Passage 1
The student loan debt crisis has emerged as one of the most pressing financial challenges facing the United States today. With outstanding student loan debt surpassing $1.7 trillion, millions of Americans find themselves burdened by educational costs long after graduation. This mounting crisis has profound implications for both individuals and the broader economy.
The origins of this crisis can be traced to several factors. First, the cost of higher education has risen dramatically over the past few decades, outpacing inflation and wage growth. Between 1980 and 2020, the average tuition at public four-year colleges increased by nearly 300% after adjusting for inflation. Second, state funding for public universities has declined significantly, shifting more of the financial burden onto students and their families. Finally, the emphasis on college education as a prerequisite for career success has led more students to pursue degrees, often through borrowing.
The impact of student loan debt extends far beyond monthly payments. Research shows that borrowers often delay major life decisions such as buying homes, starting families, or launching businesses. Moreover, the burden falls disproportionately on certain demographics, particularly first-generation college students and minorities. The default rates among these groups tend to be significantly higher, perpetuating cycles of economic inequality.
Questions 1-5: Multiple Choice
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According to the passage, the total student loan debt in the US exceeds:
A) $1.5 trillion
B) $1.7 trillion
C) $2.0 trillion
D) $1.3 trillion -
The increase in average tuition at public four-year colleges between 1980 and 2020 was:
A) 200%
B) 250%
C) 300%
D) 350% -
Which factor is NOT mentioned as contributing to the student loan crisis?
A) Rising education costs
B) Decreased state funding
C) International student enrollment
D) Emphasis on college education -
The passage suggests that student loan debt primarily affects:
A) Wealthy students
B) International students
C) First-generation students and minorities
D) Part-time students -
What is described as a consequence of student loan debt?
A) Increased home ownership
B) Delayed life decisions
C) Higher employment rates
D) Better credit scores
Questions 6-10: True/False/Not Given
- Student loan debt has grown faster than inflation rates.
- All public universities have completely eliminated state funding.
- Student loan default rates are uniform across all demographic groups.
- The crisis has led to changes in federal education policy.
- Private universities have higher tuition increases than public institutions.