Pursuing higher education in the United States of America seems to be so expensive that many American students from average families are unable to meet. According to Galatas, Steven E., and Cindy (345), the average fees per year in an American public university stands at around $34,000 per year. This amount is too high for many people to afford. Hence, they resolve in taking loans either from the private sector or the federal states' loans. The loans are given to help the students clear their school dues but remain a hell of work to repay when their time comes. For that reason, the outstanding debts that an American student owes a loaning company are understood to be around $28,650 with regards to the 2017 class. I care about the deficits mainly because they are a threat to students both at the higher learning institutions and in the future lives. To the readers, the insight got from this paper will help in the decision-making process towards the reduction of both loans and debts.
The student debt in the United States originates from the high cost of pursuing higher education but has adverse effects on the lives of the victims, both at school and after school lives.
American debt is a problem incurred by graduates from all sectors; private and public universities and from all the races in America, whether whites, Latinos, or Blacks. The first effect is that the debt affects the learning process, mainly when the other needy students cannot acquire the loans because their fellows have failed to pay. Those who already have the debts are also put under pressure even before they get the jobs as highlighted by Elliott III, William, and Melinda (50). The students face the tragedy of little salaries as a more substantial portion of their wages are transferred directly to pay their loans when the already-graduated students land jobs. However, the other people who fail to access the loans face the difficulty of pursuing tertiary education and may drop out of schools regardless of their grades at secondary schools.
The issue of students' debt in America also widens the gap between and amongst the races living in America. Results from various research studies show that the Americans of African origin possess the highest debts compared to both Latin-Americans and the Native Americans. Galatas, Steven E., and Cindy (345) provide that the African American fraternity is curbed with a lot of poverty, which makes them unable to raise enough fees for their sons and doubters. The consequence of their inability is heavy dependence on the loans from both the private and the public loaning sectors. It is also better to understand the difficulty that exists for a poor man to pay his debts. Once the poor Americans of African origin take the vast loans, they fail to pay and thus increase the margin of the obligations. The higher amounts needed as fees in school may also hinder children from the mentioned community from getting the topmost level of education.
The higher interest rates charged by the loaning companies are another factor that increases the debts. The loans towards the betterment of education should be given in the form of subsidies or with little interest rates. Almost everybody who takes the loans has a massive deficit that neither they nor their parents would get. Therefore, they need credits as a boost to reach their targets. Such people may feel a huge burden and may opt to let the debts increase until they become stable to start paying bit by bit.
The best thing, therefore, is an agreement that would involve both the government, the loaning companies, and the parents/guardians of the students towards getting a long-term solution to the problem. The requirements in colleges and universities should be reduced by eliminating many unnecessary things to ease the entry process. Once the fee is reduced, the government should then increase their subsidies towards education and at low interests to ensure that as many people as possible get the public loans. According to Elliott III, William, and Melinda (147), the increment in the municipal/federal loans should aim at eliminating the private loans whose primary intention is to make a profit. To make profits, the private sectors charge higher interest rates, and the government should do everything in her power to overcome the business from the private sector.
In conclusion, the students' debt in America is increasing at an alarming rate. Compared to other countries like the United Kingdom and Germany, the debt margin is still high. The statistics mean that many students can opt to learn in such places, and that may put pressure on American education. Hence, apart from the government increasing subsidies at lower interest rates, it should also review the employment rules to ensure that once somebody graduates, there are entitled to payable internships that can last up to six months. Afterward, the people who were engaged under interns can land permanent jobs. At every stage, they should make small repayments of their loans. Universities and colleges should also reduce their requirements and offer more work studies to help needy students while under sessions.
Elliott III, William, and Melinda K. Lewis. The Real College Debt Crisis: How Student Borrowing Threatens Financial Well-Being and Erodes the American Dream: How Student Borrowing Threatens Financial Well-Being and Erodes the American Dream. ABC-CLIO, 2015:1-250
Galatas, Steven E., and Cindy Pressley. "Educating Students about the National Debt." Civic Education in the Twenty-First Century: A Multidimensional Inquiry (2015): 345.
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