Students who cannot find employment in their chosen career should be able to get their student loans canceled on a loan for this choice of preparation. Student debt has surpassed $1.5 trillion in recent years, making it the largest type of consumer debt, after mortgages and credit card debt. The average student loan borrower graduates with nearly $37,000 in debt and growing every year. Student debt has increased, as has interest on private loans: the fixed interest rate is currently 9.66%. The government and other loan holders hire debt collectors to do most of the student loan collection work. These private collectors will undoubtedly act very aggressively in trying to recover student payments. In many cases, they will not know (or pretend not to know) about students' rights to cancel their loans or obtain an affordable repayment plan. Many of these problems stem from the government's system of compensating collectors. Say no to plagiarism. Get a Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get the original essayThe federal government, states, organizations, centers, and foundations must also invest significantly in college affordability in order to to reduce the number of students who need it. a loan in the first place. Too many borrowers and defaulters are low-income students, the same people who would receive only grants under a rational college financing system. Forcing students to borrow has turned one of America's best investments in socioeconomic mobility (college) into a debt trap for far too many families. This article focuses on student debt within the American economy with student loan forgiveness. For many, attending college is a dream. It is a place where students, after graduating from high school, can learn valuable skills and knowledge that will serve them well in different professional sectors of American society. High school students learn skills that allow them to fill entry-level positions in an ever-changing marketplace. However, strong competition from those who are already well established in many fields makes it difficult to fill positions offering higher salaries and salary levels. Students attend college and take full-time course loads that take time away from work. Students hope that the opportunity cost of taking classes, doing homework, and doing research will be worth it once their tassels return at graduation. Since full-time students do not have the time to work at a sufficient salary to meet necessary living expenses, such as food, housing, clothing, and transportation, students feel the need to contract student loans. Students also attend college after starting a family in hopes of being able to provide a stable future for their family. Student loans cover tuition and books, as well as daily living needs. It is important to have enough income to live on and to devote the necessary energy to studies. Students could refuse to take classes full-time, but this would delay their graduation. Unless the studentsdo not have a family capable of supporting them during their university studies, it is often necessary to find other means of income. Pell grants and scholarships are ways to reduce the cost of college. Work-study programs are also offered to help students. Tuition is expensive and varies depending on the college, university or trade school you choose. Student Loan Hero is a service provider that provides information on student loan consolidation options, financial analysis, repayment options, and student loan advice. It contains an article titled A Look at the Shocking Student Debt Statistics for 2016 on the Student Loan Hero website. He breaks down the student loan debt portfolio, discusses public student loan forgiveness, and mentions other statistics. Student Loan Hero mentions that the United States currently has 44 million student loan borrowers totaling $1.5 trillion dollars. The delinquency rate is 11% for these borrowers. The average student loan payment for 20- to 30-year-olds is estimated to be $351, and the median payment is $203 for the same group. Loan programs include Direct Loans (with $912 billion), FFEL Loans (with $343 billion), and Perkins Loans (with $8 billion). Stafford Loans consist of subsidized and unsubsidized loans, totaling $690 billion. Grad PLUS loans are $50 billion and Parent PLUS loans are $74 billion. The amount of consolidated loans amounts to $439 billion. Under the Direct Loan Program, $468 billion is currently in repayment, $101 billion is in deferral, $102 billion is in forbearance, $63 billion is in default, and $42 billion is forbearance. loans during grace period. Student Loan Hero and Clive Belfield (2013) also discuss repayment options for the Direct Loan program. Belfield says $198 billion will be paid over 10 years, or 11 million of student loan borrowers, and $73 billion will be paid over 10 years. The progressive repayment plan for less than 10 years is 69 billion dollars, and for more than 10 years, 13 billion. Those who pay into the income-based plan have $23 billion, and the income-based plan has $174 billion. The Pay as You Earn plan includes $44 billion and the revised Pay as You Earn plan only has $27 billion. Several student loan servicers include AES-PHEAA, Great Lakes, Nelnet, Navient, and non-profit servicers. Student Loan Hero mentions that more than 400,000 borrowers have been approved for public service loan forgiveness. However, in 2012, 71% of students who attended a four-year college had student loan debt. 40% of all student debt was used for graduate and professional degrees, such as MBA, Master of Education, Master of Science, Master of Arts, Law, and Medical and Health Sciences degrees. The article concludes with the availability of Student Loan Hero to help students avoid being part of these statistics, which are a growing burden on citizens of the United States. Michael Wenisch (2012), who received his Ph.D. in philosophy from the Catholic University of America, wrote an article titled The Student Loan Crisis and the Future of Higher Education for the Catholic Social Science Review. At the time of writing, in the seven years preceding it, the debt had doubled. Since theeconomic downturn in 2008, students found it increasingly difficult to find jobs, making it even more difficult to repay their student loans. The article mentions that only 56% of 2010 graduates held at least one job during the year, compared to 90% in 2006. The article presents a brief history of the student loan system starting from the Student Loans Act. Higher Education Act (HEA) of 1965, which extended federal loan guarantees to private lenders. In 1972, the Student Loan Marketing Association (Sallie Mae), which was a government-sponsored semi-private entity, was established to provide a secondary for student loans. In 1996, Sallie Mae became a private, publicly traded company. In 1998, the HEA was amended so that all federally guaranteed student debt was nondischargeable in bankruptcy, and in 2005 it included private educational loans not guaranteed by the federal government. Megan McArdle (2012) discusses "peak oil" and the inevitable decline in the availability of oil, particularly in its impact on student debt. In 2008, the price of oil reached $150 and in 2005, after a continued increase in production, oil plateaued at 82 million barrels per day. Then, in 2011, oil prices fell to $100 per barrel. This decline in oil production rates, McArdle says, "makes any sustained economic growth, let alone the torrid rates needed to credibly service European sovereign debt, very unlikely." The article states that collateral to secure current debts, particularly student loan debts, is resuming course for long-term economic growth, and since oil production has peaked, this would not happen. Furthermore, McArdle hypothesizes that the student loan bubble will eventually burst, following a broader financial collapse due to loss of confidence in the economy as a whole. European sovereign debt is seen as a significant consequence of this loss of economic confidence. The article mentions that potential students' confidence in higher education will be lost relatively suddenly and will cause the student loan bubble to burst, as college relies on tuition fees that are primarily paid for by student loans . McArdle suggests that many of these colleges will go bankrupt before 2022. The article concludes on the importance of understanding the realities of the student loan crisis as well as the ethical dilemma it creates, both for students and for those employees at institutions that rely heavily on student loan money for their salaries. Robert Applebaum (2010), who holds a juris doctorate from Fordham University Law School, wrote an essay for At Issue: Economy: Should the Federal Government Bail Out the Private University? titled The government should cancel student debt. In his essay, Applebaum links student loan forgiveness to the stimulus tax cuts and bailouts that Wall Street financial institutions and automakers benefited from, and how they failed to stimulate the economy. Since student debt is so high, Applebaum suggests that the government should cancel the debt instead of focusing its efforts on these other methods to improve the economy. The essay highlights how education should be the driving force in keeping the American economy secure. Applebaum (2010) states that to stimulate the economy immediately, the government should cancel student loan debt. One of the reasons given is that peopleOfficials have gone to great lengths to obtain an education and therefore should be helped just as much as financial and automobile institutions. Another reason is that it will enable a multiplier effect as the money which would increase tax revenues, unlock credit markers and thus create jobs. In response to the collapse of the banking system or the unavailability of student loans, Applebaum responds that financial institutions will receive a $700 billion bailout from TARP as well as additional bailout funds anyway. Since these other institutions will receive billions of dollars, they will not be at risk of not having funds available for student loan borrowers. The total amount of student debt, according to this essay, was less than $600 billion. There should therefore be funds available to relieve students of their debt. Kayla Webley (2012), a graduate of the University of Washington and the Medill Graduate School of Journalism at Northwestern University, wrote an article titled Is Canceling Student Debt a Good Idea? for TIME. The article addresses the notion of canceling student debt. He mentions a petition that has garnered 670,000 signatures urging the United States government to cancel all past student loan debt. Robert Applebaum apparently had $88,000 in student debt and started a petition in 2009 for the U.S. government to provide a one-time $1 trillion student loan bailout to boost the U.S. economy. Webley (2012), responds to the student loan bailout. proposal with Freakonomics blog editor Justin Wolfer thought it would be better to give $1,000 each to 50 poor people because the money would likely be immediately spent rather than forgiving someone with $50,000 in student debt , which would take much longer to get back into the economy. Webley further mentions that most student loan borrowers have the ability to make their payments, but realizes that some are in desperate need of assistance. According to this article, only 1% of student loan borrowers owe more than $100,000. Since the government already has programs, like the Income-Driven Repayment Program, the United States government does not need to cancel all student loan debt as part of a bailout. unique. Sandy Baum (2012), in the article titled STUDENT DEBT: Good, Bad, and Misunderstood, questions why current debt holders should be forgiven, since American citizens have been paying off their debts for years, and why taxpayers who do not Anyone who has ever attended college should have to pay for this debt relief. Future generations could also take on additional student debt and simply hope for a bailout. The student bailout plan is seen as a temporary solution. This article suggests that the current model of financing higher education is broken because each student can take out an unlimited student loan without considering the likelihood of repayment. Abigail Blanco (2015), assistant professor of economics at the University of Tampa, who received her Ph.D. in economics from George Mason University, wrote Don't Forgive Us Our Debts: The Case Against Student Loan Forgiveness for Inside Sources. In the article, Blanco states that "priming the economic pump is fallacious" since the government is incapable of manipulating the economy because it is a complex system of financial interactions. Savings and innovation drive the economy, so distribute money to borrowers.