American Student Debt Crisis

The current student-debt crisis is a growing concern, as it reprimands the debt holders and threatens their future. The federal student portfolio estimates a total of 1.6 Trillion USD in student debt to the country of the United States of America. In the US, the privately-run education system complicates obtaining suitable qualifications to get a job. Therefore, student loan programs are one of the most helpful methods of financing their education.

The financial challenge of cost for most students is always met by succumbing to these loan schemes. The most famous face of this tragedy is how upon the completion of specific degree programs, the jobs promised before the acceptance of the debt are not provided as promised. How these debts are crippling the citizens are comprehensively discussed below.

What is causing the increase in student debt in the US?

The increase in tuition prices of various educational programs is the primary cause of the rise in student debt. However, various factors contribute to the rising tuition prices, the cost of staff and higher education services, increased demand for college degrees among citizens, and the cumulative growth of the student loan schemes, which are driving this predicament.
During the past years, the federal government and state cut the funding for the public schooling systems. This is the reason for the increased administrative costs within the system that require such horrendous amounts of fees. In addition, the increased cost of living and the recession added drastically to the increase in student debt prices.

Around 48 million Americans have due debt yet to be repaid. Out of this, the majority of the burrowers owe the state a value between 10,00 USD to 40,000 USD. For many people, this value must be paid for their whole lifetime. With healthcare, cost of living, and mortgage on top of this, these debts stay unpaid for long periods.

The economic conditions of such people who are trapped in these debt schemes are already coming from hardship, and these loan schemes, in the bigger picture, appear not to be an aid but a burden that continues to weigh down.

Which groups of people have the most student debt?

By the year 2021, out of the total populace, 45% of American college attendees were encumbered with student debts.Research shows that Americans between 18-29 hold the highest amount of student debt when considering the debt owed by age groups. When looking at these people from beyond the statistics, it is clear that these young college graduates are suffering the weight of these loans. The financial struggle faced by these more youthful generations is visible. This situation reprimands them from making entrepreneurial decisions or investing in anything as their financial stability is at risk due to pending loans. 57% of these young college graduates view their student debt as the significant driving problem in their lives that looms over their financial and economic decisions.

The following terrifying statistic is how this student debt weighs down on the adult population of America. The age group of 50 to 61 owes the federal government around 282 Billion USD in debt, and senior citizens ages 62 and older continue to owe the state 98 Billion USD in debt.

These senior citizens are retired and almost at their lives’ peak. Still, the debts troll over them from their youth into their adulthood. Many of these citizens complain that these debts will ‘follow me to my grave’- this is tragic as there is no peace of mind for these elderly citizens who have dedicated their youth and clarity to the state itself. Even in a country where everything is supposedly a dream come true, this is a nightmare in the waking.

The Federal government has now begun to even out the debt of these senior citizens by withdrawing funds directly from the Social security of the people in default. This carries to the demographics with a sense of disgust as the thought itself is devious and inhumane. The officials cannot be oblivious that this specific group of people is elderly and requires many other facilities as senior citizens.

Starting with healthcare, the expenses that must be covered rise each day with the increasing cost of living, making it harder for these same people to complete their installment payments on their student debts. With these people being retired and unable to continue working, their pay is less and sometimes depends solely on social security. This is a classic case of ‘rob the poor to feed the rich.

Which degrees lead to the most debt?

Through a close study of the debt statistics of the United States during the past few years, a gross value of the degrees and educational qualifications most desired and have the most debt count can be identified.Alternative and Complementary Medicine and Medical Systems is the most expensive Associate’s degree with a median debt of 35,750 USD.The highest median debt for a Master’s degree is in the field of Dentistry and Oral sciences at 138,857 USD. The least is agriculture at 15,317 USD.

The most significant amount of debt for the doctoral degrees is in Pharmacy, Pharmaceutical Science, and Administration at a doctoral level at a median value of 271,378 USD. On the other hand, the major with the smallest debt is the Bachelor’s degree in International and Comparative Education at a median of 10,00 USD.

Comprehensive statistics show that postgraduate degree holders owe the most debt to the state at a value of around 45,000 USD per person.Through these, it is clear that the field of science and medicine take up most of the debt. Medicine is a highly complex subject. The doer needs to be fully engaged and get the most premium education in that field available. To reach this, the students would, by default, choose the loan schemes.

Conclusion

Although the education and the qualifications received may guide the defaulters into highly paid jobs, it does not give them the luxury of living a life of financial ease. Most of the income earned after the academic qualifications is directly reserved for repaying the loans. This is a threat to the person’s financial security and may affect life and career choices.

This increases the fear of taking risks and living a comfortable life due to the financial burden with nearly no aid from the federal state. The amount of repayable debt in the future directly affects the field of education the student is willing to take. It involves the students’ decisions, alters their futures, and makes them bleak. Measuring the worth of education through monetary gauges is the primary reason for this tragedy. One cannot learn and earn without having a debt following them ‘to their grave.’

The land of dreams is, in truth, the land of minefields. Yet, each day, Americans fight this battle for life and purpose. The system needs to change, providing viable alternatives and functioning and fair aid systems that truly serve its purpose. Because, after all, these are the same students that grow up and do our nation and its people.The state must ensure that the journey is as simple and accessible as possible. The struggle to learn and earn a place in society is a question that lingers in the minds of the youth. It isn’t hunger, but it is a fight.