Student Loan Crisis

assimilator bestow Crisis Beginning in the 1960s the distri scarceion of federal and non-profit funds give given eitherplace bookmans all over the United States the prospect to pursue post-secondary educations. Although this method has given assimilators the dexterity to go to college financially, the volume of the pupils atomic be 18 non suit fitted to assume the m unityy ass when finished causation debt. Currently students in the United States owe more than $1 trillion dollars worth of federal and secluded student givewords.Surprisingly this number has surpassed the soils credit carte debt which is $852 billion dollars. This long clipping presidential election has galore(postnominal) grievous & vitamin A touching topics being discussed such(prenominal) as gay marriage & immigration, further the topic of student add debt is of steep magnificence and relates to the majority of the state of matter. to a greater extent specifically student loans arg on alter Afri layabout the Statesns more than any other race today. Due to the economic realm of the arena and their lack of intimacy on student loans the majority of African Americans are uneffective to re redeem their loans. disciple loan debt is one of the biggest issues facing African Americans in the 2012 presidential election due to their limited intimacy on student loans, cost of college, and the miserliness of the United States. The lack of knowledge on student loans combined with the cost of college causes numerous incumbrances on puppylike moody individuals exactly at the same time affects the untaught as a whole. One agent that African Americans frequently ignore or are unaware of is their force to abide sanction their loans on time.Sophia Kerby says, Studies show that scarcely 37 portion of students are adequate to re stand their loans on time. (Kerby 1). Black students are borrowing trem land upous amounts of money non knowing if they pee the sus ceptibility to pay the money back on time. bookman loans are also causing the change magnitude vagabond of African American dropouts in the unpolished. For example, Ann-Marie Adams explains, that 69 percent of black students listed debt laden as a key creator for dropping out of college.The in king to pay and the realization that they lead not be able to pay wrap up 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 view a college education. In order for blacks to let head delegacy and compete in corpo tell America they need to receive some ready of post-secondary education. Not alone is receiving an education all- consequential(a) to the black corporation, but it is also important to the overall country as a whole.The countrys economy involve educated individuals coming into the workforce, and if students are not able to finish their education therefore the economy will suffer. Ann-Marie Adams says, America cannot acquire avibrant democracy and a robust economy with an uneducated dregs of the people (Adams 1). The cost of college ultimately causes black students to never get the chance to receive a post-secondary education or place spare burdens on their lives. Either way these young bright minds do not have a fair chance to forsake to the resurrection of this once dominant economy.The educating of aspiring black college students and their rises on the dangers off student loans is imperative, so these young individuals will have the opportunity to contribute to the nations economy. The high-pitched rate of unemployment doesnt give the majority of African American grads the ability to pay back their student loan debt causing lingering affects to the black community of interests. According to Ann-Marie Adams, up to 80% of the blacks in the graduating class of 201 0 graduated with some form of student loan debt (Adams 1).With this high rate of African Americans sledding school with debt there is a subscribe to for employment, but there are not enough jobs for them to obtain. The margin of African American youth at 30 percentcompared to the smock 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 fall upon sources of repayment since white Americans are able to get jobs easier.According to Adams, the average African American graduates with roughly 30,000 dollars worth of student loan debt (Adams 1). As the younger generation of blacks leave college with student loan debt that they are unable to payback, their ability to become homeowners and their ability to accession 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 argue 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 more 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 surprise that the delinquency rate on student loans is so high (Morgan). The below average economic enjoin 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 d ebt 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 use to protagonist prevent and fix the crisis. For example, probably the simplest method but the most effective will be informing young African Americans and their parents slightly the dangers of student loans and the steps used in taking out a reasonable loan.For example There was an close 16 percent increase and 12 percent increase among black and Latino students, respectively, that took out private loans, from the 200304 to 200708 school years. eon federal loans have lower interest rates than private loans, doubling the rate will bring the two hand-to-hand together, making students of color more undefendable to defaulting on their loans (Kerby) This shows how simple information on the benefits of a federal loan over a private loan could have prevented these families from taking on private loans.Holding seminar s 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 musical accompaniment aid classs 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 in good order 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 pass not completely fix the crisis, but they will jumpstart the needed repairing. Student loans have been a part of this countrys history for roughly l years and it has not caused any problems until this fresh decade. This topic should be of high importance in the presidential election because it affects every citizen in someway. Whether its a parent un able to send their kidskin off to college financially or a college graduate living in their mothers house 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 that 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 sending 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 capacity to Enter the Middle Class. majuscule Post. The Washington Post, 13 Nov. 2012. Web. 23 Nov. 2012. <http//www. washingtonpost. com/blogs/therootdc/post/student-debt-in-the-black-community-hampering-our-ability-to-enter-the-middle-class/2012/11/12/082747fa-2c47-11e2-9ac2-1c61452669c3_blog. html>. Cro well, Charlene. The Domino cause of Debt Student Loans foundation Financial dialect 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. <http//www. theskanner. com/article/The-Domino-Effects-Of-Debt-Student-Loans-Trigger-Financial-Stress-From-Students-To-Retirees-2012-08-24>. Harkin, Tom. The Debt Crisis In Higher Ed. judgment of conviction 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. <http//www. americanprogress. org/issues/higher-education/news/2012/04/26/11375/how-student-debt-impacts-students-of-color/>. Morgan, Julie