The Effect of Student Loans on the Economy

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The Effect of Student Loans on the Economy

Post by PrestonT on Mon Nov 02, 2015 9:20 pm

Student loans in today's society have been a growing problem. With so many high school graduates wanting to go to college to get an education, it is hard not to consider the fact that it is extremely expensive. A study taken by the Bureau of Labor Statistics states that 68.4 percent of high school graduates were enrolled in colleges or universities. This is about two million students who are more than likely taking some kind of student loan out in order to pay for their college expenses. Of these students, many of them will still be trying to pay these student loans back several years after they start their career. After seeing how expensive the choice is to go to college many decide not to go in order to save money but some choose to take the risk and take a student loan out and go to college. Either of these options can possibly lead to either a large amount of debt or a low paying job which could seriously affect the economy. As a student at UNM I decided to be a part of those that are taking out student loans and will soon see if it is able to pay off for me in the future. It is hard not to be worried about the expenses of school knowing that the expenses have to be paid, which makes several students ask themselves if it is worth it to go to college. Student loan debts can cause for several recent graduates to have debts for years, especially if they are unable to find a job right out of school which causes the economy to struggle.

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Re: The Effect of Student Loans on the Economy

Post by AdamMkIV on Wed Nov 04, 2015 10:26 am

My question is what specific numbers do you have that prove or show student loans effect the economy as dramatically as you say? Unpaid debt from our own citizens is not as large a scale as the $4.5 trillion that we spent over the course of 4 years on Iraq, following another $7 trillion for Afghanistan and the wars on terror/Libya and arming Syrian refugees.
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RE: The Effect of Student Loans on the Economy

Post by Danielle Fox Eng on Wed Nov 04, 2015 5:20 pm

The cost of tuition is so expensive because the demand is much higher for college education than the Universities are able to supply. According to an article called "How the Government is Making Your College Tuition More Expensive" states that "the demand for higher education is primarily explained by the promise of higher wages." This is causing more competition amongst Americans, therefor, influencing people to work hard for what they want. High school students have many opportunities to earn scholarships and apply for financial aid. If college institutions reduce the cost of tuition than state taxes will increase substantially.

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Re: The Effect of Student Loans on the Economy

Post by AdamMkIV on Thu Nov 05, 2015 12:07 pm

Danielle Fox Eng wrote:The cost of tuition is so expensive because the demand is much higher for college education than the Universities are able to supply. According to an article called "How the Government is Making Your College Tuition More Expensive" states that "the demand for higher education is primarily explained by the promise of higher wages." This is causing more competition amongst Americans, therefor, influencing people to work hard for what they want. High school students have many opportunities to earn scholarships and apply for financial aid. If college institutions reduce the cost of tuition than state taxes will increase substantially.

I am a little confused when you state that tuition reduction increases the tax amount in states. The majority of schools retain the money that is invested into them, regardless of who funds it. If anything, there would be no effect on the local and national economy from the school unless they had specific programs to give money to said local government. Remember, a majority of schools (example Grand canyon university, Yale, Harvard, UNM, University of Phoenix, Kaplan..ect) are for profit. Meaning that their entire intention is the collection of money without distributing it back out. Some of these schools in fact (university of phoenix specifically) have done terrible con schemes and stolen unnessesary amounts of money from veterans using their G.I. Bill. Yale is one of the few schools that does have a major influence in the city it is based in, New Haven Connecticut. For all intensive purposes, this school is a major part of the economy, in that it does contribute it's profits to help better the environment around the school.
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Re: The Effect of Student Loans on the Economy

Post by Alexandria Viszolay on Thu Nov 05, 2015 3:53 pm

I agree with your stance on this resolution - I believe that the massive expenses of college tuition stop many high school students from pursuing a University. On the other hand, students can refuse to attend University based on many other factors such as family support, academics, and personal independence. Solving the costs of colleges will only solve part of the problem but it is a good place to start! Very Happy

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Re: The Effect of Student Loans on the Economy

Post by Alexandria Viszolay on Thu Nov 05, 2015 3:53 pm

I agree with your stance on this resolution - I believe that the massive expenses of college tuition stop many high school students from pursuing a University. On the other hand, students can refuse to attend University based on many other factors such as family support, academics, and personal independence. Solving the costs of colleges will only solve part of the problem but it is a good place to start! Very Happy

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Re: The Effect of Student Loans on the Economy

Post by nrombock on Thu Nov 05, 2015 8:05 pm

It is true that high student loans are a problem for many high school graduates. If you get in debt while college that could cause trouble for them. However studiing is not the only way to get a well paid job. There are lots of other opportunities out there, which are not based on college education. So you can also get a specific job education for crafting bussiness (I hope these are the right words for that). On the other hand I can not see a problem for the economy right away. If the students don't get their jobs there are usually better choices, and the bussiness is fine. They would usually get employed if there are no better workers available and they have at least a college graduation. The economy should not struggle right away if the students don't get a job, what means that there are no jobs available and the economy is satisfied in a broader sense.

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