Essay On Federal Student Loan

The current federal student-loan program has some problems that must be addressed. For example, the forgiveness of student-loan debt, artificially low-interest rates, and repayment plans. The U.S Department of Education is the primary source of federal student loans. Several types of loans are offered through the Direct Loans program. Subsidized and Unsubsidized Stafford Loans for undergraduate and graduate students. In order to address this situation, to help the students, the federal government can try to “End all federal student-loan defaults forever by moving to income-contingent loans” (p. 573).

First, the forgiveness of student-loan debt, “this is the worst idea ever” (p. 570). “the size of the U.S. budget deficit rises, and the government borrows additional funds, very often from foreign investors” (p. 570). The loan is considered
Not everyone agrees that this is the way to solve these problems, however. Some say to get a bankrupt father and to be free for any federal student-loan program. But this part it does not true because the students need to pay back the loan plus interest rates. Others point out that people blame the government, anybody force the students to ask for a federal student-loan, and the government is still there to help you with the school tuition and books. If your choice to have a loan you will be responsible to pay back.

These objections make sense, but the government also has been working with the lower interest rates and make the loans to 3.4 percent. All in all, it is important to be responsible about student loans as they stand to affect your financial life for a long time. Many options are available to use like, forgiveness, cancellation, forbearance, etc. The government is powerful and could have profound effects on your life, should you not pay your loans as