Education Is Valuable For The Citizens Of America Essay

1219 Words5 Pages
I. Executive Summary
Education is valuable to the citizens of America. The path to attaining higher education is in many ways, the optimal method for people to achieve what the previous generations could not. Currently, there are about 20 million students enrolled in college, and the number is rapidly increasing. However, many families and individuals are not able to pay the steep price needed to enter the education system. In the recent decade (2000 – 2009), student loans in America have more than quadrupled, going from $149 billion to $630 billion. There are currently two options for students to finance their education, the Federal Family Education Loan (FFEL), which guarantees loans from private lenders, and the William D. Ford Federal Direct Loan Program (FDLP). Both programs offer similar loans, interest rates, and repayment options, but they differ from one another when discussing how the programs are administered, funded, and carried out. Furthermore, each program entails a different cost to the federal government. Even though each program receives and initiates their funding differently and has separate administration processes, one of the biggest issues with the financing programs is that the federal government bears most of the losses in both. Action must be taken to address the issue and ensure that there is a consistent stream of available loans with the lowest amount of risk for students in need.

II. Background Information
Students currently finance their
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