College Student Loans Skyrocket Essay

College Student Loans Skyrocket Essay

Length: 737 words (2.1 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

If you're counting on government student loans to get you through college or graduate school, count on paying them back. The Education Department has become one of the toughest debt collectors around. Over the past decade, the agency has steadily expanded its arsenal for dealing with former students who don't repay. A 1998 change in federal law made it extremely difficult for people to escape student loans through personal bankruptcy. The Education Department also can now seize parts of borrowers' paychecks, tax refunds and Social Security payments without a court order, a power similar to the IRS's.

Access to a government database of newly employed workers has enabled the department to make much more effective use of private collection agencies. And it can go after even decades-old student loans, because there's no statute of limitations on them, unlike most consumer debt. As a result, the Education Department collected $5.7 billion in defaulted student loans in the past fiscal year, more than twice as much as in 1998. For current loans that go into default, the department now projects it will ultimately retrieve every dollar of principal, plus almost 20% in fees and overdue interest. The aggressive approach has sparked an outcry from some borrowers, consumer advocates and even some bankruptcy-court judges. They complain that the department runs over some former students who have suffered reversals of fortune.

Some who favor a softer stance argue that student loans are ...

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

The Government Should NOT Forgive Student Loan Debt Essay

- An education is one of the most important tools a person can acquire. It gives them the skills and abilities to obtain a job, earn a wage, and then use that wage to better their lives and the lives of their loved ones. However, due to the seemingly exponential increase in the costs of obtaining a college degree, students are either being driven away entirely from earning a degree or taking out student loans which cripple their financial prospects well after graduation. Without question, the increasing national student loan debt is one of the most pressing economic issues the United States is dealing with, as students who are debt ridden are not able to consume and invest in the economy....   [tags: Student Loan Debt Essays]

Better Essays
1745 words (5 pages)

Student Loans Are A Cancer Essay

- Student loans are a cancer. Once diagnosed, they have the ability to consume your entire life. Sure, there is a “cure”, however it comes with a long list of unavoidable sacrifices and if not acted upon, it’ll be crippling. It will spread to every part of your being, taking your freedoms and abilities away only making it more impossible to make ends meet. Although Cancer is not fair, nor forgiving, there are differences between it and student loans, cancer kills, student loans leave you suffering....   [tags: Debt, University, Student, College]

Better Essays
1019 words (2.9 pages)

Legal Ethical and Social values of Student loans Essay

- Introduction The current student loan issue is a complex crisis with multiple culprits as well as victims. For one, academic institutions in and of itself cannot deny their responsibility for instigating the crisis. For example, when was the last time, at least in recent years, that anyone heard of a university actually lowering their tuition fees. In reality, year after year the trend has been for universities to increase rates. In fact, according to Larry Abramson of NPR, “tuition and other costs have been going up faster than inflation, and family incomes can’t keep up" (2012)....   [tags: Student Loan Issues, College, Education]

Better Essays
1692 words (4.8 pages)

Is Student Loans Really Worth It? Essay

- Postsecondary education has become an almost expected aspect of a young adults life. People think that if they are to get any kind of job with a decent amount of pay, they have to have some sort of postsecondary education. The thing is the cost of attending any sort of postsecondary education is increasing rapidly. Many students cannot afford to pay upfront which forces them to obtain student loans. After all the credit hours build up from taking all the classes necessary to finally receive their degree, the students realize how much their student loans have totaled up to be....   [tags: High school, University, Debt, College]

Better Essays
1109 words (3.2 pages)

The Burden Of Student Loans Essay

- The question asked is an expensive college worth going to or any college for that matter. Is the burden of student loans to high for the taxpayers. The better question, is an uneducated society going to be able to compete in today’s world. For the average Joe it is not whether the expensive college is worth it or not it is whether he or she is accepted or not, by a top college. The average high school scholar has a grade point average (GPA) of 3. (Lindsay, 2015) Scholastic Aptitude Test (SAT) scores average at approximately 500 in all areas....   [tags: High school, Higher education, College]

Better Essays
1470 words (4.2 pages)

Essay on Determining Causes and Effects of Stress on College Students

- My research on the major causes and effects of stress on college students is compiled at the request of The President of Strayer University. The purpose of presenting this research paper to senior administration is to help students have a more constructive college experience. Students starting their college careers consist of major adjustments to the daily routine; sleep patterns and eating habits, time-management skills, and stress levels are different in one way or another. The American Institute of Stress, compiled a 2008 mental health study by the Associated Press, stated that eight of ten college students stated that they have occasionally, or often experienced stress in their daily liv...   [tags: student loans,financial stress,college experience]

Better Essays
1396 words (4 pages)

Credit Scoring Models For Student Loans Essay

- The discussion of student loan defaults started in 1986 and since then became a priority for education ministries to look over in order to adjust and broaden eligibility for subsidized loan and increase loan limits (Shen and Ziderman, 2009). It was found that the factors that contributed to student loans default were much more complicated than a typical retail credit product as the factors are much more specific (Gross et al, 2009). Credit scoring models for student loans – Important considerations In order to create a good credit scoring model for student loans, one needs to understand what has been done in the past and in this case, the best way to understand who to grant a loan to, one n...   [tags: Debt, Loan, Student loan default, Credit]

Better Essays
1640 words (4.7 pages)

Students Loans: The Borrower is Slave to the Lender Essay

- Student loans have been around helping college students since 1958 in the United States of America because of President Dwight Eisenhower. Financial support especially temporary support, which is student loans for college students, has played a huge role in how many people go to college. When an individual is approved for a loan he or she is responsible to pay the amount due to the lender and more because of the high demand in interest rates. Student loan debt has become an epidemic in the United States of America....   [tags: college students, debt, spending money]

Better Essays
1942 words (5.5 pages)

Essay on Student Loans

- Student Loans The federal government has the power to cutback the funding of student loans. There are several different ways the government can go about doing this. One way is to keep the amount of each loan the same and reduce the number of loans granted. Another option the government has is to reduce the amount of each loan and issue the same number as in the past. Either way, students that belong to a low-income family will be greatly affected. Cutbacks in the funding of student loans have several effects....   [tags: Papers]

Better Essays
463 words (1.3 pages)

Loans Essay

- Borrowers flooded the Department of Education and lenders with phone calls as they rushed to beat the deadline to consolidate student loans before interest rates rise. The variable interest rate on federal student loans will rise nearly 2 percentage points after midnight Thursday. Some borrowers could save thousands of dollars over the lives of their loans by consolidating at the lower rate. The unusually sharp increase has prompted a wave of last-minute inquiries, causing back-ups for banks' 800 numbers and at the Department of Education's Direct Loan Servicing Center, where at least some calls weren't getting through Wednesday....   [tags: essays research papers]

Free Essays
405 words (1.2 pages)