Issue – Student Loans
There is a crisis at hand that looms over our nation daily and keeps getting larger without mitigation. It is not North Korea. It is not the War on Terror. It is a financial calamity; the basis is not in the housing market, not in the stock market, but in the debt market. It is a specific kind of consumer debt; student loans. According to the New York Federal Reserve, when comparing all categories of debt, student debt is second only to mortgage debt. Will student debt end up like the housing crash? Is it too big to fail? Only time will tell as students anticipate President Trump revision of the student loan plan.
The issue of student debt is delicate topic for many a student and former student, including myself. This
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As children, living in our parent’s home, we mostly likely paid no heed on how life necessities are paid for. Shelter, transportation, clothing, food, to name a few was always available when needed, with no thought process on how parents can afford necessities in life. As children, oblivious to real world around us, take money for granted. But as adults, gone is that insensible belief, we are not afforded that luxury whether or not we are ready for that …show more content…
This is an area of contention for the graduate and the government. The graduate is fearful of high payments cutting into a promising career and low compensation. Repayment of the loan is paramount; a variable payment rate based on the borrower’s income. The difference from other payment plans is that it automatically comes out of one’s pay, like social security and taxes. Requiring automatic payment significantly decreases defaulting on the loan. In the event that the borrower cannot get gainful employment after graduation a halt on interest and payment until borrower begins working. Another incentive is that if payments are continuous for 15 years the remainder of the loan is forgiven if records show that the borrower’s income has not increased significantly over the payment