Kristin Nicholson
Tuition for college students is
undoubtedly expensive and is still on the rise. After graduation, students are
not only left with the woes of finding a promising job/career; they are also
left with the financial burden on student loans. More and more people are taking out
government-backed student loans every year.
The amounts of people that have defaulted at least 12 months behind are
also growing. According to the article, an estimated 5.9 million people
nationwide are behind in their payments. Martin explained how nearly one in
every six borrowers with a loan balance is in default totaling around $76
billion. Students from New York University led a protest, objecting their growing
debt while attending college. While students are left to pay their student
debts, the Department of Education and debt collection agencies are extensively
profiting. A former student in the article explained how she has changed her
phone number four times in order to avoid embarrassing and harassing phone
calls from debt collection agencies. The
government will do anything in order to get the money owed to them. Actions
such as wage garnishing and seizing tax refund checks are just a few off the
ways. With a debt recovery rate of nearly 80 percent, it is no mystery why the government
doesn’t offer more credit counseling and debt prevention. Student loans unquestionably
make up a fair amount of the government’s revenue. Ashton suggested how student
loans might be a “new oil well” for the accounts receivable management industry.
In today’s society, a bachelor’s degree is needed at the least to move toward
social mobility. Expensive tuition and escalating student loans are factors
that are making the move even harder.
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