Student Loans Vs. Federal Student Loan - 2051 Words

Student loans have become popular in the United States in recent years due to high tuition rates which are not very affordable to most middle and low class citizens. Many students in the United States today rely on student loans to be able to afford college education by using it to pay for part or all their full costs of college education at undergraduate and graduate levels. The term â€Å"student loan† is used to describe a type of loan offered to students in order to cover costs of post-secondary education such as tuition, living expenses and books. The two types of student loans in the U.S are Federal Student Loans provided by the government and Private Student loans provided by banks and other financial institution. Both types of student loans require the borrower to pay back the money borrowed plus a specified interest which usually comes as a burden. According to a report by Andrew Josuweit who is the Co-Founder and CEO of Student Loans Hero, the Servicemen Readjustment Act of 1944 popularly known as the GI Bill was the first form of student loan in the U.S. The bill was used to allow a large number of World War II veterans enroll in college with benefits from the government. Almost a decade later in the 1950s, the federal government officially backed student loan under the NDEA (National Defense Education Act) in response to the USSRs launch of Sputnik Satellite. This was based on the perception that in the middle of the cold war, the United States was falling behind inShow MoreRelatedStudent Debt Is A Form Of Debt1576 Words   |  7 PagesStudent debt is a form of debt that owed by an attending, withdrawn, or graduated student to a lending institution. The lending is often of a student loan, but debts will be owed to the school if the student has dropped classes and withdrawn from the school. Withdrawing from a school, especially if a low or no-income student has withdrawn with a failing grade could deprive the student of the ability of furthe r attendance by disqualifying the student of necessary financial aid. Student loans alsoRead MoreA lifetime of student debt889 Words   |  4 PagesA Lifetime of Student Debt? Not Likely. Robin Wilson had quite a compelling article, showing the potential contrast with the debt vs. the quality of life and stability a degree can provide. Wilson overall points show that the American dream we are all striving for has changed. She is able to demonstrate this through the use of several anecdotes. Wilson interviews with various professionals to see how they use these degrees to better themselves. In doing so she highlights various pros and consRead MoreHigh Education Vs. Out Of State Tuition1564 Words   |  7 Pagesâ€Å" The higher amount you put into high education, at the federal level particularly, the more the price of high education rises. It’s the dog that never catches its tail.† Bennett asserts that while the prices of education are rising, yet they are not going to start coming down because of the amount the government is putting in. The average student leaves college with an average of $35,000 of debt. Because of this debt, students have to put off major life decisions like starting a familyRead MoreIntroduction. Historically Black Colleges And Universities1300 Words   |  6 PagesIntroduction Historically Black Colleges and Universities (HBCU) are experiencing low retention rates with first generation college students. The students are not graduating within a four to six year enrollment period, and or are not returning after their freshmen year. As the American workforce looks to colleges and universities to fulfill the workforce pipeline with educated diverse workers, HBCUs are in the spotlight to produce qualified minority graduates. 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What many of those potential students may not realize is the substantial percentage of graduates who do not acquire a job related to their majors, how much debt they will incur, and just how many students don t graduate at all for reasons such as an overwhelmingRead MoreA Brief Note On Social Class And Education847 Words   |  4 Pagestuition fee gives an unequal opportunities to every student, even though the college degree give opportunities to chance overcoming poverty. children in a rich family have more chance to get high education and the education drive to success life in the soc iety. Three-quarters of students at the top 146 U.S. universities come from the richest fourth of families in the USA. Three percent of students come from families in the bottom income, and 10% of students come from the bottom half of the income familyRead MoreIs College Expensive For College Debt?975 Words   |  4 PagesIs College Expensive? College is very expensive for many people these days – it is a nightmare. Upon graduation, many students will accrue a huge debt; like the old students, who are reeling with college debt. Most of the old students cannot afford a decent life because their income is not enough to sustain a living while paying a college debt. Some parents have enrolled their children in college investment funds; as an attempt to lessen the future college debt. However, the government claimsRead More Financial Aid: Old Methods May Not Be the Best Methods Essay1752 Words   |  8 Pagesissues of students and parents becoming limited in their options for both obtaining and repaying student loans. Scrutiny regarding misuse of governmental loan subsidy funds by lending institutions and for-profit colleges was occurring. Student debt loads were at an all-time high. High unemployment meant students could not make payments on the loans and were defaulting at record rates. The Student Aid and Fisca l Responsibility Act (SAFRA) proposed in 2008 and passed in 2009 rewrote student financialRead MoreA Brief Note On North Dakota State University1453 Words   |  6 PagesNDSU vs. ASU The total student population of North Dakota State University as of 2015 is 14,516 students, while the total student population of Arizona State University as of 2015 is 83,301 students. There are many differences between NDSU and ASU, but each of them have their own special upsides. However, they each have their own special downsides as well. NDSU and ASU are both very good schools who offer quality education, and hopefully by the time I am a senior I will have figured out which to