Student loans are something that haunts us all. It even scares some people from wanting to go to college just because they don't want to face the student loans afterwards. 70% of graduates are leaving school with some extra financial baggage. So, they made a thing called “Student Loan Forgiveness” this is a program that helps out working people manage their student loan debt after 10 years. The question is, is this really a good program like it may seem? They say that having student loan forgiveness will help boost the economy by allowing the people who just got out of college to be able to afford nice things like houses and cars, allowing the economy to boost. Although that may potentially be true, there are many other…
Singletary, a well known nationally syndicated columnist for The Washington Post: “A good first step is to contact the company servicing their loan to discuss all their payment options.” Different companies have different payment options, it’s always best to know this in order to successfully pay off debt fresh out of college. GOBankingRates informs readers of the Huffington Post: “That’s a lot of money to invest in your education, so it’s good to know whether or not you’re making a good investment when you pay the cost of college.” For some students the more they put into college they more they get out of it, it all just depends. “There can be good academic and personal reasons to borrow money for the right school” (McGrath). If the school…
With the average cost of college today (National Center for Education Statistics, 2013) , I have found that I would have enough money for the first two years of college, if he were going today. In the future I would have enough for a portion of the first year. If available he would have to get loans, grants and scholarships in the future. I hope that future costs of college will not deter students from attending.…
Everyone who wants to go to college is often faced with the same fact, how will I pay? Students often go with the options of taking loans, after much consideration and research, research sometimes based on essays written by authors. Even though Carey and Wilson both address the debt college could put someone in. Wilson provides a more convincing argument due to the fact that he gives more information on statistics of student loans, more information about loans, and an unbiased opinion.…
In October of 2013, 65.9 percent of high school graduates enrolled in college compared to the previous year of 66.2 percent (Bureau of Labor Statistics). However, in recent years many high school graduates are finding themselves hesitant on deciding whether or not to pursue higher education. Although this can be due to a variety of reasons, I set out to discover one in particular, the alarming cost of student loan debt. Each year the rise of student loan debt has become an increasing concern for prospective students because of the growing pace of college costs and reliance on loans to finance these costs. As a result, the rate of defaults is also increasing among students due to many loans going unpaid. Although there are various types and…
It is wise to consider personal standing when opting to take on Federal funding. By this, I mean to think of financial stability during college as well as after college. All loan types, of Federal funding, are with interest. Although interest is typically differed for 6 months after the end of ones’ attendance; interest is still interest, and such can add up quickly resulting in debt.…
Student loans have many qualities that Sinclair Davidson (Senior Affairs at the Institute of Public Affairs) States that “Education is often described as being a ‘public good’. Most people interpret that as meaning that education is good for the public which, indeed, it is. Education is one of the better investments individuals will ever make in their lives” (Davidson 39). When it comes to investing your money, investing your money in a student loan is good. When investing in a loan you are investing in a long term education that could eventually lead to a great job in the career you are looking for.…
“The decision to borrow to attend college often amounts to a “financial disaster”. “Most people borrow a reasonable amount of money, they pay it back, and they are better for having gone to college”, says McPherson in the Reading of Robin Wilson. But then Wilson states “Why do some students borrow more than $40,000 for a bachelor’s degree when average borrowing is only half that?” The decisions of borrowing money only end up a financial disaster depending on the college student. If the college student takes a loan and flunks the college course, they will end up taking up another loan for the same course again. Wasting time and making them having to pay more loan money in the…
Student loans become something that students have to worry about for the rest of their lives. Debt will affect a lot of things in their life that college students don’t think about. A lot of students do not realize that they must back the loan plus interest, the interest on some loans can end up being more expensive than the loan itself. After school, they must find a job, pay for living expenses, and pay off their loans. People take on massive amounts of debt and they don’t think of the consequences. They end up with so much debt that it takes them their entire lives to pay off the loans and money they borrowed. Dwyer, et al. writes that taking out loans makes it more likely that a student will complete college, to a point. Students who keep…
Applying for college is a long process and is very expensive. It requires a lot of time and planning. Over the past 15 years, the average tuition for college has doubled. College tuition continues to rise and less money is provided for a higher level of education. Taking out loans and borrowing money from others is the easiest and most common way to pay for college and puts the student in a difficult situation, owing the amount of money that was taken out and the additional interest.After graduating, most students are in debt and have to pay the money back. To resolve the problem of student debt, there are several ways to approach it such as, applying for scholarships, working and saving paychecks,…
There are two types of student loan that can be applied which are federal student loan and private student loan. Basically, students are more prefer to make a loan in federal student loan because the fixed interest rate wouldn’t affect the payment that they have to pay even the interest rate rise. In addition, government also provide free insurance in federal student debt. So that, if the borrower was disabled or killed, the loan automatically will be cancelled.…
With all of the student debt that is accounted for an estimated 87 percent of the $1.3 trillion dollar outstanding student loan balance in the United States comes directly from federal student loans. The average age of a student throughout their collegiate career is between ages 17-25. Majority of the students receiving a secondary education take out some type of student loan during their tenure, but only about forty to forty-five percent of students actually graduate college. Sadly, the likelihood that a student was taught or had been provided any information about the student loan process prior to applying for financial aid in college or a for-profit institution is…
Robin Wilson states that students who get student loans, go to college, and graduate are better off than the ones who don’t go to college at all. Especially the ones who end up with high paying jobs. In her article “A lifetime of Student Debt? Not Likely.” She talks about students who attend college and take out student loans. A great student can be one that ends up in the most debt, and a not so great student could be one that doesn’t have to pay back as much. It all depends on how wise you are with money. Wilson talks about how students take out more than they need, they spend the money on unnecessary things such as clothes or video games, these students will be the ones that will spend the rest of their lives paying back their loans. About eight percent of american students borrow at least double the national average, these students are borrowing more than they need. Some students choose defer their student loan payments, one of the major problems with this is the interest rates will go up, therefore, putting the student farther and farther into debt.…
The student loan crisis is anything but a myth. The rising cost of college tuition creates a hardship among students and their parents. Most graduates carry their student loan debt well into their late thirties. Some people do not have the option of attending college simply because of the financial burden that it creates. The student loan crisis is far too real for those who aren’t willing to have the financial…
Student loans have spiraled out of control within the last few decades and this is negatively impacting our society. The average of obtaining a degree at a public four-year college is $9,300 and has been steadily rising by four percent since 1985. This trend is most likely going to continue the way it is and all the while the median family income remains stagnant or even slightly decreasing. This has led the students of today to take out more loans and just keep adding onto the growing student debt bubble. This early debt can take a heavy toll on any savings for retirement, plans for homeownership, or a possible rainy day fund. Students today will become the engine that runs this country and student loans make it next to impossible to make it out into the real world.…