Perez 1 David Perez John Kubler English 114A 29 October 2013 Student Loan Crisis: Something Every Student

May Go Through and Its Options Today there are many concerns about the Student Loan Crisis. Its such a big deal in the United States mostly because there are hundreds of post graduate students participating in it, and it isnt a very good concept to be in. The United States is almost over $1 Trillion dollars in debt, just in student loans. Why is it that there are thousands of graduates suffering from such a debt only because they are striving for education and a career? What will become of this crisis and what are we doing to fix it? Brian Holmes writes an article called, Silence=Debt, on how the Student Loan crisis, or debt is becoming a monster. The debt is threatening the aspect of the American Economy. So much debt is going into the federal government accumulating the national debt and so many college graduates are suffering from their own debt only because they werent really warned or educated when taking in such an outstanding loan. These students were willing to do anything just to get an education, and now they are suffering through it. The Article also says that slowly, the student loans have evolved to the point where its almost impossible to repay these student loans, even forgiving them. Holmes writes about the title of the article on how its something like a slogan, where there have been similar cases, such as the ACT-UP slogan, where, even though the topics of the slogans are different, the feeling of not being able to do anything about it still apply. Holmes writes, If such a slogan returns today, its because a deeply disquieting sense of existential threat cannot be felt [and] that long term sense of threat has [now] crystallized into the pragmatic reality of unplayable debt. The main part of the article is that something that terrible

Perez 2 should come to an end. The time has come to refuse the debt loan. So many students are suffering through this crisis, only to get an education. One of the great things Holmes brings up in his article is that, Education is not a commodity and it should not be a vehicle for generation debt, or profit for banks. That main point brought up the concept of certain believes that I for one believe in. Holmes writes that student loans should at least be interest free, collages should open their eyes and see what the students are going through and that the current student debt loan should be written off. In a way, these could be the essential ingredients to make life easier, not only to the students, but for the United States itself, because it could aid in fixing the economy. Should student loans be forgiven completely? Some have come across the idea, and some have decided its a horrible idea. Richard Vedder has written an article naming it, Forgive Student Loans? Its the Second-Worst Idea Ever. Clearly his opinion is stated within the title and his reasoning is that its going to bring forth more problems. Vedder writes that forgiving the student loan debt would be a horrible idea because it will dangerously swell the National Debt. Who will take in the bills after they have been forgiven, and if they are forgiven, what is the example that is being set to the college students? We are paying the debt off hundreds of college students, but what about the ones who completely paid their debt? Will we repay them? The point of the article is that its such a horrible idea that it will just bring more problems. Vadder uses 5 points to back up his argument saying that there are my sins to the loan program. He was able to bring the consequences of the loans, on how it was able to affect the housing bubble, and it caused the 2008 financial crisis, and how the FAFSA was made up revealing family incomes and decriminating between those who have money and those who dont. In general, the article states that, the whole loan crisis has been a horrible idea from the beginning, and look at where we are now. In my opinion, Vedder is right, the loan crisis, shouldnt be completely dismissed, I think

Perez 3 people should pay for their loans, because thats what they signed up for, but in a comfortable way, where they arent struggling to survive in the real world and still have money for themselves. Tim Donovan writes an Article on how, Student Debt Should be treated like Detroits. Detroit has gained the title of becoming the largest municipal in American history to declare bankruptcy. When bankruptcy is declared, the debt the individual has, is practically forgiven, depends how harsh the debt is. The main point in Donovans article is that if Detroit can do it, why cant the students? Donovans main points brought up the past, where back then, students were actually able to declare bankruptcy and relieve all debt, including their student debt. This was back before the Regan Revolution. Since then, the idea of bankruptcy has changed. Now a days, students can declare bankruptcy, but they could not relieve themselves of their student debt. Donovans justifications towards his argument are if multimillion dysfunctional corporations can declare bankruptcy and get their debt forgiven, why cant students? This level unfairness has rendered students to limit themselves in life. Students are, forced to reconsider their majors, find cheaper schools, or survive solely on private scholarships, Pell grants and paychecks, consequently serving the same punishment compared to those who did take in loans, especially when finding jobs after graduation. In my opinion, I think Donovan, has a point, why is it that these students are going through so much just to get an education? Something should at least be done to aid in the situation. In a way, there may be a solution to this Student Loan Crisis. An article posted in the White House cite named, Ensuring That Student Loans are Affordable, starts off with a quote or proposal, spoken by the President of the United States, Barrack Obama, saying how students will be given the opportunity to easily pay off their student loans. The article states that, in order for Americans to afford their student loan payments, the Health Care and Education Reconciliation Act gives student borrowers new choices in how they [can] repay their loans. The Act may apply

Perez 4 to those students that are enrolling in 2014 or later. Opportunities are given to students, where Students can limit their payments to 10% of their income, or could be forgiven of their debt after 20 years of debt or in 10 years for those in public service. There are more to these opportunities than aid, the Act, proposed by the Obama-Biden Administration, is able to make college education more affordable, its able to make the FAFSA application much easier, its going to be able to double funding for Pell scholarships and so much more. With this attempting to get approved, the nation, in my opinion can be saved from the brutal student loan crisis, education levels can rise in the United States, and the national debt crisis could be reduced. This opportunity, promised by Obama may be able to save thousands of students, and aid more and more students to enter and graduate college. The student loan crisis is a big threat to every student in the United States who wants to get a higher education in college. There are those who cannot afford it at all and are convinced that they have to take out loans in order to pay for an education. Getting into debt is something a student must do in order to pay for their education, the bad thing about it is that after these students graduate, they are probably going to be paying this loan for several long years, unaware that it can possibly ruin their lives. Yes, there is a solution, but its not an easy proposal, there are many people out there who oppose the idea and are in it just to get the money out of these poor students. Something absolutely has to be done to fix this crisis, and I hope that the proposal Obama has spoken comes to real life. The United States need happy, successful, educated people. Why should students go through hard times just to get an education? The best thing that can happen to aid this crisis is to level out the payments, and aid the students in debt to comfortably pay their debt. No one should have to get hurt, in any way.