http://governmentloangrants.com/articles/what-would-american-society-be-like-if-the-federal-and-state-governments-did-not-back-student-loans-or-grants Sat, 20 Dec 2008 20:05:49 -0700 http://wordpress.org/?v=2.8.5 hourly 1 http://governmentloangrants.com/articles/what-would-american-society-be-like-if-the-federal-and-state-governments-did-not-back-student-loans-or-grants/comment-page-1#comment-1651 jml167 Wed, 28 May 2008 10:21:32 +0000 http://governmentloangrants.com/articles/what-would-american-society-be-like-if-the-federal-and-state-governments-did-not-back-student-loans-or-grants#comment-1651 I think that there would be a lot less people who were able to attend college. Most people who start college have very little credit history, so lenders would not be inclined to give them money for school. These students would have to either have a relative/friend cosign for them or work during school to be able to make monthly payments. I think enrollment would drop significantly because of these hardships. It would also be difficult for the schools themselves. The way the current system works, most students receive either loans or grants directly from the lender at the beginning of the semester to pay their tuition. The school gets this money paid out in full before the semester starts, which allows them to plan their budget a certain way. Without this system, most students would be on a monthly payment plan, which would effect college budgets and make it harder for them. There's also the problem of interest rates. Right now, there are caps on the amount of interest that lenders can charge for the federally backed loans. If all loans were private, there would be no caps, leaving those who were able to get loans thousands more dollars in debt. Just my two cents! I'm sure there are many other things I haven't thought of. Are you writing a paper? I think that there would be a lot less people who were able to attend college. Most people who start college have very little credit history, so lenders would not be inclined to give them money for school. These students would have to either have a relative/friend cosign for them or work during school to be able to make monthly payments. I think enrollment would drop significantly because of these hardships. It would also be difficult for the schools themselves. The way the current system works, most students receive either loans or grants directly from the lender at the beginning of the semester to pay their tuition. The school gets this money paid out in full before the semester starts, which allows them to plan their budget a certain way. Without this system, most students would be on a monthly payment plan, which would effect college budgets and make it harder for them. There’s also the problem of interest rates. Right now, there are caps on the amount of interest that lenders can charge for the federally backed loans. If all loans were private, there would be no caps, leaving those who were able to get loans thousands more dollars in debt. Just my two cents! I’m sure there are many other things I haven’t thought of. Are you writing a paper?

]]> http://governmentloangrants.com/articles/what-would-american-society-be-like-if-the-federal-and-state-governments-did-not-back-student-loans-or-grants/comment-page-1#comment-1650 jmw Sun, 25 May 2008 13:30:03 +0000 http://governmentloangrants.com/articles/what-would-american-society-be-like-if-the-federal-and-state-governments-did-not-back-student-loans-or-grants#comment-1650 I believe we would have an EVEN less educated population in the USA. Private lending institutions would do it for collateral and/or usury interest. It would NOT be good. I believe we would have an EVEN less educated population in the USA. Private lending institutions would do it for collateral and/or usury interest. It would NOT be good.

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