Elizabeth Hickey

UWRT 1102-40
Professor Ropko
3 May 2016

Are You Worth It?

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Dear Reader,
Ah, well, where do I start? College probably had to be the greatest/hardest decision I
have ever made in my life. Not because I am a yankee who decided on going 12 hours away to
a school in a place called The South, or because I would be away from my family and on my
own not having a single friend at the university, but because I would have to take out a loan that
was equivalent to a mortgage. It was scary, being a young person who has barely surfaced the
adult world and had to make a huge financial decision. It worried me more than the idea that I
was going to be an Architecture major. Many days during my high school years, I would peruse
the subject. Would I be able to acquire scholarships? What would be the smartest school and
budget? Could I one day pay all of that money back? What if I dont get my dream job that will
satisfy my financial responsibilities and STILL allow me to live comfortably?! What if I go
through college and it ends up being a waste!!?
For a long time, I worried about this. But, it came down to what I wanted most: a
sophisticated mind, earning a degree and becoming
consummate in architectural design, and even just the
satisfaction of accomplishing the big challenge of passing
and graduating, I knew it was well worth it. Why should I
let the lacking of my financials stop me from going to
school and receiving a higher education? All those years of
my mother telling my sisters and I that she wanted degrees
out of each of us and then figuring out that we did not have
a base plan for paying for college was a disappointment. I
would get frustrated and take it out on my her for not having
a plan all the time we were young. But I do have three
sisters and I have come to realize that not everyone has it
easy. Each person has struggles and challenges in life. I,
then, decided that it was upon me to take care of my college
career and do my very best. And, hopefully one day when I
have a family, my kids will have other worries than paying
for college.
It was at that moment I decided I would have to take out student loans.
Education has and always will be a priority in my life. It is important for a healthy
society. Even in stages of economic depressions when times seem harder than ever, we must
push and strive even more.
This paper will explore all the short and long term impacts of taking out student loans.
There will be personal experiences along with factual statistics on Americans who have taken
student loans out in the past and students who are currently attending college with the help of
financial aid. This is a real and major issue today, that as you know I deal with as well, so I have
been extremely interested with the compilation of my findings. Note: I do mainly focus on young
Americans.
* I hope you enjoy reading it and can share the information with a friend, parent, highschooler, etc. Let
that person know that if they desire an education then there will be a way.
Let them know they are worth it.
Like how I know I am.

Sincerely,
Elro

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Elizabeth Hickey
UWRT 1102-40
Professor Ropko
April 19th, 2016

Are You Worth It?

Your mind is trying its best to keep your body assured, because staying composed is the
only right way to remain. You have never invested in something so big in your life before, and it
has come to the moment that you may have no other choice. This investment just may be as
much as a mortgage, and to the premature money-mind it may not seem like such a big deal.
All with a click of a button you have accepted the award from FAFSA for the school year of
2015-16. You are finally aided to go to school! With an unfamiliar confusion, you do not know
whether to feel excited for being given an opportunity, or dread, because you have been greatly
impacted with a burden for the rest of your life. You may think, why me? But, it is not just
you. As much as a single person contributes to society, it has nowhere near as much impact as
millions of others have on the economy who take part in the same routine.
All across the United States, millions of young adults have to make an extremely tough
decision when it comes to entering college. According to the Federal Government, Total student
loans outstanding have risen to $1.1 trillion, compared with $300 billion just a decade ago
(Korkki). For many young minds, large scale value is a new concept and never attending a class
at a university could make the whole idea seem like a gamble. Like a Libra scale, it is constantly
questioned how the pros and cons weight out, and whether or not agreeing to a loan will make
school and future profit worth receiving a degree. The biggest question is will that education you
intended on receiving actually pay off in the long run, allowing you to live your American
dream? (Holland). A common current question recently has been asked if young Americans lose

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desire to go to college because of the intimidating rise in tuition costs, and this indirect
relationship has put life priorities in a jumble for many Americans.
Although the long term effects of student loans are constantly minded, it is the short term
impacts that are experienced first. Lacking the attention, challenges of student loans begin once
commencing at a school of higher education. According to the American Student Assistance,
Student loan debt is having a profound impact on the daily lives and spending habits of young
Americans, casting a pall over the nations economic recovery. Many borrowers may never run
into problems with their loans, but the mere existence of the debt is a burden that is impacting
the way student borrowers make important lifestyle decisions (Life Delayed 2). The knowledge
that each attended class will rack up students debt creates a continuous uneasy feeling. Not to
mention, even loan overages, that help with daily health and well-being necessities, such as;
food, housing, school supplies, etc. will have to paid back as well. But if one can earn
outstanding grades and connections, this may not all be so bad. With a strong mind, will power,
and proper utilization of sources, the small window of the college years can create a view that
overlooks account balances and sets a horizon for success. Although the temporary aid of
student loans may make a student feel tied down, this is the primetime, and if all this money and
education really means something it will be set aside with a plan for when it will need attention.
It can be done.
In the broad scheme of life, it is the long term effects that have the greatest impact on the
loan owner, as well the economy. With the highest debt ever of student loans nationwide, this
generation has been detoured off the traditional route of life, exhibiting new trends that project
to threaten the future of the American society (AICPA). With all of todays student debt,
graduates have exhibited the lack of major American life accomplishments. With all funds

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committed to paying off student loans, it is unsure or difficult for one to commit to a separate
investment, delaying the business and independent life stages (McGrath). Stated by Business
Insider, Elliot Gorman, Student loan debt, more than any other kind, contributes to people
having less favorable views on their own financial well-being (Gorman 11). Grand investments
such as homeownership, buying a car, starting a small business, career choice, getting married,
having kids, or saving for retirement can be halted student loan demands. With all these factors
on hold, the economy has experienced some dramatic negative shifts. On the other hand, in the
authority of the ASA, studies show that even those never personally hampered by student loan
debt are being impacted as society at large bears the burden of career paths not taken, first homes
not purchased, entrepreneurship stalled, public sector employment diminished, investments not
made, and lives delayed (Life Delayed 2).
Change is happening and the US must adapt. Therefore, financial educators need to speak
up and lead young lives to take steps that could lessen the final cost of school and not let the trap
of interest rates overtake lives that have learned to live without this burden. With these problems
worsening, the student, as well as the government and universities, must have the drive to be able
to help make costs lessen before accepting and giving financial aid. First and foremost, for the
students, scholarship opportunities must be fully taken advantage of. Anything that is given and
does not have to be paid back, like scholarships and grants, is key. Next, students should utilize
work studies or working a small amount of hours to pay for necessities and save an account for
college funds. It is also strongly encouraged that students maintain a strong determined mind
while attending college. Being different and going far in their careers and lives is the goal. The
government and universities, need to be called to lessen and control tuition and fees, while
expanding grant and scholarship aid from all sources, like from well-to-do alumni and big

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businesses looking to support students education. Finally, government should lower interest
rates to allow a shorter stage after the grace period and payments begin. Stated in the Business
Day article, If society wants to change the skewing effect of student loans, some tough
decisions about allocating educational resources may well lie ahead (Korkki 11). Student loans
are not only taken on by students, they are forced upon them by societal expectations, and by the
government and universities raising tuition prices year after year. If the student loan program is
going to change, then society needs to change it.
For Americans, education needs to remain a top priority in life to keep a well
circulating economy. If the desire of education is present, then one should not stop from taking
out student loans. Challenges are faced by all people every day. Money should not stop one with
the potential to excel and succeed. Americans need to learn to not be discouraged. Instead they
should be smart, know how to beat the system, become something special, and find a way to
make money and come out with great accomplishments. Students must persevere to reach their
goal and make it work out. To know their worth. To know how to make it worth it.

http://www.asa.org/site/assets/files/3793/life_delayed.pdf

Works Cited
Gorman,Ryan."HowStudentloanDebtIsDraggingdowntheEconomy."BusinessInsider.
BusinessInsider,Inc,01May2015.Web.11Mar.2016

"HowStudentLoansImpactYourCredit."360DegreesofFinancialLiteracy.TheAmerican
InstituteofCertifiedPublicAccountants.Web.9Mar.2016.

Korkki, Phyllis. "The Ripple Effects of Rising Student Debt." The New York Times. The New
York Times, 24 May 2014. Web. 11 Mar. 2016.

"LifeDelayed:TheImpactofStudentDebtontheDailyLivesofYoungAmericans."ASA.
$ALT(AmericanStudentAssistance).Web.12Mar.2016.

McGrath,Maggie."TheTruthAboutHowStudentLoansAffectAGraduate'sLife."Forbes.
ForbesMagazine,15May2015.Web.15Mar.2016.

"WhenStudentDebtTanksYourRetirement."CNBC.KelleyHolland,09Dec.2015.Web.15
Mar.2016.