WHAT WOULD AMERICAN SOCIETY BE LIKE IF THE FEDERAL AND STATE GOVERNMENTS DID NOT BACK STUDENT LOANS OR GRANTS?
If a supervision (state or federal) did not have a little arrange of college monetary assistance, how would which start American society? Would in isolation lending institutions be encouraged to plate out college loans? Would the number enrolled during college dump significantly? What alternative issues might arise?
Posted on November 18, 2009 at 7:25 pm by admin · Permalink
In: Tips · Tagged with: American, Back, Federal, Governments, Like, Society, State, Student, What, Would
In: Tips · Tagged with: American, Back, Federal, Governments, Like, Society, State, Student, What, Would
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on November 18, 2009 at 7:25 pm
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I think that there would be a lot less people who were able to attend college. Most people who start college have very little credit history, so lenders would not be inclined to give them money for school. These students would have to either have a relative/friend cosign for them or work during school to be able to make monthly payments. I think enrollment would drop significantly because of these hardships. It would also be difficult for the schools themselves. The way the current system works, most students receive either loans or grants directly from the lender at the beginning of the semester to pay their tuition. The school gets this money paid out in full before the semester starts, which allows them to plan their budget a certain way. Without this system, most students would be on a monthly payment plan, which would effect college budgets and make it harder for them. There’s also the problem of interest rates. Right now, there are caps on the amount of interest that lenders can charge for the federally backed loans. If all loans were private, there would be no caps, leaving those who were able to get loans thousands more dollars in debt. Just my two cents! I’m sure there are many other things I haven’t thought of. Are you writing a paper?
on November 18, 2009 at 7:25 pm
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I believe we would have an EVEN less educated population in the USA. Private lending institutions would do it for collateral and/or usury interest. It would NOT be good.