why is student debt a problem? Simple fixes

Why Is Student Debt a Problem? Exploring the Consequences

Updated July 2023

Student loan debt has ballooned in recent decades, creating a significant burden for many Americans. Here are some reasons why student debt has become such a pressing issue:

Lack of Affordability

College costs have risen dramatically faster than inflation or wages. Between 1990 and 2018, published tuition and fees at public four-year colleges increased by 250%. Private colleges saw even steeper increases.

This rapid rise in costs has outpaced families’ ability to pay, leading more students to take on debt to finance their education.

High Default Rates

Around 11% of student loan borrowers default within 3 years of entering repayment. Default rates are even higher for students who drop out of college without completing a degree.

Defaulting on student loans can severely damage a person’s credit score and limit future borrowing. It also makes the debt much harder to pay off over time.

Impact on the Economy

With nearly $1.6 trillion in outstanding student loan debt, this burden weighs on the broader economy. Due to their student loan payments, many debtors delay major financial decisions like buying a home or starting a business.

The high cost of college also acts as a barrier for lower-income students, limiting socioeconomic mobility and opportunity.

Lack of Consumer Protection

Unlike most other types of debt, student loans cannot be discharged in bankruptcy. They also lack many consumer protections associated with credit cards and mortgages.

This means borrowers have little recourse when facing financial hardship, trapping many in a cycle of debt that is difficult to escape.

In summary, skyrocketing college costs, lack of affordability, high default rates, impact on the economy and lack of consumer protections have combined to make student debt a serious and growing problem for millions of Americans. Comprehensive solutions are needed to make higher education more affordable and student loans more manageable and forgiving.

Why is student debt a problem? Simple solutions

The real problem is that some college students don’t want to work and want to go to the best colleges money can buy, and their parents are encouraging this. What happened to the day you went to the college you could afford, and you worked to pay for all of it or, at least, helped your parents? The problem lies with the parents and the kids; the parents are encouraging this insolent and “it’s all about my behaviour”, which is why we live in a dog-eat-dog world today.

What made the baby boomers great and all those that came to the U.S decades ago? Everyone worked hard; there were no handouts, today’s generation wants the best of the best, but they do not want to pay for it.

When the going gets tough, many college students decide to take the easy way out and have no qualms about selling themselves to sugar daddies to pay for college. Sounds like such a sad story until you realise these spoilt brats want the best of the best for doing nothing. The student debt crisis is only a crisis because gullible parents support stupid brats and make them believe they are special when they are not.

The solution is straightforward.

Stop giving the spoilt brats handouts and make them work for their Room and Board—translation; work and pay for your damn college.

We calculated how most people could work and pay for their college. For example, residents of NY can go to a state or city college for roughly $6,500 a year. As your kids will be attending a college close to home, they will not need to spend a fortune on dorm fees or rent an apartment. If they get a part-time job, they can easily pay the fees. It comes out to roughly $550 a month. Not only will they be able to pay their fees, but they will also be in a position to earn their pocket money. If they spring a variation of the following line on you saying something like “Oh, my friends are going to this top college, blah, blah.” Your response should be okay, then tell your friend’s parents to pay for your education, and you can go there. Remember the equation must balance if you do more—the law of balancing states that you will get less in return.

Law of balancing

This law states that the more you do, the less you will receive, as the equation must balance. That is why most good Samaritans end up dead before their time, and this is also why most heroes die young. It is not bad to help someone, but you should never attempt to help those that do not want the help or do not seek it; the only exception being young children.

Debt’s Wicked Dance: A Sardonic Serenade

In halls of higher learning, behold the plight,
Where student debt casts shadows day and night.
A wicked game of loans, they surely knew,
They lured us in with dreams, then left us in a stew.

Oh, education’s golden key, they said,
But little did they mention the price ahead.
With textbooks priced like treasures, so absurd,
They robbed us blind, and our wallets left disturbed.

They sang sweet songs of degrees, so grand,
But failed to mention loans with a binding hand.
“Study what you love,” they urged, with glee,
But forgot to mention the interest fee.

Now we’re shackled with debt, a heavy chain,
While the bankers count their riches, without disdain.
Oh, the irony of knowledge in this wretched plot,
Where education’s pursuit becomes a tangled knot.

So let us raise our voices, filled with disdain,
And mock the system’s greed with a sarcastic refrain.
For in this land of learning, it’s crystal clear,
That student debt’s a problem we should all fear.

But fear not, fellow scholars, let’s stand tall,
And fight the battle, united, one and all.
With laughter as our armor, sarcasm our sword,
We’ll navigate this maze, oh, the tales we’ll hoard.

So, dear debt-laden comrades, take a stand,
And let our voices echo throughout the land.
For student debt’s a problem we can’t ignore,
And with wit and sarcasm, we’ll break down the door.