Speech #2 Topic Proposal

A significant issue for many college students is the management of the student loans that many college students have to take out in order to afford classes. In addition to the stress of having to pay back these loans at some point in the future, there is the added issue of paying interest on these student loans. While the average interest rate for an undergraduate student loan is 4.29% which may not seem high, this interest rate is applied to loans that are often very large which results in the relatively low interest rate turning into a larger financial risk. The issue with the current interest rate being charged on student loans is that it is higher than the average inflation rate for the United States during a healthy economic period. In fact, the last time the United States inflation rate was higher than the rate at which student loan interest is charged was during the financial recession of 2008. So, with the current structure of student loan payments, the government is attempting to make a profit from the furthering of education in a way that discourages the pursuit of higher education.
The solution to part of the issue that high student loans pose to college students is the lowering of charged interests rates to a number that matches inflation, rather than a number that attempts to exploit the need of financial aid for a profit. By making this change, the government can encourage an educated society and increase the long-term value of the tax payer rather than sacrificing a long-term return for a smaller short-term profit.
This issue is particularly interesting to me because it impacts peers and almost 70% of students graduating from college. I am interested in helping find solutions to student loan problems because I believe that there is a solution that can help encourage a more educated and better off society.
In order to help analyze the situation behind student loans, the rates charged on them, and the potential long-term returns on a more educated society, I intend to analyze various sources of information including numbers on student loan debt, average inflation rates, and the projected tax returns of a more educated society. Sources for this information include debt.org, the united states inflation calculator, and studies published by institutions such as rand.org.