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THE SILENT CRISIS OF THE AMERICAN STUDENTS-LOAN DEBT

The American economic system has problems at any level, In a credit system, after the spending comes the debt with interest. According to the U.S. Debt Clock, the debt the American country has risen to $22.5 trillion, meaning $68,400 per citizen, and $183, 130 per taxpayer. Of all that debt  $1, 6 trillion is held by 44.2 million Americans students, $37,000 per student. As stated by Forbes, more than 609,000 students owe more than $200,000 on student loans. The problem is not only regarding young people; there are senior citizens owing student loan debts. There are more than three million citizens between 60 to 69 due $85.4 billion in student debt, and the debt will chase them until they are in the grave. The student loan crisis is a social problem of American society. The information provided by financial institutions reveals a flawed educational and loan system. The fact that there are senior citizens holding university degrees, but owing student loans, is meaning that to study in the U.S. does not ensure that education will afford payments. This situation is desperate for millions of millennial borrowers of loans that they will never be able to pay. Almost 50% of millennials holding degrees think that going to university was not worthwhile.

Seems that it is hard to be American nowadays, more even if you are a university student. The high prices of university education force many students to take a loan. Students can choose two kinds of loans, a government-funded federal loan or a private loan, from a bank or university mainly. The two types have interest associated; besides students can apply to other types of private funding. To take a loan is a severe thing. If the students don't pay the monthly payments, they are label as delinquents, and if the monthly payments are not paid after 270 days, it will be considered a default. Forbes reported that there is a rate of 11.4% of delinquency or default from 5.1 million borrowers, and this makes a sum of $101.4 billion debt. The 2018 Brookings Institution report estimates that 40% of borrowers could default on their student loans by 2023. Day by day, the number of defaults increase, and students demand more Public Service Loan Forgiveness. However, just a minority is eligible for this service; only the people working full time in federal, state, local public service, and non-profit organizations can apply. So, what matters for Loan Forgiveness is the organization one is working in, not the job or income one has. The debt linked to university studies is changing the Millenials' behavior; around 13% of them don't even think to raise a family, and they don't think they will be houseowners.

Cartoon by: Bob Englehart, Hartford Journal

Cartoon by: Bob Englehart, Hartford Journal

The situation is a national crisis; the system is telling the youngsters that struggling to get knowledge and education is not worthy anymore. Young people are seeing how senior citizens have been all their life paying a debt obtained when they were university students. The situation is not attractive to anyone.  The worst is that many voices are blaming the student accusing them of lacking information about how the financial system works, but many reports state that loan borrowers know very well how the system works. However, their daily life problems force them to seek funds wherever. The main issue behind the student loan crisis is that after obtaining the degree, students don't join well pay stable jobs. The politicians are making vague and impossible proposals; Bernie Sanders wants to withdraw the debt of all students, and pay to debt holders with new taxations to Wall Street. Other democrats politicians wish to make free-debt universities, but the way it will finance it's not defined. There is one thing sure; students' debt will keep rising, and the university will be in a few years unaffordable for the more significant part of the population. Education in the U.S. will not be democratic anymore.

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6 thoughts on “

THE SILENT CRISIS OF THE AMERICAN STUDENTS-LOAN DEBT”

  1. Ahaa, its good discussion on the topic of this paragraph here
    at this web site, I have read all that, so at this time me also commenting here.

    May I ask you to write more articles relating to this topic. I want to read more things about it with different narrative to mainstream media!

  2. Greetings! Very helpful advice within this article! Thanks a lot for sharing!| I truly love your website..

  3. A motivating discussion is definitely worth comment. I
    think that you ought to write more about this subject, it may not be a taboo matter but typically folks don’t discuss such subjects.
    To the next! Many thanks!!

  4. Wonderful article! That is the type of information that should be
    shared around the internet; cold and straight. I found it by chance, shame on Google for now not positioning this better!

    Thank you =)

  5. Hi there, after reading this awesome piece of writing I´m glad
    to know that the American loan crisis is being observe abroad. Please, have in mind what is happening to American students in order to avoid that to happen somewhere else.

  6. Thank you for echoing a problem that has ruined the lives of millions of students. The crisis is not just about debt, it is about legitimizing the education system; Many of the degrees offered have no room in the labor market, and that is something that they do not explain to you when you are a teenager and you have to choose.
    Best regards

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