Is the Current Student Loan Policy in the United States Fair and Equitable?
Is the Current Student Loan Policy in the United States Fair and Equitable?
The student loan policy tries to accommodate the needs of various students through grants, borrowing limits, loans, and federal work-study programs among others (Blumenthal, n.d.). Despite its effort to improve the affordability of education for all, there is still a challenge that hinders the fairness and equitability of the policy in the USA. The high interest rates scare students who are uncertain about their ability to repay the loans. Many post-traditional learners who seek educational advancement, for instance, work in low-paying jobs. It makes it difficult to invest in education while meeting their families’ financial needs (Soares, 2013). Thus, they give up the desire to further their education. The interest rates are already high and some expected to continue rising (Bergeron & Ostern, 2013).
There is a need to lower the interest rates to allow easy repayment and attract more students to join colleges and universities. The federal student-loan program will encourage and reward the enrolment into and completion of college education according to Bergeron and Ostern (2013). Doing so, not only helps the students to advance and access more career opportunities, but also helps the nation through the presence of more graduates in its workforce. It is an effective way of ensuring fairness and equitability as students with various needs will be able to access education; full-time students, workers, and even the unemployed. Lower interest rates will also ensure most of the loans are repaid; thus, more revenues for the federal government. Secondly, the government should ensure colleges do not violate student loan terms at the expense of the students through unfair, unlawful, and deceptive practices (Murray et al., 2016). It occurs because of the greed for the student loan funds, resulting in a debt many students are unable to repay.
In conclusion, lowering the interest rates and providing students with adequate information on the policy’s options is vital. It will ensure access and equitability through terms that can be met by students with different financial needs. It will not only give them a fair chance at pursuing knowledge and skills, but also contribute towards the development of the economy.
References
Bergeron, D. A., & Ostern, T. (2013, June 27). A Comprehensive Analysis of the Student-Loan Interest-Rate Changes that are Being Considered by Congress. Center for American Progress. Retrieved from https://www.americanprogress.org/issues/education/reports/2013/06/27/68237/a-comprehensive-analysis-of-the-student-loan-interest-rate-changes-that-are-being-considered-by-congress/
Blumenthal, R. (n.d.). Funding Your Educational Future: A Guide to Financial Aid Resources for Parents and Students. Retrieved from http://www.blumenthal.senate.gov/imo/media/doc/Funding%20your%20educational%20future[1].pdf
Murray, P., Warren, E., Durbin, R. J., Blumenthal, R., Reid, H., Schumer, C. E & Baldwin, T., (2016, March 9). Senate Letter. Washington, DC: United States Senate. Retrieved from https://www2.ed.gov/policy/highered/reg/hearulemaking/2016/bd3-senateletter-repay.pdf
Soares, L. (2013). Post-Traditional Learners and the Transformation of Postsecondary Education: A Manifesto for College Leaders. American Council on Education. Retrieved from http://www.acenet.edu/news-room/Documents/Post-Traditional-Learners.pdf
