Hayward: Debt and Student Debt Grinnell Essay

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Annotated Bibliography for Student Debt
Grinnell Hayward
DeVry UniversityAnnotated Bibliography for Student Debt Most college students today go to college and get a degree but they do not get an education in financial education. College students and this is sadly to say will probably claim bankruptcy before actually claiming a major due to their financial burdens that they have in the past and that is not including student loans. In the case of student education not financial education your degree is nothing but a receipt period. Unfortunately in some cases the average college student depending upon the type of institution public or private will leave college with roughly about 20 to 50 thousand in college debt. With that debt there are other ways that students must supplement their financial needs and one is by obtaining a credit card.

K. Chu, 2009, Average college credit card debt rises with fees, tuition, retrieved on August 30, 2010, http://www.usatoday.com/money/perfi/credit/2009-04-12-college-credit-card-debt_N.htm In regards to what we call student debt here is another example of how college students end up in the never-ending rat race in order to pay for their educational expenses. The main reason this is done is because of the marketing ploy (Free Pizza, tee shirts, savings accounts with no minimum balance) used by credit card companies in order to attract students to apply for credit of which the majority of them use those credit cards for the financing of their education. This article is explaining how an average college student has carried $3200 in credit card debt last year alone which is one of the highest levels out there. It is also noticed that the higher the grade level the greater the credit card that would be and this would simply be contributed from the different types of institutions either private or public. The higher and closer you are to obtaining your degree the more debt that you will obtain. With an example of college seniors having one credit card will graduate with an average of $4,200 in credit card debt which is up 44%. In a comparison of freshmen their debt jump up to 27% which is just in the beginning of their education making that number $2100. As the rise within the past 10 years tuition and fees at colleges have increased 50% to an overall average of $6600 a year according to the College Board.
My assessment: This article is clearly showing how with the increasing rise of tuition, limited financial aid how to supplement their needs students are putting more debt on their credit cards in addition to financing their education as well. The above statement can clearly be used to support the argument of student debt is on the rise and needs to be placed under control

King, T., & Bannon, E. (2002, March). The burden of borrowing: A report on the rising rates of student loan debt. Washington, D.C.: The State PIRGs' Higher Education Project. Retrieved November 19, 2007, from http://www.pirg.org/highered/BurdenofBorrowing.pdf

This article while showing the increase in student debt more focus is on the types of students that are more likely to encounter debt that is uncontrollable after graduation. With 55% of African American borrowers, 58% Hispanic borrowers these are the two that are most likely to be affected. With reference to the well known Pell grant when the government affects the borrowing trends this also affects low income students. It also makes reference to when the Pell Grant was cut, the actual percent of low-income students borrowed from that grant along with the average debt within those mentioned students increased. However in recent years when Congress increased the funding, the actual percentage of students that fell within the low income average ended up being stable and in addition to that 84% of all African Americans who graduated and borrowed $2000 more on average than the typical borrower. Also after graduation they earned less and as a result of that 55%