The Life Debt

Jamie Signorile

As we all know, our Nation has struggled recently as we dip lower and lower into recession. This has cost many people their jobs, homes, and hopes for an economic peace of mind. Even though it has been clear over the past years that we are trending downward, colleges insist to raise tuition costs. There are many reasons why, yet the most pressing question is: How are we going to pay for it? Many families simply cannot afford the rising tuition costs. At this point it is up to the student to take out a loan to pay for college. Every year it becomes harder and harder for students to pay their loans. It is difficult to deal with these loans right after college, even worse now that students might not get their dream job during such bad economic times. With this noted the average debt of a student has raised. According to the Project on Student Debt, the average debts of students graduating with loans rose from $18,796 in 2006 to $20,098 in 2007.

Despite all of the terrible thoughts of debt, there is hope. The College Cost Reduction and Access Act of 2007, has made it easier for students to pay off their debts over time. This act came into affect only a month ago. This act insures that students will only have to pay a maximum of 10% of their annual income for 25 years, to pay their debt. Another program called Public Service Loan Forgiveness is similar and was produced from the act. If the borrower is employed in public service for every one of the 120 monthly payments, they could be resolved of their debt in only 10 years. Hopefully the college education that is so essential for success in this country can become more affordable in the future.