Student’s Debts in the US

Most students in the US study especially in tertiary colleges and universities through the help of government loans. The loans offered to students are usually to be paid within a period of stipulated time. However, this does not usually happen since most students in the US do not get employed immediately after clearing their studies. This then has an implication that these students owe their government some amount of money. A debt is something and in most cases, money, that is owed or due. Therefore, students’ debt is amount of money that students owe the government of the US.

Why the problem is serious

The amount of money that US students owe to the government has been increasing during the last few years. The main cause of this increment is due to the high rates of unemployment especially for gradates in the US. Statistics show that Americans owe the government over $1.3 trillion as part of student loan debt. This is a very high figure and can lead to a negative impact on the US economy. Also, over 50 million American students have loan debts. Most individuals who have this debt are aged 20 to 30.

The problem of student debt is quite serious especially for the US economy. This is because the government is forced to borrow from other non-educational sectors in order to be able to fund some other ongoing projects in the education sector. This problem of student debt is also serious since financing upcoming college and university students will be a bit hard due to lack of money in education sector. Students including the poor will be forced to pay the university fees from their pockets. This will lead to lack of education especially for low social class families. If the upcoming students receive any loan from their governments, it will not be enough to sustain them as most students have failed to repay their loans.

Failed solution

Student debt is a very serious case in almost all nations. This is because nations tend to support their university and college students so as to reduce the amount of money they need in order to get college admissions. However, this has not turned out to be positive especially on the side of the government due to failure of loan repay. The government has tried to come up with solutions that can help in ensuring that students repay their loans on time. Many a times, the governmental plans have failed. For instance, the US government came up with a system through which when a loan holder gets employed, the government will be notified. This system has failed as most of the American students tend to work in foreign countries. This makes it quite hard for the government to trace them.

Also, most governments try to ensure that even students pay taxes. This way, they have their taxation pins which can be used to easily find them. This has also failed due to the fact that most Americans prefer working in other countries thus they disappear with the loans.

Primary solution

Since the government has tried all ways through which student debt can be reduced and it has failed, other ways should be considered. The US government should try and emulate some of the ways that other nations use to ensure that there are low rates of student debt. In order to successfully curb the problem of student debts, the government should ensure that no students (who have debts) get any type of permanent employment within the nation. If the student gets a permanent job, then the student must pay the debt in equal installment. For students who opt to get employed in other nations after completion of their colleges and universities, the government must ensure that before issuing them with travelling permits, their debts should be cleared. This has an implication that no student with any kind of debt with the government will be allowed to travel unless the debt/loan is fully paid. This way, the rate at which students owe governments debt will be reduced. The students will also be willing to fully pay their debts due to the penalties that they will face if the latter does not happen.


The primary solution discussed above also has its own limitations. For instance, ensuring that students who get out of the country have no debts can be quite a difficult task. This is because the government will be forced to employ individuals who will only be concerned with clearing the students off their debts. Also, some individuals may choose to work on contracts for different companies, institutions or organizations with an understanding that the government may fail to look after them since they are just temporarily employed. This is an indication that though there will be a reduction in student debts, some students will still owe their governments.

Student debt has great impacts on the economy of any nation. Loans that students get from the government should be repaid in full as they can help in improving the economy of a given country. Nations or countries should come up with advanced ways through which these student debts can be minimized as the rate is increasing continuously. When this happens, there will be a rise in economy in most countries globally.

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