Burden of Student Loan Debt in the United States
People in the United States are struggling to pay student debt. It should be noted that only some individuals are employed, while others are doing casual jobs and are underpaid. After conducting research, the online education program surveyed 2,000 individuals in the United States. Sixty-three percent of individuals living in the United States still need help paying their student loans (Onque). According to the research, this factor has contributed to mental health distress among people struggling so much due to student loans (Onque).
Consumer Reports research shows that some students would rather quit school than struggle with student loans after graduation. Forty-two million Americans have their lives altered by student debt and are unable to save enough for retirement (Student Debt Crisis). This is especially problematic when people are done with school and cannot access other loans because their credit score is already damaged from the student loan they cannot repay, thereby stagnating economic growth.
Student loans are among the most burdensome loans in America for those who have taken them, but highly profitable for those involved in the financial sector, such as banks. More research has also shown that many students still need to repay their student loans within 6 years, creating financial burdens (Student Debt Crisis). Whereas many students have graduated using student loans, it has proved to be an enormous burden to the students after their education which leads to mental health issues, a life of debt, and a financial burden to the young people with all these disadvantages caused by the student loan the government of the united states should forgive the students loans owed by the students to avoid financial constraints, mental health issues, and debt burden experienced by fresh graduates.
Benefits of Student Loans and Arguments Against Full Loan Forgiveness
Even though student loans cause problems for students, it does not mean they are not helpful. The research showing that 63% are struggling to pay should also indicate that 47% could afford to pay their student loans (Onque). The loans have enabled students from diverse backgrounds to bridge financial gaps and provide critical support for their education. The current administration has forgiven some student loan debt, but people are still struggling more than ever.
Many factors contribute to people experiencing difficult times, including inflation and unemployment. Students who take out student loans can secure their academic future without struggle. With clear goals, these students will be able to secure employment and repay their student loans. Student loans also provide borrowers with a flexible payment plan that adjusts to their income and can accommodate their living expenses (Chapman and Dearden 250). This information should have been provided when discussing how student loans affect people economically and mentally.
There is also the option to defer student loan payments; however, this does not mean student loans are less of a burden. Even with a flexible payment plan, one is still expected to pay, and the less one pays, the longer the payment period will be (Rascoe). Forgiving student loan debt will result in losses for the financial sector, including the federal government and banks.
People need to pay off student loan debt to strengthen the country’s economy. Early, timely payment of the student loan will also improve the individual’s credit score. This means that when one person pays the student loans on time, they can access other financial advantages and develop themselves through a personal loan. The money to pay the student loans could have been used to invest, save, or buy a house. I cannot entirely agree that student loans are entirely bad, as they benefit learners and some people can pay them off.
Reflection
As a lawyer, I have learned that student loans burden many students; even though they help them achieve their educational goals, they hinder them from achieving their financial goals. Although paying off student loans is essential, the mental health of individuals and the financial turmoil they cause should also be taken into account. I have learned that as a lawyer, it is always essential to read widely and understand; following current issues, such as trends on radio shows, is also essential and educational. The research is not easy; as a student with a student loan, I acknowledge that I will likely struggle after completing my education and may not be able to repay it. However, I can say that the research assignment is eye-opening, and I know how to handle my student loan.
I am astonished that so many people are struggling to pay their student loans, while the United States is among the most robust economies in the world. This makes me wonder what it is like in third-world countries where students cannot work part-time and have limited job opportunities, given the higher unemployment rates. Students taking out student loans should be prepared for mental turmoil as they try to repay them, as the government’s decision to forgive the loans may also constrain the country’s economy. This means that arguing for both paragraphs was difficult, and neither was easier than the other.
The paragraphs form a strong argument and are roughly equal in their presentation; one acknowledges that student loans can burden students after graduation, while the other demonstrates that they help students achieve their educational goals. My stance remains unchanged, and I still believe the United States government should forgive student loan debt.
Works Cited
Chapman, Bruce, and Lorraine Dearden. “Conceptual and Empirical Issues for Alternative Student Loan Designs: The Significance of Loan Repayment Burdens for the United States.” The ANNALS of the American Academy of Political and Social Science, vol. 671, no. 1, 2017, pp. 249-268.
Onque, RenĂ©e. “54% of Americans Say Their Mental Health Issues Like Anxiety and Depression Are Directly Related to Student Loan Debt.” CNBC.
Rascoe, Ayesha. “College Debt is One of the Largest Financial Burdens Young People Face Today.” NPR, 2022.
“Student Loan Debt Crisis – Consumer Reports.” Consumer Reports, 2016.