Student Loan Scandal: Article Analysis

Good Essays
Beaver, William. “The Student Loan Scandal”. Society. 23 April 2008. Web. 13 October 2016.
This academic article focuses on the history of the growing student loan debt and how it has become a negative asset in the growth of college and student financial freedom. The author starts out by highlighting the beginning of student loans in 1965, where the government created the Guarantee Student Loan Program. This program helped people get the higher education that the government felt everyone deserved. Since this program implemented the idea of “no one left behind” it made many lenders giving out risky loans to students who may not repay them. These loans would have high interest rates to squeeze as much money out of the student as possible to cover
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The website starts by explaining how college tuition has increased 439% in the last thirty years. It explains how the Guarantee Student Loan program has actually hurt the education system and has lead to colleges hiking up their prices. With guarantee loans, colleges were able to pump up the cost and gain a lot more money, forcing students to take out large college loans. This increase in debt doesn’t help students when they are thrown into the job market, where it is it getting gradually harder to find good paying jobs. Over 30% of college graduates are found stuck in low paying entry level jobs that don’t pertain to their degree, with a salary which doesn’t pay enough to support them and pay back their debt. It also explains that all this extra money that could have been used for financial aid to help students or used to decrease tuition cost is being used to build expensive buildings and increase staff salaries who otherwise wouldn 't need it. Eventually people may value these elite colleges at a lesser cost and decided to go to trade school or two year universities instead of fancy private schools. This would cause college closures and lower attendance. If enough people default on student loans it will cause the student loan bubble to pop. Which will cause a significant decrease in college attendance, job layoffs, and …show more content…
"MARK CUBAN: Here 's How to Fix America 's Crippling Student Debt Crisis." Business Insider. Business Insider, Inc. 09 Mar. 2015. Web. 15 Oct. 2016. This article explains the student loan crisis and Mark Cuban, a famous businessman and investors suggests to fix it. First, the article starts out explaining that recently Sweet Briar college went under due to lack of funds. Cuban sees this as a foreshadowing to future events if borrowed loans keep their path. Cuban states that skyrocketing student loans need to stop. His way of fixing the problem is putting caps on lenders. Caps on lenders will prevent the universities from increasing tuitions. As of right now, you can take out an enormous amount of money to fund your college degree. The author linked an article about a student who had to take out a $100,000 loan in order to pay for college. Now he is currently working a job where he can’t afford the $1,200 monthly bill to pay back his loans along with the cost of living. Cuban suggests limiting student loans to only $10,000 a year. This will force colleges to cut down college tuition costs to enable students to keep attending their university. I believe this article is credible. The author wrote it around Mark Cubans interview with Business Insiders. He is a very successful business man and investor. The author made sure to include links to other credible sources so you can fact check his article. I will be using this in article my Extended Inquiry

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