The Rate Of Student Loan Essay - 1456 Words

Student loans, also often called student debts, are financial aids in a loan form that requires borrowers to repay in the future (Wikipedia). Usually, student loans mean to provide students with financial issues the opportunity to obtain a college degree, which leads to an average lifetime income increase of $1.13 million for men and $792,000 for women (University of Kansas 1). As student loan aims at helping people live a better life, many college students exhibit negative attitudes towards interest rate of student debt, which is considered being too high, and debt issuers and the market are believed as the cause of high interest rate. Is it really true that student loans are tools of capitalists to rip off every penny from students? What factors exactly determine the rate of student loan? In fact, more than 90% of outstanding student loans are federal loans issued by the government, United States Department of Education, and therefore, their rates are determined by federal laws. According to the Bipartisan Student Loan Certainty Act passed in August 2013, federal student debt rate should be reset annually based on 10-year Treasury Note rate with a fixed margin in addition. For 2016-2017 academic year, standard 10-year federal undergraduate student loan rate is 3.76% and the graduate loan rate is 5.31%, according to U.S. Department of Education. In contrast, student loan issued by private institutions has considerably higher rate. For example, the starting rate forShow MoreRelatedThe Student Loan Consolidation Rates2176 Words   |  9 Pagesbunch of student loan debt. When you start to look at your loans, the repayment terms, and the rates ; it can rapidly become overpowering. However by having a look at student loan consolidation rates you may be able to economize and reduce the quantity of payments that you make on a constant basis. When you consolidate your loans you ll find that you have better rates, better terms and one easy payment to make every month. By having the ability to find great student loan consolidation rates you llRead MoreThe Student Loan Consolidation Rate Essay2385 Words   |  10 PagesWhat Is the Student Loan Consolidation Rate By Rosley Bin Muhamad | Submitted On June 25, 2011 Recommend Article Article Comments Print Article Share this article on Facebook Share this article on Twitter Share this article on Google+ Share this article on Linkedin Share this article on StumbleUpon Share this article on Delicious Share this article on Digg Share this article on Reddit Share this article on Pinterest 1 Expert Author Rosley Bin Muhamad The student loan consolidation is theRead MoreThe Interest Rates On Federal Student Loans Essay1812 Words   |  8 Pagescommon to take out student loans (from the government or private institutions), all which come with interest. This paper will focus on the different aspects of student debt, including rates, how they compare with car and mortgage debt, forbearance and deferment, default and delinquency, and adverse selection and moral hazard. The interest rates on federal student loans are set every year depending on the 10-year treasury note rate in addition to a fixed percentage depending on the loan type. They areRead MoreStudent Education Loan Fund, Inc (Abridge)1409 Words   |  6 PagesStudent Education Loan Fund, Inc (Abridge) Introduction Background of case Study Rick Melnick is an Associate Director of Financial Management at Harvard Business School (HBS). He had decision to make regarding the new funding policy under the management of Student Educational Loan Fund (SELF). SELF was established in 1961 to fund loans to HBS. Traditionally, HBS student loans required the borrower to pay semi-annually with variable interest rate policy. Under the new plan, the studentsRead MoreStudent Loans Is The Best?1213 Words   |  5 Pagesthe rate you’re paying on your student loans is the best you can get – or even close to reasonable? Or are you concerned that there may be something better out there, but you don’t know where to find it? One of the major dilemmas with student loans is that they’re a lot easier to get into than to get out of. And once you’re in, the options to improve the situation seem to be very limited. Let’s start by setting the parameters for current rate ranges for both federal and private student loans. AfterRead MoreStudent Debt Crisis1380 Words   |  6 Pages A student loan is designed to help students pay for university tuition, books, and living expenses. It may differ from other types of loans in that the interest rate may be substantially lower and the repayment schedule may be deferred while the student is still in education. It also differs in many countries in the strict laws regulating renegotiating and bankruptcy. There are two types of student loan that can be applied which are federal student loan and private student loan. BasicallyRead MoreStudent Loan Loans Should Not Be Educational Opportunities For Disadvantaged Students1552 Words   |  7 Pagesi. Student-loan defaults in China In the context of entering the mass higher education stage, the ideology of cost-sharing and equity in higher education is now widely accepted as a must-do in China, and there is a tradeoff in which colleges can charge tuition fees in exchange for better financial aids to students from disadvantaged groups. Thus, implementing a student-loan scheme to ensure educational opportunities for needy students is the primary choice for the Chinese government. Nowadays theRead MoreThe Debt And Interest Of Student Loans1164 Words   |  5 Pages The amount of student loans that one accumulates throughout post-secondary education can become a heavy burden. In addition, the study conducted by Scheresberg, Lusardi, and Yakoboski (2014) show that a surprising amount of students are not aware of the financial burden that they have acquired until they are deep in debt and interest. They summarize that: Overall, there is a notable mismatch among college-educated Millennials between their perceived and demonstrated levels of financial literacyRead MoreCollege Graduates Suffering From Excessive Financial Burden As A Result Of Student Loan Debt1657 Words   |  7 Pagesâ€Å"Over the past decade, the total volume of outstanding student loan debt has tripled and is now over $1 trillion† (Jaquette and Hillman). This alarming trend illustrates the immediate need to address the issue of college graduates suffering from excessive financial burden as a result of student loan debt. According to Ozan Jaquette, Ph.D., assistant professor of higher education in the Department of Educational Policy and Practice, and Nick Hillman, Ph.D., assistant professor of Educational LeadershipRead MoreInternational Student Program For International Students834 Words   |  4 Pagesinternational student planning to study abroad, you should always evaluate the amount of money you’ll need to com plete your program in the foreign country you plan to study. Then you will have to research and apply for scholarships, school financial aid for international students from the school, and try and find money from other sources, including family funds. After exhausting these avenues, most international students still have a funding gap, and that s where international student education loans are