Barrack Obama's Student Loan Plan Gives Hope to Millions: [Essay Example], 598 words GradesFixer
exit-popup-close

Haven't found the right essay?

Get an expert to write your essay!

exit-popup-print

Professional writers and researchers

exit-popup-quotes

Sources and citation are provided

exit-popup-clock

3 hour delivery

exit-popup-persone
close
This essay has been submitted by a student. This is not an example of the work written by professional essay writers.

Barrack Obama's Student Loan Plan Gives Hope to Millions

Download Print

Pssst… we can write an original essay just for you.

Any subject. Any type of essay.

We’ll even meet a 3-hour deadline.

Get your price

121 writers online

blank-ico
Download PDF

Many college students rely on student loans to pay for college while they study. On Tuesday of last week the Obama administration created a plan that will qualify millions of Americans to cut their monthly bills from these loans. This was the newest process to surge in borrower defaults. Many students are unable to find jobs after graduation, and are having a hard time with payments on these loans. I feel this is a very positive decision, however I feel college education should be free in America as it is in my home country.

These ideas have been in the minds of the administration since summer of this year. According to this article: “The new rules allow five million additional borrowers to qualify for the government’s most-generous income-based repayment program. Borrowers typically lower monthly payments by hundreds of dollars under the program and can have a portion of their debt forgiven after 20 or 25 years.”

The plan called Pay as you earn was previously only available to those who borrowed federal loans after October of 2007. Now this is also available for those who borrowed several years ago. However no distinction was given on a cutoff date for borrowers. I feel this is a great step towards helping the economy and students alike.

Although this idea is quite appealing, it puts a risk for both taxpayers and borrowers. According to the Department of Education, it will cost taxpayers nearly $15.3 billion over the course of a ten year span. Borrowers are blind to the fact that this new plan will only increase the amount they owe. This is because often times the payments don’t cover interest. They will become trapped even longer in debt, some believe.

Obama’s new plan for this addresses concerns about college debt. He stated that since 2007, student debt has more than doubled. In 2007, it was at nearly $1.2 trillion, according to the Federal Reserve Bank of New York. Many administrators are concerned with what this is doing to people credit standings. If the credit is extremely bad, these students will be unable to purchase cars, homes, etc. This can really effect day to day lives of these students.

According to my article nearly one in three Americans who pay monthly on students loans were at least a month behind on payments. This was conducted by St. Louis Fed research earlier in this year. About seven million students had gone an entire year without making a payment and these statistics were given by the Educational Department.

The report conducted “underscores escalating college costs as well as a dramatic shift in how American households are financing higher education. “ Ten years ago, generally a graduating senior left with debt of about $18,550, compared with about $26,000 today. This number is about 56% of an increase since this past decade. Also it is double the rate of inflation in other terms.

In conclusion, I feel this decision is quite complex but seems to be more beneficial than harmful. Some debt will be eliminated after 20-25 years. This is better than nothing. I understand these persons will accumulate quite a bit of interest but its better they pay what they can afford, rather a ridiculous amount. As I stated previously, I feel the United States should adopt Saudi Arabia’s way of handing education. The government pays for all education and also living expenses while studying abroad. The reason they do this is so that the country has educated persons working. By reducing the expected amount each month, recent graduates have the opportunity to get on their feet before being overwhelmed with loans.

Remember: This is just a sample from a fellow student.

Your time is important. Let us write you an essay from scratch

100% plagiarism free

Sources and citations are provided

Find Free Essays

We provide you with original essay samples, perfect formatting and styling

Cite this Essay

To export a reference to this article please select a referencing style below:

Barrack Obama’s Student Loan Plan Gives Hope to Millions. (2018, April 06). GradesFixer. Retrieved January 22, 2021, from https://gradesfixer.com/free-essay-examples/barrack-obamas-student-loan-plan-gives-hope-to-millions-2/
“Barrack Obama’s Student Loan Plan Gives Hope to Millions.” GradesFixer, 06 Apr. 2018, gradesfixer.com/free-essay-examples/barrack-obamas-student-loan-plan-gives-hope-to-millions-2/
Barrack Obama’s Student Loan Plan Gives Hope to Millions. [online]. Available at: <https://gradesfixer.com/free-essay-examples/barrack-obamas-student-loan-plan-gives-hope-to-millions-2/> [Accessed 22 Jan. 2021].
Barrack Obama’s Student Loan Plan Gives Hope to Millions [Internet]. GradesFixer. 2018 Apr 06 [cited 2021 Jan 22]. Available from: https://gradesfixer.com/free-essay-examples/barrack-obamas-student-loan-plan-gives-hope-to-millions-2/
copy to clipboard
close

Sorry, copying is not allowed on our website. If you’d like this or any other sample, we’ll happily email it to you.

    By clicking “Send”, you agree to our Terms of service and Privacy statement. We will occasionally send you account related emails.

    close

    Attention! this essay is not unique. You can get 100% plagiarism FREE essay in 30sec

    Recieve 100% plagiarism-Free paper just for 4.99$ on email
    get unique paper
    *Public papers are open and may contain not unique content
    download public sample
    close

    Sorry, we cannot unicalize this essay. You can order Unique paper and our professionals Rewrite it for you

    close

    Thanks!

    Your essay sample has been sent.

    Want us to write one just for you? We can custom edit this essay into an original, 100% plagiarism free essay.

    thanks-icon Order now
    boy

    Hi there!

    Are you interested in getting a customized paper?

    Check it out!
    Having trouble finding the perfect essay? We’ve got you covered. Hire a writer

    GradesFixer.com uses cookies. By continuing we’ll assume you board with our cookie policy.