Additional Student Loan Bonds: Case Study

In the early 90’s a majority democratic Texas legislature debated on the equalizing school funds, but no plan was gained, mainly because it would require rising local and state taxes. Texas at the time having one of the nation’s highest taxes. The educational issue continued to face many special sessions in the Texas house, a new program was finally adopted that met the approval of the federal ruling. The new educational program shifted funding from local tax to state tax. While the program was

Student debt is a topic that generates a lot of debates. From politicians to lenders to students, everyone has an opinion on the topic. With a trillion dollar national debt, it’s not surprising why the topic is such a huge issue and the solutions are even greater. The student debt is a form of debt that is owed when a student has completed college or drop out. The average interest rates for the ungraduated and graduated are 4.45% to 6% (Quadlin). To pay off all the students’ debt, it will take 10-25 years to complete it. College students will have at least six months before they have to make the first payment. Student debts can be a real problem for those who aren’t preparing for them. Student loans debt should have a longer grace period, lower monthly payments and repayment programs that apply to all because students will be able to manage and repay their debts in a timely manner.

During the twentieth century, Texans struggled to maintain acceptable funds for public education. Schools were short on funds, leading them to be short on school supplies, and textbooks. In 1949, the state legislature passed three bills to help with this issue. These bills also helped reconstruct the public education in Texas. These bills were known as the Gilmer-Aikin Laws. They helped raise teacher’s salaries regardless of race or sex, established minimum standards for teacher training, and mandated a nine-month academic year for students. (Erekson

Financial support has played an important role for college students, especially for university students, whose family could not support their education after they have graduated from high school. Due to this situation, students have to go through a lot of problems with their tuition fees to be able to continue with their education. They always need a large amount of money besides paying for the tuition but also for living, and students have to go through a lot of problems with their tuition fees in order to be able to finish their career on time and earn a better living in the future. Some students will choose to go to work part time while at school, so they can pay for their fees and their own expense, such as gas, foods, and clothing. On the other hand, most of students will choose to take out loans from somewhere else, such as the bank or federal loans. This way, students who choose to take out a loan could focus on their education without worrying about how to pay for their fees. It is very important for students to acknowledges and be aware of the different types of student loans, and all the requirements before students decide to obtain a loan. Because of the raise in tuition leads to the existence of the student loan debt is a burden that is a financial impact on lifestyle changes, such as postpone couples to get married, to have children, to buy a house and to save for retirement.

State legislators slashed more than $121 million from college financial aid programs alone, leaving 29,000 students without the possibility of receiving aid from TEXAS grants, the state’s financial aid program for needy students. Since Texas colleges and universities were also cut 9 percent by the legislator, they were forced to raise prices for students. Due to the uncertainty of the Texas financial aid, many college administrators reported losing numerous highly qualified students to out-of-state universities and colleges and many families have lost the ability to pay for tuition because of the lack of resources.

The current state of the Texas education policy is very complex and its roots can be traced all the way back to times were there was no equality in the public school system, we can even say it can be traced as far back to the state’s split from Mexico. This was a very problematic situation that began to be reformed heavily starting in 1954. The legislations that passed to resolve this problem have morphed the Texas Public education policy into what it is today.

Ever since it was turned into a semi-private loan service, Sallie Mae used money to lobby its way in order to become an effective profit-generating machine that fed off the student’s monthly payment while the government just watched as the well-intentioned program went down the drain. In the beginning, Federal student loan started off with the intention of providing equal opportunity in the academic world. For that reason, President Johnson (D) signed the Higher Education Act in 1965 that offered guarantees of low interest, leniency on payments, and options when the student cannot afford to pay it back. In the next presidency, President Nixon (R) expanded the educational program to make it a semi-government program

Here in the United States, there are many forms of consumer debt, which help contribute to the large sums of debt countless Americans find themselves faced with. Directly effecting many college students is student loan debt. Student loan debt is now the second largest form of consumer debt behind housing” declares the Federal Reserve Bank of New York (Grisales). This is due to the fact that student loan debt grew 7.1% in 2014 to $1.2 trillion (Grisales). If this statistic alone is not worrisome this next one is sure to be. The amount of debt in the housing market that helped to spark the last recession was only $1.3 trillion (Grisales). Due to the increased amount of debt required by students to attend college many students are feeling the wrath. According to the U.S. Census Bureau, “In 2014, 11.7 percent of females and 17.7 percent of males between the ages 25 and 34 were living with their parents” (Grisales). The fear of obtaining massive amounts of debt is driving the current generation of student’s to put off many future hopes and dreams. While causing them to move back home to save money. The current student loan crisis is crippling the economy and ruining the lives of American students.

11.13). When it comes to addressing the performance issues facing Texas schools, issues facing the poor, the reality of a water shortage, and problems relating to transportation, there is great reluctance among Texas Republicans when it comes to expanding the government’s role in improvements, as well as in raising the necessary funds through taxation. The Texas Politics Project (2017) explains that when it comes to the current state of Texas schools, supporters of a more fiscally conservative approach feel that such an approach “at least achieves average results with below-average spending” (p. 11.9). The current conservatism that defines the overall political approach in Texas may not be adequate in the long term. As we are seeing, changing demographics are substantially impacting the state of Texas and will likely lead to necessary changes throughout the state.

Student debt has led to many negative consequences for students attending college. Senators tend to have different views when it comes to solving the student debt issue. Elizabeth Warren, a Democratic senator from Massachusetts, has been concerned about the constant rising of interest rates on student loans throughout the years. She proposes a certain bill to help cut down such rates. Bernie Sanders, another Democratic senator from Vermont, focused on the importance of the young generation earning an education. He attempts to make college more accessible for everyone. Lastly, Robert Reich, a former United States Secretary of Labor, has pointed out that college is not for everyone. He believes that individuals should have a choice rather than being forced into college due to society.

In order to implement this policy, responsibility will be bestowed upon the “Foundation School Program” and the Texas state Legislature (Grusendorf, 2015, pg.2). These two groups play the most vital role in changing and implementing the new “state formulas” (Grusendorf, 2015, pg.3). Both will work together in creating and agreeing to the new state formulas. We will review the formulas every year and decide if funding is truly being distributed with equity. Only if they are not then will both organizations have to re-write the formulas to improve upon them.

Floor action within the Texas senate committee is the just another passage in the legislative dynamics.Since Bill HB 1807 was reported out of the local and consent with no proposed amendments it had to undergo two more readings which can led to filibuster debate when it hits stage four of the legislative process. However this bill was fortunate enough to not become entangled into the debating process allowing immediate voting to take place that same day completing stage five. Those who watched closely to the passing of this bill was on edge since the transitional nature of Texas politics have been dominated by ideological divisions in both houses. State legislatures are notorious for wasting time on public policy that is considered frivolous in nature. Thankfully Bill HB 1807 reported out of the Senate committee on Higher Education with vote of seven Ayes and zero Nays. Since Bill HB 1807 received majority votes from both the House and the Senate the engrossing and enrolling clerk prepared a correct copy of Bill 1807 and sent it to both houses for a final read before it was signed by the presiding officers. During the last week of May the house chief clerk signs and the Senate secretary signs off of the bill turning it into an act. The vote of passage is certified and officially printed to be sent before the Texas

This topic has become a very important issue, with some people saying that student loans could be the next bubble and could do what the real estate bubble did to the U.S economy in 2007 and 2009. If student loans are becoming such an epidemic something should be done to better help people with student loan debt. This paper argues that North Dakota should devise a new policy regarding student loans that would help ease the financial burden that student loan debt puts upon college graduates because it would decrease the total amount of student loan debt, it would help stimulate the economy, and it would provide an even greater incentive to go to college. This paper’s intention is not to argue that college is not worth going into. This policy would consist of making student loans dischargeable through bankruptcy, increasing the amortization period with a lower interest rate, providing incentives, and increasing state funding of higher educations institutions.

To solve most of Texas’ education dilemmas, we must ensure that state legislature along with every candidate and sate leader restores all funding and supports education for all Texas students. We must invest in high quality education as population continues to grow. This will help set the stage and make dreams reachable for the future leaders of

Financial support has played an important role for college students, especially for university students, whose family could not support their education after they have graduated from high school. Due to this situation, students have to go through a lot of problems with their tuition fees to be able to continue with their education. They always need a large amount of money besides paying for the tuition but also for living, and students have to go through a lot of problems with their tuition fees in order to be able to finish their career on time and earn a better living in the future. Some students will choose to go to work part time while at school, so they can pay for their fees and their own expense, such as gas, foods, and clothing. On the other hand, most of students will choose to take out loans from somewhere else, such as the bank or federal loans. This way, students who choose to take out a loan could focus on their education without worrying about how to pay for their fees. It is very important for students to acknowledges and be aware of the different types of student loans, and all the requirements before students decide to obtain a loan. Because of the raise in tuition leads to the existence of the student loan debt is a burden that is a financial impact on lifestyle changes, such as postpone couples to get married, to have children, to buy a house and to save for retirement.