The Increasing Student Debts in America and the Possible Solutions

The Students’ Debt Crisis in America
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The Students’ Debt Crisis in America
Introduction
The cost of higher education in the United States has been soaring at a concerning rate. Trends indicate that it has surpassed many other developed nations, such as France, the United Kingdom, Japan, and Germany. Nissen et al. (2019) claim that progressing to institutions of higher learning has been closely correlated to success in life, including improved income and diverse opportunities. As a result, learners and their families sacrifice their money to achieve this worthwhile goal and increase their probability of becoming renowned members of their society. Unfortunately, they must borrow money to meet the financial demands, which plunges them into debt. This trend has raised a divisive discourse as different experts explore the concerning issue of financial distress among graduates years after their graduation. Their worries are consistent with findings by researchers such as Ripley (2018), who reveal that student loans have been skyrocketing dramatically in recent decades. She claims that these loans have isolated themselves as the only consumer debt section with rapid cumulative growth over the decades. Questions have emerged that the government is barely doing enough to alleviate this situation, worsening the crisis. However, many professionals have explored solutions, affirming the urgency to address the financial costs and offload the burden from millions of American students.
Background to the Problem
Trends depict a worrying picture about student loans in the last decade. For instance, evidence reveals that it has increased by over 157 percent during this period (Roseth, 2019). Estimates further indicate the county’s federal student load is beyond $1.3 trillion and continues to rise rapidly (Ulbrich & Kirk, 2017). As a result of its ballooning nature, financial experts have expressed concern that the next group of graduates may become overwhelmed and end up defaulting on their debts. Evidence is already demonstrating that a significant proportion of these beneficiaries cannot repay the loans consistently. For instance, one out of every ten loanees delays their repayments by about three months (Yannelis, 2021). In May 2015, the Federal Reserve Bank of New York stated in its quarterly report that student debt stood at 1.1 trillion dollars (Edwards, 2016). This figure arises from the increased borrowing by learners to meet the rising university fees and expenses due to more competition for admission slots (Simon, 2020). It is so worrying that this quotation outmatches the vehicle loan debt, which stood at $968 billion by the time (Edwards, 2016). Moreover, financial analysts indicate that the figure will rise in the next five years since more students are applying for college education and getting admitted. Such statistics illustrate how concerning student debt is in the U.S.
The federal government’s practice of subsidizing these loads is one of the concerning aspects that keeps drawing students to incur this burden. It creates an impression that they can access higher education while systematically...