Student Loan profits: Where are they really going?
Published: Friday, February 21, 2014
Updated: Thursday, February 20, 2014 16:02
Student loans are making headlines once again, and this time the news is only getting worse.
According to USA Today, student loans are continuing to give profits to the federal government. In 2013 alone, the profits reached $41.3 billion.
Loans are the impending doom that all students, and all parents, dread when they think about college. Student loans are becoming more common for students, and because of this, students are experiencing serious debt issues.
In the summer of 2013, a law was enacted that would tie interest rates to the cost of federal government’s borrowing, according to USA Today. This was expected to lower student loan rates but it wouldn’t push profits away.
The fact that the government is making money off of us students, instead of putting money into our education, is why this nation is starting to fall.
Our government is supposed to serve the people, but that can’t be true if the federal government is indeed profiting off of student loans.
If the administration is not making money off of students’ financial hardships, it needs to state very clearly and specifically where this money is going, instead of attributing the supposed profits to “account measures.” That’s neither comforting nor convincing.
As previously stated, loans are becoming more common and they are needed for students to make it through college.
Unfortunately, fewer and fewer people are going to college because they can’t afford to pay it now or throughout their lifetime.
In 2012 it was reported that the average college graduate owes $29,400 from student loans.
That is a tremendous amount of money, and it is not easy to pay off. It takes a very long time.
These days, it is essential to go to college and get a degree. Jobs are becoming harder to find and jobs in a particular field of study are more competitive. Because having an education is so important these days, it gives people an uneasy feeling knowing they will have to pay back loans that were greater than what was taken out.
Scholarships are a great alternative to loans but the problem is that not everyone can receive one; it is a dime a dozen.
Fortunately, ASU has made tuition very inexpensive compared to bigger schools like Texas A&M or University of Texas. It can be even more expensive for someone who is going to school out of state.
Think about all the different costs a student has. Not only do they have to pay tuition, but there is room and board, textbooks, meal plans or maybe apartment rent.
Some students try to save money by paying for school themselves or applying for financial aid, but as many of us know, financial aid doesn’t always pay for enough or give a large sum of money.
Should students have to have another worry on their plates? Is it fair for the government to do this to the future America?
Whether it’s fair or not, it is happening before our own eyes, and it is not the way the situation should be handled. Loans can be very helpful because of the large sum of money that a student can receive. But is it really beneficial at the expense of having to pay back three times as much due to interest rates?
As students, we understand the hardships, or money in general, can have on a student.
Think before you click. Is that loan going to be a good idea for you 25 years from now?