Pros And Cons Of Student Loan - 1256 Words

Applebaum 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"educated 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 escalated due to the flooding of student loans which allow people to pursue any degrees; further decimating the job market. The loans lack basic consumer protections, eliminating the risk of lenders who issue the loans. Mangis (2012) discusses the pros and cons of student loan forgiveness. As a major advantage of the program, students will be relieved the burden of paying the loans in full besides checking interest rates. This will lower monthly loan repayments and increasing chances of affordability of student loans. However, the Obama Student Loan Forgiveness just applies to federal loans and no incentive is provided for private loans. According to Wolfers (2011), the program will have immediate stimulative impact to the economy by increasing the consumers’ disposable income, consequently leading to hiking in consumer spending, more employment opportunities, businesses increasing their hiring and emergence of a new period of innovation, economic prosperity, and entrepreneurialShow MoreRelatedReasons For Why Student Dropout1257 Words   |  6 PagesI live in a small town and all the students I’ve seen that dropped out said how their financial aid didn’t cover their college expenses. I love where I am from but I refuse to go back to Plymouth because my financial aid wouldn’t cover everything. Some reasons and assumptions to why student dropouts are: school isn’t for everybody, the work is too hard or they couldn’t balance out partying and school work. Although there are many explanations as to why students dropout; financial aid issues is theRead MoreMr. President Obam A Maj or Problem990 Words   |  4 Pagesproblem. This education system has to change. We as students need the federal government to find a better way for us to attend school and not have to pay a lot of money for it. Students in this generation are not going to college just because it costs more money than they can spend. The only way the students to go to school would be to get loans, unless they get scholarships. The main issue is the loans that need to be paid back by the college students 6 months after they graduate. This could be a bigRead MoreRefinancing Your Student Loans972 Words   |  4 PagesRefinancing your student loans means that a private lender is essentially buying your Federal student loans, paying them off, and creating a new loan that it will lend to you on new, original terms. The new terms of your refinanced loan will be based off your credit reports, credit score, and other requirements. The new private loan terms include, among other things, a new interest rate and potentially a new term (the length of time over which you have to repay your loan). For example, you couldRead MoreA Modern Day Setback That Affects The Majority Of Americans1623 Words   |  7 Pages18-year-old high school student thinking about your future and college. In this situation, you are the student who gets excellent grades and works hard but isn’t financially stable. You, like lots of others, have dreamed of pursuing your education at the schools you have been accepted to but, you have come to the conclusion that it’s not possible for you to attend those schools because of your financial situation. Thus, you’re forced to attend a community college or take out loans that will leave youRead MoreOntario Student Assistance Program ( Osap )1727 Words   |  7 PagesOntario Student Assistance Program (OSAP) OSAP, a program designed to benefit Ontario residents in need; they can apply to receive a Canada-Ontario integrated student loan through the Ontario Student Assistance Program or OSAP. The program was started back in the 1990’s, by the Ontario government to enable those with lower incomes to receive loans, grants and scholarships which allows them to have the ability to pay for their post secondary education. To completely understand the relationship betweenRead MoreQuestions On Sources Of Finance1696 Words   |  7 Pagescompanies listed on the London Stock Exchange and will find their most current financial statements based on the last 5 years. I have selected Tesco and Sainsbury’s as my two non financial companies. Thirdly, I will then define and converse the pros and cons of each source of funding and compare and contrast between one another. In addition, will be evaluating the differences and compare the two non-financial companies over the 5 year phase. I will then calculate the financial values through my researchRead MoreHealth Care Provided By Primary Care Providers1077 Words   |  5 Pagesproviders are aging, half of the countries physicians are over fifty, and will soon be retiring. Another reason for the shortage is the pay of primary care providers compared with specialty pay. New doctors have heavy student loan debt and are prompted to go into a specialty to pay their loan debt faster (Mercer, 2013). Advanced practice nurses often have strict limitations on the care they provide, contributing to the problem. There are different regulations over the United States which are set by theRead MoreIs The Cost Of College Too High?1666 Words   |  7 PagesIs the Cost of College too high? College can further education, but it can lead students in the direction of debt in the future. College is not for everyone, but a majority of people choose to further their education. Education is not cheap, but should that change a students decision? Students should be concerned about the price of college and think about the long term pros and cons. College leaves many students in debt after they graduate. Being in debt can affect peoples lives dramatically, butRead MoreThe Rising Cost For Pursuing A Postsecondary Education916 Words   |  4 Pagesa job position is difficult without an adequate college education. The primary problem is the rising cost for pursuing a postsecondary education makes it difficult for students to afford and complete their college degrees. Tuition has doubled three times since 1980 and outpaced the nation’s inflation rate whereas the student loan debt is at its highest at over $1 trillion (Sobel, 85). That is comparably higher than the rate of cr edit card debt (Education). Current policies by legislators do not directlyRead MoreStudent Lo 7 Students Loan887 Words   |  4 Pages7 student loan myths debunked When it comes to student loans, there is a lot of information to take in—especially for a new college student who is exploring their financing options for the first time, or a new graduate who has just started paying off their student loan debt. With all of the different information out there, it can be easy to get confused, and perhaps even misunderstand certain things about student loans. The following are some common student loan myths, debunked: Myth #1: I’m not