In 1958, Congress passed the National Defense Act and federal student loans were provided for more American families would be able to afford college. In the United States, knowledge is power. For many, this power begins with high school. During these adolescent age learners are prepared to take on life’s most challenging moments, with their friends, coaches, and mall security guards. Just as high school is a place to learn, college is a place of higher learning. You learn more about yourself. You’ll learn more about your friends. You’ll find what you’re good at, what you’re not so good at and recreate the college life organizing campus events. College is a learning experience. After graduation there is no way to know where your learning will take you and there’s no certainty that a position will be available in your profession of choice. For many Americans college is a look upwards, but how much student debt is too much?
The student debt crisis
Lyndon B. Johnson signed the National Defense Act into law in 1958. Federal loan grants, such as the Pell grant, covered most of a college’s costs for students. In forty years, the cost of college has nearly tripled. Today, the national student loan debt is $1.75 trillion. On average, a third of college attendees graduate with bachelor’s degrees. A student loan debt is a burden on anyone who has it. Education has meant the American dream. For lower and middle-income Americans’, it’s more like a financial nightmare. A student’s debt hinders them from opening a mortgage, starting a business, paying for their family. Fortunately, unemployment rates have remained low which means most people do have jobs, but this only means so much when 61% of Americans live paycheck to paycheck.
The average cost of going to a public (In-State) college was $27,940, during 2022-23. This can be expensive, especially without graduating. Many students will decide to change their majors at least once, this may affect a student’s academic progress, graduation date, and costs, of course. There are many reasons this, including being rushed to select a major, disinterest in a department program, opting out for a major with more employment opportunities. These are real considerations for learners as they are the ones who will be expected to pay for what they’ve learned in their college years.
Average student loan monthly payment
The national student debt in America approximates to $1.75 trillion dollars. On average, students graduate from a four-year program with $39,351 in federal student loan debt. The cost of the average student loan monthly payment is $460 per borrower. There are 42 million Americans with federal student loan debt. The median payment is $222; borrowers on average repay their loans in 18.5 years by age 45.
Student Debt Relief
The Biden Administration has proposed to remedy student debt crisis with debt relief. The administration has began action to cancel $10,000 of student loans for Americans who earned less than $125k. A few states have contested the relief program in the Supreme court. Forty-three million Americans are awaiting the outcome. Federal student loan repayments currently paused by the department of education. Student loan repayments will resume on June 30, 2023.
Student debt is a financial burden many college graduates and non-graduates have to carry. Debt relief for student may be a solution for much of the population’s financial insecurities.
Those who are considering enrolling in colleges should know the opportunity is very much available to them. However, students should exercise prudent behavior and be sure to study an hour and a half outside of the classroom for every hour spent learning inside the classroom. Each year the federal government has $2 billion in grants that go unclaimed each year. Take advantage of scholarships and grants. Take the time to apply for these incentives, they will reduce your student loan debt in the long run. It’s important to be educated and to make educated decisions.
Related – How much does college cost you?
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