The Problem of Student Debt after College Graduation in the United States

A few decades ago, there were not many people who could get higher education in college. The United States is one of the largest immigrant groups in the world. Most first generations did not get the chance to go to college, so they put all their hopes on their children. In a way, a college degree was hope of better future for them, and they were willing to invest. Indeed, going to college is one of the most important steps people should take in life, because it gives students knowledge, network, and a pathway to success.

However, student debt is hurting college students after they graduate. There is a serious problem with students being in too much debt after they graduate college because it can set them back on the future goals in life, loans and interest rates are extremely high, and students will end up having bad credit.

First, student being in too much debt after they graduate will set them back on the future goals in life.

Graduating students are already struggling as it is to survive. When a huge loan is thrown into the mix, it can be detrimental causing them to struggle even further. People are unable to pursue their dreams of getting married to their loved one, buying their dream home, or getting the car they have always wanted. The student’s life will constantly be at a pause due to the fact that they are in debt. They will struggle to pay the loan and in the end the interest rate will increase immensely.

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In the end, the loans will eventually never be fully paid. Students across the country are trapped by their debts and often unable to take advantage of the freedom that a college degree should theoretically afford them. As Nicole Allen states in the book, “Here’s your Crisis: Student Loan Debt Isn’t a Myth,” “Finally, the cost of college prevents many low-income Americans from even seeking a higher eduation” (588). For example, a student may have to give up their dream of going to culinary school, and at this point, the student can definitely cross off the idea of renting their own apartment. The student had to give up their dream school because of how much debt they are in. As a result, they will not be able to purchase their own apartment.

Secondly, loans and interest rates are extremely high. It is known in this time that graduates from college are bombarded with such high debt. There are some students who choose to just focus on their studies. They feel that they should not work because it will probably get in the way of their studies. However, the decision to not working will then haunt them. They will be forced to repay the loans with an additional high interest rate six months after graduation. Sadly, some students find it difficult to repay these loans because they cannot find a job after graduation. As Nicole Allen states in the book, “Here’s your Crisis: Student Loan Debt Isn’t a Myth” “Because of the weak job market, borrows are struggling more and more to keep up with payments” (587). For example, a college student may avoid finishing college due to the high cost of their debt. Some students try to even file for bankruptcy. However, they do not realize that even if they file, the school loans will not be included in the filing. This will then put the student in a massive predicament.

Lastly, students will end up having bad credit. The level of a student’s debt has the hugest impact on a person’s credit score. A person having bad credit can make life extremely difficult from getting a job to getting a place to live. Creditors and lenders see applicants with bad credit as riskier than applicants with better credit scores. They make a person pay for this risk by charging them a higher interest rate. Over time, a student ends up paying more in interest than any student would if they have better credit and a better interest rate. The cost is higher with big credit card balances or major loans. If creditors and lenders think a person has bad credit, they might not want to lend at all. With bad credit, a student may find that their applications are being denied. Several of landlords, phone companies, and car companies check to see if a student’s credit’s score is excellent or not. If it is not good, then they will deny a person right away. For example, before a student can buy a house, mortgage lenders want to know that they will not default on their mortgage. If a student does not have good credit, the lender will consider it risky to give them a mortgage loan. Bad credit could mean a higher mortgage payment. Worse than that, a student’s mortgage application could be turned down because of their bad credit. The opponents believe college students were given the choice to attend a college and withhold the responsibility attached. They knew what was coming for them. Opponents believe that knowledge will come with a price, and every college student should be responsible to pay what they owe. In that case, students should be advised correctly on the expenses of college. They should be more aware on how loans can be a good or bad idea.

Given these points, there is a serious problem with students being in too much debt after they graduate college because it can set them back on the future goals in life, loans and interest rates are extremely high, and students will end up having bad credit. Students should be taught from a young age on the pros and cons of loans. They should be smarter on how to handle their expenses for college. Being in debt can ruin a student’s life forever. This is why students should constantly research on loans. They should always meet with their advisers and ask for advice. Research can avoid a student being in debt. It is always good to know information on loans.