ENG1200_Week 2_ Project_Wright-Ross, A
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Miami University *
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MISC
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Law
Date
Jan 9, 2024
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docx
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Uploaded by Walt0717
The article begins with perspective of how the financing of U.S postsecondary education relies on
student loans[ CITATION Gal13 \l 1033 ]. It talks about the outstanding amount of student loans and how
it has reached $1 trillion in 2010[ CITATION Gal13 \l 1033 ]. It consists of the federal government and
private lenders, and it explains how most people select federal loans[ CITATION Gal13 \l 1033 ]. In 1965
is when the federal government first became involved[ CITATION Gal13 \l 1033 ]. The federal loans begin
with student loans that were provided by banks and nonprofit lenders[ CITATION Gal13 \l 1033 ]. In 1992
the Federal Education loans were the only student loans[ CITATION Gal13 \l 1033 ]. The Federal
education loans the only loan processer until the congress enacted a direct loan program[ CITATION
Gal13 \l 1033 ]. Under the direct loan program, the federal government loans money to students and
this will eliminate private lenders[ CITATION Gal13 \l 1033 ]. In 1994 it passed a law that barred the
department of education requiring colleges to switch to direct loan programs[ CITATION Gal13 \l 1033 ].
By 2007 the direct loan program reached the lowest share of federal student’s loans since it began in
1990’s[ CITATION Gal13 \l 1033 ]. By 2010 direct loans were rising and political leaders debated whether
the FFEL should continue[ CITATION Gal13 \l 1033 ]. In 2010 Obama signed a law that eliminated the
FFEL program for all loans made. It talks about how all federal loans will be made under the direct loan
program[ CITATION Gal13 \l 1033 ]. The federal direct loan program offers low-interest loans for students
and parents[ CITATION Gal13 \l 1033 ]. This is designed to help pay for the cost of a student’s education
after high school[ CITATION Gal13 \l 1033 ]. The direct loans program offers four types of loans[ CITATION
Gal13 \l 1033 ]. Subsidized loan is for student with financial need, unsubsidized loans are not based on
financial need, PLS loans help education expenses up to cost of attendance minus other financial
assistance, and consolidation loans allow eligible federal student loans to combine it into one direct
consolidation loan[ CITATION Gal13 \l 1033 ]. This is why most people are hesitant to continue school.
They are reviewing the cost of the school to attend with how much the loan will need to be and deciding
they are not willing to get in debt with paying school loans back. The article speaks about different loans
and how they are put to work. It is from a credible source that I feel have a lot of knowledgeable
information that I will use.
References
Gale. (2013). Student Loans.
Gale Encyclopedia of Everyday Law
, 316.
Student Loans. (2013). In Gale (Ed.), Gale Encyclopedia of Everyday Law. Gale. Retrieved October 8, 2023,
from
https://search.credoreference.com/articles/Qm9va0FydGljbGU6NDIzMjYzMg==
.
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