The problem on student debts

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The Problem of Student Debts
Introduction
The Federal Government and Statistics Canada estimate the total student debt to be over $31.67 billion (Schwartz and Finnie 499). In average, every student with debt owes either the government or non-governmental lending institutions $27, 000. These statistics might be understandable if the debts improved their financial security, but for the majority of Canadian students, no desired results are achieved by the borrowers (Chapman and Lounkaew, 113). Instead, they find themselves stuck with the debts. Therefore, this paper analyzes this problem and suggests an effective solution.
Causes of the Problem
The rapid rise of students’ debts is scaring. This is a problem that has developed over the last few decades. However, people do not understand the real causes of this crisis. The major causes include:
Lack of proper funding from the government – the government has been reluctant in funding learning institutions over the last few decades. As a result, they have resorted to making up for the cuts by increasing their tuition fees (Arthur 31). Students, therefore, had to borrow to pay for their education fully. This has consequently led to an increase in the students’ debts.
Default in loan payments – the major problem is students defaulting to pay back their loans (Hillman 171). Some have justifiable reasons because of legitimate problems such as little income while others a…