Outstanding Student Loan Balances
Outstanding student loan balances stood at $1.31 trillion as of December 31, 2016, according to Report of Federal Reserve Bank of New York (Scally 1).
The Increase in Student Debt
This shocking number is the result of significantly increasing the cost of higher education, which makes students take larger student loans. The increase in student debt is a problem because it is practically dragging the economy behind. The loan debts of students have over time skyrocketed and have had lasting effects on the lives of students. These debts have registered significant delays in the lives of students, and some have been forced to get jobs outside of their field of specification. Additionally, students who default from college influence the financial state of the country since they are most likely to default their loans (Stiglitz).
Arguments for Lower College Costs
Hence, many people claim that college costs should be lower to minimize the negative effect from borrowing big student loans. However, some people consider that high tuitions are required, because universities need money to maintain a high quality of the service they offer - education. Colleges ought to help students understand better the amount of debt they are taking in by clearly distinguishing between the loans and financial aids. The college tuition in the United States of America should be lowered for three reasons: to allow more people to attend college, to minimize student debt, and to improve student’s life (Callender, and Mason 23). The incomprehensible student loan size is an issue that should be given core attention, failure to which it will reckon a serious crisis.
Background
Prior the 20th century in the United States of America, a college degree was not of importance as it is today college graduates were classified in the minority group. For instance, in the 1940s, the number of college graduates in America was 186,500 which was only 5% of adults, and of that amount, most of them were men. However, today, a degree seems compulsory, and most careers make it essential. The need for college degrees became important and less affordable. For instance, research records show that the fee for Yale University, in 1940 amounted to $450, the same degree in Yale had inflated to $7200 in 2013. 1950 recorded a triple increase of graduates which was as a result of the passing of "Servicemen's Readjustment Act of 1944" which allowed veterans of the 2nd World war to attend colleges with the use of federal benefits. The first federal loan was established in the same year alongside grant programs under the "National Defense Education Act." In the last decade, the situation has worsened with the rising costs of college education suppressing the general cost of living in America (Craig, and Raisanen 661-668). In simple terms, student loans were introduced to cover the large costs of college education but have turned the future bleak for students. College tuition fee in the United States of America should be ultimately reduced for several reasons as outlined below.
To Increase the Number of Students Attending College
Despite the fact that student numbers have relentlessly increased even with the huge fee, massive changes are likely to be witnessed if the fee is reduced. This is because students in the US have shown the huge demand for higher education. High tuition fees have closed doors for the poor and less privileged in the society, many poor students in the US have been forced to choose courses that they can afford, but not the courses they aspire to take, barring them from reaching their full potentials and attaining good career opportunities (Stiglitz). With a decrease in the cost of tuition fees, the number of students with degrees would automatically go up. An increase in the number of graduates is likely to register many advantages to the state. For instance, graduates are usually less reliant on the government programs and assistance. Graduates outperform their peers in many aspects of life, for example, graduates volunteer to the charity and general development projects of the society, unlike their peers.
Decreasing Student Debt
Student debt decrease is yet another aspect that should be considered by policymakers in the United States in the quest of preventing the possible crisis in the sector of higher education. Debt decrease will undoubtedly lead to financial responsibility and provide diverse Career options for students. Research records show that student debts have continued to pile up over the past decade as borrowing by students has picked up the steam. Economic pressure, therefore, continues to grow rapidly (Cooke et al. 53-61). It has been established that high student debts have had numerous impacts on the economy and general well-being of the society. For instance, these debts stifle spending in the sense that, many borrowers are forced by their circumstances to spend less, this, in a way, cripples the economy. (Minsky 34-53). Moreover, student debts slow down the housing market since borrowers are held back from buying homes and businesses which to a great extent slows down the general economy of the US. Therefore, the government is called upon to create policies on the decrease of debts for students. The State ought to reduce the need to borrow by reducing the tuition fee. The skyrocketing debts for students have reached optimal levels and should be reduced if there is to be a future for students. The only ways that the debts can be decreased is by lowering the costs of college fees and improving the rates of graduates. Colleges need to look for critical and innovative ways to decrease the cost of college education (Callender, and Mason 38). Several colleges have already invented such ideas as online studies in their main curricula. Cost of materials should be lowered too, despite the fact that learning materials do not amount to great costs, they should not be overlooked. Improving the amounts of graduates, on the other side, insists on the need of having students completing their college studies. Enabling many students to graduate would help both the students and improve finances of colleges. It is important to address the high costs of college debts by helping students graduate who in turn, will alleviate the student's debt crisis (Craig, and Raisanen 673). However, it is a plan that cannot work overnight but calls for dedication and serious work across the whole eco-system of college education.
Improving Students' Life and Psychological Health
Improving students' life in the aspect of family life (marriage and children) and psychological health (depression and anxiety) is yet another reason why tuition fees should be reduced. Research records have it that many men and women labored with student debts are likely to postpone marriage and child-bearing (Bailey et al. 174-178). These debts have been said to change how students approach life as many choose to remain single until they have settled the loans. Graduates, therefore, end up saving for the loans, but not for families or children as others find themselves stuck and confused to extends that lead to psychological problems (Hemelt, and Marcotte 435-440). The financial strain has measurable mental effects; research has found out that students with greater strain financially due to loans and debts have more stress and anxiety which leads to ill-health. There has been established a strong link between student loan debts and the psychological function.
Counterargument and Rebuttal
Cases against college fee reduction have come up sometimes in the history of college education in America. It has been claimed that reduction of tuition fee is not the answer to the huge debt since fee-reduction would primarily benefit students from rich families who can afford to pay the fee (Archibald, and Feldman 5-13). Again, lowering the college fee will lead to low-quality education since the professor's payments will be automatically altered with which may force them to quit lecturing. In the absence of motivation in the aspect of salary, professors are likely to decline the quality of their lessons. Moreover, quality services that are maintained in many colleges are likely to be altered by the reduction of college fee, which is used for maintenance of services and facilities in the colleges. On the other side, fee reduction will have a low impact on low-income and moderate-income students (Collinge 37-56). Lowered net prices would only reduce the need for students to borrow from colleges but the federal loan will remain intact. In simple terms, the argument is that even zero tuition fee would never do away with the need for loans since students will keep facing financial constraints including room and boarding expenses. However, I tend to think that a considerable deduction of college fee will be beneficial in the aspect of increasing the number of graduates and enhancing the economy (Furlong, and Cartmel 34-40). Prudently, the government ought to set policies that offer reasonable prices that are manageable for the students, professors, government, and the college. Outside donations and an increase in the tax are yet other possible solutions that could be brought in to cater for the increasing loads of debts and enhance the reduction of college fee in general.
In Conclusion
In conclusion, the reduction of college fee is a policy that the US should take in because it has coupled intensive pressure on the students and the economy of the country. College tuition fees in the United States of America should be lowered for three reasons: to allow more people to attend college, to minimize student debt, and to improve students' lives.
Works cited
Archibald, Robert B, and David Henry Feldman. Why Does College Cost So Much?. Oxford University Press, 2014, pp. 1-16.
Bailey, Thomas R et al. Redesigning America's Community Colleges. Harvard University Press, 2015, pp. 174-178.
Callender, Claire, and Geoff Mason. "Does Student Loan Debt Deter Higher Education Participation? New Evidence From England". The ANNALS Of The American Academy Of Political And Social Science, vol 671, no. 1, 2017, pp. 20-48. SAGE Publications, doi:10.1177/0002716217696041. Accessed 15 Mar 2018.
Collinge, Alan. The Student Loan Scam. Beacon Press, 2009, pp. 30-68.
Cooke, Richard et al. "Student Debt And Its Relation To Student Mental Health." Journal Of Further And Higher Education, vol 28, no. 1, 2004, pp. 53-66. Informa UK Limited, doi:10.1080/0309877032000161814. Accessed 15 Mar 2018.
Craig, J. Dean, and Samuel R. Raisanen. "Institutional Determinants Of American Undergraduate Student Debt." Journal Of Higher Education Policy And Management, vol 36, no. 6, 2014, pp. 661-673. Informa UK Limited, doi:10.1080/1360080x.2014.957892. Accessed 15 Mar 2018.
Furlong, Andy, and Fred Cartmel. Higher Education And Social Justice. Mcgraw-Hill International (UK) Ltd., 2009, pp. 35-40.
Hemelt, Steven W., and Dave E. Marcotte. "The Impact Of Tuition Increases On Enrollment At Public Colleges And Universities." Educational Evaluation And Policy Analysis, vol 33, no. 4, 2011, pp. 435-457. American Educational Research Association (AERA), doi:10.3102/0162373711415261. Accessed 15 Mar 2018.
Minsky, Adam. Student Loan Debt 101. Createspace Independent Pub, 2014, pp. 2-54.
Stiglitz, Joseph. "Student Debt And The Crushing Of The American Dream." Opinionator, 2013, https://opinionator.blogs.nytimes.com/2013/05/12/student-debt-and-the-crushing-of-the-american-dream/. Accessed 15 Mar 2018.
