Education is one of the key factors in today’s society. Therefore, what should the government do to reduce the burden to students? It’s essential for every individual to access quality education in preference to his/her abilities and skills. Government has made this effective by providing students loan so that each student should at least be able to have quality education. The cost of higher education has risen compared to the past, therefore, making a lot of students in a position that they cannot support themselves. With the help of students’ loan from the government it has enabled us as students to be able to get that education despite it being too expensive. The government, therefore, should continue offering students loan. Government identified the niche in education sector and therefore decided to offer students loan of which it is very effective.
There is an impact on student’s university loans on the livelihood of an individual whereby the effects come after the individual graduates. Students do not get the opportunity to put a little saving. This is the problem that most students are arguing relating their lives and that of their families. Statistics shows that an average borrower has almost reached $30000 in student loan debt, median has like $12000. The figure is quite high but it surely benefits the students. Despite the cons of the loan burden to ones future it surely helps in shaping the career of a person by giving them education.
Statistics show that college tuition fee has gradually been rising from 2003 up to date. Although higher education fee is rising the income of individuals rise does not correspond to that increase therefore making it difficult for loads of family not to afford higher education. Therefore, it is beneficial to those low income families. This is the prime reason why the government should provide the students loan but at a lower interest rate. An increase in student’s loan has been recorded since 2005.
Student’s loan is also a form of investment to the government as it provides revenue when the students repay their loans. The national average for student’s loan has risen to $29400. This is a great increase in raising the Gross national income of a country. Student’s loan helps the government to put their current income for future use. The government siphons off about 69% of students loan profit in its revenue, which is about $8.7 billion annually. This shows that almost half of the revenue earned by the government is from the student’s loan repayment. Therefore the government also benefits from these loans.
Different people have different opinions regarding the student’s loan. According to some students they generally categorize this loan as a hindrance to personal development while others think of the loan as beneficial. According to a survey carried out it showed that 46% of students approved the loan to be beneficial in their college life. In my own opinion I personally think that although the government should relieve the student’s loan the government should also make the loan to be repaid at a lower interest rate. This is because a lot of people complain of the interest rate provided which gradually increases annually.
Some of those who would oppose this opinion are those from well stable families who can easily support themselves financially. Students who are able to support themselves and can afford the higher education do really oppose this. The reason why they do so is because they do not want the burden of repaying the debt with that huge interest yet they can support themselves. The burden of the debt is quite huge which makes it to be a problem according to them.
Those that would concede with this motion are mainly investors who contribute to the government in helping delivering of the loans. The reason is because it is an investment and they benefit from the students loan. The government officials also support the relief of student’s loan because it is a source of revenue. Another group is those students who do not have the chance to support themselves financially. The student’s loan benefits them as they are able to still continue with education despite the difficulties in their families.
As I conclude the essay student’s loan is both beneficial and also to some point it is also a disadvantage. With the current rise in higher education a lot of people cannot afford the tuition fee only hence a larger group of people generally benefit from this loan. It is not only the students who benefits from the loans but also the government at large. Student’s loan currently is a major source of revenue for the government. The statistics have shown that there is a rise in student’s loan and a lot of people greatly benefit from it. The problem that is associated with this loan is that the interest rate is high which in most cases hinders one from saving as the repayment of the loan may create a block. This is the main disadvantage of the loan but generally the government should relieve the student’s loan, as it is beneficial.
REFERENCES:
"Higher Education's Coming Crisis - The Triangle." The Triangle. N.p., 03 Feb. 2012. Web. 07 Nov. 2015.
http://thetriangle.org/opinion/higher-educations-coming-crisis/
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