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As an example, the University of Pittsburgh has had an increase in tuition of 3. In , the U. In , the difference in median annual income between those with a bachelor's degree vs. In January , the Federal Reserve said that student loan debt has more than doubled in the last decade, and is forcing many in the millennial generation to delay buying homes. Canada ranks second in the world, behind Korea, for the percentage of people in the age group of who have completed tertiary education. It grants 6 months free of mandatory payments, for a maximum of 30 months.

The Canadian government pays for the interest on those loans during the grace period, so the loan amount is the same at the end of the grace period. There is concern about the level of student debt in the United Kingdom. There is also concern about possible changes in government policy forcing graduates to pay back more on their loans. Student debt is the fastest growing type of borrowing and is rapidly becoming economically significant.

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Germany has both private and public universities with the majority being public universities, which is part of the reason their graduates do not have as much debt. The average tuition for a bachelor's degree in France is around euros a year, around euros a year for engineering degrees, around euros a year for a master's degree and around euros a year for a PhD. The cost of living in France is an average of to euros a month depending on the city, which is not included in the tuition price. Student loans are an unknown concept in Pakistan, like most third world countries.

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Students attend college through the help of their parents who spend a majority of their income on their children's education, and some students work to help out with the tuition. The top universities in Pakistan are mostly located in the provinces of Sindh and Punjab. There are universities in the country. That means the U. Pakistan has universities ranking in the top and top in the world. In addition to going to college for free, students also receive student grants from the government.

Student loans average to about EUR a month for higher education within Finland and an average amount of EUR a month for Finnish students studying abroad. Besides student loans and grants, Finland also compensates its citizens, and others that qualify, with a meal subsidy, a school transport subsidy, and a student loan compensation for students who finish schooling in a target time.

The growing problem of student debt has caused many reactions from young people throughout the United States. As a result, the Occupy Colleges and Occupy Student Debt movements merged in in an effort to gain support from students around the country. In particular, students all over the United States have posted their personal student debt testimonies. Since last October, Occupy Student Debt has provided a platform for over students to share their stories. The Occupy College movement itself has staged over 10 direct actions.

Debt owed to municipalities reaches R72,4 billion

As a result, President Obama announced the Pay as you Earn initiative. There goes your music. There goes your culture. There goes everything new that would pop out. The University was being shut down due to financial irregularities. They are gone, burned completely, and there's no debt," said Papas Fritas in his first U. On November 12, , students organized rallies at more than college campuses across the United States to protest crippling student loan debt and to advocate for tuition-free higher education at public colleges and universities.

In , Central Saint Martins student Brooke Purvis announced that he would burn his student loan as a form of protest art, raising awareness about student debt. It is argued the art work addresses the subject matter of the materialism of money and brings to light the political issues of the U. K student loan system. A February research paper from the Levy Economics Institute of Bard College argues that government cancellation of student debt in the United States would result in rising consumer demand, along with economic growth and increased employment. In April , Elizabeth Warren , a U.

Senator from Massachusetts seeking the nomination in the Democratic Party presidential primaries , added a proposal to her presidential platform to cancel student debt and make public colleges tuition free. Senator from Vermont Bernie Sanders , who is also seeking the Democratic nomination, offered a plan for the cancellation of all 1.

What Would Happen If USA Stopped Paying Its Debt?

From Wikipedia, the free encyclopedia. This article's tone or style may not reflect the encyclopedic tone used on Wikipedia. See Wikipedia's guide to writing better articles for suggestions. May Learn how and when to remove this template message. See also: Student loans in the United States. August Retrieved April 17, October Forbes Magazine. Retrieved How changes in the characteristics of borrowers and in the institutions they attended contributed to rising loan defaults".

The Brookings Institution. The New York Times. Retrieved 19 February The Nation. Retrieved August 13, American Student Assistance.

Real-Time World Debt Clock With Country Comparisons: Who Owes The Most?

Retrieved 18 February Bloomberg Businessweek. The Student Debt Time Bomb. Retrieved March 23, Associated Press. Retrieved July 7, See charts at Income in the United States. Retrieved February 4, Retrieved March 4, Millennials from Becoming Entrepreneurs". Harvard Business Review.

5 facts about U.S. student loans | Pew Research Center

Retrieved April 28, Financial Post. Retrieved 21 February Other governments only borrow to stimulate the economy during a recession, calculating that they can repay that debt once expansion returns and produces a government budget surplus. If the country and its government has a good reputation, the instruments that it issues in order to raise debt to cover a deficit represent a safe investment.

Governments that run constant deficits to buy votes find it difficult to attract loans. If a government increases its national debt to a level that the market thinks is too high, it will have to increase the interest it pay in order to find lenders. With the backstop of a high return from a safe source, banks do not need to lend to businesses to make a profit. When banks are less interested in offering loans, they raise interest rates for all borrowers. High interest on loans increases business costs and the return on investment that is funded on debt reduces.

Businesses cease to expand and unemployment rises. When interest rates rise, the cost of mortgages on properties rise and so the cost of rents also rise. The increase in the cost of premises forces businesses to increase their prices in order to remain in profit. This in turn increases the cost of living and causes inflation without economic growth.


A workforce faced with an increased cost of living will demand higher wages. This increases business costs and the price of goods, stoking inflation further. Eventually, businesses will be squeezed to the point of bankruptcy or move their production abroad to save their profitability.

So,high national debt can have a serious impact on the economic growth of a country. Ratings agencies score governments on a range of metrics. Countries with higher ratings can offer lower interest rates on their bonds because they are considered to be safe investments. They also look at the debt-to GDP ratio, the national debt per head of population, the interest rates on government debt and the average bank lending rate.

The above factors show whether the economy is likely to grow. A growing economy can bear the burden of tax that is needed to comfortably repay national debt. This knowledge in the financial community enables governments to lower the interest rates that it offers on its debt and reduce the cost of financing deficits. When this is not possible, we use data from This raw data is then processed through our algorithms which use, amongst other variables, the average 10 year interest rate paid on the debt to accurately calculate the current debt amount at the time you are viewing the debt clock.

We believe our calculations are correct working from the data that we have collected.