Student Loan Program Should Not Be Paid - 781 Words

The release of President Barack Obama s budget last month sparked growing concerns that student loan forgiveness - specifically for graduate school student debt - will cost taxpayers much more than originally estimated. As the Student Loan Ranger discussed previously, the president s budget shows a shortfall of approximately $21 billion for the federal student loan programs, in large part due to a projection of more borrowers taking advantage of loan forgiveness after making 10 to 25 years of income-based payments. According to the New America Foundation, as much as 40 percent of the nation s recent federal loan disbursements are for graduate student debt. Graduate student borrowers are much more likely to have substantial loan amounts forgiven under the income-based repayment, Pay As You Earn and Public Service Loan Forgiveness programs. That s because dependent undergraduate borrowers cannot borrow more than $31,000 in federal student loans - independent students can borrow up to $57,500 - making it unlikely there would be any remaining balance after 10 or 20 years of payment unless the borrower made an unusually low income for a long time. Graduate borrowers, on the other hand, can borrow up to the cost of attendance through the Grad PLUS program, up to $138,500 for their entire undergraduate and graduate study period. In fact, according to the New America report, the median debt load for a graduate student upon completion of study in 2012 was $57,600. One in 4Show MoreRelatedIs College Education A Tax Policy Program? Essay1635 Words   |  7 Pagesearly start. THIS should be the reality, the outcome after graduating. Unfortunately, unless people come from a rich family or gained a rare full ride to college, the realities of the aftermath are not that bright. Because almost all students can’t afford to attend college, the consumption of student loans comes back to haunt them in the end. Since the government is not doing anything to fix this problem to help relieve people of student loan debt, every employment companies should establish a taxRead MoreThe Role Of Federal Loans Became Dependent On American Families1455 Words   |  6 Pagesattending a university is very costly. The use of federal loans became dependent on most American families that try to provide such an education to their c hild. Before World War II, academically advanced students from families that were unable to finance college could apply for competitive scholarships; Scholarships mutated into â€Å"financial aid† when the GI Bill of Rights financed college for the discharged veterans (Toby, 2010). Since then, student loan debt has surpassed $1 trillion, which is larger thanRead MoreStudent Loan Debt Is Not Worth Going Into1335 Words   |  6 Pagesdecade student loan debt has risen substantially and is now one of the largest form of personal debt in America, totaling about one trillion dollars, with 71 percent of students who earn a bachelors degree graduating with debt, with the average amount of debt being $29,400. This topic has become a very important issue, with some people saying that student loans could be the next bubble and could do what the real estate bubble did to the U.S economy in 2007 and 2009. If student loans are becomingRead MoreThe Student Loan Debt Total1736 Words   |  7 PagesThe student loan debt total was about nine hundred and two million dollars to one trillion dollars in the United States in 2012; the federal student loan debt made up about eight hundred and sixty-four billion dollars of the total debt (Driscoll and Clapp). Many people in the United States that cannot afford college tuition and additional fees take student loans and/or federal grants. Student loans are different from federal grants in that the loans have to be paid back with interest, while federalRead MorePublic Service Loan Forgiveness ( Pslf ) Essay1553 Words   |  7 PagesAs of today Americans are facing a outstanding debt of 1.3 trillion dollars in student loans alone and it s up to 43 billio n students to pay all of that back in full. Our most recent graduating Class of 2016 student is coming out of college owing an average of $37, 172 in loans, making an increase of 6% since 2015. Which is significant amount of growth to have within such a short period of time. Many of these students are unable to make their monthly payments whether it be because of the tremendouslyRead MoreFinancial Risk Of For College Aid From The Department Of Education1294 Words   |  6 PagesStudent loans are unique. This same analysis would not apply to, say, home loans. With houses, private lenders play a critical role in determining who is a credit-worthy borrower, and what the appropriate loan amount is for the asset that is being purchased with the loan proceeds. The financial risk of being wrong causes lenders to take seriously the job of allocating loan capital efficiently. But in the federal student loan program, there is a single process for determining eligibility for collegeRead MoreFinding The Lowest Student Loans Consolidation Program1536 Words   |  7 PagesFinding the lowest student loans consolidation program is very important as this will decide your financial future. You should take this process very seriously and find out ways to search for the loan consolidation program that imposes lowest charges and interest rates. This will not only save you a lot of money but also help you lead a better life where you can pay attention to other necessities and luxuries of your life too. When a person is deep down in debt he does not think anything else unlessRead MoreNational Student Loan Data System1491 Words   |  6 Pagescalled Program Integrity: Gainful Employment (GE) was established when concerns were raised about the amount owed on student loan debt. This single ruling will permanently close several hundred programs and lower the options of educational choices for non-traditional students. The American taxpayer dollar is funding the education of low income students in the form of Federal Pell Grants and Federal Direct Student Loans. The federal government has the responsibility of funding those student loans. TheRead MoreEssay about Information about Financial Aid1063 Words   |  5 PagesFinancial aid is money in the form of loans, grants and employment that is available to a student to help pay the cost of attending. Financial aid comes from the federal government, which is the largest provider of aid, as well as state government, the school and a variety of other public and private sources. If you think your educational expenses are more than you and your family can afford, you should apply for financial aid using the Free Application for Federal Student Aid (FAFSA). You will need toRead MoreDebt Is A Duty Or Obligation Pay Money Or Render Service Under An Express Or Implied Agreement?1248 Words   |  5 Pages2013 had a student loan debt with an average of $28,400 per borrower† (________________________). Debt is a duty or obligation to pay money or render service under an express or implied agreement. So when one takes out a student loan one has made an agreement with the lender to borrow money for a certain amount of time. Every semester the cost continues to rise for college students across the country. Instead of considering only tuition when applying for school, prospective students should research