Student Loan Debt and Forgiveness - 2560 Words

Portfolio Paper: Student Loan Debt and Forgiveness Justin Puckett 5/17/2012 Public Administration: PMG300 Colorado State University Global Campus When it comes to achieving success in the work force and finding a fulfilling and lucrative career there are few things more important that higher education. Going to college and getting a degree is essential in finding success in the work force. The problem is when the cost of gaining that degree outweighs the financial compensation the career that follows is able to supply. Very few people are able to pay for college out of pocket. The result of this is that students seeking higher education are forced to take out massive student loans. This means that they are entering the work force†¦show more content†¦I am still several years away from graduating because I am only able to attend school part time due to the fact that I work full time and have a wife and two children to care for. A rate increase like the one being discussed would make paying back my education loans next to impossible. This is a concern I share with thousands of people. There are things being done at this time in order to help prevent default on these loans and promote continued education. Recently more than 100 people demonstrated against the lending practices of student loan company Sallie Mae outside its headquarters in Newark. The protesters criticized the heavy debt burden that students accumulate during college and what they say are unfair profits made by Sallie Mae. (Associated Press) Possibly in response to such criticism, Sallie Mae announced that it will offer fixed-rate loans for the first time ever to help students and their families pay for college. Private lenders are also attempting to step in with the impending rate hike on federal student loans. As stated before, the largest student lender, Sallie Mae, introduced fixed-rate loans. On May 21 2012, Discover Student Loans which is the third-largest education lender started a fixed-rate loan program as well. Wells Fargo which is the second-biggest lender launched fixed-rate loans last summer. (Weise) For prospective students who have good credit these private loansShow MoreRelatedStudent Loan Debt Forgiveness : Stimulus For The Economy3180 Words   |  13 Pages Student Loan Debt Forgiveness: Stimulus for the Economy Alan Collinge did not mean to become the poster child for student loan debt injustice. He was an average American with an average American s plan: get a student loan, go to school, get a good job, pay off student loan, get married, get house with white picket fence, have kids and grandkids, and die happy. After attaining three degrees in aerospace engineering, Collinge was left with a debt of approximately $50,000. He went to work at CaltechRead MoreThe Student Loan Debt For The United States1554 Words   |  7 Pagesthat outstanding student loan in the United States exceeded that of outstanding credit card debt for the first time ever (Kristof, 2012). As of today, there is over $1.2 trillion in outstanding student loan debt, $1 trillion of which is in the form of federal student loans (Denhart, 2013). The Student Loan Forgiveness Act of 2012 was designed to ease some of that burden and mitigate some of the real damage incurred by a lifetime of insurmountable debt. The Student Loan Forgiveness Act of 2012 wasRead MoreWhy Is Not Student Loan Forgiveness?1161 Words   |  5 PagesStudent loan forgiveness remains such a vital topic to many individuals because the exorbitant costs of post-secondary education require a majority of students to take on debt in order to simply improve themselves and advance intellectually. Thousands of students are graduating college every year, each with several thousands of dollars in debt. This area is important to research because it will provide insight into the futures of all college students immersed in the deep debt that appears to consistentlyRead MorePros And Cons Of Student Loan1256 Words   |  6 PagesApplebaum laments that from the student loan industry point of view, the student debt is there to help the loan providers amass funds from the youngest, economically vulnerable and financially unstable of which graduates form the majority. The loans have come with immense opportunity cost as the â€Å"educ ated poor† are not able to buy homes, invest or innovate, start businesses or engage in economically viable activities while the few up the echelons of power are benefiting. Tuition rates have escalatedRead MoreEssay on Student Loan Debt Should be Forgiven1256 Words   |  6 PagesDoes 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, â€Å"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 doubled since 2007 (Ross 24). The total student loan debt is $1.2 trillionRead MoreThe Debt And Interest Of Student Loans1164 Words   |  5 Pages The amount of student loans that one accumulates throughout post-secondary education can beco me a heavy burden. In addition, the study conducted by Scheresberg, Lusardi, and Yakoboski (2014) show that a surprising amount of students are not aware of the financial burden that they have acquired until they are deep in debt and interest. They summarize that: Overall, there is a notable mismatch among college-educated Millennials between their perceived and demonstrated levels of financial literacyRead MoreForgiving Student Loan Debt Essay examples822 Words   |  4 Pagesamount 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, â€Å"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 six month grace period after graduation to allow the student timeRead MoreStudent Debt Is Tough And Federal Loan865 Words   |  4 PagesThe qualifications for the program are tough and federal loan forgiveness only applies to federal Direct Loans, not private student loans. If the graduate is lucky enough to l and a public service job the graduate must realize that there is no guarantee that the employment will still be around in ten years since no one truly knows how the program will work or if it will work at all. Val Meyers, associate director for the Office of Financial Aid at Michigan State University comments are recorded inRead MoreStudent Loan Program Should Not Be Paid781 Words   |  4 PagesBarack 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. AccordingRead MoreLoan Speech : Student Loan1424 Words   |  6 PagesStudent Loan Forgiveness Student have debts one way or the other by continuing their education after high school and the student are pressure by their parents or at the counselor’s office in high school to get a degree. The only way is by college they say, but some student can’t afford it up front and need financial aid to help out. Here is when the student get in trouble by signing the application before they read the terms and conduction what they just sign. Some student think they will find