The Relationship Between Student Debt And Earnings

from Brookings

Student loan debt in the United States is now over $1.25 trillion, nearly three times as much as just a decade ago. The typical student graduating with a bachelor’s degree with debt (about 70 percent of all students) now owes between $30,000 and $40,000 for their education, about twice as much as a decade ago. Although taking on modest amounts of debt in order to pay for college is generally a good bet in the long run, colleges with similar admissions standards and resource levels leave students with different amounts of debt.

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  1. It is not surprising to me to see that the United States student loan debt is over $1.25 trillion. For the majority, student debt is unavoidable. The real question to ask is, How and when does those debt gets paid off?

    I have always wondered, when does paying those debt off becomes a priority or a focus for those with student’s loan debts. I think many students neglects the fact that not everyone will have a full-time job offer after graduation and those debts will start to increase due to interest. It almost becomes impossible to be consistent with paying those debt off. With a yearly income, almost half of the pay checks go towards taxes, not including the amount taken out for rent, necessities and utilities. The more you wait to pay them off, the more priorities there will be in life. For example, starting a family, this which will allow your life to become a bit more complicated and expensive. I have had many conversations with individuals that are in the thirty’s that are still debt. It is ridiculous and very unfortunate for us college students.

    Having a college degree is what really puts us in the middle class in the United States. Many jobs today require higher education. This is problematic because many cannot afford to go to college. It bothers me because if secondary education if free, why is college so expensive? If it is a requirement to obtain a good job. Having a college degree is almost as equivalent to having a high school diploma, therefore the price to go to college should be reduce tremendously.

  2. Student loan debt in the United States is over $1.25 trillion dollars. Typing that sentence alone is mind boggling to me and I feel as if colleges are taking advantage of a workforce dependent on higher education.
    Thankfully, I’m lucky enough to have the opportunity to walk away from college with little to no debt. Having a parent who is an employee of Seton Hall has given me an opportunity that I otherwise would not be able to afford. According to Business Insider, the average American household income was $59,039 in 2016. At Seton Hall alone, tuition and fees will set you back about $40,000 and that’s without on-campus living. To be completely honest here, if I wasn’t a student at Seton Hall I probably would have gone to technical school for 18 months, make decent money working on cars and making music and only then consider continuing my studies. Either way, student debt is a serious problem. Being a Portuguese-American, I have first cousins who go to college in Portugal where, as long as you can get in, college is free. Why can’t the United States find a way to solve this problem? 44 million people have student loan debt, doesn’t that sound like an epidemic? To put this into perspective, the total credit card debt in the United States hovers around $1.03 trillion dollars. The difference between Student Loan Debt and Credit Card Debt in the US is about $22 billion. That’s a problem to say the least.

  3. This article is interesting in the sense that it explains well how the student debt is almost inevitable he in the US. I was always curious about the fact that the price of college is so high in this country compared to my country, France. Back home you can study anything you want for lower than $1000 a year. We also have private schools that go up to $12000/year but it is very common to go to public schools and get out with a good education and find a good job. So I wondered why it is so expensive to go to college in america and here is what I found. First, a large part of American universities are private universities, considered as belonging to the “for-profit education” category. The programs they offer must be economically viable and generate a profit at the end of the academic year. And whether for the public or private universities, US state aid has been diminished in the last years, forcing universities to seek funds for other sources of funding. This reduction has a direct impact on registration fees, which leads to an increase. And finally the fact that American universities compete between institutions, especially during recruitment periods. Everything is set up to attract the best profiles, and this policy at a significant cost. In order to provide students with the most modern, fun and lively campus, more attractive than competing institutions, universities incur massive expenses that students actually pay directly through their annual registration fees.
    The american school are high in the world rankings, which also is a reason why it is worth it to get a degree from the USA, even if it requires to have a debt at the beginning of your work life.

  4. Here in the United States, we value education more than any other country in the world. It not only grows an academic mindset but a good standard of living upon the completion of a degree. CNBC reports Harvard University has awarded to 188 degrees who are now billionaires. Out of 540 billionaires in the United States according to Forbes. This is why many American colleges are high in the world rankings. Which is a reason to study and get a degree from the U.S. But a college education will not guarantee to become a billionaire in the future, but maybe a more prosperous? That being said, a college education punches a hole in our ticket to a career path we may choose. But to obtain that for some, they must occur some debt to obtain that education. To get to the point, students who occur the most debt are the ones graduating in the humanities, arts or education. But why so? In my opinion, I find that the United States is so heavily focused on the advancement in technology, engineering, business, medicine and so on. They find to have a degree in the humanities useless. Why study humanities when we are progressing in these areas. Not to put down holders in a humanities degree, but if you want to obtain a good paying job. Stop complaining and try to study something else that is useful.

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