Billions

Student Loans in the Billions

Michael Peterson

Humanities 111

July 22, 2012

Dr. James Williams

Student Loans in the Billions

With the large amount of people returning to get a better education or to change careers, we have come to rack up a bill that the nation has come to see in the billions of dollars over the last decade. As of 2011, the total has risen to $1 trillion dollars. Student loans have become a problem as students have exceeded their income versus debt.

I. As student loans grow in our nation, students have come to find that they have exceeded their debt to income ratio. As the article states, “Americans have racked up $150 billion in private student loan debt, with many graduates owing more than they can afford” (Blake Ellis, 2012,np). Taking the total amount of debit that has been growing over the last decade, lenders have forgotten the rules for lending money to prospective students.

II. Lenders have in the past been careless to lent money to students. Before the financial crisis in 2008, these lenders moved to loan money to students that would not normally qualify. The lack of co-signers, bad credit scores, and outright lack of common sense when lending money. Now students are defaulting on loans while not able to make ends meet.

A. As stated in the article, “Private student loans were aggressively marketed to students before the financial crisis and typically came with fewer protections and higher interest rates than federal loans, the report found” (Blake Ellis, 2012, np).. Now the students find that this has ruined their credit score or even caused them to charge off the loans. “Defaulted private loans currently total more than $8.1 billion, representing 850,000 individual loans” (Blake Ellis, 2012).

B. The article has some excellent research to it. Knowing the total figures and the importance has shown complete figure while showing the importance of student loans. It has complete accuracy with depth and breadth....