Going to college usually includes a sum of debt to help pay for the tuition and college expenses a student might incur. In fact, in 2012 the average balance of loans for undergraduates was $25,900. (Johnston & Roten, p. 24, 2015) This can create a huge challenge for individuals as they exit college with such a huge amount of loans to repay. “Student loan debt rose by 328 percent from $241 million in 2003 to $1.08 trillion in 2013” (Johnston & Roten, p. 25, 2015). While financial aid is available, sometimes it can be confusing and the amount of debt can become unmanageable. This article focused on repayment plans for these high amounts of debt.
With new repayment plans, students may find it easier to handle these debts. The two types of
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If an individual’s income is low enough, a zero payment may result using the IBR or PSLF program (Johnston & Roten, 2015). These zero payment periods do count as part of the 10 year repayment plan before loan forgiveness is granted.
Both of these programs can be very beneficial for students with a high amount of student loans. With the new revisions to these plans, including basing repayment on income, can make student debt very manageable. These programs can encourage individuals to seek student loans, rather than private institution or credit card loans.
I decided to focus on student loan debt management for this assignment, because this is something that I have in my personal life. In order for me to complete this master program, I had to take out a student loan. I have heard a lot of talk about the loan forgiveness plan, but have never been given any information about this. This article helped to clarify what is included and the requirements for the two different repayment options. These options both apply to me as I am a public service worker. I will use this information to help repay my student loan when it comes time to start paying after I graduate. Although I will need to look into these programs further, I feel that this article was very beneficial to my current
“The Good, the Bad and the Ugly of Student Loans” references many great points that recent college graduates or futures college graduates should follow. These include paying student loans fully and on time, as well as consideration of refinancing. The article’s main purpose is to help college graduates prepare to pay off their student loans carefully and correctly. It chooses to focus on the good points of paying off student loans, giving hope to those who may be worried about paying them off.
In the argument, Debate on Student Loan Debt Doesn’t Go Far Enough, author Robert Applebaum, graduate of Fodham University School of Law, asserts that excessive student loan debt should be forgiven after a reasonable repayment period and suggests this would stimulate the economy because former students would have more money to spend(Debate). He backs up this claim by introducing the Student Loan Forgiveness Act of 2012, contending that education should be a right that people of all classes can benefit from, and addressing both the individual and the economic drawbacks of student debt in the middle and working classes(Debate). Applebaum
In recent years, there has been a tremendous increase in student enrollment in higher education after high school effecting the need for financial aid for all students. Education has become a growing part in America where more students want to better their lives with a college education. However, the cost of college tuition has increased and more students find themselves struggling to pay off the enormous tuition rates. In a recent study by the Consumer Financial Protection Bureau, student debt has reached $1 trillion in federal loan debt. Student loan debt has crippled the economy and students are struggling to pay off federal loans. In order to help students with the high tuition rates of college the government and universities offer
Many people would agree that our country’s young adults have and continue to incur a lifetime of debt by enrolling in college. It’s become an almost acceptable understanding that if you plan to attend college, you might as well expect to graduate with an enormous amount of debt. Robin Wilson, a reporter for the “Chronicle of Higher Education,” and author of “A Lifetime of Student Debt? Not Likely” suggests student loans are very real and can be life altering.
If, you are thinking about applying for the student loan forgiveness then it is advised to have a chat with your lender. This would be helpful enough for clearing all your doubts, regarding to the whole procedure. In spite of all these, the students should think twice before taking loan for their education. Once you opt for choosing a forgiveness program, make sure you do all the payments, according to the rules of the
Lucy , Lazarony. "Paying Off Your Student Loans with Forgiveness Programs." Credit.com. Credit.com , 13 Oct 2013. Web. 22 Apr 2014.
Preparing for college before hand is a key role in not paying a student loan debt. Ending college with no debt in key, and doing it with success is a self-bonus. A total estimate of one-trillion dollars is the amount of today’s student loan debt. Students need to see new ways to not be one to fall into this great
Student loan debt makes up a large portion of the debt in this country today. Many defaulted loans are the demise of high interest rates, poor resources to students in educating them on other avenues and corruption in the governmental departments that oversee education and financing. There are many contributing factors that lead to the inability to pay off student loans which need government reform to protect the borrower’s best interests.
Make sure that your strategy with taking advantage to any loan forgiveness program is the smart one. Once you are done with you repayment plan it's possible that you will have little to no debt to be forgiven for. If you are paying for extra interest this might do more harm than good.
It is a norm and expectation in society today for students to pursue higher education after graduating from high school. College tuition is on the rise, and a lot of students have difficulty paying for their tuitions. To pay for their tuitions, most students have to take out loans and at the end of four years, those students end up in debt. Student loan debts are at an all time high with so many people graduating from college, and having difficulties finding jobs in their career fields, so they have difficulties paying off their student loans and, they also don’t have a full understanding of the term of the loans and their options if they are unable to repay.
Fischer, Mary Claire. “Student Loan Forgiveness: What to Know.” MSN. 9 Oct. 2013. Web. 17 Feb. 2015
As of 2016, American students have accrued a massive 1.3 trillion in student loan debt. Just 10 years ago, the nation’s balance was only $447 billion (Clements). This ever-present cumulative burden has caused many post graduate Americans to delay important life events such as marriage, homeownership and children because of this substantial encumbrance (Clements). The debt will only continue to grow with neglect, so the most effective action to take would be eliminating the cost altogether.
Over the last few decades, college tuitions and fees have increased by over one thousand percent, surpassing every category associated with the cost of living including food and medical. This unprecedented rise in cost has resulted in an avalanche of issues for young and middle-age adults. As, a result of steep student loan amounts, graduates are being forced to move back with their parents, fewer young people are becoming homeowners, they are delaying retirement saving, and are dropping out of college at an alarming rate of nearly fifty percent. With all the controversy surrounding the topic of increasing college cost, the revised income-driven repayment program has been created to help borrowers pay back student loans according to their income.
“Debt Burden: Repaying Student Debt.” American Council on Education. One Dupont Circle NW. Sep. 2004. Web. 12 Nov. 2011.
One of the biggest challenges students who are in debt face is getting out of it. Though it is not easy, there are ways of getting out of student loan payment if a student finds themselves unable to pay them. One option is the Income-Driven Repayment Plans where a student can stretch out their payments for 20-25 years and any balance at the end will be forgiven. This may sound great but depending on a student’s situation, could cause a student to lose for money in the long run. People who work in public service for at least 10 years can apply for the Public Service Loan Forgiveness if they qualify. If a student becomes a full time teacher in a low income school they may be eligible Teacher Loan Forgiveness. Some loaners provide loan forgiveness