...Site Map Contact Advertise About • • • ©2016 StudyMode.com 1. Home > 2. Debt > 3. Student Loan Crisis... < Back to Debt Student Loan Crisis Research Paper Debt, Education finance, Higher education • • • • By sympathys Jun 11, 2013 1348 Words 220 Views PAGE 1 OF 5 �PAGE � How to Make College More Affordable Many of the protesters occupying Wall Street and other places say they are upset about the rising price of going to college. There is little dispute today that the number of students who have debt has increased, and that the amount of money they have borrowed has gone up (Billitteri). Many students incur large amounts of debt that will never pay dividends in higher wages or greater job satisfaction, and they graduate into a world with weak employment prospects. It's a betrayal of the American social contract that says if you work hard and invest in yourself through education, you'll be able to build a better life. The current system is badly in need of an overhaul, and this paper will present several ways to bring about this needed change. The seriousness of the current situation has worsened during the last few decades. Since 1982, the average cost of college tuition and fees has increased by 439 percent, while the typical family's income has increased by a mere 147 percent (_Measuring_, 8). After adjustment for inflation, students are...
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...5 Assignment: Student Loan Summary James Amaya Consequences of Borrowing Too Much Debt Approximately one third of your credit score is based on how much debt you have. A lower credit score means that you will have a difficult time getting approved for certain types of loans and credit cards. Being in debt can cause illness, sleeping difficulties, and relationship problems. The consequences of ignoring too much debt could eventually lead to personal bankruptcy. Some signs of trouble are: juggling bills to cover payments, being overlimit on credit cards, making only minimum payments on credit cards, using credit cards to pay normal living expenses, having a credit card cancelled for poor payment history, being repeatedly overdrawn at your bank, and being embarrassed to discuss your finances. Any of these things can cause you to have to modify your lifestyle by: selling assets, obtaining a part-time job to pay off bills, get a debt consolidation loan, or share housing to save money. These things can be difficult but they could save you from your last option, personal bankruptcy. Bankruptcy is never a good idea because the court costs and attorney fees alone can cost $1, 000 or more. Bankruptcy stays on your credit report for ten years. Bankruptcy may also affect your ability to obtain a home mortgage or other credit. My Plan for Repaying My Student Loans Before even making the decision to return to school I knew I would probably need student loans to pay my tuition...
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...billion in student loans in 2013. The government made more profit than Google did last year. This amount of money was only from student loans. Consequently, students have to decide between their loans or their diploma. Low-income students have trouble paying back student loans because colleges can be expensive and students are attacked by for-profit colleges and students are pressured about their type of education. Low-income students are attacked by for-profit colleges and have been forced to carry the burdens of debt while dealing with low-moderate incomes and the pressure of not pursuing a higher education. For-profit colleges are established or operated with the intention of making a profit. “...nearly one-fourth of students from for-profit colleges default on their loans within three years of leaving school, most without a degree” (Cauchon). For-profit colleges are unfair in their approach of handling money. These schools victimize students insensitive to background, race, or income levels and they do not distinguish their programs from public and independent schools. To summarize, for-profit colleges are becoming more and more demanding of students and are the main cause of student loan issues. Arnold Mitchem is the...
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...Fiscal Policy ECO372 August 14, 2012 Fiscal Policy Introduction Depending on whether a country is running a deficit, a surplus, or a debt, businesses and individuals are affected differently. “The most important budget in the world is that of the United States government. The U.S. budget impacts not only the United States of America but foreign investment, trade, and the economies of nations throughout the world.” (Boothe, 2003) The objective of this paper is to provide examples of how the United State’s deficits, surpluses, and debt affect individuals and business both domestically and internationally. Deficits, Surpluses and Debt; an Overview Summary measures of a budget are denoted by deficits and surpluses. Whereas a deficit is a shortfall of revenues under payments, a surplus is an excess of revenues over payments. Debt is accumulated deficits less accumulated surpluses (Colander, 2010). These summary measures indicate the health of an economy. This indicator helps both domestic and foreign companies determine if it is beneficial to invest in United States assets. Heading into the year 2000, the United States was running a surplus. This quickly changed as the government invested in The War on Terrorism, consumers changed spending habits, unemployment rose, and growth decreased. To increase the money supply, government implemented monetary policy and to get the economy moving again, implemented fiscal policies. These policies have wiped out the surpluses...
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... 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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...Title Exploring Strategies for Avoiding and Managing Debt Signpost A, Part 1: Learning Check When does it make sense to use a credit card? You can use credit any time as long as you plan to pay off the card at the end of the month. Don't use a credit card unless you need it to gain a benefit or because the transaction requires it. Just be careful not to over-use your credit card and you'll be fine. Really, just never use a credit card. They're dangerous. How many credit cards should I have? Do not get a credit card under any circumstances! Get as many as you need in order to gain all of the benefits possible. Make sure you have a few cards with different interest rates and options. Limit yourself to a small number of credit cards. I want to buy something but don't have the cash on hand. Is it ok for me to put it on a credit card? Just don't use credit cards at all! No, never. You should only buy things on credit that you can pay for with cash. Sure, just don't go crazy. That's what credit cards are for, after all. You can do this only if you have a specific plan in place to pay off the debt. Signpost A, Part 2: Learning Check I heard that there are actually several credit agencies. Is that right? No, there is only one. Yes, there are three. Yes, there are five. Yes, there are seven. What does the score range from? 1 to 100. 100 to 850. 300 to 850. 300 to...
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...people who can no longer pay their creditors get a fresh start by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also protect troubled businesses and provide for orderly distributions to business creditors through reorganization or liquidation. Most cases are filed under the three main chapters of the bankruptcy code. They are Chapter 7, Chapter 11, and Chapter 13. Federal courts have exclusive jurisdiction over bankruptcy cases. This means that a bankruptcy case cannot be filed in a state court. Below is a high-level summary on each bankruptcy code: Chapter 7 – Liquidation under the bankruptcy code: The chapter of the Bankruptcy Code providing for "liquidation," ( i.e., the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors.) Chapter 11 - Reorganization under the bankruptcy code: The chapter of the Bankruptcy Code providing (generally) for reorganization, usually involving a corporation or partnership. (A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.) Chapter 13 – Individual debt adjustment: The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income. (Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.) To some extent, Chapters 11 and 13 are similar. Both...
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...Week 5 Assignment Week 5 Student Loan Summary If you borrow too much debt you may end up having to file for bankruptcy or end up having bad credit. It can also make you have a job you are unhappy in or work more than one job to pay off your debt. Another thing about borrowing too much is the stress it may cause on you from trying to pay it off. The best way to avoid this is to have a budget and stick to the budget, only borrow what you can pay back. I have been working for a while on clearing my credit and part of this has helped me obtain a student loan in which I am already paying on. My plan to pay this back is to use some money that I have from my grants and I also plan on paying on them while I am in school like I am already doing. I feel that by paying for them while I am in school is a great way to avoid getting in debt after school. I have a friend who has been out of school for 13 years and she is still paying on her student loans. A positive thing I am doing to help keep my student loan under control is to have a plan and budget and sticking to that plan and budget. Once I am out of school and working I will sit down and look at my budget and the money coming in and make any changes to my plan and budget. I am hoping to have my loans paid off before my 6 month grace period is...
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...their son’s student loan. Two years after graduating from college their son died in an automobile accident. Two months later Mr. Adams lost his job. After struggling for awhile, Mr. and Mrs. Adams were unable to keep up with their bills. They decided to file for bankruptcy and were trying to figure out if the student loans, they were still responsible for, could be included on the bankruptcy. II. SHORT ANSWER The Adams’ would have to be able to show that this debt imposes undue hardship, in order to have the student loan discharged through Bankruptcy. III. DISCUSSIONS A Student loan that is a qualified education loan, as defined in section 221(d)(1) of the Internal Revenue Code of 1986, is not dischargeable through Bankruptcy. The governing Statute is found in The United States Code. 11 U.S.C.A. § 523(a)(8) (8) Unless excepting such debt from discharge under this paragraph would impose an undue hardship on the debtor and the debtor's dependents, for-- (A) (i) an educational benefit overpayment or loan made, insured, or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution; or (ii) An obligation to repay funds received as an educational benefit, scholarship, or stipend; or (B) any other educational loan that is a qualified education loan, as defined in section 221(d)(1) of the Internal Revenue Code of 1986, incurred by a debtor who is an individual; The definition of a student loan, found...
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...Personal Budget Summary and Findings ACC 547/Taxation Michael De Marco Personal Budget Summary and Findings Memo DATE: October 1, 2012 TO: Henry and Mary Jones FROM: RE: Follow-up on Financial Planning Meeting It was a pleasure to meet with both of you to discuss your personal finances, your financial dreams, and concerns. As we discussed, being in control of your personal finances, and not your finances being in control of you, is very important. When you are in control of your finances you can achieve your financial goals and comfortably provide for you and your children. Below is a summary of my findings and recommendations for you to help achieve your goals. You will also see attached your personal budget that you provided and the balance sheet and cash flow statement I created based on the financial data you provided me. Summary of Facts Henry is 37 and Mary is 38. Henry and Mary have two sons, ages three and one. Henry has a high school education and Mary has a master’s degree in Library Science. Henry is a truck driver for a major oil company and earns a yearly income of $95,000. Mary works as a librarian for the local school district and earns a yearly income of $50,000. Two major concerns regarding Henry and Mary’s financial position is the lack of savings and debt. They have very little money in savings and a large amount of debt. Their goals are to pay off their debt and fully fund college funds for both their children. Summary of Key Items ...
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...Rising Student Loan Default Rate: The Next Financial Crisis in the United States Rebecca Richards QBT1 - Language and Communication: Research October 1, 2012 Rising Student Loan Default Rate: The Next Financial Crisis in the United States Introduction Higher education is an important resource for career focused people here in the United States. In order to attend college, most students have to take out loans in order to cover the cost of attending. However, the rising rate of student loan defaults has recently become a serious issue that needs to be addressed. Economists agree that the rising amount of student loan default can prove to be a good indicator when seeking to predict future payments on student loans (Ismail, Serguieva, & Singh, 2011). Recent studies have shown that the growing rate of student loan default on higher education loans could cause another financial crisis in the United States because the loans are government backed, the cost of higher education is on the rise, and unemployment rates are on the rise preventing repayment. Taking on student loans can feel like and endless cycle of entrapment to the borrowers and they are often left with the belief that they have no other choice than to default on their loans. It is impossible to say with 100% certainty where the culpability lies for this unfolding crisis. One point of view is that the students may be at fault for not fully understanding the magnitude of the debt they are taking on...
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...managers and visionary leaders. Colleges and universities need leaders and managers who can turn their visions into realities (Pietrucha, 2012). It is wise for leaders to start thinking about the needs of their followers who require support, encouragement, and reassurance and guide them through this period of vagueness and uncertainty. Summary of Political Arguments A recent political argument, the post-trillion dollar status achievement in the area of student loan debt shows no signs of reversing itself. In 2010 there were $100 billion in education loans taken out by U.S. citizens (Pietrucha, 2012). The rate of higher education cost has increased at a rate three times that of inflation over the last two decades, with average increase in college tuition around four percent annually (Pietrucha, 2012). Notwithstanding, government is continuing to encourage young people to take out higher education loans in their continued pursuit of a college degree. In his speech in Ann Arbor, Michigan, President Obama offered a plan to reduce the costs of higher education by “increasing the amount of federal grant money available for low-interest loans and tying it...
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...understanding and paying taxes, working with financial institutions, wise use of credit cards and consumer loans, financing automobiles and homes, and the use of insurance for protecting one’s family and property. WEEK 1 - TOPIC 1: PERSONAL FINANCIAL PLANNING Objectives List the five steps in the personal financial planning process. Summarize what influences personal financial planning. Identify parts of a financial plan. Materials READING: Read Ch. 1 of Personal finance - Personal Financial Planning in Action: Developing a Personal Financial Plan. SUPPLEMENT: Appendix A: How to Install Quick Time Movie Player SUPPLEMENT: Appendix B: Personal Financial Planning Worksheet WEB LINK: Decision to Own a Home vs. Rent Video SUPPLEMENT: Video Transcript - Decision to Own a Home vs. Rent Assessment Please see instructor's syllabus for details on assignments. Participation/Discussion Questions WEEK 2 - TOPIC 1: MONEY MANAGEMENT Objectives Describe how to organize and prepare personal financial statements. Identify cash management products and services. Complete a personal cash flow statement. Materials READING: Read Ch. 2 of Personal finance - Money Management Strategy and Skills: Putting Your Financial House in Order. READING: Read Ch. 4 of Personal finance - Managing Your Cash and Savings: Cash Management Strategies. WEB LINK: Toolwire® Student Resources Page TOOLWIRE: Toolwire® Learnscape: Understanding Effective Money Management SUPPLEMENT:...
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...Summary This article called Generation Debt by Anya Kamenetz is about how each youth that is coming up to adulthood is in greater debt than ever before. Generation is the people who grow up in the same time period. In the generation before us sexual maturity happened earlier in life about one to years before marriage, but now sexual maturity happens much later in life. In the 19th century ages 13 and up worked on machines and such to contribute to their families financial situations and because of that they matured at a much younger age. Roosevelt created the New Deal which took away many of the jobs for the youth of that century and because of the New Deal today’s youth is so accustom to going to school and not having a part time job. Since...
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...MAJHI(1221450) PRIYANKA CHHABRA(1221456) TITLE: IMPACT OF STATUS PRODUCTS ON ACADEMICS OF CHRIST UNIVERSITY STUDENTS EXECUTIVE SUMMARY: In India, the trade and economic liberalization process initiated during 1980’s has led to rapid changes in consumer mindset. The consumption rate of most items has picked up primarily due to the shift in the business scenario which was primarily a seller driven one to a customer driven one. The number of bikes, mobile phones and laptops owned by households has moved up during the period of time. One primary question is to be asked is “Do we realize the impact of such consumption on our life or are we blindly following the trail set for us by smart businessmen and marketers?” This study is initiated to find out such consumption trends among students of Christ University. BACKGROUND: Last 10 years of the globalization era saw the advent of many high income jobs, especially in the information technology and also in other service-related sectors. With large number of India’s younger generation earning from 20000-50000 per month, working with different BPO’s and KPO’s. The rising income and low rate taxes have credited rising Disposable income, which did trigger the spending boom in India. Media is full of stories of youth with more money in their hands but getting into living patterns which soon leave them broke and in financial debt. Buying products for sake of social comparison or for bringing prestige to their personal selves is not a taboo...
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