College Essay On Student Loans

Every year, students are borrowing money from banks which are commonly known as student loans. These loans help cover the costs of tuition, books, room and board, and other necessities for high education. However, more and more students are racking up copious amounts of debt from these loans, as the interest rates keep increasing over the years. In 2003, the average student debt rose from 241 million to 1.08 trillion in 2013. Many students say the financial aid system is a long, confusing ordeal with debt that is sky high. According to Forbes and other financial officials, 37 percent of student borrowers in 2014 were unaware of how much debt they have accumulated.

However, there have been little to no efforts made to reform this complex system of loaning. Some of these loans are based on one's personal income. This is an example of an Income-Based Loan. These loans calculate how much you pay depending on your level of income and family size. There are also services that help “forgive” students of their loans. One such service is the Public Service Loan Forgiveness program. This program overlooks the remaining unpaid portion of the loan after ten years and qualified employment, which can include government jobs and non-for-profit organizations that provide public services.

In 2007, an effort was made to help reduce this issue. The government created the College Cost Reduction and Access Act. While this act helped students with public school loans, it compelled them to pay it off based on income-based repayments. However, the student loan industry has profited from the loans before the government act. In the student loan industry, management of the loans has become complicated and have angered people over the years. Different movements have spawned to expose the unjust and exploitable nature of this