Education Student Loans

The average student loan debt in the United States stands at $29,400, according to the New York Federal Reserve Bank. That number rises exponentially for students who pursue higher education degrees. In 2017 alone, undergraduate tuition fees increased by 6.1 percent, while graduate tuition rose 4.2 percent. That means that the cost of going to school now exceeds the national median household income ($53,657) by almost 50 percent. And the gap between private and public colleges and universities continues to widen, making college a luxury not everyone can afford. If you’re considering attending college, you might want to take a look at these five ways to pay for your education without taking out loans.

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Education Student Loans

The article talks about how student loans could have a negative effect on people’s lives. It then goes onto talk about how the government should help students who need money due to not being able to find work after graduating college. The author says that although many people say they want higher education to become free, he does not think that the government should make college free. He believes that colleges should get paid to give out degrees and encourage people to go to school.

“Student Loan Debt Is Not Going Away Anytime Soon”

An article written by Michelle Williams is saying that people are getting student loan debt and aren’t finding jobs fast enough. She says that many people believe that people who have loans are lazy and don’t try hard enough to find employment. However she states that there are many reasons why people cannot find work after graduation and she explains what causes some of these issues. People have bad credit ratings due to a lot of student loan debt and employers won’t hire them. To fix this problem, she proposes ways that the government could change their policies and increase job opportunities for younger generations.

“Why College Still Costs So Much Money”

Another article written by Michelle Williams highlights how expensive tuition is at schools across America. She says that even though tuition costs have gone down drastically over time, the cost of college still remains high. She talks about how this affects average families and gives reasons why she thinks colleges charge this much money for tuition. She also lists out ways that society could decrease the amount of money going towards college and make it affordable for everyone.

Education Student Loans

Private Loans

Private loans are a type of loan where the borrower does not have to use their credit score to get approval. Instead, they should provide sufficient funds for repayment along with proof of employment. However, private student loans generally have higher rates than federally guaranteed student loans.

Federal Guaranteed Loans

Federal loans are government backed and do require a minimum credit score before being approved. These loans are offered at low interest rates and provide borrowers with flexible payment options. You must complete a FAFSA (Free Application for Federal Student Aid) to receive these types of loans.

Payday Loans

Payday loans are short-term loans that help borrowers cover expenses until their paychecks arrive. Like federal loans, they do not require minimum credit scores, but may charge high fees. Lenders often offer payday loans online, which make them convenient.

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Education Student Loans

Federal Direct Subsidized Loan – You may borrow money under the federal direct subsidized loan program if you meet certain requirements. Your school must participate in the program in order to qualify. If you want to use Direct Subsidized Loans for your higher education costs, you have to meet some basic eligibility requirements:

Be enrolled at least half time (12 credits or more)

Have a cumulative GPA of 2.0 or above

Not have been declared ineligible for financial aid

Not have defaulted or had a payment problem on any previous loans

Federal Perkins Loan – A student can borrow up to $21,000 per year for undergraduate studies and $20,500 for graduate students. Students who wish to take out these loans need to submit their application materials to the US Department of Education. Eligibility is based on financial need, grade point average, number of semesters completed, career goals, and extracurricular activities.

State Grants – These grants are awarded to eligible students based on the state’s own funding priorities. Many states offer Pell Grant scholarships specifically for those attending postsecondary institutions. Check with your state department of education to find out what they cover.

Private Loans – Borrowing money to pay for college is not easy, and private lenders know it. That’s why they offer many different types of loans to help ease the burden of paying for college. They provide funds to assist with tuition, fees, books, room, board, and anything else related to going to college. Most private lenders operate online, although they do have physical locations in cities around the country. Make sure you check out the website before applying for a loan. There are often hidden charges or terms that make it difficult to understand. When looking at student loans, choose one that offers fixed rates and repayment options. As interest rates change frequently, having a long-term plan makes sense.

Scholarships – Scholarships are awards given to students for academic achievement, athletic prowess, artistic talent, community service, leadership skills, special talents, etc. Search your state department of education’s website to see if your school offers scholarships. Also look online for national scholarships.

Education Student Loans

Here’s what we do know: student loans have become a major issue among college students across the country. According to a recent survey conducted by the Institute for College Access and Success (TICAS), almost half of all full-time female undergraduates reported being unable to afford tuition payments without having to take out costly private loans. That number jumps to over 70 percent if they were not able to find financial aid. More than 90% of all undergraduate women borrowed money to pay for school. Those who don’t borrow are left at a serious disadvantage compared to those who did. The average cost of attending public universities was $35,000 per year. Private schools averaged $53,000.

What does that mean? It means that our education system is failing young people who need help paying for college, especially women of color, low income families, first generation students, and disabled students. And, unfortunately, even though many colleges and universities say they have eliminated loan programs, they actually continue to exist for students. You may ask yourself: Why should I care about student loans? Because your future success hinges on whether you graduate and get good jobs. Your chances of getting good jobs depend on how well you prepare for them.

Student loans aren’t the only problem facing young Americans today. In fact, America’s youth are drowning financially in debt. A recent study by the Federal Reserve Bank of New York shows that total outstanding student loan debt has grown to more than $850 billion—more than credit card debt. What’s worse, the average student borrower now owes around $37,172.

You might think that the federal government would step in to help ease the burden of student loans. After all, isn’t that their job? Well, there’s just one problem: the Department of Education doesn’t provide any type of assistance for student loan borrowers, including forbearance, deferment, consolidation, forgiveness, or bankruptcy. Instead, the DOE tells us that borrowers can make things work themselves. But that simply isn’t true. Even if you manage to get a little bit of help, you’re still on the hook for repayment, and you’ll probably owe more in the end.

The truth is that the United States Department of Education exists to serve the interests of the banks, not students. Their goal is simple: to maximize profits. If they accomplish that task, then they’ll keep doing it. But if they fail, we’re told that it’s someone else’s problem.

So, the question becomes, how do we fix this situation? Here are some steps we could begin taking right away:

First, we need to demand that Congress eliminate interest rates on federally subsidized student loans. Right now, the rate charged by private lenders is set at 4.28%, while the interest rate charged on federally subsidized loans is set at 6.8%. That’s just unacceptable. We need to stop encouraging predatory lending practices.

Second, we need to pass legislation that requires lenders to disclose exactly how much they charge borrowers in fees and penalties. Since lenders use these fees to increase the size of the principal owed, we really have no way of knowing what we’re signing up for.

Third, we need to give consumers access to free counseling services and debt management plans. Students shouldn’t have to spend thousands of dollars trying to figure out how to repay their debts.

Fourth, we need to offer qualified borrowers incentives to pay back their loans early. Currently, the federal government offers extended payment options that allow borrowers to cap monthly payments at 10% of discretionary income. While this sounds great, there’s a catch; under current law, the maximum amount you can save each month is capped at $50. So what happens if you earn less than $50 each month? The answer is pretty straightforward—you default. Given that defaults cost lenders money, they’d rather see borrowers stay in school and pay off their loans later.

Finally, we need to increase funding for the Public Service Loan Forgiveness Program. Under this program, eligible borrowers who work in certain high-paying fields like teaching, social services, public administration, and medicine qualify for loan forgiveness after working for ten years in a qualifying field. Right now, the PSLFP forgives just $23,500 worth of debt annually, which is far below the national median household income.

If we start addressing these issues, then we can begin making real progress towards fixing a broken student loan system. But we need to act fast. As long as the status quo persists, our children will remain trapped in a vicious cycle of student loans and debt.

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