As a kid they all told us to go to the school but what they didn’t tell us was that we would be accompanied by a large sum of debt. We must be aware of the current epidemic that is student loans. Student loans are the highest they have ever been, and it will only get worse. Student loan debt is becoming so insane that not going to college could very well be interpreted as a business decision. Neil Swidey from Globe said that “The College Debt Crisis Is Worse Than You Think“. She said that even though we tell students they need a bachelors degree to get ahead, the numbers may not add up for the students. These students are often being loaded up with staggering debt that is completely out of whack with the earnings boost they’ll likely get from a degree at a non selective or less selective college”. How much is this debt exactly?
According to The Institute for College Access and Success (TICAS) Project on Student Debt, the average borrower will graduate $26,600 in the red. 10 percent graduating with more than 40,000 in debt and 1 percent graduating with $100,000. Forbes did an article explaining the total amount of the student loan debt, they said that the total student loan debt was 1 Trillion. The Consumer Financial Protection Bureau is the database which proclaimed that student loan debt has reached a new milestone, crossing the $1.2 trillion mark — $1 trillion of that in federal student loan debt. But yet regardless of these problems we will be told in the end it will all be worth it. But from a business aspect is it really. “You’ll pay it back off, you will get a good job, there is nothing to worry about”. John Wasik explained “Why College Loans Are The Worst Debt“. This article revealed a truth that we don’t want to accept. Relatively small debts can cause big problems, he found. “There is no ‘safe’ amount of student debt: Borrowers with small balances struggle to repay them at the same rate as borrowers with higher balances.” Just by going to college we are taking a risk regardless of whether we want to accept it. My father always told me to be be ready for what you step into. As college students we need to understand this most of all, our financial life may very well depend on it.