America is one of the greatest countries in the world. It is also one with serious problems. One of the biggest problems plaguing the youth of our nation is loans for students. This is one of the most pressing issues of our time, and if not kept in check, America will run the risk of going bankrupt. As we all know, bankruptcy is never good and is especially bad for a country to go bankrupt. For those who want to know more about our student loan crisis, here are a few reasons why they can bankrupt America.
Nearly 20 million Americans attend college each year. Of that 20 million, close to 12 million – or 60% – borrow annually to help cover costs.
As we all know, the American Higher Education System is amongst the best in the world; people come from far and wide to study here. They do this because they know that they will get an education that can use back home. One thing is for sure, though. International Students don’t really take out student loans. Only American students do this. One of the significant problems with the student loan system is that bankruptcy does not erase the credit. A student loan can only be cleared for a really limited number of reasons. Surprisingly, death will wipe out a student loan, but who wants to go, right? With that being said another biggest problem with the loans for students is the design of the program itself.
An unusual provision in the law prohibits student loans from being discharged through bankruptcy.
When the student loans were first created, many people went to local, public colleges. Nowadays, many of my friends went to private colleges. Some of the private colleges are as good or better than public ones. Others are considered to be less prestigious. What the private colleges all have in common is that they all are much more expensive than a good public college. Part of their prestige is based on their cost, and since they are all competing for students, the price of the education will go up, and the people who will suffer are you, the students. Another big problem with the system is not with the loans for students system per say, but with the greater economic system. I’m sure you have already guessed it, but it’s the unemployment among young college graduates. It’s not a very good number to see.
When our parents graduated from college, they were almost guaranteed to get a really good job at a great salary. Nowadays this isn’t the case for most graduates. Many people dream of working at Google, or Intel. These are great places to work at, the salaries are really high, the benefits are great, and the work is, for the most part, fascinating. There are many people who spend their whole, entire careers working at companies like Google, to be honest, who would want to leave. The problem is that these companies only take the best students from the best schools. If you went to a place like Queens College, or Boston College, you would have a much tougher time getting noticed in comparison to the many Harvard, Yale, and MIT graduates who are applying for the same jobs as you are. This puts you at a huge disadvantage; even though there is no doubt that you can do the work just as well if not better. Sadly life isn’t fair. The problem is that if you don’t get a good job, you are going to have a tough time paying your loans off and since many people are having these problems; America is running a huge risk of going bankrupt. It is not a good situation, and it will probably not end well.
In Conclusion, America is undergoing a serious student loan crisis, one that if it is not handled now, it will cause America to go bankrupt.