Student Debt in America
Some issues remain critical in an individual's life. Living free from chaos with others is
usually developed from peaceful interactions with the various societal members and authorities.
One of the issues which can promote positive social interactions is living a life free of debts in
the process of reducing life burdens in one's life. Debts have posed a significant threat to
American students at the institutions of higher learning in the process of searching for a
sustainable and comfortable lifestyle during life in school. It is estimated that the majority of the
students who acquire debts end up with complications for failure and incapability to repay the
dues (Baum &, Sandy, pp.60-70). This paper concentrates on debts issues with, the American
students, the challenges associated with them, and how the country can facilitate the solution.
Prevalence of indebting
Probably, one of the major reasons for the intensified debts among the students is the
improvement in lifestyle and cost of living in the current world. Unlike in the past, when a
student embarked on simple resources for upkeep and studies facilitation, the reality in the
modern world is full of additional needs for both study facilitation and survival requirements.
Secondly, the increased opportunities to apply for the student aids have led to many students
accepting the chance with no assurance of how they could repay the loans. These loans are
usually accompanied by pleasing terms that describe the efficiency and ease of payments, only to
realize the burden during the payback times (Maragakis, Antonios, & Andy, pp.99-109).
Although the interest rate might be very low, the amount acquired could be much such that it
could become a challenge when repaying.
In reality, ease of application for the student aids remains overwhelming as there are no
many necessities required in such applications. In most of the applications, only guarantors'
names and identification documents are required even if they provide them in absentia. On other
occasions, the loaners are never concerned with the specific needs for the finances or the family
backgrounds of the applicants. The increased number of loaners with desirable terms has
blindfolded most students who swiftly apply for the finances with no regard for the future and
the methods for repayment. When the maturity period when the repayment comes, the students
have the challenges of paying for the dues where parent's assistant may also be challenging
(Baum &, Sandy, pp.65-66).
On other occasions, the students apply for the aids without the knowledge of their parents
or guardians who could also assist them during the repayment. Some succeed in paying the dues,
but the majority get into a hard time when the time comes. One of the challenges that usually
results during the payment is when the student debtors have no source of income even after
studies. The pressure from loaners intensifies to the extent where the parents realize the students'
practices in the absence of their acknowledgment. Although the loaning process hinders the
exposure of family challenges, it becomes critical at the later times during repayment.
Nowadays, the internet presents loaning services at every moment. Possession of a
smartphone to most of the students poses another temptation whereby the loan apps pop-up every
moment and intensify the probability of the students to request for some. They have the
procedures for application ready with no need for securities. The problem then occurs when the
period for repayment approaches whereby the debtor gets threatening messages in relation to the
debt. On most occasions, the students who fail to pay are recorded in the bad debts forms
inhibiting them from acquiring financial assistance in the future (Stiglitz & Joseph, pp.106-111).
The U.S government can establish effective measures of countering the loan burden to
the students. First, the government can identify the various loaning organizations and develop
their lending procedures. Then, the analysis of the multiple cases established and the engagement
of the student debtors together with the pressure are vital issues. From that point, the government
could establish the various limits necessary for loaning and repayments. For instance, when the
interest rate increases the burden of payment, it should be regulated to reduce the challenge. It is
evident that some of the eased methods of applying for financial support are associated with
hidden aims, which become evident in the future (Maragakis, Antonios, & Andy, pp.105).
Therefore, it is the role of an applicant to clearly check for the various requirements in terms of
the amount repaid and the period before getting entangled in the trap.
Similarly, the parents and guardians can eliminate the instances of their children applying
for the faulty loans by establishing saving methods for them. This can begin at tender ages before
attending the higher institutions of learning. The process reduces the burden which prevails in
the future where the student is required to apply the loan for the upkeep. In facilitation for this,
the government may introduce measures to enforce all the parents for the children's savings in
their future learning. Moreover, the parents can acknowledge their children on the availability of
the applied savings to assure them of the fee availability. The amount saved should be sufficient
for both fees and upkeep during the learning process (Maragakis, Antonios, & Andy, pp.99-109).
For more effectiveness, the process should be started at an early time to reduce future
complications. Also, the parents should take responsibility for their children's academics rather
than leaving them to cater to the various requirements.
Generally, the issue of student debts remains an intensive matter that requires great
attention from the various stakeholders, majorly the government and parents. The various
creditors should also determine the capabilities of their clients to repay the loans acquired. In
case they realize that they can rarely afford maybe using the information from family
background, they may deny the clients of the requests.
Baum, Sandy. "Student debt: Good, bad, and misunderstood." Change: The Magazine of Higher
Learning 49.3 (2017): 60-70.
Maragakis, Antonios, and Andy van den Dobbelsteen. "Earning Capacity of Sustainable
Education." A+ BE| Architecture and the Built Environment 3 (2018): 99-116.
Stiglitz, Joseph E. "Student debt and the crushing of the American dream." The New York Times
12 (2013). Pp. 106-111