This website uses cookies to ensure you have the best experience. Learn more

Student Loan Debt Essay

1956 words - 8 pages

Student Loan Debt
It is a norm and expectation in society today for students to pursue higher education after graduating from high school. College tuition is on the rise, and a lot of students have difficulty paying for their tuitions. To pay for their tuitions, most students have to take out loans and at the end of four years, those students end up in debt. Student loan debts are at an all time high with so many people graduating from college, and having difficulties finding jobs in their career fields, so they have difficulties paying off their student loans and, they also don’t have a full understanding of the term of the loans and their options if they are unable to repay.
There are different types of financial aid available to students such as grants, scholarships, and loans. There are a lot of these types of financial assistant available for students to have access to. There are many websites available online that have all different types of scholarships. Some scholarships have certain requirement such as race, GPA, demographic, parent’s income, etc. Others require students to write an essay and others only require students to only apply. Grants are given to students and are money that is not required to be repaid. Most grants are federally and state funded. Loans are money borrowed and is required to be repaid and in most cases with interest.
There are two major different types of student loans; they are Federal and Private Loans. Federal loans are loans offered by the government. There are three different types of Federal Student Loans and they are Federal Stafford Loan, Federal Plus Loan, and Federal Perkin Loan.
There are two major Stafford loans: Subsidized and Unsubsidized. To be eligible for these loans, students must be registered as a full time or part time student in an institution that is a part of the Direct Loan Program. Another requirement is that student must be in a program that will eventually lead to a certificate or degree. Subsidized Loans are offered to students’ based on individual needs, and this is decided based on the information given when completing FAFSA. Paul Basken states, “The federal government offers subsidized loans to college students both directly from the Education Department and indirectly through banks and other private lenders.” These loans are offered without a credit check or cosigner. There is a limit to the amount that can borrow each year, and that amount varies based on if the student is a dependent or independent. The interests on subsidized loans are paid by the government while students are still enrolled in school. This means the amount that is borrowed, is the amount to be repaid. Interest starts to accumulate after students graduate or drops out and the repayment terms begin.
Unlike Subsidized Loans, Unsubsized Loans are not offered to students based on need. It also differs from Subsidized Loans because as soon as the loan is paid out to the schools, interest immediately starts to...

Find Another Essay On Student Loan Debt

Students Loans: The Borrower is Slave to the Lender

2769 words - 11 pages . Student loan debt has become an epidemic in the United States of America. There are many different types of student loans some of which do not have to be paid until the student graduates college and some that do need to be paid during the student’s college career. Although college students are aware that they are borrowing money for college to eventually pay it back, the student loan debt takes over every other priority in the college

Financial Aid: Old Methods May Not Be the Best Methods

1739 words - 7 pages The banking credit crisis of 2008 highlighted the issues of students and parents becoming limited in their options for both obtaining and repaying student loans. Scrutiny regarding misuse of governmental loan subsidy funds by lending institutions and for-profit colleges was occurring. Student debt loads were at an all-time high. High unemployment meant students could not make payments on the loans and were defaulting at record rates. The Student

Getting into Debt for a College Education

1807 words - 8 pages An estimated 20 million Americans attend college each year, and 60% of those students borrow annually to pay for it (qtd. in asa.org, “Student Loan Debt Statistics”). Moreover, citizens continuing to pay off debt after schooling brings the overall number of student-loan-borrowers to about 40 million- with a collective 1 trillion dollars in debt (McCarthy, “10 Fun Facts About the Student Debt Crisis); a fourth of these borrowers owe over $28,000

Business Report on the Different Financial Institutions in Australia and their Different Rates

1358 words - 5 pages Student loan: A tertiary student loan lets full-time tertiary students at University, TAFE, Agricultural College or registered training organisations to borrow money to pay for fees, books, computers, cars, etc.•Business loan (fixed loan): A business loan is a loan that is offered to fund the business’ growth, expansion or finance. The Commonwealth Bank provides the BetterBuisness for these purposes.•Home loan (Variable rate

Legal Ethical and Social values of Student loans

2250 words - 9 pages financial decisions made after becoming an adult. Higher educated students have racked up more in student loan debt than they have in credit card debt. Currently, the total outstanding student loan debt is upwards of $1 trillion (Blake, 2012). This huge financial balance has caused massive financial pressure for many of the borrowers who have leveraged their credit in furthering their education in hopes of further advancement in their careers

Private Student Loans

1449 words - 6 pages up to 30 years in some cases. The most important thing to remember when financing your college education is eventually the money does need to be repaid. This is why it is best to only borrow what you will need for your tuition and or expenses. The last thing a person needs is to be in debt right after college. With grants and scholarships, there is no debt. You do have the option of loan consolidation with any of your student loans. This is

Student Debt

874 words - 4 pages taken out students loans, the total is about 1.1 trillion dollars which is greater than American who owe on credit cards. The good news is students have some new options now because Obama signed the “Bipartisan Student Loans Certainty Act”. This Act helps students by controlling unpredictable increasing loans. Other option students have is to follow loan forgiveness program so their debt could be decrease. The government is also working on student

Feedback and Evaluation for a Federal Program

818 words - 4 pages 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

Policy Proposal: Student Loan Default

3839 words - 15 pages recovers around 80% of the total defaulted amount of student loans, losing billions of dollars each year. The latest data from the U.S. Department of Education indicates that student loan default rates have been rising. Official 2011 default rate is 10%. ("Comparison of FY 2011 2-Year Official Cohort Default Rates to Prior Two Official Calculations"). The New York Federal Reserve reported that as of March 31, 2013 outstanding student debt surpassed

Is a College Degree Worth the Costs?

1046 words - 4 pages , rose 31 percent for college graduates, 37 percent for high school graduates, and 50 percent for associate degree graduates, though associate degree holders were still excluded at a lower rate than high school graduates (Tilsley, 2013). Conflicting Viewpoints Essay 4 Student loan debt has become a discouraging problem throughout today’s economical foundation. “Overall debt is falling but student loan debt is

CU Scholarship

818 words - 4 pages a credit card during college typically does more harm than good; the monthly payments and interest collected takes away from money that can be used for more “Seven in 10 college seniors (71%) who graduated last year had student loan debt, with an average of $29,400 per borrower”(projectonstudentdebt.org) I have improved my financial literacy by reading and analyzing loan agreements. This past year I had to take out a federal loan, this

Similar Essays

Student Loan Debt Should Be Forgiven

1256 words - 5 pages Does the amount of student loan debt have an effect on the economy? If so would forgiving student loan debt help lower the national debt or would it just increase it? According to Mary Claire Fischer, a writer for Kiplinger’s Personal Finance magazine, “two-thirds of students who receive bachelor’s degrees leave college with an average debt of twenty-six thousand dollars” (Fischer). This means that the average student debt has

Should Student Loan Debt Be Forgiven?

1125 words - 5 pages Does the amount of student loan debt have an effect on the economy? If so would forgiving student loan debt help lower the national debt or would it just increase it? According to Mary Claire Fischer, a writer for Kiplinger’s Personal Finance magazine, “two-thirds of students who receive bachelor’s degrees leave college with debt in tow” (Fischer). Among these students, the average amount owed is twenty-six thousand dollars (Fischer). There is a

The Government Should Not Forgive Student Loan Debt

2196 words - 9 pages prospects well after graduation. Without question, the increasing national student loan debt is one of the most pressing economic issues the United States is dealing with, as students who are debt ridden are not able to consume and invest in the economy. Therefore, many politicians and students are calling on the government to forgive their student loan debts so that through their spending the slowly recovering economy can finally return to its pre-2008

Persuading Students To Use Credit Cards And Financial Aid Responsibly

1240 words - 5 pages Outline THESIS: There is a growing number of students with credit card and student loan debt at Broward College. Not all of them are conscious of the fact that their debts continue to gain interest over the years and leaves the student in a precarious financial situation if left unchecked. The students need to be informed of the methods by which they can avoid or deal with student credit card or student loan debt. I. Students at Broward