Student Loan Debt: What Have I Gotten Myself Into?

Abstract
This study examined the effects that college debt has had on the graduated student population. A variety of research documents were examined including those that identified the problem, gave examples of the effects of students’ loan debt, and proposals on how to lessen the burden on graduates. The results showed that many students are having to settle for jobs out of field, put graduate school on hold, and adjust their living conditions in order to meet monthly loan payments. These results indicate that many graduates have to make lifestyle changes in order to meet their biggest expense: their student loan. However, a solution may lie with two bills that were introduced in the House to help alleviate the financial burden to graduates and to help eliminate the shortage of graduates in the public sector.

Findings

One would think that when a person graduates from college he or she is able to obtain a nice job, pay rent for an apartment, and be able to pursue graduate school if chosen. This would seem feasible due to the fact that college graduates have the ability to earn a million dollars more during their careers as opposed to high school graduates (Winter, 2003). However many graduates who majored in marketing, the arts, or humanities have to take non-skilled jobs just to be able to survive.
In order to explain post-graduation debt, one must first look at the college experience. College tuitions are on the rise, and grants, which once far exceeded loans are on the decline (Winter, 2003). Students have to take out student loans and borrow on credit cards just to pay for college (Kim, 2003). In fact, eighty-three percent of graduates have to make loan and credit card monthly payments, which were used to pay for college tuition (Kim, 2003). A survey on how much debt graduates owe found that fifty-four percent owe anywhere from $10,001 to $40,000 (Herring, 2003). 

Many college graduates are not only stressed out about personal debt, but they are having trouble finding a job with wages high enough to pay off their student loan debt.

Credit: US Navy

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