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The True Price of Education

Justin Sisson

Posted on September 26, 2019 15:26

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In this article we will take a look at student borrowing and its contribution to our national debt crisis.

Many college students across the United States are finding that the education they are getting may not be beneficial to them in the future. Not only are they not able to find gainful employment in their fields, but they are being faced with a cold, hard reality regarding their expensive new degree.

The average student can rack up $25,000 in student loan debt in a 2 year degree program at a community college. Statistics in 2019 show that we are looking at a 1.5 trillion dollar debt crisis that is only going to get worse.

On average, federal student loan borrowers are on a 10 year repayment plan with their financial institution in order to repay their student loans to the federal government. But being realistic, it takes an average of 21 years for students to be able to repay the full amount that they borrowed.

Now that we have the numbers, if we do the math on America's 1.5 trillion dollar student debt crisis we will come to a disturbing conclusion. Average student loan borrowers are repaying the federal government around 1% of the total balance each year. The rest of the borrowers are paying nothing on their balances and accumulating interest on their accounts at a staggering rate. Those that are paying 1% per year are only paying $400 on a $40,000 loan. Mathematically, it would take those borrowers 100 years to repay their debt to the United States federal government, in full.

It is no mystery that tuition has by far exceeded inflation and the cost of living wages in the United States.  And it's no wonder that America's student loan debt crisis has caught the eye of politicians. Around 8 million borrowers are on an income-based plan that will let them reduce their monthly payments or suspend payments due to economic hardships. Some political parties attribute our national debt crisis to the overwhelming amount of student loan borrowers that are not settling their accounts. 

It looks as if there is no simple answer for this issue. On one hand, we have the future education of our nation. On the other hand, we have our nation's economic future.  

Justin Sisson

Posted on September 26, 2019 15:26

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Source: AZ Central

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