Student Loans

Oct 25, 2012
by: msprinkle

Student loans are a concern on all the minds of graduating seniors this year. For most of us, loans and scholarships are a major concern if we are headed out of state, and as we consider colleges during the application process. With college tuition and expenses increasing, rising at a rate of 439% between 1982-2007 as reported by the National Center for Public Policy and Higher Education, it has become much harder for students to pay off their over-bearing loans. With the economy making it harder for young people to find jobs (a record 18.5% of people in their 20’s were unemployed in 2009 according to the US Bureau of Labor Statistics) more of these loans eventually lead to default.

When the economic crisis hit in 2008 many worried about student loans defaulting in the upcoming future which could be a major problem in helping to rebuild the economy. The concept of Forgive Student Loan Debt to Stimulate the Economy was proposed by a New York attorney in 2009. Many people argued against this idea of students not having to repay their loans, and critics of a borrower stimulus package suggest a one-time bailout may set an unwelcome precedent. With the The Department of Education reporting that 8.8 percent of students defaulted in 2010 the issue has never been more of a concern.

One solution to this problem was proposed and signed by Obama in March. This is the Student Aid and Fiscal Responsibility Act (SAFRA). SAFRA was able to cut billions of dollars being received by private companies to originate student loans. This act has to do with the belief that all people are equal and should receive and equal education from the school of their choice.


HEY MARIAH!!!!! I completely

Submitted by priscillaBP on Sun, 2012-10-28 21:41.

I completely agree that getting loans in the future for college is quite a concern for students. With Obama being president, it's such a relief that he passed the Student Aid and Fiscal Responsibility Act. That should definitely not change.