Student loans are a very real issue in our society today. There are at least 1.26 trillion dollars of student loan debt in the United States alone. There are at least 44.2 million American students who have to pay off their student loans.
The Department of Education’s Pell Grant program costed the taxpayers 31 billion in the fiscal year 2015 which doubled compared to 2007. It’s nearly impossible to get denied for a loan today all it takes is a simple click. College Investor Robert Farrington says to many students simply "scroll down and click 'I Agree'" without realizing what they are agreeing to. We put such a strong need for education, but when it comes to educating borrowers and parents we fail. Does anyone really understand the fine print when it comes to borrowing amounts and future payment plans and interest rates?
To start things off, FAFSA Pell grants should be given to students whether they have good grades or bad grades because motivating students is the key to their success. Financial aid helps students and their families pay for college. Paying for students’ classes impels them to push hard because they understand that someone is willing
As a result of this, states receive pressure to make up for this and must raise tuition. Grant donors are also becoming less generous in their contributions to students as well. This makes affording college even harder for students.
State legislators slashed more than $121 million from college financial aid programs alone. TEXAS grants, the state’s financial aid program for needy students, now serves 29,000 fewer students than it did previously. College administrators have reported losing highly qualified students to private or out-of-state
History: The student loan system came about in the Higher Education Act or HEA of 1965 (Wenisch, 2). This act allowed “federal loan guarantees to extend to private lenders so as to encourage them to lend funds for the specific purpose of financing college education” (Wenisch, 2). The HEA was inputted so that more people, from lower income families, could still get a higher
Abstract: This paper will discuss the Federal Pell Grant and the legislation behind it as well as the Higher Education Act of 1965 and it’s reforms since then. This appears purpose is to show the faults within these programs and to then show possible ways people have tried to reform
Source: American Council on Education Issue Brief July 2006 Figure 2. Credit Card Ownership and Behavior of Traditional-Age Undergraduates ANALYSIS OF CAUSES OF INCREASING DEBT TRENDS Reduction in Student Aid Programs Student aid programs are being cut. The Pell Grant, which is set at $4050 per year for qualifying students, is suffering. Because of the lack of increases in the Pell Grant, the buying power of this grant is decreasing. It no longer is able to keep up with inflation rates (Talia Berman).
Colleges everywhere in the United States are disquieted that ending the Summer Pell Grant program may have a lingering impact on college completion and enrollment. Summer enrollments at several community colleges, as well as at some public establishments, have decremented the first full summer without the year-round Pell Grant that
The student loan debt total was about nine hundred and two million dollars to one trillion dollars in the United States in 2012; the federal student loan debt made up about eight hundred and sixty-four billion dollars of the total debt (Driscoll and Clapp). Many people in the United States that cannot afford college tuition and additional fees take student loans and/or federal grants. Student loans are different from federal grants in that the loans have to be paid back with interest, while federal grants do not have to be paid back. A federal grant is also known as financial aid. Students with lower income are less likely to attend college because of student loan debts. The government does provide some help, however, there are limits
The Federal Pell Grant program has continued to support college students with financial needs for over 40 years. Starting in 1972 as the Basic Educational Opportunity Grant, the program was later renamed after Senator Claiborne Pell, whose goal was to provide economically disadvantaged students with the opportunity to pursue higher
When starting college every student makes a very important decision. Whether if they want to get financial aid or to pay the money up front. Having college debt will not only ruin their credit, but he or she may also have to pay off their tuition for the rest of
Due to the increase in college students, the Higher Education Act expanded. Loans and grants were made to help students who really needed it. Also, something else made a change. Instead of the government financing the loans, bankers were now responsible. It was also said that if students defaulted, the government would cover the tab. The lawmakers supported the idea because outstanding loans
Financial elder abuse is a prominent issue in the world, and will continue to increase due to financial burdens the Millennials will face in their upcoming years. The fear of Social Security benefit reductions as well as the increase of college tuition prices, will add to future financial elder abuse
Higher education costs have been increasing at a rapid pace, faster than inflation for the economy as a whole, for the past fifty years. It started in the 1960’s when the federal government passed the Higher Education Act to increase the amount of people able to afford and attend college.