The Truth Behind Student Loans

As I was working on my Junior Theme, I came across an article explaining how high student loans are getting.  My Junior Theme topic is consumer debt, and one of my sections focuses on how student loans are a big catalyst to in increase in consumer debt.  I always knew the cost of college was very expensive; however, I did not realize how much people go into debt, evidenced by this article.

Amazingly enough, "the total loans outstanding exceed $1-trillion now, which is far greater than either credit-card or car-loan debt".  This number really pops out to me because millions upon millions of people use their credit cards every day to make purchases.  Furthermore, credit cards get the majority of attention when people talk about sectors that cause the most debt.  But to think that the cost of education is so steep that the majority of student must go into debt is sickening.

"Students finish college with an average debt of more than $25,000.  Some students owe more than $100,000".  $25,000 is a lot of money for someone coming directly out of college, especially when they are not guaranteed a job with good income.  Additionally, that loan is going to have an interest rate, making that $25,000 much higher.

It is understandable that colleges want money for providing an education, but really?  Does it have to be $40,000 a year?  Yes, many colleges offer scholarships and/or financial aid, but those discounts only account for part of the tuition.  There is also room and board, books, food etc., which can really add up.

Do we really want college students to experience this rate of indebtedness?  Colleges are not setting a good example of how to lead a successful life.  They are teaching students that debt is normal and it is nothing to worry about.  Then the students receive a bill saying how much interest they have to pay and then they truly understand how much of a scam debt is.  It is normal to incur debt when buying a house or making a big investment, but not when it isn't necessary.

How do you think colleges should approach putting their students in debt?  And do you think debt is a fundamental problem in this country? Why or why not?   Feel free to comment below.