Student debt is a form of debt held by students who attend, withdraw, or graduate to a lending institution. Lending is often a student loan, but debt can be paid to the school if the student has left the class and is withdrawn from school. Withdrawing from school, especially if low-income students or no students withdrawing with failing grades, may deter students from further attendance by disqualifying students from the necessary financial assistance. Student loans are also different in many countries under strict legislation governing re-negotiation and bankruptcy. Overdue payments can be retroactive penalties for services provided by schools to individuals, including rooms and meals.
Like most other types of debt, student debt may be deemed to fail after a certain period of non-response to a request by the school or lender for information, payments or negotiations. At that point, the debt is left to the Student Loan Guarantee or collection agency.
In the United States, "Congress makes a rule called 'Cohort Default Rate.' Each year the Department of Education evaluates the proportion of students who have received student loans and have resigned from college, and have failed in their federal government-backed loans." not paying (default) is too high, colleges will deny the privilege of having government financial aid available to their students. According to Adam Looney and Constantine Yannelis with Brookings Papers on Economic Activity, in 2011, "non-profit and 2-year borrowers represent nearly half of borrowers who left school and began paying off loans, and accounted for 70 percent of student default loans." this is an instant achievement, 'there are more than fifteen hundred for profit colleges excluded from the system'. Colleges must change their funding habits in line with government guidelines. Many colleges continue to be forced to lower their payment rates, down. "The number of erratic people has not changed, just the way the government tracks them.
Video Student debt
Histori
Many factors are responsible for student debt. The growing student debt problem is becoming increasingly prominent in the coming decades, inspiring many documentary films that examine cause and effect. One big factor is the amount of interest on the loan. Another factor is due to the new guidelines developed by the federal government. Now there are new rules that decide who can borrow, and how much debt they can take. Colleges and universities have increased the cost for students to attend their school then increase the amount of debt that students take as student loans. Reports have shown that borrowers who completed college in the early 1990s were able to keep their student loans manageable without a huge burden. Average debt has increased 58% since more than seven years. Debts for students in the United States have increased from $ 17,233 in 2005 to $ 27,253 in 2012. Some blame the economy for rising debt, but in the 7-year period credit-card debt and similar automatic debt have declined. According to the Student Debt Crisis, in the last three decades the cost of achieving a bachelor's degree has risen dramatically by more than 1,000 percent. If student debt remains constant with inflation since 1992, graduates will not face such expenses by student loans.
Maps Student debt
Statistics
United States
There are two types of student loan loans in the US: federal loans or personal loans. Federal loans have a fixed interest rate, usually lower than private lending rates, which are set annually by the congress. Direct subsidized loans with a maximum amount of $ 5,500 have an interest rate of 4.45%, while direct plus loans with a maximum amount of $ 20,500 have an interest rate of 7%. For personal loans, there are more options such as fixed rates, variable interest rates, and monthly income-based plans whose interest rates vary depending on the lender, credit history, and cosigner. The average interest rate on personal loans in 2017 was 9.66%. The Economist reported in June 2014 that US student loan debt exceeded $ 1.2 trillion with over 7 million debtors in default. By 2014, there are about $ 1.3 trillion of outstanding student debt in the US that affects 44 million borrowers who have an average loan balance of $ 37,172.
Interest rates are a major factor in alarming debt figures, however, the boom in college prices is another major factor for outstanding student debt. Public universities increase their costs by a total of 27% over the five years ending in 2012, or 20% adjusted for inflation. General university students pay an average of nearly $ 8,400 per year for tuition fees in the state, with students outside the country paying more than $ 19,000. During the two decades that ended in 2012, tuition fees rose 1.6% higher than inflation every year. Government funding per student fell 27% between 2007 and 2012. Admissions increased from 15.2 million in 1999 to 20.4 million in 2011, but down 2% in 2012. Bloomberg reported in July 2014 that: "The biggest growth in the program came in the last decade, as student debt rose an average of 14 percent a year, to $ 966 billion in 2012 from $ 364 billion in 2004, according to the New York Fed data.
There are approximately 37 million student loan borrowers with outstanding student loans by 2013. According to the Federal Reserve Bank of New York, outstanding student loan debt in the United States lies between $ 902 billion and $ 1 trillion with approximately $ 864 billion in debt Federal student loans. As of the first quarter of 2012, the average student loan balance for all age groups is $ 24,301. About a quarter of borrowers owe more than $ 28,000; 10% of borrowers owe more than $ 54,000; 3% owe more than $ 100,000; and less than 1%, or 167,000 people, owe more than $ 200,000. Of the 37 million borrowers who have outstanding student loan balances, 14%, or about 5.4 million borrowers, have at least one student loan account that passes. For every student loan borrower who fails to pay, at least two more borrowers become naughty without default. In 2010 for the first time, student loan loans exceeded credit card debt and in 2011, student debt exceeded car loans (both decreased). According to Mark Kantrowitz, publisher of FinAid.org, student loan debt increased $ 3,000 per second. According to a report by The Institute for College Access and Success, the average debt of those who graduated in 2013 reached $ 30,000 in six states and just under $ 20,000 in one state. Data released by the Federal Reserve Bank of New York show that in the fourth quarter of 2014, the rate of student offenses for students slumped to the point where about one in nine student loans has matured. By 2015, more than half of outstanding student loans are in suspension, delinquency or failure. Increased student debt debt exacerbates wealth inequality.
Student loan borrowers who attended for profit, and two years of college, compared, earned a low annual salary; an average of $ 22,000 for people who resigned from school in 2010. This means that these people have problems repaying their loans. New evidence is reliable with previous data. For example, statistics showing that default rates are basically lower in the demographics of borrowers with large loans than in borrowers with small loans. However, new evidence is back in twenty years, showing how much the lending scene has changed. Today, most borrowers are older and attend public lectures for a profit or two years. About ten years ago, a standard borrower was an established student at a four-year university.
In recent years, tuition fees have increased due to government funding cuts in education. For example, more specifically, the University of Pittsburgh has increased the cost of schooling by 3.9 percent for the academic year 2014-15. In recent weeks, the US Department of Education has placed Pitt as the most expensive public university for tuition, right in front of Penn State University, which last year reached $ 16,240 in art and science schools.
In 2005, the difference in average annual income between those with a bachelor's degree versus those with a high school diploma was $ 16,638, although this varied greatly according to the field of study.
Canada
Canada ranks second in the world behind Korea for the percentage of people in the 25-34 age group with a bachelor's degree. But Canadians are not vulnerable to accumulated rapid student loans. In September 2012, the average debt for Canadians who left the University was 28,000 Canadian dollars, and that the accumulated debt took an average of 14 years to pay off on an average starting salary of $ 39,523. For a while helping those with low income struggling citizens with student debt, Canada has a program called interest relief. It gives 6 months free of mandatory payment, for a maximum of 30 months. The Government of Canada pays the interest on the loan during the grace period, so the loan amount is the same at the end of the grace period. Also, students are released from their debt after 15 years. As a nation, Canada has accumulated more than $ 15 billion in student loan debt as they continue to struggle rates of tuition from skyrocketing further.
United Kingdom
There is concern about the level of student debt in the UK. There are also concerns about the possibility of changes in government policies that force graduates to pay more. Andrew Adonis claims that most student loans will never be paid, Adonis also maintains that university leaders have failed to improve the standard of teaching but reward themselves with high salaries. The Institute of Fiscal Studies maintains three quarters of graduates will never pay all their debts. Andrew McGettigan, a lending system expert said, "Until the government removes their right to change the term retrospectively, then you as a borrower seem to be on the hook for future policy changes." Sebastian Burnside Economist NatWest, said student debt is rising faster than others. type of debt, he said, "These latest figures show student debt to be a greater priority every year. Student debt is the fastest-growing type of loan and quickly becomes economically significant. "
German
With student debt becoming one of the most prominent issues in the world, it seems that Germany has found a solution to avoiding the enormous student debts facing many of the world's first nations. Germany has private and public universities with the majority of public universities. For undergraduate studies, public universities are free but have a registration fee of no more than EUR250 per year which is approximately 305 USD. Their private universities cost an average of EUR10,000 per semester which is about 12,000 USD. Private universities cover 7.1% enrollment with the rest admission to state universities. Private colleges have a smaller teacher-student ratio and tend to offer more specialized programs. That is why Germany is booming in private university enrollment in recent years for majors such as law and medicine. However, most students still prefer state universities because of the drastic cost of tuition fees. The only cost that students incur for a loan at a state university is the cost of living that ranges from EUR3600 to EUR8,200 a year depending on the location of the university. However, the repayment of this loan is interest free and no borrower pays more than EUR10,000 regardless of loan amount. The average debt on graduation is EUR5,600 which is 6,680 USD. The opportunity to earn a bachelor's degree through a respected university at a reasonable price without interest-bearing loans attracts many foreign students as seen through increased enrollment of students from around the world.
French
France is another country known for a reasonable price for college. The average tuition for a bachelor's degree is about 190 euros a year, about 620 euros per year for an engineering degree, about 260 euros per year for a master's degree and about 400 euros a year for a PhD. This price is similar to its neighboring Germany. And, the only cost that is difficult to pay is the cost of living an average of 500 to 1250 euros per month depending on the city. Students can borrow money to pay for this expense. Just under 2% of students take out loans because there is financial assistance to pay full tuition or half of the tuition for low-income families depending on their needs.
Pakistan
Student loans are an unknown concept in Pakistan, like most third world countries. Students attend lectures through the help of their parents who spend most of their income on their children's education and some students work to help with college tuition. The leading universities in Pakistan are mostly located in Sindh and Punjab provinces. There are 177 universities in this country. To better understand this figure, let's consider a US that is twelve times the size of Pakistan and has 5,900 colleges. That means the United States has about 477 universities in an area of ​​Pakistan.
Pakistan has universities ranked in the top 250 and 700 in the world. The average tuition fee for these universities is about 402,000 Pakistani Rupees ($ 3500). But this is not the only expense people have to pay; most people pay for books, food, buses or vans to get to the university and teaching center for help with a hard curriculum that adds up to about 130,000 rupees ($ 1147). Although this seems like a small amount to someone from the first world, it is very expensive for Pakistani people because the salary averages around $ 7,800 a year. The majority of parents can not afford to pay for higher education for their children, which is why only 12% of all 18-24 year olds are in college.
Although students in Pakistan do not bear the burden of student loans, Pakistan has its own problems in making higher education more accessible and affordable for its citizens.
Social and political reactions
The growing student debt problem has caused many reactions from young people across the United States. As a result, the Movement Occupy and Occupy Student Debt merger in 2012 in an effort to gain support from students across the country. There are significant efforts made through social media for the Occupational Student Debt campaign. In particular, students across the United States have posted their personal student debt testimony. While some success stories of students who wipe out debt have been reported, they are greeted with severe skepticism. Since last October, Occupy Student Debt has provided a platform for over 800 students to share their horror stories. Therefore, other organizations such as, Rebuild the Dream, Education Trust, and Young Invincibles, have joined in the effort and started a similar platform. The Occupy College movement has done more than 10 direct actions. They have also collected more than 31,000 signatures on the White House petition website, "We the People". As a result, President Obama announced Pay as you Earn initiative. Another petition, titled 'Supporting the 2012 Student Loan Borrowing Act' at MoveOn.org, which seeks similar assistance for student borrowers, has earned more than a million signatures. HR 4170: "The Student Loan Forgiveness Act of 2012" will provide assistance to borrowers with federal and private student loans. HR 4170 also includes the "10-10" program, which allows borrowers to pay 10% of their free income for ten years with the remaining balance forgiven afterwards.
In April 2012, student loan debt reached US $ 1 trillion. The severity of student debt burden poses a threat to the middle class that some people have demanded for a common bailout. Anthropologist David Graeber, author of the book Debt: 5000 Year One, argues that student debt is "destroying the imagination of youth":
If there is a way people commit mass suicide, what better way than taking all the youngest, most energetic, creative, and joyful people in your community and burdening them, like $ 50,000 debt so they should become slaves? This is your music. This is your culture. There goes that new thing will come up. And in a way, this is what happens to our society. We are a society that has lost the ability to combine interesting, creative and eccentric people.
In 2014, a Chilean activist, artist Francisco Tapia, known as "Papas Fritas" (burnt potato) "burned a $ 500 million debt document" from ViÃÆ' Â ± a del Mar University, and showed ashes in the van as an art project. "The university is being shut down due to financial irregularities, it is a concrete fact that the letters were burned, they were lost, burned out, and there was no debt," Papas Fritas said in his first broadcast interview in the United States. paper no longer exists, there is no way to charge student fees. '
On November 12, 2015, students held rallies at over 100 campuses across the United States to protest the debilitating student loan debts and to advocate for free higher education in public universities and universities. Demonstrations took place just days after fast food workers broke down for a minimum wage of $ 15 per hour and union rights.
In 2015, Central Saint Martins student Brooke Purvis announced that he would burn student loans as a form of protest art, raising awareness about student debt. It is said that artwork discusses the materialism of material money and brings to light the political issues of the student loan system U.K.
Leon Botstein, president of Bard College in Annandale-on-Hudson, N.Y., contends that the next president elected in 2016 should encourage all outstanding student loan debt to be forgiven.
A February 2018 research paper from the Levy Economics Institute of Bard College believes that student government cancellation debts in the United States will result in increased consumer demand, along with economic growth and employment growth. Over the next decade, GDP will increase between $ 86 billion and $ 108 billion annually, which will result in an increase between 1.2 and 1.5 million jobs and a decrease in the unemployment rate of 0.22 to 0.36 percent.
See also
- College admission in the United States
- Tuition in the United States
- EdFund
- Free education
- Higher education bubble in the United States
- Higher Education Price Index
- Post-secondary education
- Private universities
- Student benefits
- student loans
- student loans in the United States
- Tuition Fee
- Education Bureau
- Learning center
- Tuition
- Freeze tuition
References
External links
- Federal Student Help (USA)
- Canadian Student Loans
- Student finance (English)
Source of the article : Wikipedia
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