Essay On Student Loans - 768 Words

The Department of Education in recent times has embraced a new system regarding student loans, bringing on board a customer-friendly policy. According to this new scheme, students will now have access to loans with easier and less complex repayment terms. This development will help them fast-track the repayment of their debts without hassles. The Department of Education also integrated an income-based repayment plan: a flexible approach geared at facilitating student finance in their most dire hour of need. Sadly, despite having the potentials to substantially pull off the amount of burden on people’s shoulders, this income-driven repayment scheme hasn’t gained much traction and acceptability among the general population. This is due to†¦show more content†¦Therefore, if you decide to hire a private company evaluate their credentials based on their expertise, experience and past performances. Unfortunately, the majority of third-party company’s primary focus is to prey on your ignorance and desperation. Let us take a cue from Navient, Great Lakes, Fed Loans, and Nelnet an outside third-party company contracted by the Department of Education to service accounts and collect money. Yes, you heard it right, â€Å"Service accounts and Collect money.† Sadly, millions of borrowers are being hoodwinked by the actual roles of these servicing companies, as they disguise to be more than what they are, all in a bid to exploit you. However, theyre ‘nothing more than bill collectors. Moreover, The Consumer Financial Protection Bureau filed a lawsuit against Sallie Mae (Navient) alleging , among other allegations, Navient systematically and illegally [failed] borrowers at every stage of repayment, which included creating obstacles to repayment by providing bad information, processing payments incorrectly, failing to act when borrowers complained and illegally cheating many struggling borrowers out of their rights to lower payments, causing them to overpay for their student loans and deceiving private student loan borrowers about requirementsShow MoreRelatedEssay on The Student Loan Scam1878 Words   |  8 Pagescomparatively â€Å"small† expenditures I have to deal with, examples of educators, students, and parents all paint a portrait of the devastating and deceiving nature of debt involved in the collegiate system in this country. Systemically, culturally, and personally, the system of debt associated with virtually every modern college experience of all but the highest socioeconomic echelon wrings the resources of the average college student dry.         In the context of how the system works, the only conclusion toRead MoreStudent Bank Loans? Essay576 Words   |  3 PagesMost of the students are always eager to go to the last stage of their educational program and attain the highest degree. This is also very important for their professional lives too. The students need to make sure that they have attained the good results or, good marks in their examinations. But, these are always like dream for the students having less financial abilities as the higher education needs you to have some money for managing the academic expenses. This becomes really impossible to carryRead MoreEssay Student Loan Debt Relief1460 Words   |  6 PagesStudent Loan Debt Relief Student loan debt relief is a controversial issue in America today. Student loan debt affects twelve million college students, roughly 60% of all college attendees, per year (Student Loan Debt Statistics). Student loan debt relief rose to the forefront of economic news during the financial market crash of 2008. The U.S. Government has developed a debt relief plan that extends payments over a 25-year period, with a full forgiveness of all remaining debt at the end ofRead MoreStudent Loan Debt Crisis Essay1214 Words   |  5 PagesStudent Loan Debt Crisis What do you think of when you hear the words college graduate? Well, in most scenarios, these words would be exciting to someone that just graduated college who have put in years of hard work and dedication to better educate and promote themselves for their future careers. Sadly enough, this is too far common not the case. In today’s society, students are graduating college with piles of debt at an alarming rate. With a troubled economy that is recovering from a recessionRead MoreIn The Short Essay, â€Å"Is Forgiving Student Loan Debt A Good807 Words   |  4 Pages In the short essay, â€Å"Is Forgiving Student Loan Debt a Good Idea?† by Kaya Webley, she illustrates through validations that student debt is a problem, but Applebaum’s proposal brings about political and economic problems. One of her validations is that most people can afford their student loans. She also states that only a small handful of graduates leave school with an unbearable student debt . Webley touches upon programs that are already in place to help pay off college debt. Another one of herRead More College Student Loans Skyrocket Essay example747 Words   |  3 Pages If youre counting on government student loans to get you through college or graduate school, count on paying them back. The Education Department has become one of the toughest debt collectors around. Over the past decade, the agency has steadily expanded its arsenal for dealing with former students who dont repay. A 1998 change in federal law made it extremely difficult for people to escape student loans through personal bankruptcy. The Education Department also can now seize parts of borrowersRead MoreForgiving Student Loan Debt Essay examples822 Words   |  4 Pagesamount of student loan debt have an effect on the economy? If so would forgiving student loan debt help lower the national debt or would it just increase it? According to Mary Claire Fischer, a writer for Kiplinger’s Personal F inance magazine, â€Å"two-thirds of students who receive bachelor’s degrees leave college with debt in tow† (Fischer). Among these students, the average amount owed is twenty-six thousand dollars (Fischer). There is a six month grace period after graduation to allow the student timeRead MoreEssay on Student Loan Debt Should be Forgiven1256 Words   |  6 PagesDoes the amount of student loan debt have an effect on the economy? If so would forgiving student loan debt help lower the national debt or would it just increase it? According to Mary Claire Fischer, a writer for Kiplinger’s Personal Finance magazine, â€Å"two-thirds of students who receive bachelor’s degrees leave college with an average debt of twenty-six thousand dollars† (Fischer). This means that the average student debt has doubled since 2007 (Ross 24). The total student loan debt is $1.2 trillionRead MoreEssay on Policy Proposal: Student Loan Default3338 Words   |  14 Pagesfel lowships, and grants, student loans are an important method of financing post-secondary education. With tuition costs rising, more students are borrowing to pay for college education today. However, not all students realize the burden of paying back their student loans. Many are defaulting. Moreover, individual borrowers are not the only ones who face the consequences of the loan default. The federal government recovers around 80% of the total defaulted amount of student loans, losing billions of dollarsRead MoreEssay on The Government Should NOT Forgive Student Loan Debt1761 Words   |  8 Pagescollege degree, students are either being driven away entirely from earning a degree or taking out student loans which cripple their financial prospects well after graduation. Without question, the increasing national student loan debt is one of the most pressing economic issues the United States is dealing with, as students who are debt ridden are not able to consume and invest in the economy. Therefore, many politicians and students are calling on the government to forgive their student loan debts so