Student Loan Crisis

Student Loan Crisis Beginning in the 1960s the dispersion of federal and non-profit funds allow given disciples all over the United States the opportunity to pursue post-secondary preparations. Although this method has given assimilators the powerfulness to go to college financially, the majority of the educatees ar not able to pay the money back when finished causing debt. Currently students in the United States owe more than $1 trillion dollars charge of federal and private student loans.Surprisingly this minute has surpassed the countrys credit card debt which is $852 billion dollars. This years presidential election has many serious & matter to topics being discussed such as gay marriage & immigration, but the topic of student loan debt is of high importance and relates to the majority of the country. More specifically student loans be affecting African the Statesns more than any other race today. Due to the economic state of the country and their lack of familiarity on student loans the majority of African Americans are unable to repay their loans.Student loan debt is one of the biggest issues facing African Americans in the 2012 presidential election due to their limited knowledge on student loans, cost of college, and the economy of the United States. The lack of knowledge on student loans combined with the cost of college causes numerous burdens on young forbidding individuals but at the same time affects the country as a whole. One factor that African Americans frequently ignore or are unsuspecting of is their efficiency to pay back their loans on time.Sophia Kerby says, Studies show that only 37 percent of students are able to repay their loans on time. (Kerby 1). dour students are borrow tremendous amounts of money not knowing if they have the ability to pay the money back on time. Student loans are also causing the plus rate of African American dropouts in the country. For example, Ann-Marie Adams explains, that 69 percent of na sty students listed debt loads as a key fountain for dropping out of college.The inability to pay and the realization that they ordain not be able to pay off their loans causes them to end their academic pursuits. This is astonishing because according to Adams 60% of jobs in America require a college education, and due to their enormous student loans they will not get that chance to receive a college education. In order for blacks to succeed and struggle in corporate America they need to receive some hold of post-secondary education. Not only is receiving an education alpha to the black community, but it is also important to the overall country as a whole.The countrys economy needs educated individuals coming into the workforce, and if students are not able to finish their education then(prenominal) the economy will suffer. Ann-Marie Adams says, America cannot have avibrant democracy and a robust economy with an uneducated populace (Adams 1). The cost of college in conclusio n causes black students to never get the chance to receive a post-secondary education or place unnecessary burdens on their lives. Either way these young intellectual minds do not have a fair chance to contribute to the resurrection of this once dominant economy.The educating of aspiring black college students and their parents on the dangers off student loans is imperative, so these young individuals will have the opportunity to contribute to the nations economy. The high rate of unemployment doesnt give the majority of African American graduates the ability to pay back their student loan debt causing lingering affects to the black community. According to Ann-Marie Adams, up to 80% of the blacks in the graduating class of 2010 graduated with some form of student loan debt (Adams 1).With this high rate of African Americans leaving school with debt there is a demand for employment, but there are not complete jobs for them to obtain. The margin of African American youth at 30 percen tcompared to the white youth unemployment rate of 16 percent shows that African American graduates have a distinct financial burden (Kerby 1). The youth unemployment rate for African Americans is almost doubled compared to the youth unemployment rate for white Americans. This makes it that much more harder for black Americans to find sources of repayment since white Americans are able to get jobs easier.According to Adams, the average African American graduates with near 30,000 dollars worth of student loan debt (Adams 1). As the jr. generation of blacks leave college with student loan debt that they are unable to payback, their ability to become homeowners and their ability to increase their wealth has diminished. Charlene Crowell explains, The domino effect of debt begins with a student loan and then delays the ability to qualify for a mortgagethe ability to gain wealth is limited if not stymied. The domino effect is the main reason he majority of the black community is unable to reach the middle class. A college graduate in debt and not having the ability to pay their loans off in time because no jobs are available is the scenario for many blacks causing them to experience poverty. Julie Margetta Morgan says, With high unemployment and underemployment and so few options for dealing with debt, it should come as no storm that the delinquency rate on student loans is so high (Morgan). The below average economic state of the United States doesnt give African Americans the ability to successfully pay their debt back on time.Student loans are not only a detriment to African Americans individually, but they are affecting the economy as well. Like preciously stated, student loan debt is preventing African Americans from finishing college and being able to be an educated contributor to the countrys workforce. There are many methods that can be used to help prevent and fix the crisis. For example, probably the simplest method but the most effective will be interco mmunicate young African Americans and their parents about the dangers of student loans and the steps used in taking out a reasonable loan.For example There was an approximate 16 percent increase and 12 percent increase among black and Hispanic students, respectively, that took out private loans, from the 200304 to 200708 school years. While federal loans have lower interest rates than private loans, doubling the rate will bring the two closer together, making students of color more vulnerable to defaulting on their loans (Kerby) This shows how simple reading on the benefits of a federal loan over a private loan could have prevented these families from taking on private loans.Holding seminars and presentations for high school students & parents would increase their knowledge resulting in better judgment. Another way of helping the African American community with the student loan crisis is consistently funding aid programs for the low-income students. Kerby states, Students who will lose eligibility or be cut from the Pell Grant programwill likely turn to loans to make up the difference (Kerby 1). If these programs are funded properly then this will decrease African Americans need for student loans and ultimately decreasing the average student loan debt post-graduation.These two solutions will of tune not completely fix the crisis, but they will jumpstart the needed repairing. Student loans have been a part of this countrys history for roughly fifty years and it has not caused any problems until this recent decade. This topic should be of high importance in the presidential election because it affects every citizen in someway. Whether its a parent unable to send their child off to college financially or a college graduate living in their mothers phratry with $20,000 worth of debt, it affects us all.The country needs to hear the truth and the facts about this crisis because this debt will keep increasing unless the individuals at risk are informed. The fact th at this is the number one form of debt in our country today surpassing credit card debt is shocking. Every student planning to go to college or parent displace their child off to college should know the basics of student loans because one small signature can ruin the rest of their lives. Works Cited Adams, Ann-Marie. Student Debt in the Black Community Hampering Our Ability to Enter the Middle Class. Washington Post. The Washington Post, 13 Nov. 2012. Web. 23 Nov. 2012. . Crowell, Charlene. The half mask Effects of Debt Student Loans Trigger Financial Stress from Students To Retirees. The Domino Effects of Debt Student Loans Trigger Financial Stress from Students To Retirees. N. p. , 24 Aug. 2012. Web. 26 Nov. 012. . Harkin, Tom. The Debt Crisis In Higher Ed. Time 180. 18 (2012) 44-51. Print. Kerby, Sophia. How Student Debt Impacts Students of Color. Center for American Progress. N. p. , 26 Apr. 2012. Web. 26 Nov. 2012. . Morgan, Julie