Federal Loans Vs Private Loans Research Paper

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These results make sense because at Lebanon Valley College, “82% of the last graduating class borrowed with Federal Loans, and 25% of the last graduating class borrowed with Private Loans.” Those percentages make sense when looking at the histograms because they both show that most college students will take out federal loans over private loans and when they do take out private loans it is usually for less amounts of money.
There are some limitations to the survey because some the students who have less credit which means they are just starting so they might not need to take out student loans. The number of people with a student loan debt would probably be different if there was a focus on a specific year of college like just focusing on freshmen
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Since going to college is a costly investment and after graduating with the debt, there is not always a guarantee of finding a job to pay back the debt. There is also possibility of injury or other factors that could prevent a person from working. For the possible risks that can happen, students will look for the best possible set up which would help students payback their debt in the quickest and most efficient ways. The students will usually find that federal loans’ pros outweigh the cons in comparison to private loans. One of the reason why federal loans are prefered is because “ There are loan forgiveness options for students who go into certain public service careers, join the military,move to certain locations, or volunteer with certain organization. These programs aren’t available through private lenders.” This show that are possible actions that could help someone with debt if they are having hard times. There are also cons with federal loans like when it comes to the Perkins Loan, “ You must have extreme financial need to …show more content…
There was a trend that more students students have federal loans over private loans. The either have more money borrowed from federal loans than private loans or some don’t have any private loans or any loans at all. This is usually by comparing the pros and cons between the two loans. Student loan is still a huge problem because students are graduating with huge amounts of debt.like at Lebanon Valley College the average amount of debt is $37,865. Students need to be smart on how they choose loans and look for many possible ways to make debt less damaging. While debt is part of college students need to carefully look to make sure it is

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