The Future of Student Loans, Favorable or Unfavorable?
Kate is your normal high school senior, and she is college bound. She has run into some problems, and she has no clue what to do. She wants to go to college, but she does not have enough money to coverage the expense of college. She filled out some scholarships, applied for grants, and worked for the past three years to save money for college, but it is still not enough. She will have to take out the thing she never wanted to takeout... a student loan. Kate knows they government is changing the rules about paying back student loans, and she is wondering how it will affect her. Will it affect her in a favorable way or an unfavorable way?
Will the change in student …show more content…
Already, the rate of interest for student loans is expected to have three increases in 2018, and Republican are working on other stuff that will hirt sudents. A bill is in the works will have some dangerous consequences, which is called of the Promoting Real Opportunity, Success and Prosperity through Education Reform (PROSPER) Act. If this act passes some things will happen. First, the periods of time that the government pays for interest, aka six months after college and during certain situations, will be gone. That means students as soon as they graduate will have to start to pay off their loans, but most of the time it is difficult for the average student to find a good paying job straight from college. Secondly, the act will change how the loans will be given out. Normally, all the money is sent at the beginning of a new semester, but that might get changed soon. The plan is either to divide the distribution of the students loans monthly or weekly, to more it easier to keep track of. There were also talks of using a debit cards as the way of distributing the loans. Third, instead of having four types of loans there will be one. This will not affect old borrower, but only the first-time borrowers. Past borrowers can still take out the old type of loans for a few years after the change is made. The new loan …show more content…
Firstly, the change in type of loan will limit choices that students have. The type of students who apply for loans are the ones who truly need help paying for college. They are mostly from middle class family or family with difficult situations. If the amount of choices is limited, that will cause stress for students and their family. For some family it will cause them to decide not to go college. That is a loss for society because some smart people can't afford a college education. Secondly, the way college receive the payments of tuitions will also stress out college students. The college would have to change the way the ask for tuition, and most people do not like things changes a lot. This means the college will have to try different ways to see what way works best to receive payments, and that will take a while. Lastly, the student loan forgiveness, Nowadays, most students default on their loans, not on purpose through. They have a hard time repaying loans because most of the time life gets in the way. Students work hard to pay them back, but sometimes it takes years to pay it back plus interest. Some students work as hard as they can, but sometimes it doesn't work (Best & Best 2016). Why make it more complicated for students who work hard for their degree and knight make a difference. There is proof that long time stress has a bad effect on the body, and that can even cause thoughts of
Kate is your normal high school senior, and she is college bound. She has run into some problems, and she has no clue what to do. She wants to go to college, but she does not have enough money to coverage the expense of college. She filled out some scholarships, applied for grants, and worked for the past three years to save money for college, but it is still not enough. She will have to take out the thing she never wanted to takeout... a student loan. Kate knows they government is changing the rules about paying back student loans, and she is wondering how it will affect her. Will it affect her in a favorable way or an unfavorable way?
Will the change in student …show more content…
Already, the rate of interest for student loans is expected to have three increases in 2018, and Republican are working on other stuff that will hirt sudents. A bill is in the works will have some dangerous consequences, which is called of the Promoting Real Opportunity, Success and Prosperity through Education Reform (PROSPER) Act. If this act passes some things will happen. First, the periods of time that the government pays for interest, aka six months after college and during certain situations, will be gone. That means students as soon as they graduate will have to start to pay off their loans, but most of the time it is difficult for the average student to find a good paying job straight from college. Secondly, the act will change how the loans will be given out. Normally, all the money is sent at the beginning of a new semester, but that might get changed soon. The plan is either to divide the distribution of the students loans monthly or weekly, to more it easier to keep track of. There were also talks of using a debit cards as the way of distributing the loans. Third, instead of having four types of loans there will be one. This will not affect old borrower, but only the first-time borrowers. Past borrowers can still take out the old type of loans for a few years after the change is made. The new loan …show more content…
Firstly, the change in type of loan will limit choices that students have. The type of students who apply for loans are the ones who truly need help paying for college. They are mostly from middle class family or family with difficult situations. If the amount of choices is limited, that will cause stress for students and their family. For some family it will cause them to decide not to go college. That is a loss for society because some smart people can't afford a college education. Secondly, the way college receive the payments of tuitions will also stress out college students. The college would have to change the way the ask for tuition, and most people do not like things changes a lot. This means the college will have to try different ways to see what way works best to receive payments, and that will take a while. Lastly, the student loan forgiveness, Nowadays, most students default on their loans, not on purpose through. They have a hard time repaying loans because most of the time life gets in the way. Students work hard to pay them back, but sometimes it takes years to pay it back plus interest. Some students work as hard as they can, but sometimes it doesn't work (Best & Best 2016). Why make it more complicated for students who work hard for their degree and knight make a difference. There is proof that long time stress has a bad effect on the body, and that can even cause thoughts of