Financial Shortcomings Of The State Of Mississippi : Financial Challenges And Grants

Many students do not know what they are paying for or understand how student loans work, and are not fully aware of available resources. For assistance, most students know to go to financial aid, however “financial aid offices allow students to borrow thousands of dollars with several mouse clicks on online portals” (Farrington). Many students are not properly informed of their options, such as the many scholarships available to them, but simply take only what is shown to them. Easy access to loans is a slippery slope and many students fall into holes that they

Finally, the most difficult challenge students face in college is a financial hardship. Many students come from various walks of life and sometimes determining one’s financial capability to offset college costs during the early stages of can be problematic. Some students come from well to do families who have a tremendous capacity to pay full tuition without external assistance. These particular students do not require financial aid or scholarships, as they can meet the institution’s financial requirement regardless of what level in college they may fall under as the source of wealth is derived from the family or families. Other students, however, come from impoverished families whom solely depend on financial aid and work full time or part time

Introduction: 5 a.m. The alarm clock rings, on a normal day you would dread waking up so early. But today, is not your normal average day. Monday, August 21st, 2017, is the beginning of your first day of a new journey of college as a freshman; the nerves of the unknown lingers on as you sat in the classroom, awaiting your professor arrival. Suddenly, the door swung open and a tall, muscular, Caucasian male walked in, commanding the class attention by his demeanor. The nervousness intensifies as he proceeded to call on the attendance. This is it people! the moment everyone, including your family, have been waiting for; first-generation of your lineage to attend college. Name by name each student signified their attendance by raising their right arm when called upon, but, there’s a problem, your name was not called on. What? How can it be? There’s no way! you are overcome with complete and absolute shock; realizing you’ve been dropped from your classes due to financial aid issue. To continue enrolling, you would have to pay out of pocket. The excitement that was there before, no longer remains. Countless number of young adults are overwhelmed with the reality of college and paying for an education. For many students, each year, they are the recipient of such a catastrophic experience. Unfortunately, I was the victim of this heart-rending incident; imagine a society where financial aid and student loans did not exist, but instead, the necessity of these financial programs would diminish because college tuition would be free.

State legislators slashed more than $121 million from college financial aid programs alone, leaving 29,000 students without the possibility of receiving aid from TEXAS grants, the state’s financial aid program for needy students. Since Texas colleges and universities were also cut 9 percent by the legislator, they were forced to raise prices for students. Due to the uncertainty of the Texas financial aid, many college administrators reported losing numerous highly qualified students to out-of-state universities and colleges and many families have lost the ability to pay for tuition because of the lack of resources.

Kevin Carey’s goal for writing this essay was to reach out to college/university faculty, and Student Affair professionals to call to their attention the crushing problem of students loans and debt and emphasize the need for income-based loans in favor to the system that is now in place that causes students to fall further into debt due to high

A decade ago, student loans barely existed. Today, however, American students borrow up to couple million dollars a year to attend college. An entire generation is burdened with debt, and affected by the modern phenomena known as the “student debt crisis.” In recent years, student loan borrowing rates have risen notably, leading to concern about the public financial risks associated with the financial challenges faced by many students. Of late, the United States government has given out about $170 billion in financial aid annually in an effort to encourage students to attend postsecondary education. Such funding are usually supported by research that consistently finds positive and growing average economic benefits of

Colleges are noticing a drop in students’ interest in a higher education, because it forces them to fall into poverty. Obtaining a higher education is a dream of many working class citizens, but the price to go to a choice college is not available economically. The majority of students use some type of student loan, they have become the norm for attending college (Johnston, Roten 24). College is becoming unaffordable to many lower class students. With tuition prices this high, students are backing out of school and looking for jobs that only require a high school diploma. Student loans should help people, but it is only hurting them because they feel like they can never repay it. Especially since student debt continues to rise. “Student loan debt rose by 328 percent from $241 million in 2003 to $1.08 trillion in 2013, according to the Federal Reserve Bank of New York” (Johnston, Roten 25).

These fraught students display the future, and it’s not looking too bright. With higher education becoming a progressively distant dream for the average American, heftier loads will be landed upon those who can scarcely afford to reach their aspirations. These students are not simple figures on a statistical report, but they are young people at a point in their lives where they must be aided on the basics and essentials of financial lingo and repayment plans (Rajan, 2014). The liability imposed on the current generation can only be noted as atrocious and sleazy, obstructing any economic growth that might’ve been projected before realizing the trap they have fallen into. Worsening as we speak, The New America Foundation has declared that debt

As Young teenagers become adults and start College, one issue that doesn’t seem as a big deal at the moment for many students are student loans. Young college students who don’t have the money, don’t have enough scholarship money, or family who doesn’t have the money to pay, will apply for student loans each year. They amount the student receives can vary depending on the college and what the student has achieved academically. Though interest rates are low with subsidized being 4.29% and unsubsidized being 5.84% ("Federal Student Aid" Interest rates and Fees), student loans still have a huge effect on college students once they graduate. One college graduate’s story helps explain the struggles for most students:

Families are now aiming low when it comes to college- or are simply not going at all. Money could play a huge part in this decision- after all, the cost of college has skyrocketed over the years, and so has the amount of student loan debt. This is something even Leonhardt admits, stating that, because of this, only about 33 percent of young adults get a four-year college degree today, while another 10 percent receive a two-year degree (Leonhardt). And even though many colleges offer financial aid packages, that money may soon be cut and the cost of college will continue to grow. It is true that, in my personal experience, just because a student is awarded financial aid does not mean they have a golden ticket to University. This leaves many desperate students the only option of taking out as many loans as they think they can handle- often more than they should. Debt is not a new issue for America, but it is still a problem. Although David Autor, an M.I.T. economist, laments: “not sending [young adults] to college would be a disaster”, no one can ignore the rising rates of loan defaults, and some think it

Caroline Kerr English 100 Mira Costa Community College April 2, 2015 Argumentative Essay In 2014, graduating college students debt on average increased by 25% — in 2008 going from $23,450 to $29,400; in 2004 only 900,000 students graduated in debt, in 2008 1.1 million students graduated from debt and in 2012 1.3 million students had gradated from a four year in college loans and debt (71% of all students). An even scarier statistic is that just from public schools in the United States over 65% of gradients had student loans as of 2012. The worst thing about this is that students who received Pell Grants (families that on average earn less that $40,00 per household) were more likely to have student loans, in fact 88% of Pell Grant students

While it is well known that college tuition is on the rise, not enough people stop to uncover the foundational flaws in tuition assistance. For one, federal student aid relies too heavily on their parent’s income and taxes. That is, a student’s eligibility is dependent on possibly unrelated information that may not affect them. For instance, 2017 FAFSA asked for tax records from 2015; however, a lot can change in 2 years (i.e. job loss, marital status, sudden disability, insurance coverage, etc.). This is a trend that will be carried into the 2018-19 FAFSA. Any lack of funding from federal aid will directly result in an increase student loans. As a matter of fact, student loan debt in the U.S. capped $1 trillion in 2011, well surpassing national credit card debt in 2010 (Stephens). Moreover, students are having an increasingly difficult time managing these

Present time’s workforce has become very competitive due, to the increase in many people having a bachelor’s degree, at minimum. Currently, 40 million people are victims of student debt, our country’s all-time high rate. One factor that plays into student debt is, the loans that the federal government distributes. As of 2016, the highest amount of money you can receive from the government in student loans, as just the student alone, meaning no cosigner, is $6,500.00. This amount is distributed through three separate loans including, Direct Unsubsidized Stafford Loan, Direct Subsidized Stafford Loan and the Perkins Federal Loan. Not every student is eligible for the maximum amount of these loans. The main reason a student

In his article “Student Debit in America: Lend With a Smile, Collect With a Fist” from the November 27, 2015 edition of The New York Times, Kevin Carey indicated that there is a catastrophic situation of the loans made by American students. Kevin Carey began by explaining how extravagant colleges increase the tuition every year. This ultimately leads to students left with tremendous debt.

The cost of tuition for higher education is quickly rising. Over half of college freshmen show some concern with how to pay for college. This is the highest this number has been since 1971 (Marill and O’Leary 64-66, 93). The amount of college graduate debt has been rapidly increasing also. With limited jobs available because of the high unemployment rate, college graduates find themselves staying in debt even longer. Although grants and financial aid are available to students, students still struggle to pay for their college tuition. Higher education costs are prohibitively expensive because the state’s revenue is low, the unemployment rate is high, and graduates cannot pay off their student loans.