Student Loan debt is hurting all of us
By Tenny Azam
According to recent statistics, there is over 1.4 trillion dollars in student debt which is spread among 44 million borrowers. This is $650 million more than all the credit card debt in America.When a student graduates from a 4 year school they have an average of $35,172 in student loans. They look for jobs but for today’s corporate sector, every employer wants an experienced candidate instead of a fresh graduate.
The starting pay in many jobs is somewhere between 25 to 35k per year which doesn’t even cover the basic living let alone student loan debt. Getting paid at a lower wage leaves students no money to invest in themselves like 401K. Young workers are so concerned in getting their ends meet that these student loans take the back bench and they keep on getting interest. There is a point in time those debts add up to be around 50- 60K and sometimes even more. That is more than what they are bringing back.
The students who come from wealthier backgrounds usually don’t have to either pay their student loans or their parents help them with it. They have that cushion which helps them in settling in life soon. If we take example of two students (A and B) who went to the same school but had totally different financial positions. One student (A) had to take loans whereas the other student had the financial backing (B). When they both enter the corporate world, Student A is unable to save because of the tremendous amounts of debt that he had because of student loans – but student B can buy a house start a family and start saving up for their child’s college education. This makes the rich richer and the poor poorer.
Student A will always have to struggle because s/he came from a middle class family who couldn’t afford their education. That student might be better qualified, more talented, or more intelligent, but the burden of loans will make it harder for him to reach where he needs to be. Everyone deserves to live nicely if they are working hard for it.
Education is the basic right for any human and should be free of cost. Anyone who is hardworking shouldn’t have to have a strong financial backing to succeed in life.