Unsecured Personal Loans Essay

As the price tag on college is shooting up and the amount of federal funds are minuscule in comparison, students are relying on private loans to cover their education (McGuire). Increasing federal funds would drive the need for private student loans down substantially, eliminating one of the biggest problems in the student loan crisis. A lack of private loans would mean a lack of sky-high interest rates that cause many borrowers to default on their payments. Student loans aren’t tightly regulated in terms of protections around interest rates and default which allows lenders to “[treat student loans] more like credit cards, with variable interest rates as high as 18% and terms set by the lenders” (McGuire). These unbelievably high-interest rates are what cause a big problem when repaying student loans. Due to the high-interest rates, when a borrower is repaying their student loans, the monthly payments may only cover the amount of interest accrued, if even that (McGuire). Private loan interest rates should be limited to 0.5% to help prevent those who must take out student loans from being unable to repay their loans on time because of inflated interest rates. With our current system of allowing lenders free reign of interest rates, by the time most people have paid off their student loans, they have paid far more in interest than they could have planned, if they were even able to keep up with the monthly bills. Interest rates for private loans should be much more tightly regulated to prevent lenders from overcharging people who were simply trying to seek out an

According to the American Student Assistance website, the total outstanding student loan debt in the United States today is between $902 billion and $1 trillion. Approximately $864 billion is composed of outstanding federal student loan debt. Out of the 20 million Americans who attend college each year, 60 percent take out loans to help pay for their education. Federal loans stay with students until they are fully paid off, even if students declare bankruptcy. (Karas)

According to the last recording of student loan debt, the total amount of the United States student loan debt is roughly one and a half trillion dollars (A look at…). Statistics like these present the urgent need to resolve the major financial issue of student loan debt. Solutions have been given by many people to solve this issue but most solutions fail. The main reason behind student loan debt is falling to far into debt to the point where it is almost impossible to come back. The origin behind all of this is a lack of a student loan amount cap. Overall, this issue affects most people living in our world today and must be fixed for our generation and generations to come.

In 2014, just a bit over 70% of college students graduate with $33,000 in student loans. This number is staggering and why student loan debt has become such a hot topic of debate in the United States. In the meantime I think we, as students need to be a little more involved in our future and the college process rather than placing the burden and stress solely on our parents. There are various things I can do to reduce my student loan debt and avoid the stresses after I graduate college.

The total U.S. student loan debt now surpasses $1.2 trillion and there is more than 40 million recipients owing on federal and private student loans (Malone). Most of the college students in the United States can’t afford their education by themselves and, as a result, students end up drowning in student loans in order to earn a degree. Student debt is a major problem in the US, and it is a major influence on the gap between rich and poor. A more accessible college education would help reduce the gap between rich and poor in the United States.

At first, debt financing usually used when a firm raises money for capital expenditures by issuing debt instruments to individual or institutional investors. In return for lending the money, the firm need to pay the principal plus interest payment at some agreed time in the future. The most common debt

have to come out of pocket to pay for it. If you do have to borrow money for college, the debt

Currently, the U.S. has accumulated roughly one trillion dollars worth of debt from student loans. (cite) But, what if student debt was forgiven overnight? Now if student debt was eliminated all at once it would be an enormous expense for private lenders and the federal government. Yet, people continually suggest the dissolution of student loans with a one-time payment plan from the government. This notion seems politically appealing for those on the left wing side of the argument, but overall no one wants to accumulate debt. Many of the young progressive college students and graduates would love for their student debt to dissipate. Student debt has become a crushing and often unavoidable generational crisis. But why not just forgive all that

Student loan debt loads have been spiraling, doubling over the last decade, and the enrollment rates of young people from lower socio-economic groups are rising far slower than middle and upper groups. Governments must recognize the renewed public investment in post secondary education is an economic and social imperative. 6.7 million borrowers in repayment mode are delinquent (Snider 1). The sad fact is that many lenders aren't exactly incentivized to work with borrowers. Unlike all other forms of debt, student loans can't be discharged in bankruptcy. Forgiveness programs can be lifesavers for borrowers drowning in student loan debt (Snider 1). However, jobs for recent grads are harder to find and salaries are lower, but that won't last forever; in spite of all of this, the data make clear that getting a college education is still a good idea. College graduates earn more and are more likely to have a job in the first place, and is especially important for some Americans (Webley 2). According to the Bureau of Labor Statistics in 2010, the unemployment rate was 9.2 percent for those with only some college and more than 10 percent for those with just a high school degree, but it was 5.4 percent

Are you having small loans from several creditors? Are you paying more interest and penalty? Are you needed to consolidate all your loans into one? This is right time to do and reduce your total debts.

Healthcare is made up of many factors. Among those factors are provider reimbursement and the different types of financial methods used by the patients to acquire healthcare services. Provider reimbursement is important and necessary in order to maintain the continuation of healthcare. Like every organization, including non-profit organizations, require revenue in order to pay their healthcare providers, expenses accrued, and to obtain the supplies needed to aid in rendering services. With that said, this is why there are many financial methods such as third-party payers, government agencies, private health insurance, and patient payments. These methods include many financing agencies that are utilized by individuals

It may be necessary for you to consider student loan consolidation. When you were busy in college with your studies you probably did not give much thought to the pros and cons of having multiple student loans. Chances are you took out different student loans with different variables. Some of your loans may have a fixed rate while others may have a veritable rate not only that, you probably have different repayment terms for each student loan you have. Have multiple student loans and having to make multiple payments throughout the month can wreck havoc and cost you hundreds of unnecessary dollars each month. Student Loan Consolidation Makes Sense If you are experiencing difficulty making your monthly student loan payments you may want to consider

loan. Evaluating this article, it is very informative and helpful in helping one who is in

Bankruptcy is a financial remedy reserved for frantic situations. Student loans are the only form of consumer debt which have considerably different bankruptcy rules. Before 1978, any student loan debt , whether it was private student loans or federally funded loan, was dischargeable in bankruptcy, without any exceptions. Eventually in 2005, a new law was passed to avoid almost 100% of private student loans from qualifying for bankruptcy discharge. Student loans are generally non-dischargeable in bankruptcy. This means that after your bankruptcy wipe away all your other debts, you still have to pay student loan debt. To discharge student loan in bankruptcy one must show undue hardship on paying the debt, a standard that is very difficult

If your car broke down and you can't use public transportation or ride with a friend, then taking out a loan to fix your car may be necessary. If you don't have sick days or vacation days you can use, you'll lose money every day you can't go to work. This could end up costing you a lot more than the fee you pay to take out a payday loan.