Searcy, AR (LP) — Some students think that going to college is not worth the cost and some think it is worth it. One of the growing problems in the U.S, is student loan debt. Student loan is defined as money owed on a loan that was taken out to pay for educational expenses. College Debt is the main cause of students dropping out. There are more than 44 million students that owe about $1.52 trillion in debt. One of the main causes of student debt is because in America, workers haven’t seen a raise in years. According to Forbes, about 11% of $1.4 trillion in student loan payments were at least 90 days late.
Although, there are contradictory claims about whether college is worth the cost, a college education is one of the most reliable paths to financial success for students who graduate. College graduates have lower unemployment rates, and the unemployment rates decrease with higher educational attainment. Paying for college can be really expensive, many families are getting deeper and deeper in debt from trying to pay the expenses off on time. College tuitions are a lot higher than they were about 20 years ago.
Tony Young, a senior at Searcy High School, is looking to go to college but he might be one of the few that does not have to deal with student debt. Tony Young feels that student loan debt is getting to outrageous levels, “A lot of families can’t afford to pay that kind of money.” Harding University offers scholarships, discounts, need based aid, and of course, they process state scholarships as well as all types of federal aid including grants and loans. Jay Simpson, a financial advisor at Harding University said, “The federal government offers student loans with limited amounts allowed each year. When a student graduates they have a six month grace period before repayment begins. Repayment is set up with monthly payments for 10 years.”
At its core, financial aid programs (namely grants and scholarships) have not kept pace with the cost of college, “Student loans are a necessary means of obtaining a college degree for many students in today’s economy. A reasonable amount of loans that are manageable in repayment is considered an investment in one’s future earning potential. Taking out loans in excess of what is manageable based on your chosen career path will result in undesirable consequences in life,” said Jay Simpson.
With college rates rising many students look for colleges based on price. Students who decide to pursue a college degree tend to also score higher on traits that are rewarded in the labor market, such as intelligence and work ethic. Over the next 20 years student loan debt is only going to get worse. So if you are looking to go to college it would be a good idea to pick your schools responsibly.
