Inequality Caused by Student Debts: the Crushing American Dream

In: Business and Management

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Inequality caused by student debts:
The crushing American Dream
Xin (Taylor) Kang
Johns Hopkins Carey Business School

Author Note Xin (Taylor) Kang, Gold Group, MS in Finance program. This paper was prepared for Business and Academic Research and Writing course of Summer Intensive Program, taught by Professor Kevin Lanagan.
Inequality caused by student debts:
The crushing American Dream Proud of their nation, Americans always consider the United States a land of opportunity, where the American dream that everyone can achieve prosperity and success through hard work in a society with few barriers is world-famous. Though higher education is a sign of success in the U.S., the American dream is crushing. Student debts are getting more burdensome because the university tuition is expensive and bankers always lend high interest loans to students. During the last seven years, student debts for graduation have increased about 40 percent. Over 15 percent of the students cannot repay their debts, which may eventually cause a worse consequence. Definitely, it will lead to inequality among those who can afford to attend universities and those who cannot. In recent years, student debts have become serious problems. Stiglize (2012) pointed out that “in 2012, according to the Federal Reserve and the Department of Education, nearly 13 percent of student-loan borrowers owe over $50,000, and about 4 percent owe more than $100,000” (“Student Debt,” para. 6). Increasing student debt has weighed down many Americans because students cannot pay it back. The increasing interest rates, the soaring tuition and the sluggish incomes are the main factors that lead to greatly increased student debts. First of all, although they have seen the tough condition faced by the students, predatory lenders are still raising the interest rates, which are…...

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