The Federal Student Loan Program Options Essay - 1009 Words

This memorandum analyzes and discusses the Federal Student Loan Program options currently offered, and attempts to recommend the President a feasible policy alternative to redress the program’s currently expensive budgetary expenses to the federal government. Executive Summary The Federal Government offers Student Loans for higher education through two different subsidized programs that are administered and funded in similar yet different ways: the Federal Family Education Loan (FFEL) program guarantees loans made by private lenders, whereas the Federal Direct Loan Program (FDLP) makes loans directly to borrowers.7 These direct guaranteed loan costs are calculated with respect to the statutes implemented under the Federal Credit Reform Act (FCRA) of 1990 to impact the budgetary costs levied on the federal government less than when evaluated using fair-value estimates, which includes administrative and risk costs. 7 For this reason, the federal debt originating from student loans has soared unseen to the public eye. Universities and financial banks as well as federal contracting banks have increased students’ loan costs for attending school due to natural value, tuition and interest rate increases. 7 As a federal program aiming to provide higher edu cation for the greater public, student loan programs must be monetarily feasible to both students and the federal budget when considered at fair-value estimates instead of under FCRA values. Problem Statement: TheShow MoreRelatedOverview (Salinas):. Kean University Is A Public University1694 Words   |  7 PagesKean University offers many different services to their students enrolled, including one of the most popular department on campus, The Office of Financial Aid. The Office of Financial Aid is devoted to offering different services and information to students attending Kean. Located on first floor of the Administration Building, The Office of Financial Aid is open Monday through Saturday and offers phone hours Monday through Friday. Students can schedule an appointment, where they will have a chanceRead MoreEducation Is Valuable For The Citizens Of America Essay1219 Words   |  5 Pagesthere are about 20 million students enrolled in college, and the number is rapidly increasing. However, many families and individuals are not able to pay the steep price needed to enter the education system. In the recent decade (2000 – 2009), student loans in America have more than quadrupl ed, going from $149 billion to $630 billion. There are currently two options for students to finance their education, the Federal Family Education Loan (FFEL), which guarantees loans from private lenders, andRead MoreLoan Repayment And Debt Under Control1266 Words   |  6 Pagesyour student loans, these tips will help you keep your student loan debt under control. That means avoiding fees and extra interest costs, keeping your payments affordable, and protecting your credit rating. If you re having trouble finding a job or keeping up with your payments, there s important information here for you, too. 1. Know Your Loans: It s important to keep track of the lender, balance, and repayment status for each of your student loans. These details determine your options for loanRead MoreNational Student Loan Data System1491 Words   |  6 Pagescalled Program Integrity: Gainful Employment (GE) was established when concerns were raised about the amount owed on student loan debt. This single ruling will permanently close several hundred programs and lower the options of educational choices for non-traditional students. The American taxpayer dollar is funding the education of low income students in the form of Federal Pell Grants and Federal Direct Student Loans. The federal government has the responsibility of funding those student loans. TheRead MorePublic Service Loan Forgiveness ( Pslf ) Essay1553 Words   |  7 PagesAs of today Americans are facing a outstanding debt of 1.3 trillion dollars in student loans alone and it s up to 43 billion students to pay all of that back in full. Our most recent graduating Class of 2016 student is coming out of college owing an average of $37, 172 in loans, making an increase of 6% since 2015. Which is significant amount of growth to have within such a short period of time. Many of these students are unable to make their monthly payments whether it be because of the tremendouslyRead MoreEssay On The Cost Of Higher Education963 Words   |  4 Pagesto students. The U. S. Department of Education’s website provided resources and information on the different types of financial aid that the federal government provided. This paper discussed the availability of loans to students, repayment plans, accessibility of the application process, support for applicants with questions or concerns, ease of information retrieval, and how institutional financial aid budget directors might maximize access to funds for students. Loans Available to Students OneRead MoreFinding The Lowest Student Loans Consolidation Program1536 Words   |  7 PagesFinding the lowest student loans consolidation program is very important as this will decide your financial future. You should take this process very seriously and find out ways to search for the loan consolidation program that imposes lowest charges and interest rates. This will not only save you a lot of money but also help you lead a better life where you can pay attention to other necessities and luxuries of your life too. When a person is deep down in debt he does not think anything else unlessRead MoreLoan Of Student Loan Consolidation767 Words   |  4 PagesStudent Loan Consolidation May Be The Response To Your Financial obligation Concern With this, the loans stay overdue for 270 days or end up being 270 days past due at any time, leading the loans to default condition. Federal student loans are more beneficial compared to personal student loans. The interests on federal loans are tax-deductible and on certain kinds of service, the student loan might be forgiven. In consolidating your student financial obligation, it is suggested not to blend theRead MoreEssay on Student Loan Debt Should be Forgiven1256 Words   |  6 PagesDoes the amount of student loan debt have an effect on the economy? If so would forgiving student loan debt help lower the national debt or would it just increase it? According to Mary Claire Fischer, a writer for Kiplinger’s Personal Finance magazine, â€Å"two-thirds of students who receive bachelor’s degrees leave college with an average debt of twenty-six thousand dollars† (Fischer). This means that the average student debt has doubled since 2007 (Ross 24). The total student loan debt is $1.2 trillionRead MorePublic Service Student Loan Forgiveness805 Words   |  4 PagesTopic: Public Service Student Loan Forgiveness In our September 2016 blog post, we highlighted the various options for funding college education, including student loans. If you have already graduated from college and have outstanding student loan debt, you may be wondering what your options are for reducing what can sometimes be a significant burden. For individuals working in the public service sector, there is a student loan forgiveness program that may help. The Public Service Loan Forgiveness (PSLF)