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Draft 1
STUDENT DEBT CRISIS 2
Abstract
Years after college, student loans still haunt the lives of millions of students all over the United
States. Students who took out loans to pay for tuition are now burdened with thousands of dollars
worth of debt. As the student debt average continues to increase in our nation, the problem is
widened in states and cities as well. New York State is among the top 10 states with high college
debt. A study was conducted by surveying college students in New York State to analyze how
they feel about the current college tuition and high debt situation. Millennials are currently
struggling to survive in this economy and the loans from college are making sure that these
individuals do not receive a chance to improve their standard of living. From millennials to
current college students, a great deal of this demographic is having difficulties paying tuition for
education. To move forward without the burden of student debt, authorities would have to erase
the debt and dismantle the current system. This will allow them to create an educational system
that sides with students trying to receive an education, not as a means for school officials to
make money.
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In the United States, college and higher education are becoming increasingly necessary to
guarantee an idealized standard of living. As the cost of education is on the rise, going to college
now means going in debt for many individuals. Most students follow the usual steps to pay for
college, which consists of applying for grants from the government, private organizations, and/or
organizations from the colleges themselves. There are also loans provided by private institutions
and government-based organizations. Going beyond the usual options to pay for college, some
students get stuck into paying expensive tuition with their credit cards. In the long run, most
students end up with more burdens than they did before starting school due to costly college
tuition.
Shift the conversation about student debt from one that assumes student loans are a useful
tool for improving an individual’s financial prospects in the future to one that acknowledges that
this ideology just correlates wealth to education. Going off on this concept, it can be understood
how one might refer to college as an investment, but there are a lot more factors to consider
before reaching this stance. Students as young as seventeen years old feel compelled to take
loans of thousands of dollars before they even decide what they want to major in. Furthermore,
they are sucked into making a tremendous investment in one institution which determines their
future. These students are put under the same pressure as someone who received many more
years of experience before making an investment that holds such weight. The government
assumed that the student debt wouldn't be a problem because the students are expected to pay it
back in the future, but we’re seeing that is not the case. Contrary to what the loan was an
experiment on, most students feel that the student debt has impaired their progress to financial
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stability. Individuals shouldn't have to bear the burden of a failed experiment placed forth by the
According to the Consumer Financial Protection Bureau, student debt now ranks second
in the most debt owed next to a home mortgage. Americans are now faced with over 1 trillion
dollars in student debt, with the expectancy of this number increasing at a high rate. Most
colleges in New York expect students to pay over $20,000 on just tuition per year. Keeping that
in mind, even with the $15 minimum wage in New York, a full-time worker is expected to make
about only $25,000 a year. Just from these statistics alone, one can easily identify how the
numbers are not proportional. Owing money for education is a pressing issue that is overly
common in New York. According to a 2019 Student Loan Protection Center research of the U.S.
Department of Education, the total student loan debt in the Empire State is more than $90 billion.
To add to that, close to half of all millennials in New York are currently in student debt. Just as
One would suspect that since different failed programs and policies have made the
federal government the main reason behind the issue it’s up to the government to fix the
problem. It should be the responsibility of state and local officials to find ways to provide
education programs for students. Most of the rigorous research on what’s currently being done
about this problem just leads to the Public Service Loan Forgiveness (PSLF). PSLF is for
government employees with relatively low-paying careers like firefighting, military, nursing,
teaching, public interest law, etc. On top of that, one must make 10 years’ worth of payments
while working for the government before applying for tax-free forgiveness. According to the
Department of Education, less than 1% of borrowers who have applied this service have had
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their loans discharged. In the article, The Public Student Loan Forgiveness Rescue Hasn’t Gone
Well So Far, the author Ron Lieber(2018) describes in daunting details about the loan service in
the United States. Lieber expressed how the federal government had to set up another relief
program for the original relief program for the loans. He goes on to provide us with examples of
how the system is broken in this case. He successfully conveyed his message on how the relief
New York State provides Federal Direct Loans which are education loans from the U.S.
government. These loans are either subsidized or unsubsidized. A subsidized Stafford loan is
awarded based on financial need. One will not be charged with any interest before they begin
repayment which starts six months after the individual graduates. On the other hand, the
unsubsidized Stafford Loan is not based on financial need. This form of loan charges interest
from the time the loan is disbursed until it is paid in full. Outside of these known programs, the
Fortunately, the presidential candidates for 2020 have offered their insight on how to
demolish the student debt. Presidential candidate Bernie Sanders plans to erase the country’s
$1.6 trillion outstanding student loan tab. The $2.2 trillion plan would be paid for by a new tax
on financial transactions, including a 0.5 percent tax on stock transactions and a 0.1 percent tax
on bond sales. That would raise to $2.4 trillion over the next decade, according to the senator’s
office. Under Elizabeth Warren’s proposal, borrowers with household incomes less than
$100,000 would get $50,000 of their student debt forgiven. Other candidates have similar ideas,
Candidate Andrew Yang, however, has a different method to tackle this problem. He proposes to
start a minimum wage for all citizens over the age of 18 by giving them $1,000 monthly. Yang
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wants to tax big business corporations like Amazon and Netflix who paid no tax for the past year
and bring the money to the pockets of citizens and not in a pile for the government. The
minimum wage idea was well known by Abraham Lincoln and by activists like Martin Luther
King Jr. Although this solution isn’t directed to solve the debt crisis, it would act as a force to
Having seen that not much is being done about this crisis, a survey was conducted with
current college students in New York State to determine their experience paying tuition.
Information was logged in from students about their college finances. On top of that, several
questions to this demographic group about how they feel about this situation were asked. The
reason behind it was to determine if the high student debt affected anyone in any way or if they
Methods
A survey was conducted to determine how college students in New York State handle
paying for college and how they feel about such ways. It consisted of ten questions in the site
Google Forms around the student debt topic. The questions varied from asking the age of the
surveyee to how they feel about the current crisis on student debt. The survey started by asking
how much tuition is, how the student pays for it and went on to explore how they feel about the
college education program. The questions were sent out to colleagues who are college students
over the age of 17, to former high school classmates who attend school in New York State, and
from students in the City College library. After weeks of conducting this survey, there were 77
responses from students over the age of 17 that attend a college in New York State. One thing
that stayed in mind while the survey was to keep clear of making my questions or method of
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approaching biased in any way. This was successfully avoided by the survey randomly picking
people to answer the questions and by only asking relevant questions for my research.
Results
The survey was to get a clear view of how much college tuition was for students and how
much of it is being taken care of by the government. On top of that, the survey was dedicated to
understanding how college students feel towards this higher level of education and whether or
not they agree with the government's system. Most of the surveyees were either 18 or 19 years
old but the age limit went from 18 to older than 22. From my surveyees, 62.3% of those who
answered had to pay anywhere from $1-$10,000 per year for their college tuition. Also, take into
consideration that 26% of the overall surveyees receive nothing from Financial Aid. There was a
tie of 32.5% between agreeing and neutral feelings when asked about how the students felt about
a statement that discloses that college is worth attending in the United States. Most of the
students expressed why they felt that way following the previous statement. Students answered
by stating that most respected jobs require a degree so it’s sort of mandatory to attend college.
On the other hand, some believe that “there’s plenty you can do without a degree” - anonymous
answer from the survey. Going back, most of the students in the survey are attending college
because they believe a degree will help them receive access to a higher paying job. One of the
students even stated the “education system needs to be looked at and corrected” and that is a
The answers received for certain questions varied from person to person. One individual
noted that he/she feels that college is a foundation for the next part of their life and it is
something necessary for someone to grow into an adult. While that is, another person expressed
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how people are forced into paying an obscene amount of money to receive mediocre education
which has a high chance of not having a job for that person. Some of the students that sided with
not favoring the college education system mentioned other countries that provide free college
like Germany. One particular answer that stood out was someone expressing “It gives us a
degree, it doesn't prepare us for a career or how to get one. It places youth under debt and
constant stress”. Overall, most of the surveyees sympathized with their college acquaintances on
the topic of expensive tuition. Next, individuals were assigned to express how they feel about a
statement which notes that paying for college is a struggle for the surveyee. From that question,
22.1% strongly agreed, 16.9% agreed, and 36.4% felt neutral. All these numbers outweigh the
individuals that feel otherwise. Following, the survey asked if the students agree with the
government getting involved in solving the high student debt to which 75.3% of the students
agreed to. It is noted that some information from the survey was excluded to avoid the repetition
of answers.
Discussion
During college, students usually worry about three major life factors - having to graduate
with a decent GPA, finding a job and paying their debt off. When it comes down to it, most
individuals answered the question of whether college was needed by stating it was an investment
because they believe it will open more job opportunities. Emphasis on “job opportunities”
because only then can the situation be seen as something bigger. It has been normalized in this
society to go to college in hopes of getting a higher paying job and not for the mere reason of
learning. Students overpay to go to a college and suffer for years only for broader job
opportunities; never receiving the real education the American government is so proud of. To
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add on, the graduation rate of receiving a degree after 4 years of college is only 12% in City
College of New York in the past year. Also note, after 4 years, students do not receive financial
aid. On another note, most students don’t even get a job under the degree they studied for. The
college ideology has turned into being all about the money and not education. When you look at
the data and how the education system is set up one can conclude that it was never really about
education but rather a corporate level scheme which no student that wants to survive in this
From the survey data, it has been noted that 59.7% of the students who took the survey
believed that high debt should be canceled. As previously mentioned, 75.3% of students think
that debt is such a problem that the government needs to get involved. America’s student debt is
growing slowly, if not exponentially. Since the Recession, student debt has been a problem that
couldn't be overlooked. After the recession, state funding had recovered and the debt looked a
little more promising. Still, the debt situation has only half-way recovered and the reliance on
Most of the students in the research agree that college tuition is too high and they fear not
being able to find a job if they do not receive a degree. Since this is a complicated situation, the
system should be rebuilt to avoid future mistakes like such. For the system to reconstruct, the
federal government should erase all the current debt and come up with a system that will promise
students a higher education and not an investment place. To achieve that, the federal government
might need to lower tuition or demolish it and then focus on the educational curriculum of
college more than the financial. Many students will agree with this solution based on the
research. One flaw from the experiment might be the fact that it did not consist of over 100
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people so the subject number might be a problem. The survey also did not ask questions that
were too detailed in fear of students not responding truthfully. While writing this paper, it was
noticed how asking more questions could have strengthened the stance. For future references,
Conclusion
The nation’s attention should be fixated on how to demolish such a high student debt.
New York State is undergoing a problem which the government needs to get involved more.
With high tuition, high cost of living, and minimal education, many individuals would feel
college is tough in the United States. Even if they were to feel that way, individuals are still
sucked into attending and overspending on college because without it, the economy would not let
them thrive in this society. At this rate, it can only be concluded how the current system of a
college education isn’t working for everyone. To thoroughly knock down this crisis, the
government should evaluate the current system and come up with a solution that will cover every
student.
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Reference List
Carrns, A. (2019). Two-Thirds of College Students Take On Debt, but Amount Is Rising More
-money/student-debt-what-to-do.html.
Carrns, A. (2019). As College Debt Rises, So Does Interest in Teaching Financial Literacy. New
-loan-debt-financial-literacy.html.
Lieber, R. (2018). The Public Student Loan Forgiveness Rescue Hasn't Gone Well So Far. New
-service-loan-forgiveness.html
Miller, B., Campbell, C., Cohen, B. J., & Hancock, C. (2019). Addressing the $1.5 Trillion in
education-postsecondary/reports/2019/06/12/470893/addressing-1-5-trillion-federal-stude
nt-loan-debt/.
Nova, A. (2019). Where the 2020 Democratic candidates stand on student debt. CNBC.
-proposing-to-do-about-student-debt.html.