...can be quite expensive if a student does not utilize all resources to aid in covering the cost of their education. A student can apply through FAFSA for financial aid and it is disbursed from the Federal Government, and because it is a grant it does not need to be repaid. Grants are typically referred to as free money and are based on the need of the student. A student can reduce the amount that they need to borrow by researching the opportunities for additional grants and scholarships. Many scholarships are available through many sources and are granted to students based on merit rather than need. It would also be beneficial for a student to consider paying cash for their classes if possible. If it is necessary for a student to borrow funds to pay for their education there are two different types of loans available, subsidized and unsubsidized loans. A subsidized loan is need based, usually has a lower interest rate, the government pays the interest on the loan while the student is still enrolled and working toward his or her graduation and does not require payment until six months after graduation. Unsubsidized loans are not based on need, have a higher interest rate and although repayment does not begin until six months after graduation, interest will continue to accrue from the beginning of the loan while the student is still in school. It would be in the best interest of the student; if possible, to pay the interest payment on the loan as it accrues monthly to avoid...
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...What is financial aid? Financial Aid is any grant or scholarship, loan or paid employment offered at help a student meet his/ her college expenses. Financial Aid helps with funds so that you can go to college or to a universal, which has helped create a better future for the student. How do grants differ from loans? Grants a sum of money given by an organization, especially a government, for a purpose. The funds given to an individual don’t have to be paid back after the person is out of school. The loan is an amount of loan taken out pay for educational expenses. The differ from loans and grants are that grants don’t have to be paid back after six months out of school. Student loan interest are added to the amount brought, which has to be paid back after six months out of school. Private student loans you may have received aren’t like federal loans or aren’t included in Federal Student Aid. What effect t does class attendance have o funding availability? A student has 14 days to make participation in a class or classes before the system drop the student out of class, which mean the funds will be the returned to the send of the funds. To be successful in school or higher education one has to be able to my attendance every week. What did you find about student loan repayment plans? I learn about standard repayment plans, which is fixed to 50.00 dollars a month. The graduated repayment plan is lower at first and then increase usually every two years. Extended repayment...
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...Dr. Kathy Langston English 102 17 February 2014 Student Loan Debt: A Threat to the American Economy And the College Education. As the ever increasing ceiling of student loan debt rises, it bears more of an impact on the generation known as the “Millennials” and the rest of the economy. Many individuals who have decided to embark on earning a college education, whether it is a bachelor’s degree or higher, have had to contemplate on how they would finance such an endeavor. An increasing number of institutions, including private and federally supported bodies, now offer student loans to help many students obtain a college education. Some students find themselves in what can be considered a downward spiral of increasing debt, as these loans continue to mature over time. Many times payments spread over a number of years, equal what some have spent on what use to be the American dream, which was purchasing a home and having the satisfaction of becoming a proud property owner. At the alarming and increasing rate that students spend on education nowadays, it will eventually be safe to say that many individuals will have some very difficult decisions to make concerning what purchases take precedence over the other. Evidence has shown that earning a post-secondary education will be increasingly harder for students to accomplish overtime. There are many obstacles that have developed in modern times for today’s college students. Obstacles include but are not limited to the ability...
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...5 Approaches for Dealing with Student Loan Delinquency The Federal Reserve Bank of New York published a quarterly report last month on household debt and it showed that student loan delinquencies were still rising. As of Q4 of 2016, 11.2% of all student loans were 90 days or more past due on repayment of their loans and some borrowers were actually in default. This is a disturbing trend, particularly when compared to consumer debt in general which is at 4.8% and includes credit card, auto loans, mortgages etc. In other words, student loan borrowers even with deferment, lower payment options and other federal student loan options are more than twice as likely to be seriously delinquent with repaying their student loan. Many studies indicate...
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...There are multiple avenues that student can take to reduce the amount of money that they need to borrow to cover their education costs. Two of the most popular ways would be to apply for grants or scholarships. These two options are the best to try because these do not need to be re-paid back. Applying for scholarships and grants are very easy and usually require you to write an essay stating why you feel you should get the scholarship. Another option is to use money from your savings account. The more money you put into your education, the less you will need to borrow toward your education cost. Because of my current financial situation, I thought that I had no choice but to borrow more than what I wanted to cover my education expenses. I had no money in my savings account and had a real hard time trying to find scholarship that I was qualified to apply for. I am still having troubles with that aspect to this date. It seems that most of the scholarships require you to have a GPA score which I have not acquired yet at this time. I did however managed to cut down a big chunk of my education costs by applying for a Pell grant for which I was approved. This has saved me a large amount of money that I will not have to pay back after I graduate. I intend to keep trying to get scholarships and using that scholarship money to pay off my student loans while I am attending school. The most important thing that we all need to keep in mind is that 6 months after we graduate...
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...can earn a degree without the help of student loans. The American Student Assistance website reports that of the twenty million students enrolled in college, about sixty percent are attending with the help of student loans (2014). Obviously, student loan debt affects the individuals that obtain them. However, it also has severe effects upon the nation’s economy. Recently, CNBC broadcasted a documentary program entitled “Price of Admission: America’s College Debt Crisis”. The program sought to enlighten and inform students and the general public about the current status of and issues caused by college loans. Several college students were interviewed, telling stories of their inability to pay off these loans and the issues caused by this. It also investigated the role that some or all for-profit universities play in luring and (in some cases) all but lying students into taking loans that they likely cannot pay back. Admissions counselors and school officials were also interviewed, most of whom denied any fault or wrong-doing. A shockingly few number of those students who borrow to pay for college are actually able and/or willing to pay for these loans. Of the estimated $870 billion to $1 trillion in unpaid student loan debt, about $85 billion is past due (ASA, 2014). The issues that this debt causes for the students and their families are catastrophic, especially when the debt cannot be repaid. Many students have acquired loans that, upon graduation, total hundreds...
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...Outline Title: Student loan Debt Crisis Speaker: Markevia Lee Specific Purpose: To persuade the audience of their choice of taking out student loans. Thesis Statement: College is not something to put off until after you have graduated, students need to find ways to pay for college before they graduate. I. Introduction: Attention-getter: The increasing trend of college students graduating with significant more student loan debt than job prospects is both alarming and detrimental to the future growth of the nation. The cost of education and the widespread of federal student loans have created an education bubble to rival the housing boom that sparked the recession of 2007-2008. The more tuition rises, the more students need to take out loans. This problem is both current and urgent and must be acted upon now. Source: (http://www.usnews.com/news/articles/2014/11/13/average-student-loan-debt.) Establishment of Ethos: I have discovered there are ways student loan debt can be reduced by applying for scholarships and school grants. Preview: first, I will discuss recent graduates should be able to refinance their loans upon graduating, additionally, the government should intervene on behalf of students to encourage policies that lower college tuition, finally, I will you some examples of assisting students in the payment of college expenses. (Transition: “Let me start by showing the steps that should be taken to help recent graduates”) II. Body A. Student debts are exacerbated...
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...higher interest rates, higher down payments, and fewer approvals on loans. It is very easily to rack up the amount of money you borrow from different companies. When you do borrow a lot of money, and don’t pay it back it effects everything in your credit. When you go to get another loan or credit card you will realize that your interest rate will be higher than before, and that you may get turned down for that same card because you do not qualify, and have already borrowed too much money, according to your credit. • How do you plan on repaying your student loans? o I currently do not have any student loans, and do not plan on getting any for a long, long time. If I did get one though I would plan on repaying it back out of the job that I get from my college education. I would probably try to set it up to be an automatic payment out of my bank account so I wouldn’t have to worry about it. • What is one positive thing you can do to keep your student loans under control? o One positive thing you can do to keep your student loans under control is by making sure you’re not using your student loan money for more than your schooling. A lot of people get student loans and end up using some of the money for their own benefit, rather than using it all for college. So the best thing you can do to keep your student loans under control is by using it only for college so you do not need to get more and more loans to pay for your...
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...Student Loan Debt Over a few decades, there were only so many people who went to college to receive a higher education. The first generation did not have the opportunity to go to college instead they invested their time and money on hoping their children would go on to further their education. I do not believe the first generations realized what the cost of college tuition and fees would be for their children in the future. What is out of hand these days is the cost of a college education. While investing in higher education, we gain knowledge, and future success which is good, but what is the cost? What is affecting, the future of college graduates is the high debt in loans the students must pay off which has a long-term financial effect. We must find a solution for students graduating with these large loans. There is an article “The Debt-free College Degree by Melba Newsome” (Newsome, paragraph 6) in the article for their financial packages they focus on trying to remove loans to their students at Davidson College. Institutions are considering this as a model for other colleges looking for the idea to try to provide solutions to the student loan problem. Giving students their college tuition for free is this a feasible solution? What a college could apply to a student’s financial package could be the large endowment funds that are given to various colleges and universities each year. Expert “Mark Kantrowitz stated Harvard could afford to make tuition free.”...
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...Across America millions of students have accumulated student loan debt through their years at college. Approximately 40 million people across America have student loan debt to pay off. People wonder how does one pay off all of their debt without freaking out, and worrying how am I going to decently live, and also pay off my debt? Paying student debt off can be extremely difficult, and stressful. The trick is to just stay calm, and pay off a little every month even if it is over 100,000 dollars. An example is becoming a history major. How would one become, and then pay off all of their debt? Becoming a history major will give people more than one option on what they what specific time period they would like to study. All over the United...
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...Manageable Student Loans FP/101 Manageable Student Loans After completing steps 1 to 3 in the tuition fees calculator for my current Associates Degree, I came up with a total tuition of $15.300 over a period of 14 months (Appendix A). Luckily I will not need to take any kind of loan for this amount as it is possible for me to invest the monthly portion of $1092 from my income. Nevertheless looking at the tuition fees for my upcoming Bachelors degree, which is amounting to a total of $37.000 (Appendix B), I will definitely need to take up a loan for at least part of the tuition fees. Students in the United States of America do have a variety of options to reduce their loan amount. Often employers are willing to pay for part of your tuition when your studies support your function at work. Furthermore students can apply for Scholarships and grants; those options do not need any kind of repayment. Besides that you may qualify for Military benefits if any family member “if you are active duty, a member of the Reserve or a member of the National Guard, you may eligible for military tuition assistance” (University of Phoenix, retrieved February 23, 2013 from https://www.phoenix.edu/tuition_and_financial_options/explore-options-to-pay-for-school.html#url=scholarshipsAndOtherBenefits%7C1). Also one should consider asking family members to help funding your studies. As I am currently already saving some small amounts towards my Bachelors Degree, I can definitely cut back on...
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...Furthermore, the deduction is phased out if the student reports modified AGI in excess of certain amounts. For 2014 the deduction begins phasing out for a single individual with modified AGI of $65,000 (with a $15,000 phase-out range).” (textbook, individuals 7-19) “If a taxpayer’s AGI does not exceed $65,000 ($130,000 on a joint return), the taxpayer may deduct up to $4,000. However, taxpayer’s with AGI exceeding $65,000 but not exceeding $80,000 may deduct up to $2,000 in qualified expenses. No deduction is permitted for taxpayers with AGI in excess of $80,000 ($160,000 on a joint return). “ (textbook, individuals...
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...and based on location. Now before getting any loans, try to get as many grants as possible so that way when you finally start your classes you will not have to take out as many loans which will result in less money having to be owed in the long run. The second step is to explore options to pay for school. This is where the paperwork starts, in this step you will fill out your FAFSA information and finally start applying for loans, grants, scholarships, and other things of that nature. Make sure that when filling out any information you fill it out as accurate as possible to avoid any mistakes. Now as said in step one, apply for as many grants, and scholarships as possible. This will reduce the amount of loans you take out and greatly trim back your borrowed amounts. How I see it, loans are the last thing that I want as far as paying for college. They are very helpful, but, you end up paying for more in the long run. The third step is to review your financial plan. Now that you actually have a plan, you will have a pretty good idea of what it is going to cost you to go to school. There may be a time or two when you get into a sticky situation as far as paying for school. When those loan payments come you need to make it priority to pay those off on time, because just like any other bill, the longer you take to pay it off, the more money you end up paying. Now I am in no way a financial expert, but some tips to make your student loan payment more manageable would be to cut back on...
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...The student loan debt crisis is a major issue in the United States. Every day, students are dropping out of college because they cannot afford college. Ever since college tuition went up in the 1960s, the student loan debt has risen. Student loan debt takes a major effect of student’s lives after college is over and they must start paying their loans off. On average, students take out as much as $28,000 to $30,000 of student loans (Holland). Taking out these large amounts of loans cause students to dig a hole of financial debt for themselves. From the history of student loan debt to the current solutions that could solve the debt issue, student loan debt will always be a constant issue in students’ lives unless drastic measures are taken to...
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...heard that debt is something everyone has and that it’s okay for you to have it too? Well, this is certainly not the case. Just because everyone else has student loan debt, doesn’t mean that you are required to make high payments every month for the next decade. Many students believe that student loans are necessary in order to attend college, but they really aren’t. Student loans can cause you a lot of trouble in the future, such as massive amounts of debt, and the fact that student loans are debt, and debt is not good. Like any form of debt, student loan debt can pile up high very quickly and can cause many problems in your future. There are so many stories out there about people who have not been able to afford paying both their grocery/utility bills and their student loan payments....
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