University, 2014. Internet resource.

The Student Debt Dilemma: Debt Aversion As a Barrier to College Access. eScholarship, University of California, 2005. Internet resource.

Rothstein, J, and C.E Rouse. "Constrained After College: Student Loans and Early-Career Occupational Choices." Journal of Public Economics. 95 (2011): 149-163. Print.

Grant, Kyle L. "Student Loans in Bankruptcy and the "Undue Hardship" Exception: Who should Foot the Bill?" Brigham Young University Law Review 2011.3 (2011): 819-47. ProQuest. Web. 16 Nov. 2014.