With the caveat that deadbeats will be severely penalized.
This could do even more than the old GI Bill did with great
societal advantages.
2007-01-25 07:29:12 · 6 answers · asked by Philip R 1 in Education & Reference ➔ Financial Aid
Because someone other than the student will still bear the cost of carry on the loan. Money is a commodity that has a time value associated with it. If the student does not pay interest, lenders lose their incentive for underwritng the loans. In order to keep student loans available, lenders would have to be paid by someone else. The only entity that would likely do that is the Federal government or State governments. And neither has any money of its own; they both take money from individuals so interest free student loans would not actually be free...the interest cost would just be shifted to taxpayers. Students get the benefit of the loan...they should be happy to pay for that benefit.
2007-01-25 07:43:43 · answer #1 · answered by olemcdonall 1 · 2⤊ 0⤋
Student Loans are very easy to get provided you are admitted into a accredited college/trade school, or university. Loans are about 3% interest and you are not required to pay back till either you graduate and if you cannot pay back at the time you can defer your payments for about 6 months at a time till you are able to pay it back. You absolutely have to be in good standing w/ the government like never having defaulted on a student loan 10 years ago etc and also needed is your filling out the FAFSA form, they will tell you if you can borrow and if so how much. Depends on the school you attend and what they say you are eligible for. Student Loans have a fixed interest for about 3% that you will have to pay back and there is also a service fee that gets added, it's minimal and it has nothing to do what so ever with a car loan as someone else wrote. You cannot get a government Student Loan to purchase a car, you get a loan and you do with it as you wish after tuition is paid. if you need a car and there is leftover balance refund you get back, if you have enough then you can purchase a car. Best Wishes and congratulations on your decision to attend college. Considering only 8% of the worlds population have a 4 year degree. Many drop out because finacially they cannot survive, but with all the grants nd loans available I say people should take the oppurtunities when they arrive. Good Luck with school, You pay everything back w/ interest unless it is a grant and not a loan. There are more advantages than disadvantages for borrowing, you won't have to pay back till graduatiion or you can pay earlier, most out of college students do take a loan yearly and everyone pays loans back with interest but it is the best way to get through school if you don't have the means to travel or to live off of money without carrying a fulltime job. You get charged ineterest but my persnal knowledge is that if you get through college without loans it's always better to graduate knowing you don't have a huge loan to pay back, but they work with you and do let you defer because not all people out of school can get a good job right away, I've known many people who borrow only for graduate school since they usually are working people and tuition is very high for grad school. Many students graduate from college w/ 100K in student loan debt. Interest will always be added to your student loan, especially if you defer payments, the interest does pile up but it is still an opportunity for many to attend college who otherwise wouldn't have the opportunities.
2016-05-23 23:12:17 · answer #2 · answered by Anonymous · 0⤊ 0⤋
What can we do to deadbeats? We don't have debtors prison in the US. That stuff doesn't really work anyways (how can they make money to pay back if they're stuck in jail)?
Lots of student loans are already subsidized by the gov't. Even if they aren't, by law, they have some of the most generous terms for a loan you'll ever find anyways.
2007-01-25 07:44:53 · answer #3 · answered by Linkin 7 · 0⤊ 0⤋
Correction to post above. Yes, there are debtor prisons in the US. Two states have them....RI and I forget the other one. Just learned about them a few weeks ago...
2007-01-25 09:14:48 · answer #4 · answered by Anonymous · 0⤊ 0⤋
If the government can write off foreign debts in entirety, why can't they forgive merely the interest on student loans? or at least the "real" interest? In theory, students who get an education make more money and will likely pay more taxes anyway. Duh!?!?
2007-01-25 08:35:34 · answer #5 · answered by Richard V 1 · 0⤊ 0⤋
Nothing in life in free.
2007-01-25 07:58:46 · answer #6 · answered by Yellow Tail 3 · 1⤊ 0⤋