Student Loans Pros And Cons

Student loan debt can be an overwhelming thing to face when you first graduate from school. You have spent the previous three to seven years or all the more focusing on your future attempts and now wind up toward the finish of your scholarly street with a heap of obligation and searching for a vocation.

On the end of the Democratic Party, both Hillary Clinton and Bernie Sanders presented comprehensive plans to help eliminate student debt, although they vary on how to deal with the cost of education and how much the government should pay (Josuweit, 2016). Clinton created the “New College Compact,” to address both the current and future educational costs, her main focus on addressing existing debt and allowing borrowers to refinance student loans at the rates allowed to students taking out new loans, which Clinton claims would provide to relief to twenty five million borrowers (Josuweit, 2016). In addition to this, Clinton wants to reduce interest rates on new student loans which would facilitate enrollment in IDR plans (Josuweit, 2016). On future tuition, Clinton claimed she would provide help so that students never have to borrow to pay for tuition and other fees attending a four year public college in state (Josuweit, 2016).

College tuition should not be free in any means necessary. Students would not take college seriously if there was no price. College students would totally take advantage of the opportunity to go to college for free and completely blow it , it would even the playing field for everyone to be equal because college tuition is what keeps everyone else out. College would then be accessible to anyone who wanted to go.

Student loan forgiveness is a terrible idea. Sure, in an idealistic world it would be great if the country could forgive all student loan debt and thus bring relief to all students across the nation. Realistic? Not necessarily! Instead of the fairytale notion of student loan forgiveness being the answer to all the problems, America would fair better in taking the initiative in making reforms to the educational loan system that are a bit more realistic. Student loans are a massive predicament in the U.S. that can no longer be ignored. The Atlantic 311.2 article “The myth of the student-loan crisis(CHARTIST)(Statistical data)” by Allan, Nicole, and Derek Thompson states that to date student loan debt surpasses all other forms of debt with over a one trillion dollars sum (2013). The United States should stop being complacent on an issue that has affected and ruined so many lives and begin finding ways to relieve the proverbial and ever-present menacing “Student Loan” pitfall.

Debt is at an all-time high in America and is not slowing down any time soon. One of the biggest problems students face coming out of high school is debt. From credit card companies urging them to buy to trying to figure out if college is worth the price, young adults can easily fall into a debt trap. I came from a middle class family and had to make the decision to go into debt to pay for college or not go to college at all. I choose to go into debt and although I will receive a degree when I graduate I was not properly educated on exactly how much money I was borrowing and what that actually meant.

“College is part of the American Dream, it shouldn’t be a part of a financial nightmare for families” - Barbara Mikulski, United States Senator. Student debt is a rising issue in America; 43.3 million students are in debt at this moment, and this number increases every year. In other developed countries, education is free or low cost and works well economically. Countries like Germany, Sweden, Australia, Denmark, and France have extremely affordable college tuition, so what do these countries do to make education so affordable? What do American politicians and citizens find wrong with free or lower cost college education? How should America go about solving this issue and follow other countries footsteps? Just how bad is America’s student debt

Unfortunately, with furthering your education, student loan debt is almost guaranteed. My husband is seven years older than I am, so when I graduated high school and chose to get married instead of going onto college we lived in his small house that he had. Shortly after getting married, we found out that we were expecting our first child. I knew that we would grow out of our first home quickly so we began the process of getting a new home. We found out that no credit is worse than bad credit. We were blessed that by putting down a decent down payment by selling his old house would help us to be able to obtain a loan.

When a student finally graduates from college there is this excitement that comes to you. You finally graduated and now can apply the things you have learned in the job or career you plan on. Unfortunately, it’s not that simple, many graduating student finds themselves in hug student loan debt. The numbers are staggering: more than $1.2 trillion in outstanding student loan debt, 40 million borrowers, an average balance of $29,000. Men and women laboring under student debt "are postponing marriage, childbearing and home purchases, and... pretty evidently limiting the percentage of young people who start a business or try to do something entrepreneurial,". (Daniels)

Student loans, seems like a good idea. Dave Ramsey points out several good and reasonable reasons to stay away from student loans. Grants, scholarships, and saved cash are all great ways to save money. When thinking about student loans you have to be thinking long term, and definitely not short term. Student loans will leave you in large amounts of debt that you will eventually have to payback out of your own paycheck! Grants are a form of federal or state financial aid that doesn’t need to be repaid; usually given to students who demonstrate financial need. Scholarships are a form of financial aid that does not need to be repaid; usually awarded on academic, athletic, or other achievements. Finally, there’s your hard earned money that you have saved up

Four months after my niece’s graduation party, she got an email with a subject line indicating that she would soon need to start making payments on her student loans. Employed only part time and sharing a room in a small apartment to keep costs down, she was afraid to open the email. Since I know something about student loans, I offered to help her out. I took a Sunday morning drive to her place.

It is no big secret that, in America today, most high-paying jobs require a college degree. Thomas C. Frohlich of USA Today stated that “graduating from college is a prerequisite for the vast majority of high-paying jobs”(2013). With the cost of a college degree increasing in unison with demand, few can earn a degree without the help of student loans. The American Student Assistance website reports that of the twenty million students enrolled in college, about sixty percent are attending with the help of student loans (2014). Obviously, student loan debt affects the individuals that obtain them. However, it also has severe effects upon the nation’s economy.

Privately issued loans may be issued by private institutions such as banks, schools, credit unions, and state agencies. Generally, privately issued loans are more

Student loans have become popular in the United States in recent years due to high tuition rates which are not very affordable to most middle and low class citizens. Many students in the United States today rely on student loans to be able to afford college education by using it to pay for part or all their full costs of college education at undergraduate and graduate levels. The term “student loan” is used to describe a type of loan offered to students in order to cover costs of post-secondary education such as tuition, living expenses and books. The two types of student loans in the U.S are Federal Student Loans provided by the government and Private Student loans provided by banks and other financial institution. Both types of student loans require the borrower to pay back the money borrowed plus a specified interest which usually comes as a burden. According to a report by Andrew Josuweit who is the Co-Founder and CEO of Student Loans Hero, the Servicemen Readjustment Act of 1944 popularly known as the GI Bill was the first form of student loan in the U.S. The bill was used to allow a large number of World War II veterans enroll in college with benefits from the government. Almost a decade later in the 1950s, the federal government officially backed student loan under the NDEA (National Defense Education Act) in response to the USSRs launch of Sputnik Satellite. This was based on the perception that in the middle of the cold war, the United States was falling behind in

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:

But most students who actually do take the choice of the loan are conscious of the seriousness of the responsibility that they shoulder. Should you be interested in an exclusive student loans, then you have to first do your homework concerning the loan in question along with the specific lending company. A student loan is merely money you borrow you have to repay with interest. As an alternative to having your refund, you might obtain a letter stating it has been sent to your own student loan lender instead.