Essay on Student Loan Debt

1753 Words 8 Pages
Student Loan Debt
It is a norm and expectation in society today for students to pursue higher education after graduating from high school. College tuition is on the rise, and a lot of students have difficulty paying for their tuitions. To pay for their tuitions, most students have to take out loans and at the end of four years, those students end up in debt. Student loan debts are at an all time high with so many people graduating from college, and having difficulties finding jobs in their career fields, so they have difficulties paying off their student loans and, they also don’t have a full understanding of the term of the loans and their options if they are unable to repay.
There are different types of financial aid available to
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Another requirement is that student must be in a program that will eventually lead to a certificate or degree. Subsidized Loans are offered to students’ based on individual needs, and this is decided based on the information given when completing FAFSA. Paul Basken states, “The federal government offers subsidized loans to college students both directly from the Education Department and indirectly through banks and other private lenders.” These loans are offered without a credit check or cosigner. There is a limit to the amount that can borrow each year, and that amount varies based on if the student is a dependent or independent. The interests on subsidized loans are paid by the government while students are still enrolled in school. This means the amount that is borrowed, is the amount to be repaid. Interest starts to accumulate after students graduate or drops out and the repayment terms begin.
Unlike Subsidized Loans, Unsubsized Loans are not offered to students based on need. It also differs from Subsidized Loans because as soon as the loan is paid out to the schools, interest immediately starts to accumulate. With the interest being accumulated, students can start paying those interests while in school, or when they graduate. If students decide to leave the interests until graduation then the amount that needs to be repaid will be higher than the amount that has been borrowed.
The Federal Plus Loans are offered to graduate students and parents of

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