American Education and Debt
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American Education & Debt
Royale Gouldborne
Wilmington University
American Education and Debt
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Abstract
American college students take out loans that can put them into debt. When conducting research
it was found that the loans acquired had created issues for the student. The research shows the
debt that comes from student loans has increased over the years. Other countries show that
education can be affordable. The student does not have to obtain thousands of dollars of debt.
Colleges now have seen the lasting effects of student debt. People are paying back loans in their
retirement age. Colleges are now making changes that will prevent some loans from being taken
out. Colleges are also creating programs that will avoid student loans. The process that occurs
when taking out a student loan can have lasting affect. If the research is done properly, it can
save the student and the family from harsh debts and even harsh interest rates.
American Education and Debt
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American Education and Debt
After four long years of hard work, you are officially graduating college. You are super
excited to see where your degree will take you. You have also secured employment and will
begin working in two weeks. Thirty days after you received your degree you get a letter from
The Department of Education and Navient. Informing you that now you have to repay the
student loans that were obtained during your four years of college. When reading the bill it states
that you owe 50,000-75,000 dollars’ worth of debt. You are confused, angry and sad; you are
upset that you did not learn more about debt before you enrolled in college. I will discuss the
debt that many undergraduate and graduate students face in America, how education is different
in other countries and why education should be free.
The average American college tuition cost for a private university is approximately
35,000 and upward. The average American public university starts at 10,000 dollars and upward.
Then there are some factors that may change the price. The price would change if you decide to
attend a public university in a state that you reside. This does not include room & board, book,
food and other essentials. The cost of higher education in other countries in difference to the
United States of America is completely different. In the countries of Denmark, Sweden, and
Germany the cost of college education is free. Danish students receive 900 dollars to assist with
living expenses. (Hess, 2017)
The debt that American students face after college is extremely high. Many Americans
have more debt than income. The average debt Americans face after college roughly 30,000
dollars and up. This form of debt has passed credit card debt and will continue to rise with time.
According to statistics American’s unpaid educational debt is currently more than 1.4 trillion.
(DiGangi, 2017)
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Even though there are other ways to pay for college like scholarships and Grants. Not all
students are awarded the opportunity to obtain financial scholarships and some Grants. Students
from a wealth family will not need to take out student loans. Scholarships are given to student
who excel academically and students with great athleticism. Many students have no other choice
to take out a loan. There are many types of loans that are offered to college students. The loans
that are available for students are Perkins loans, Stafford loan, Subsidized and unsubsidized
loans, Parent Plus loans and Private loans. Some of the loans have extremely high interest rates.
The high interests are another factor in major debt issues.
The Perkins loan was used by college students. This loan has a fixed interest rate at 5%.
The interest rate would be paid by the government while you are in school. The repayment
would not start until nine months after graduation. The Stafford loan is similar to the Perkins
