Grads1st Case Study

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.

Student loan debt affects college students all over the United States. Today students are having to take out loans in order to pay for all of their college expenses. It can be a pain to deal with the hassle of paying back the loans. The problems with student loans include causing students to go into debt that they are not able to pay them off in the given time which makes them put major life decisions on hold, and the debt stay with the student even through bankruptcy. A solution that would solve these problems is the idea of debt forgiveness which is the idea that the government will get rid of all the loan debt for college graduates.

Consequently, everyone from recent graduates to the newly under or unemployed graduate who can’t pay back their debts is subject to garnished wages and other income (Schou).

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

Public Service Loan Forgiveness also known as PSLF is a program designed for federal student loans borrowers who enter a full-time in public-service jobs. The PSLF forgives the remaining balance on the students loans only if the first 120 monthly payments have been made while employed full time by a qualified employer. This means you are working for any non-profit organization, federal government position, or are serving full time for the

Increasingly, in the United States it is not uncommon for an individual to apply for student loans, and attend a

The qualifications for the program are tough and federal loan forgiveness only applies to federal Direct Loans, not private student loans. If the graduate is lucky enough to land a public service job the graduate must realize that there is no guarantee that the employment will still be around in ten years since no one truly knows how the program will work or if it will work at all. Val Meyers, associate director for the Office of Financial Aid at Michigan State University comments are recorded in Susan Tompers’ article “My Apologies: Forgiving Student Debt is Tough”:

Student Loans: What They Are, What The Evolution of Student Loans Has Looked Like, and What The Current Policy Is.

Students on average have more than 25000 dollars in student loan debt they have to pay back because of this debt; The incredible amount of debt creates issues of students struggling to pay that money back.In order for students

According to the New America Foundation, as much as 40 percent of the nation 's recent federal loan disbursements are for graduate student debt. Graduate student borrowers are much more likely to have substantial loan amounts forgiven under the income-based repayment, Pay As You Earn and Public Service Loan Forgiveness programs.

A graduate who wants to be a public school teacher has the option of applying to the Teacher Forgiveness Program. In this program up to “seventeen thousand five hundred dollars of federal Stafford loans or the entirety of their Perkins loans can be forgiven in exchange for five consecutive full-time years as a teacher at certain low-income elementary or secondary schools” (Atteberry). This sounds like an excellent program, but what if the graduate student cannot find a job at one of these schools? The economy is not very good in today’s society and many schools are facing budget cuts. These budget cuts often effect the teachers by their salary. Also, if the teacher in the Teacher Forgiveness Program got laid off because of budget cuts before their five years where up then none of their loan would be paid.

Three types of financial aid are grants, loans, and work-study jobs. Grants are often called “gift aid” because they are free money—financial aid that doesn’t have to be repaid. Grants are often need-based, while scholarships are usually merit-based.Grants and scholarships can come from the federal government, your state government, your college or career school, or a private or nonprofit organization. Do your research, apply for any grants or scholarships you might be eligible for, and be sure to meet application deadlines! Occasionally you might have to pay back part or all of a grant if, for example, you withdraw from school before finishing an enrollment period such as a semester. Student loans can come from the federal government or from private sources such as a bank or financial institution. Loans made by the federal government, called federal student loans, usually offer borrowers lower interest rates and have more flexible repayment options than loans from banks or other private sources. The Federal Work-Study (FWS) Program is a need-based program that provides jobs for eligible students with financial need who are enrolled at least half time, allowing them to earn money to help pay education expenses. The program encourages community service work and employment related to their course of study. Different types of aid (private scholarships, state grants, etc.) have different rules, called eligibility criteria, to determine who gets the aid. Here are the eligibility

When thinking about attending college, it is very important to determine the best financial option. Some students will qualify for pell grants, scholarships, and company tuition reimbursement to cover costs for their education. For those who don’t qualify for grants, scholarships, or tuition reimbursements, there is an option for applying for student loans. Once you have determined that you will need to apply for a student loan, you will then need to decide whether subsidized or unsubsidized is the best financial option.

This plan is for Direct Loans only, and includes a regular monthly payment amount based on your adjusted gross income, family size, and total eligible federal student loan balance. Your regular monthly payment amount will generally be 10 percent of your discretionary income.

Student have debts one way or the other by continuing their education after high school and the student are pressure by their parents or at the counselor’s office in high school to get a degree. The only way is by college they say, but some student can’t afford it up front and need financial aid to help out. Here is when the student get in trouble by signing the application before they read the terms and conduction what they just sign. Some student think they will find a good job and not worry, because they know they can afford paying the loan back. Lot of employers are looking for experience to quantify for that job. When they have a degree after they finish school and seek for a job and find out they are over quantify or under quantify for that job and there is no way to pay for the student loan at a minimum job or no job at all and seeking for a solution help for the student loan. Some seek a default on the loan and don’t want that in your history records there is a better solution and it a student loan forgiveness. The solution to the problem with student loan debt is to be educated about which loans are best out there. Choice the best one for your situation. Student don’t have to get in debt, because there is other ways to pay for college, like going part-time to college and have a full time job. Some company will pay for you college. Be wise before you sign the loan document and read the terms and conditions.