Student Loan Debt - Denying the American Dream

(June 23rd, 2007)

<< She says: "Honestly by the time i finish my studies, I'll be looking at $100,000 to $150,000 of debt!"

<< Student #2 says: "Right now my total student loan debt is about $26,000. And that's crazy for me because i've never seen that kind of money."

<< Student #3 says: "I think it will be 15 years before i can fully pay off my debt."

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Video Review

Education Facts in the USA

College graduates in the US earn nearly twice as much as workers with just a high school diploma, one of the highest rates in the world.

Each year over 200,000 qualified high school graduates forgo higher education due to costs alone.

Traditionally, 75% of a student's financial aid has come from the federal government.

3 out of 4 full time students have jobs, and hearly 1/2 of them work more than 25 hours a week.

By the time they graduate, nearly 2/3rd of students at 4 year colleges and universities have student loan debt.

Over the past decade, debt levels for graduating seniors with student loans more than doubled from $9,250 to $19,200 -- a 58% increase in inflation.

Heather Boushey (Center for Economic & Policy Research)

A student going through college is really looking at one of the best investments into their future. They are also looking at really tough times in terms of financing their education. For a typical college student, money is pretty tight; their cost of living is increasing quite rapidly. Students have to spend a lot more on college than their parents' generations did. And they have a lot less access to the type of Federal Grants than their parents' generation did.

The Federal Government has to provide more access to Grant aid that the student doesn't have to repay back.

Jennifer Pae (President, United States Student Association)

20 years ago, the Federal Grant program used to cover 60% of a student's tuition fees, now it's at 33%. Many students after graduation have to put off starting a family, buying a car/house because of stagerring levels of student loan debt. Unfortunately, we are no longer seeing the goal and purpose of higher education, that is to build the American dream. Instead we are seeing huge levels of debt. In the long term, I don't think higher education will be accessible to everyone qualified. The doors to higher education are becoming closed for many people.

Comments

DDJohn Comments on June 23rd, 2007

I feel very sorry for students who have to take out massive levels of debt to get through school. I have a lot of respect for those students who realize this problem, and work at part time jobs while going to school in order to keep the debt to a minimum. I do NOT have respect for those students who go out drinking and partying all the time whilst in school and do not work at part time jobs, but instead will spend their money buying stupid guitars.

MongoliBabe Comments on June 27th, 2007

I owe $120,000 in student loan debt while pursuing my Master's degree. My job pays fairly well, $50,000 a year, however i just cannot afford to pay the $120,000 student loan debt. If i could go back in time, I would never have gone to school. Sometimes i wonder why i pay so much in taxes when this money cannot provide for higher priority things such as education, instead the money goes to wars and military.