Student Loan Debt Essay - Free Essays, Term Papers.
Federal student loans have the advantage of no repayment required before the student graduates from college. 2.1.3 Rates that are offered: The rates offered by the Sallie Mae are at 5.75% compared to that of the federal loan at 6.8%. 2.1.4 Requirements for qualification for the loans: To access money from a bank the qualifications are high compared to federal loans. 2.1.5 Terms and conditions.Student Loans The federal government has the power to cutback the funding of student loans. There are several different ways the government can go about doing this. One way is to keep the amount of each loan the same and reduce the number of loans granted.Student loans differ from other loans in many ways, firstly their interest rates are at six percent, which is higher than those of home loans. Also, students do not negotiate with the lenders. They have to begin paying off their debt six to twelve months after graduation.
Graduates repay student loans to the government after their earnings exceed the threshold level. These loans are therefore private contributions towards the costs of higher education. The student loans system aims to ensure that upfront costs do not deter potential students. Graduates repay student loans and they generally have above average.Student loans do allow students to have some type of credit to make buying houses and cars possible, but the total cost of the loan is a negative toll. With paying back loans, money is now tight and needed strictly for paying off the debt already there. Most people after college wait on having kids.
A graduate who wants to be a public school teacher has the option of applying to the Teacher Forgiveness Program. In this program up to “seventeen thousand five hundred dollars of federal Stafford loans or the entirety of their Perkins loans can be forgiven in exchange for five consecutive full-time.
