Portfolio Paper: Student Loan Debt and Forgiveness
Public Administration: PMG300
Colorado State University Global Campus
When it comes to achieving success in the work force and finding a fulfilling and lucrative career there are few things more important that higher education. Going to college and getting a degree is essential in finding success in the work force. The problem is when the cost of gaining that degree outweighs the financial compensation the career that follows is able to supply. Very few people are able to pay for college out of pocket. The result of this is that students seeking higher education are forced to take out massive student loans. This means that they are entering the work force
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(Greene) This has become one of the foundation points for both candidates in the upcoming 2012 presidential election. If legislators do not come together and agree on a solution, federal Direct Stafford Loan interest rates will double from 3.4 percent to 6.8 percent on July 1. The President argues that allowing these interest rates to double would be an enormous blow and probable deterrent, to people seeking a higher education. A rate increase such as this would compound problems for the younger portion of the nation's population. The Associated Press reported recently that in 2011, 53.6 percent of people under the age of 25 who hold bachelor's degrees were either jobless or underemployed. This is the highest such rate in 11 years, and corresponds with a consistent slide in median wages for college graduates since 2000. In Congress, Democratic Reps. Gary Peters of Michigan and Joe Courtney of Connecticut have introduced legislation to keep the Stafford interest rate at 3.4 percent however, some politicians like Minnesota Rep. John Kline contest that extending these cuts to the Stafford rates for just one year will cost the government an estimated $6 billion. (Greene) Some also argue that even if rates were allowed to double to 6.8 percent, that interest rate would be less than some private student loans.
As an adult student who has gone back to school in order to complete my degree so that I may better