Persuasive Essay On Student Loans

In the U.S today the growth of students taking out student loans to help with daily finances and living expenses are increasing each year. That makes these young students to have an increasing debt on their name each year. To help students that are unable to pay back their student loans for any reason, lenders should have a forgiveness policy. If lenders would forgive student debt, it is said that this would stimulate the economy immediately. If this happened then credit markets would unfreeze, more jobs will be created and tax revenues would increase.

There are different types of student loans that a student can borrow plus there are some you don’t have to pay back. There are Pell grants which allow you to get money for school but you don’t have to pay back. There is Subsidized Stafford loans which they say are the best source of loan you can borrow. While you’re in school the interest is picked up by the taxpayers. The interest rate starts at 4.29% for undergrads and 5.84% for grad/professional students and you can borrow annually anywhere from $5,500 to $7,500 depending if you’re a freshman to senior in college.

There are also unsubsidized Stafford loans which have the same interest rate and

There are some terms and conditions that the borrower will have to follow or it could cause them some financial problems. One way is to pay 10 years (120 payments) and you could qualify to have the remainder forgiven, but you have to be on a qualifying plan and you have to be working at a qualified place the entire time. You have to submit paperwork every year to prove your qualifications. This is one thing people forget because people just go on with their daily lives and forget it’s time to submit those papers again. There are other dangers too which include missing payments, and changing your job which can also disqualify you for receiving that