How To Take Out Student Loans

The main problems with student debt are the high monthly payments, high interest, short grace period, and repayment programs that does not apply to everyone. Majority of students can’t pay back loans they have borrowed because they aren’t given enough time to pay them off. Students have at least six months to pay off their debt before they get an increase in interest. Over 75% percent of students have to get loans to pay for their first year of college and more (Quadlin). Debt is something we all have to deal with even parents suffer from them as well.

Student loan debt affects college students all over the United States. Today students are having to take out loans in order to pay for all of their college expenses. It can be a pain to deal with the hassle of paying back the loans. The problems with student loans include causing students to go into debt that they are not able to pay them off in the given time which makes them put major life decisions on hold, and the debt stay with the student even through bankruptcy. A solution that would solve these problems is the idea of debt forgiveness which is the idea that the government will get rid of all the loan debt for college graduates.

A retrospective look might provide a clue as to how so many Americans landed in the whole “student loan” dilemma in the first place. As discussed in the America article “The Student Debt Crisis” as part of the plan to create a ‘Great Society’ President Lyndon B. Johnson signed into law The Higher Education Act of 1965. The act provided more funding to public colleges and universities, giving them more resources so that students would be able to afford college. Hence, the birth of the student loan (2015).

College tuition prices are rising and so is the amount of student loan debt. To many students getting a good education to start off their future is very important. With the rising prices of college tuition, often many students have to get a student loan in order to pay their way through college. Student loans are there to help one out, but can become a huge burden to one. Although student loans come with a lot of responsibility, if one plans a way to pay it off the loan can be very helpful and stress free.

Student debt forgiveness is not the answer, for it is the cost that is the issue that needs to be addressed. As Robert Applebaum states in his short essay mentioned in the article “Student Loans: Should Some Indebtedness Be Forgiven?” tuition rates are increasing at ridiculous rates because colleges somehow feel that because the government makes it easy to get a loan it justifies their rising tuition costs (466). Instead of arguing for student loan forgiveness, perhaps protesters should refocus their attention at the paramount reason for needing student loans in the first place.

Student Loans: What They Are, What The Evolution of Student Loans Has Looked Like, and What The Current Policy Is.

Students are taken advantage of with student loans. Most students cannot afford to go to college and turn to student loans. Usually this is a combination of the students, parents, and financial aids ideas and problem solving in order to afford the schooling at the university or college of choice. The student is the one who signs the agreement that they will pay off the loan. Most students do not read the booklet that you have to read before signing, and most also do not read the small print. Both of these pieces of literature include the interest rates that constitute the bill that the student will have to pay in the future. Students do not read these because they are just so excited to be able to go to college and not have to worry about paying all of it during their schooling.

This is not my first time hearing about student loans and how badly they affect one’s life. Growing up, my mother always preached to me the importance of good grades and how they would benefit me in the long run. She always told me that good grades and a good ACT score would get me Scholarship money; money that I do not have to borrow. I know personally how student loan debt can affect one mentally and physically. My mom went to a private institution and could not get enough scholarships and grants pay, so she had no choice but to rely on student loans. She is a social worker making $30,000 a year, and owes more in student loans than her yearly salary. My mom like many others not only had to struggle paying loans, but also had to maintain a household.

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:

Many students are uneducated about student loans. When I say uneducated I mean that they have no idea what type of loan is best for them, how much they need to borrow, or where to get the loan. There are many resources out there about student loans, but there are not any requirements to review them before taking out a loan. Students are not required to have any knowledge about how the loans work. Students need to have the correct knowledge when applying for a loan, otherwise they may end up with too much debt or the wrong type of loan. A student should not start off their life outside of college in unnecessary debt.

Student loans have become a popular topic of discussion due to the tuition increase and individuals taking out tremendous amounts of debt. Participating in higher education systems may have hidden costs that students may not be aware of. Students seeking higher education opportunities may not understand how their college decision should correlate with their possible career of choice. Natalie Lohrenz, a chief development officer and director of counseling at Consumer Credit Counseling Service of Orange County, advises students to not “take out more in student loans than what you expect to make in your first year of work.” Students who do not consider this rule will suffer from debt in the future. Previous college graduates did not have to choose

College is a heavy financial burden. That is why understanding money saving at a young age can help you in the end. Many look past the point of having to pay for college and go ahead at it blindly. Most who do this will end up signing the papers for student loans just so they can pay for college. Signing up for student loans can lead to many bad situations some of which include debt and dropping out of college. This is why it is crucial to try and stay away from student loans and pay cash for college.

My $15,000 debt has been around quite a long time and will probably take me about 10 more years to pay off. There have been periods where I have paid regularly but more periods where I have requested deferments. The government makes it very easy to defer and they give you quite a bit of latitude when it comes to making payments on the debt. I have never been in default and never will be barring a catastrophic life occurrence. I do not resent my debt and it will one day be a memory. Without student loans, I would not have been able to get the wonderful education I received from UCLA. My college years were wonderful - some of the best years of my life. The collegial environment, the rigorous academic requirements, the diverse group of people I came across and forged friendships with all contributed to an enriching educational experience. Therefore, yes the student loans were definitely worth it and they contributed to making me the person I am today. When I lost everything, I still had my education. I was the first person in my immediate family to go to college and received a write up in the local paper when I graduated. My loans were spent strictly on my college education. I was responsible for the cost of my education and used the loans for that purpose along with working two to three part time jobs during the school year and lining up a job for the summer. I have benefited greatly from my education. Not

Financial support has played an important role for college students, especially for university students, whose family could not support their education after they have graduated from high school. Due to this situation, students have to go through a lot of problems with their tuition fees to be able to continue with their education. They always need a large amount of money besides paying for the tuition but also for living, and students have to go through a lot of problems with their tuition fees in order to be able to finish their career on time and earn a better living in the future. Some students will choose to go to work part time while at school, so they can pay for their fees and their own expense, such as gas, foods, and clothing. On the other hand, most of students will choose to take out loans from somewhere else, such as the bank or federal loans. This way, students who choose to take out a loan could focus on their education without worrying about how to pay for their fees. It is very important for students to acknowledges and be aware of the different types of student loans, and all the requirements before students decide to obtain a loan. Because of the raise in tuition leads to the existence of the student loan debt is a burden that is a financial impact on lifestyle changes, such as postpone couples to get married, to have children, to buy a house and to save for retirement.

It is proven that taking out any loan in college reduce the student's experience in school (npr 2015). What's more interesting is that less than 20% who took out a loan felt that it was worth it ( npr 2015). In taking out loans you would need some time to pay them. The standard repayment plan for federal student loans is 10 year's (us news 2014). But “the average bachelor degree holder takes 21 years to pay off” (us news 2014), That is 11 more years than planned. Assuming that students went to college at the age of 19, they would be 44 years old when they finished paying back their student loans. And if they file for bankruptcy in that 21 year period, they still have to pay off those