Essay Student Loan Debt Relief
Student Loan Debt Relief
Student loan debt relief is a controversial issue in America today. Student loan debt affects twelve million college students, roughly 60% of all college attendees, per year (Student Loan Debt Statistics). Student loan debt relief rose to the forefront of economic news during the financial market crash of 2008. The U.S. Government has developed a debt relief plan that extends payments over a 25-year period, with a full forgiveness of all remaining debt at the end of that 25-year term (Ensuring That Student Loans Are Affordable). During this repayment period, payments can be suspended during times of unemployment, giving hardship students a break from their student loan payments. Many people feel that student loan debt relief is a good idea, and is the only answer for student loan borrowers that have fallen prey to our sluggish economy. There are others, however, that feel that student loan debt relief is unfair, and that students who promise to pay back their loans should be held to a strict standard repayment schedule.
A positive aspect of student loan debt relief is an improved future credit rating. Student loans have always been an issue for college graduates who did not qualify for financial aid, but the recent economic recession placed an extreme amount of added stress on student borrowers, because it is becoming increasingly difficult to continue to pay back school loans as jobs are being lost. Student loan debts that reach default status can ruin the borrower’s credit rating. Furthermore, until this debt is fully paid, the bad credit rating will stay on the student’s credit report (How Student Loans Impact Your Credit - 360 Degrees of Financial Literacy). The student loan debt relief program resets the loan, even if it had been in default, thereby allowing the credit report to show a current payment status. Because of this reset option, student loan debt relief may increase the student’s credit score, both immediately
Student loan debt relief is a controversial issue in America today. Student loan debt affects twelve million college students, roughly 60% of all college attendees, per year (Student Loan Debt Statistics). Student loan debt relief rose to the forefront of economic news during the financial market crash of 2008. The U.S. Government has developed a debt relief plan that extends payments over a 25-year period, with a full forgiveness of all remaining debt at the end of that 25-year term (Ensuring That Student Loans Are Affordable). During this repayment period, payments can be suspended during times of unemployment, giving hardship students a break from their student loan payments. Many people feel that student loan debt relief is a good idea, and is the only answer for student loan borrowers that have fallen prey to our sluggish economy. There are others, however, that feel that student loan debt relief is unfair, and that students who promise to pay back their loans should be held to a strict standard repayment schedule.
A positive aspect of student loan debt relief is an improved future credit rating. Student loans have always been an issue for college graduates who did not qualify for financial aid, but the recent economic recession placed an extreme amount of added stress on student borrowers, because it is becoming increasingly difficult to continue to pay back school loans as jobs are being lost. Student loan debts that reach default status can ruin the borrower’s credit rating. Furthermore, until this debt is fully paid, the bad credit rating will stay on the student’s credit report (How Student Loans Impact Your Credit - 360 Degrees of Financial Literacy). The student loan debt relief program resets the loan, even if it had been in default, thereby allowing the credit report to show a current payment status. Because of this reset option, student loan debt relief may increase the student’s credit score, both immediately
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