Student Loans
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They can be more effective. They can offer smaller amount of loans, where the student isn’t automatically set up for failure. They can increase funding. They can lower the cost for college where it is realistic and not impossible for someone wanting to better their future.
According to RT News, “U.S government profit from student loans in 2013 surpassed $41 billion.” More over it is said that it’s actually down by 3.6 billion from 2012. Students are obligated to loans.
from 2012. Students are obligated to loans. Many students drop out of 4 year colleges to two year colleges, because of their inability to pay. Congress and President Obama agreed to temporarily lower interest rates on student loans, however according to the CBO, the Education Department’s 2013 the profit would have been $8 billion higher because rates are expected to rise.
On contrary belief, many individuals believe that the profits made from student loans would help lower the cost of college. However student loan debt and tuition is increasing rapidly. RT News states, “Effectively subsidizing half of the agency's total operations, the profits have enabled Sec. Duncan to reduce the Education Department’s total cost to the smallest amount since 2001.” Profits go towards helping education, although it has not decrease the cost. The government is an organized mess. Some profits need to directly support student loans. $41 billion is lot of money and can be used more wisely. How much longer will it all last? The government needs to take action towards lowering student loan debt!