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Feedback And Evaluation For A Federal Program

818 words - 4 pages

The Government as far back as the 1950s backed subsidized and unsubsidized student loans. However, over the years the cost of a college education has increased and has become a financial burden for some families as their debts began to rise. The U. S. Department of Education amended the Title IV of the Higher Education Opportunity Act of 1965. Student loans are a form of financial aid that a student can receive while in college and consist of federal loans and private loans.
The Internal and External feedback mechanisms
A high number of students are graduating from college with a debt that is stemming from student loans with high interest. Over the years, students who entered into low paying positions after college or experienced a layoff setback, became ill or simply did not finish college, ended up with a loan that was high in interest and was struggling to pay it back.
A middle class task force was implemented to focus on many issues with one being the cost of education. The task force provided external and internal feedback which was used for determining the changes to the Higher Education Opportunity Act regarding student loans. The task force consisted of some members of Congress, the Labor Department, Health and Human Services, Business Community, Interest Groups, College Students and the Office of Management and Budget. The goal of the task force for education was to expand education, and create more training opportunities. The task force would be faced with developing a plan for payment plans based on income for students with loans from private lenders. Federal loans normally allow reasonable payment options whereas private lenders do not leave the student with many options which could lead to a student’s credit being damaged due to not being able to repay the loan.
Another goal of the task force is to make sure that policies are devised to help students to obtain school loans that will be affordable and fair and will be beneficial when it comes to pursuing a higher education.
The Information Generated from the Feedback
The majority of the market consists of loans originated by financial institutions and the
Government under Title IV of the Higher Education Act ("Student loan affordability," 2013). The financial markets begin to show signs of non-payments of credit on student loans, which was alarming to policy makers who eventually intervened. The feedback received from this brought on the amendment of the Title IV of...

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