Essay Student Loan Debt Relief - 1460 Words

Student Loan Debt Relief Student loan debt relief is a controversial issue in America today. Student loan debt affects twelve million college students, roughly 60% of all college attendees, per year (Student Loan Debt Statistics). Student loan debt relief rose to the forefront of economic news during the financial market crash of 2008. The U.S. Government has developed a debt relief plan that extends payments over a 25-year period, with a full forgiveness of all remaining debt at the end of that 25-year term (Ensuring That Student Loans Are Affordable). During this repayment period, payments can be suspended during times of unemployment, giving hardship students a break from their student loan payments. Many people feel that student†¦show more content†¦Another negative view concerning student loan debt repayment deals with the amount of loan debt that a borrower may accrue. With this new program in place, borrowers may feel free to borrow higher loan amounts, knowing that they will have a 25-ye ar period for repayment (Redd). This puts a heavy burden on the lending institutions, as far as the debt structure is concerned, since the larger loan debt load will be harder to maintain that smaller ones. The last critical view of student loan debt relief deals with the lending institutions themselves. Banking institutions originally offered student loans that were to be repaid within a 10-year period. The new student loan debt relief plan extends this repayment period to 25 years, and this will create a hardship on the banks that were the original lenders. Since the recovery time will be much greater for these debts, these banks will have less available funds for future loans. Many feel that decreased lending power from the banking institutions may cause more stress on our economy in the long run. A large part of economic development rests in the ability of banks to keep loaning money, and if cash flow from loan repayment slows, it can take a toll in future lending (Keeton). There are several possible resolutions toShow MoreRelatedIs Forgiving Student Loan Debt A Good Idea?1009 Words   |  5 PagesKayla Webley, in her essay â€Å"Is Forgiving Student Loan Debt a Good Idea?† states Robert Applebaum’s solution for student loan debt is a â€Å"radical and wildly unfeasible solution† in both economically and politically. Applebaum’s proposal is to â€Å"provide a one-time bailout of student debt†¦as a way to stimulate the still-limping economy.† However, Webley counters the solution has to have â€Å"the purported benefited and fairness of a one-time student loan bailout.† In Webley’s essay, in the sixth paragraphRead MoreIs Forgiving Student Loan Debt A Good Idea?1227 Words   |  5 PagesKayla Webley, in her essay â€Å"Is Forgiving Student Loan Debt a Good Idea?† states Robert Applebaum’s solution for student loan debt is a â€Å"radical and wildly unfeasible solution both economically and politically. Applebaum’s proposal is to â€Å"provide a one-time bailout of student debt†¦as a way to stimulate the still-limping economy.† However, Webley counters that the solution has to have â€Å"the purported benefited and fairness of a one-time student loan bailout.† In Webley’s essay, in the sixth paragraphRead 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 land 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 MoreHow Government Implement Federal Student Loans And Education Budget1619 Words   |  7 Pagesscenarios, therefore, in this essay, by using the knowledge and ideas acknowledged from this class, this essay will take a look at how government implement federal student loans and education budget, furthermore, this essay is going to explore how different political part ies view this specific policy situation. In the United States, Student loan debt has recently reached an important milestone, during the year of 2010, total student loan has exceed the national credit card debt. Approximately a year laterRead MoreThe Student Loan Debt Crisis1247 Words   |  5 Pages The Student Loan Debt Crisis Student loan debt has overtime become an unpleasant part of life for millions of Americans and especially borrowers. It is possible to identify the types of people who went through college and borrowed financial loans from those that went through college and did not go to college or those that went but did not borrow. The debt crisis directly affects the families of the borrowers, those with high debt burdens and advanced degrees. Despite the increased length in loanRead More Conniving Campus Credit Essay1677 Words   |  7 Pagescollege campuses causes students to be burdened with needless and unscrupulous debt. In his essay, â€Å"The Lure of Easy Credit Leaves Students Struggling with Debt,† Hoover effectively argues his position through significant references and by successfully rebutting the opposition. Hoover explains how college students are not prepared to deal with the financial responsibilities associated with managing credit cards and why credit debt companies spec ifically target college students. Hoover also discussesRead MoreTaking a Look at Educational Debt1629 Words   |  7 Pageshelping students all over the world attend college to seek the education for the job of their dreams. This financial relief can be the difference between a student being able to go to college or to not go to college. However, there is often not enough rising awareness on the negative effects student debt can have on a person, and how they can effect a student’s career choice. Students are searching everywhere for a revival from student debt. If there were only one solution for student debt, I wouldn’tRead MoreThe Issue Of The Student Loan Crisis1762 Words   |  8 Pagesgraduate owes thirty-seven thousand dollars in loans (Glum). As a whole, Americans owe a grand total of 1.3 trillion dollars. These are figures that grow every year, and worse, the number of people who are defaulting on their payments grows as well. The issue of the student loan c risis is serious, which is why potential solutions are now being discussed. Presidential candidates for the election of 2016 have discussed solutions that range from Hillary Clinton’s debt-free college plan to Bernie Sanders’ freeRead MoreCollege Tuition Cost On A Rise Essay1254 Words   |  6 Pagesthe cost of tuition. The raising cost of tuition has limited the amount of attending students from graduating in the expected time frame, left students in debt, and has denied the chance of countless others from attending the college of their choice. This essay will reflect on supporting evidence to demonstrate how the increase of cost of college tuition over the past 10 years has affected future and current student enrollment. Since the early 1900’s, Texas colleges had to lobby for funding from theirRead MoreEssay about How to Solve the Foreclosure Crisis1588 Words   |  7 Pagesoccupied. Finally, the third component is the prevention of additional foreclosures from happening. We need to get the real estate market fluid again by making the market more attractive to individuals looking to purchase or invest in property. This essay will describe these components in detail to show how they can be the key to solving the foreclosure crisis in America. Component One The first component of the solution is addressing the banks’ â€Å"toxic assets† that were created by the mortgage banks