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Nikolis Miller
Composition II
Dr. Snead
Student loans
At 21 years old, Mike Jordan graduated from American University with
his bachelors degree in Biology. He graduated with a 3.9 GPA and had been
on the Deans list since he began attending the school. He has a number of
job offers, and his parents are ecstatic about his graduation. Despite the
jubilance of finally graduating and finally being able to step out on his own,
Mr. Doe is not happy. Mr. Doe is not excited about graduation; in fact, hes
just the opposite. There is an ominous being looming just over his head,
waiting for the time to strike. Six months later, when Mr. Doe is finally settled
into his first real job as a college graduate it strikes. A letter arrives for Mr.
Doe, and the name at the top left corner of the envelope reads: Sallie Mae,
Consumer Banking Company. They are sending you your monthly invoice to
pay back your student loans.
Student loan debt is an epidemic in our country and more than an
asset for those who cannot afford to attend school, it has become a racket. It
is almost extortion, with many ads basically telling students Without a
college degree youll never make any money, and never be able to provide
for yourself. However, to get this college degree you need our help. If you
want our help, youre going to have to pay. Most students other than those

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from privileged backgrounds need some type of financial assistance. Thus

before students are able to cash the first check of their careers, buy their
first car, or develop any significant type of financial stability or savings they
are in debt. Coupling this with the fact that tuition per semester at most
universities numbers in the thousands, many students are stuck paying off
their tuition loans for years loading them down with bills and frustration, and
when they have kids, their children are stuck in the same cycle. Student loan
debt is no longer a tool for helping students succeed, but has shown to be a
burden. The accumulation of student loan debt can weigh on a young adults
future for the worse.
Why do students take out money for college even though the outcome
could be a risk? The question has been lingering over peoples heads for
decades. In a society where we praise the intellectual minds and envy the
wealthy for their financial stability. The economy has put our young adults in
a quandary whether they should pay for school or go straight to the work
force. If a young adult decides to attend a higher learning institution they
feel as if they will have a better opportunity to compete for a high paying
well stable jobs. To attend a higher education intuition takes money and that
kind of money most students cannot afford to pay out of pocket. And how do
young adults pay for their costly education? They borrow money from the
government. Every year millions of young adults fill out their FASFA (Free
Application for Federal Student Aid) applications to see how much money the
government will give them in grants and loans. According to Elliot in Student

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Loans: Are we getting our moneys worth, grants are money that is offered to
the student that he/she doesnt have to pay back. Loans on the other hand
are required to be paid back maybe some times with interest (Elliott 30).
However, every year this process puts our young adults in debt. This
situation has been labeled has a CRISIS!! And should be treated as such.
Student loan debt has put our country in a crisis. We have reached an
all-time high in the accumulation of student loan debt for the U.S economy.
The student loan debt accumulation throughout the U.S has skyrocketed to
almost a trillion dollars since 2012(Andrew Ross Mortgaging the Future:
Student Debt in the Age of Austerity 23). The U.S economy has made young
adults rethink important decisions such as borrowing student loans because
for the mere fact its hard to pay them back off. People will be paying off
their student loans for years maybe even decades. More than sixty percent
of student debtors are still paying off debt till the age of thirty and some
senior citizens have said their social security checks have been held due to
still owing student loans (Ann Larson The Case for Debt Resistance 53).This
makes for an imbalance in the U.S economy because if elderly people are
still forced to work then they will occupy a lot jobs and their will not be room
for young adults to enter the workforce. Although finding a decent career is
already scarce among todays standards because of the economy being in
debt due to the state of the economy. Ross stated that by 2012, the
average student debt was more than $27,000, having doubled since 2007
(as qtd by Ross 24). Since debt has doubled over the past five years young

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adults have struggled to even entertain the fact of attending college. Most
say why would I start my life so much in debt? Instead of making money
and saving up to buy my first house or car. Examples such as this ponders
in young adults minds every day. Most not knowing their already at high risk
to fall into the unbearable burden we call student loan debt.
There are three different distinct socioeconomic classes. You have your
high class who are basically the rich and wealthy. Then you have your middle
class which contains people who make more than 35,000 a year but typically
do not make more than 100,000. Then you have your low class which is filled
with people who work low paying, low skilled jobs. People from this
socioeconomic background typically have a lack of higher education.
Between all of these socioeconomic classes Im guessing you would choose
the lower income class to be most at risk for high student loan debt. But
actually, young adults coming from middle income families are more at risk
for student loan debt because their parents are not rich enough to pay out of
pocket. Or correlating with low income families they make too much money
to apply for sizable grants (Jason Houle Disparities in Debt: Parents
Socioeconomic Resources and Young Adult Student Loan Debt 55). Grants
allow students from low income families to have a significant advantage over
the young adults from the middle class. Jason Houle states Young adults
from more educated and high income families tend to get higher degrees;
attend more expensive, elite institutions (as qtd. By Houle 55). There is
enough to prove that middle income families having more disadvantages

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when it comes to the student loan system. Regarding students from low
income families they will shed the risk of returning to the same economic
status they strived to get out of. After the tireless process of filling out FASFA
applications now it comes to attending the university. Attending college is all
an experience in itself, from the class rooms to the crazy frat parties.
Many young adults do not get to enjoy their college experience
because they have that lingering burden over there head called student loan
debt. The college experience is in place for most part is for young adults to
find themselves. Higher education institutions are where young adults gain
their independence and meet new people. Also college is for young adults to
plan for a career. Students who take out loans know that if they do not
maintain a certain GPA their financial aid will be taken away. Also students
struggle so hard not to get kicked out through financial means they lose
sight on various social experiences and educational opportunities that
college offers. Students survive off as little as possible for reasons such as
they do not want to take more money than what is needed. Most students
who attend four year universities do not have full time jobs so income is
limited.
Student debt does not just affect a young adults monetary state, it
also effects them psychologically. Natasha Yurk Quadlin and Daniel Rudel
have said Many college students are taking on substantial monetary
burdens is one of the most unstable phases of the life course (as qtd. By
Natasha Quadlin and Daniel Rudel Responsibility or Liability? Student Loan

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Debt and Time Use in College589). While being a burden looming over
young adults heads, student debt has been the reason some students do not
complete their education. Students ask themselves everyday should I
continue to start my life in debt or leave school and start saving my money
for future endeavors? For most young adults it be the toughest decision of
your life. Weighing their option young adults who choose to complete school,
do it mostly to escape low wage labor (Larson 52). For those who do
complete and achieve their degree then comes graduation. Graduation will
be one of the greatest memories in a young adults life. You are filled with
that euphoric feeling of finally joining the real world and becoming a
functioning member of society. Little do they know! In the fine print of your
FASFA agreement it says six months after the completion of college you will
have to start paying back your loans.
Congratulations!! Youre finally a functioning member of society now
the pressure is on young adults to support themselves. Also seeing the
looming burden of student loan debt creeping up on you its time to get a
consistent paycheck. Young adults trying to survive in this U.S economy that
is filled with unemployment and low paying jobs are forced to choose job that
will satisfy their basic needs. For most young adults this means picking a job
not a career in which college has prepared you for. A group called American
student assistance said For many recent college graduates, career choice is
not an option as those with debt are looking to get any job they can in order
to pay the bills and pay off their college debt. This need to get a job rather

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than to start a career can have devastating effects on both the individual and
the population as a whole (As qtd. by American Student Assistance Life
delayed: The Impact of Student Debt on the daily lives of Young
Americans4). Student debt makes sure you pay a percentage every month.
If a young adult misses a payment or two what happens? Well failure to pay
back loans may result in your credit score being damaged (Ross26). With a
damaged credit score the luxuries in life are limited. What if you want to
take out a mortgage on a house or take out a loan for your car? Most young
adults hesitate for years over whether they should even start a family
because the burden of student loans is so unbearable. Sometimes the strain
of keeping up with these loans can put young adults in quite a predicament.
Student loan debt can make young adults reach a point in life where they
commit lousy decisions.
What if young adults do not have the financial means to keep up with
the payments of student loan debt? There have been studies that shown,
students being so depressed by student loan debt they turn to a life of
criminal behavior. Think about it if a young adult is 50,000 dollars in debt and
then has to still afford their living standards and put food in their mouths
every night. It is a hardship everyday living check by check. Some young
adults lead into criminal behavior, especially more of those of a minority
background. Minorities who come from a low- economic background and are
put back in their socioeconomic culture typically are most at risk for living a
life of crime (Machteld Hoeve et al A Systematic Review of Financial Debt in

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Adolescents and Young Adults: Prevalence, Correlates and Associations with

Crime 1). This crisis puts many young adults in a dilemma. Young adults
have a need to fulfill their desires if they do not have access to that material
entity. Hoeve and various other authors stated that Given that the incidence of
criminal behavior is relatively high among (late) adolescents and young
adults, and financial resources and knowledge are relatively scarce among
these age groups...(Hoeve et al 2). What the author means by this is at this
age you are typically not settled into your career yet. You are not financially
stable yet because you will be still paying off your student loans, maybe a
mortgage or a car note depending on your needs. Also experience goes
along way if young adults from certain low socioeconomic backgrounds may
feel more comfortable living a crime to help bear the burden of debt. There is
an exception that most people do not know about. Its called alternative
repayment plans. Opportunities such as this could keep young adults out of
life crime. Also could help young adults repay their loans and maybe even
save some money for retirement. Ideas such as these can bring great
enlightenment among the U.S economy as a whole and bring us out of the
trillion dollar deficit that has been looming over our heads for decades.
Did you know that private loan institutions offer alternative repayment
plans? Well they do and its income based related. One alternative plan I
would like to shed light on is called pay it forward. It was a plan introduced
by Oregon college students which stated that you do not have to pay
anything up front but a percentage of your annual income will deducted

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(Larson 52). They felt that this alternative would be effective because of the
high probability of potential earnings would mean a greater probability of
repayment. There is an allotted time they give you to pay pack a loan.
Alexzander Yi stated that The repayment period cannot exceed a period of
twenty-five years, meaning either the loan will be paid in full before or any
outstanding amounts will be forgiven after the twenty-five-year period
(Alexander Yi Reforming the student Debt Market: Income related
Repayment Plans or Risk-Based Loans? 529).. Unlike the government who
just takes a stipend out of your check every month , this alternative plan
takes a percentage based on your annual income. .This plan makes for less
stress and gives more control to the debtor. If by any chance you still owe
money after those twenty five years your loan will be forgiven. For those
who still are working low paying unstable jobs and are living in a low
socioeconomic are required to at least pay ten percent of what is asked for
(Yi 530). If more plans like this were to be put in place we could probably cut
the national loan deficit in half. More young adults will be financially stable,
their credit score will be in good standing. Young adults will be able are more
likely to mortgage a house and better provide for their family.
In conclusion, I have showed you the how the accumulation of student
loan debt can weigh on a young adults future. It all starts with the process of
filling out FASFA paperwork. When you finally sign your name on that esignature you are in debt by the government. Little do most young adults
know they are at risk before they even sign their E signature. Financial aid is

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a system and with every system someone always has an upper hand. In this
system majority of young adults from low socioeconomic backgrounds tend
to receive more grant money than those who make more money. Grants and
scholarships are beneficial. They decrease the burden of debt and is money
that you do not have to pay back. Young adults from middle class families
tend to be most at risk because their parents make more money than those
in lower class so they do not get as much grant money that you do not have
to pay back (Houle 55). On the other hand they do not make enough money
like those in a higher social class that can afford to send their children to
these institutions and pay out of pocket. Or at least contribute a substantial
amount of money to help pay the loan off. Then they will attend the
illustrious university of their choice. Attending the higher learning institution
in debt can attack a young adults monetary and psychological mindset.
Students every day for four or more years depending on how long it takes
you to obtain your degree has to struggle knowing if they do not make it
through till the end, their whole experience will be a waste. They will still owe
money to the government but will lack a degree. Those who do finish will
graduate and obtain a degree. After graduation young adults will have six
months to find a stable income. For most young adults in this struggling
economy they will decide whether they should find a job for the monetary
support rather than search for a career in which their college experience has
prepared them for. With the burden of being in debt most young adults
struggle to live. They hesitate to take out home mortgages or loans out on a

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car because failure to keep up with these burdens could result in low credit
score. If the burden becomes too heavy and the pressure of paying back your
loans becomes a hardship. The social roots of a young adult may lead them
to a life of crime. This factor comes into place mainly with young adults from
a minority background or those how come from low socioeconomic
backgrounds (Hoeve 1). These young adults feel as if thats the only way
they know how to survive. There are Ideas that we can prevent catastrophes
that have been placed upon us because of this crisis we call student loan
debt. Those such as alternative repayment plans. These plans can be very
beneficial to a society especially the one I shed light on called the PAY IT
FORWARD movement. This idea is based on the future income of the
student and not a based stipend the government takes out of your check
every month. This plan is set for a maximum of twenty five years and any
outstanding debt after the allotted time will be forgiven (Larson 52). More
plans such as this should be incorporated into the higher education system.
This crisis should be controlled immediately for the sake of each and every
young adult who is burdened by their student loan debt. This crisis should
concern everyone in U.S economy because if we cannot get a control over
this epidemic we could see a change in higher education systems as a whole.

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Work cited
American Student Assistance. "Life Delayed: The Impact of Student Debt on
the Daily Lives of Young Americans."www.asa.org, $alt 2013 n. page
<http://www.asa.org/site/assets/files/3793/life_delayed.pdf>. Web. 2
Oct. 2016.
Elliott, William. "Student Loans: Are We Getting Our Money's Worth? The
Change Magazine of Higher Learning 46.4, 2014, 26-33. Academic

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Search Complete. Doi.10.1080/00091383.2014.925757 Web. 22 Sept.

2016.
Hoeve, Machteld, Geert Jan J. M. Stams, Marion Van Der Zouwen, Margaretha
Vergeer, Kitty Jurrius, and Jessica J. Asscher. "A Systematic Review of
Financial Debt in Adolescents and Young Adults: Prevalence, Correlates
and Associations with Crime." PLoS ONE, 9.8 2014, 1-17, Academic
Search Complete. Doi 10.1371/journal.pone.0104909. Web. 2 Oct.
2016.
Houle, Jason N. "Disparities in Debt: Parents." Sociology of Education 87.1,
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10.1177/0038040713512213. 6 Sept. 2016.
Larson, A. "The Case for Debt Resistance." New Labor Forum 23.2, 2014, 5056. Academic Search Complete .Doi 10.1177/1095796014526703.
Web. 2 Oct. 2016
Quadlin, Natasha Yurk, and Daniel Rudel. "Responsibility or Liability? Student
Loan Debt and Time Use in College." Social Forces 94.2, 2015, 589614. Academic Search Complete. Doi10.1093/sf/sov053. Web. 28 Sept.
2016.
Ross, A. "Mortgaging the Future: Student Debt in the Age of Austerity."
Higher Education in Crisis? 22.1, Jan2013, 23-28. Academic Search
Complete Doi10.1177/1095796012471638. Web. 2 Oct. 2016.

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Yi, Alexander. "REFORMING THE STUDENT DEBT MARKET: INCOME RELATED

REPAYMENT PLANS OR RISKBASED LOANS?" REFORMING THE
STUDENT DEBT MARKET 21.3, 2014, 51146. Academic Search
Complete. Web. 08 Sept. 2014.