The Pros And Cons Of Student Loans For College

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

We have made K-12 education free because it is good for the individual and for society. The same is true for higher education. Proponents of free college education believe that it

One of the main reasons why college should not be free is because of the common conception of free things: free things are not good quality. Nothing that is given out for free is ever good quality, they are usually simple things such as a pen or sunglasses covered in a company's logo—never anything with great use. Many are afraid that if college becomes free the quality of the education will suffer tremendously. If colleges weren't being paid money by the students they will cut professors pay and other education boosting factors that will result in a lesser education. This point is further explained and supported by the website "idebate" stating that nothing is good or worthwhile if it is free, just

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.

In order to be successful in the workforce, having a powerful career there are things needed like higher education. Graduating from college is essential to finding a successful job, since more jobs are making college degree a requirement, more people are going to college. The problem is the cost of going to college outweighs the earning from the career you obtain. Very little people are able to pay for college out of pocket. In 2014, 42% of undergraduates paid for college out of pocket (Sallie Mae). The result of this is that students seeking higher education are forced to take out loans. On average, college students borrows $25,000 to earn their degrees (Alexandria). I just don 't get the concept of college tuition or student loans. It

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).

In the United States of America, the public school grades of kindergarten through senior year of high school are free to all students no matter how many times they repeat that education. This is 12 years of basically mandatory education in background areas that will probably be of no use to you on your choice of career path, but merely sets up a base for further learning. So why does this not also apply to college or at the very least community college, where you study your intended path and what you are interested in? There are many theories as to why college should or should not be free for all Americans seeking to better themselves and their educational path. College should be free for those who wish to seek a higher education beyond high

College tuition cannot be free because there is simply no such thing as a free college education. People think that free higher education would benefit the middle-class families and help the amount of student debt building up in the United States. The truth is that making a policy for taxpayer-funded tuition would hurt the majority of students and families. Allison Shrager made a comment in her article about free tuition, "While tuition is free, living expenses are not covered. Free tuition resulted in lower grants used

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.

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).

In the U.S. students are encouraged to earn a college degree, but the cost of an education turns many away. “Driven by the allure of a decent salary with a college degree, Americans borrowed to go to school. Outstanding student debt doubled from 2005 to 2010, and by 2012 total student debt in the U.S. economy surpassed $1 trillion” (Mian, Sufi 167). There are plenty of opportunities to obtain funds for college, including one of the most common, student loans. A student loan is defined as “a common way to fund education, specifically college and graduate school, and they provide educational opportunities that you otherwise may not be able to afford” (Barr). Student debt is at an all-time high in America. Over half of all lower income

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:

Therefore, banks would not deem students worthy of very large loans, as there would be no basis for the bank to assess the risk of default. So the Government set up rules for itself. It created a system that students could get tremendous sums of money in loans. The Government then created laws that the student could never clear the loans through bankruptcy. This is important; students who cannot clear the loan will remain in debt forever until it is paid back. The National Center for Public Policy did a report that “suggest that there are some significant, negative, and lasting consequences of the current system of financing higher education in the United States, particularly for students from lower-income and lower-middle income families.” (Gladieux and Perna, n.d., 25) These consequences are seldom understood by the consumer until it is much too late. Most borrowers have no history or pretext with credit to understand the large sums of money they are accumulating in debt. So they have no way to fully realize how long it will take to repay a loan. The young student often does not understand how the interest on the loan can make a small loan grow if the student cannot repay the loan or has deferred payments. Worse yet, today’s students have no guarantee they will have economic prosperity to repay a loan.

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.

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