The Solution to the Student Loan Crisis?

Do you recognize this man? Solution #1 Do you recognize this man? He is Senator Bernie Sanders! What do you know about him? => What he believes America actually needs to become "great": = tuition at public colleges free for all "In the richest country in the history of the world, everyone who has the desire and the ability should be able to get a college education regardless of their background and ability to pay.“ "This is not a radical idea. Many nations around the world invest in an educated workforce that isn't burdened with enormous student debt." New York (Andrew Cuomo) + Rhode Island + city college of San Francisco + Tennessee, Oregon, Detroit and Chicago. At a state level? Education Secretary Betsy DeVos’ answer: “There’s nothing in life that’s truly free. Somebody’s going to pay for it.” At the federal level? => with a Republican-controlled Congress, prospects for similar legislation are dim/unlikely.

Solution #2 Federal Student Loan Forgiveness OBAMA vs. TRUMP Champion of helping people who have been burdened by student loan debt. He and his wife Michelle both had to take out loans to fund their educations, and the couple had "barely finished" paying them off by 2005, when he was 44 and she was 41. The new program he created: Pay As You Earn (PAYE) program. Trump accused the federal government for profiting on federal student loans. “That’s probably one of the only things the government shouldn’t make money off. I think it’s terrible that one of the only profit centers we have is student loans.” The Federal Student Loan programs turned a profit of $41.3 billion in 2013 while many borrowers were struggling to make their financial ends meet. No guarantee that student loan forgiveness will continue in its current form, or at all. The Trump administration proposed eliminating Public Service Loan Forgiveness plan from its 2019 budget. President Trump wants to increase the role of the private sector - particularly private lenders such as banks - in the issuance of federal student loans. So students may have more choices when it comes to borrowing student loans. This can result in more competition and lower rates, which can benefit consumers. 

SCHOLARSHIPS Solution #3 What is the common point between these people? SCHOLARSHIPS The African Women’s Public Service Fellowship Open Door Scholarship Cambridge Scholarship for Black Students Formation Scholars Scholarship Program The Nas Scholarship Fund

What do you think of all these private scholarships? The “Opportunity Fund,” a new initiative from Google, Microsoft, and Nasir Jones that will provide scholarships to students who have been historically under-represented in the industry such as women, African-Americans and Latinos. Nas, who has recently co-founded the venture capitalist firm QueensBridge Venture Partners stated “Education, careers and opportunities in technology should not be limited to any one demographic, and I’m happy to support minorities who will see doors open to them as a result of participation in this program.” What do you think of all these private scholarships? Shouldn’t it be the federal or at least the state legislatures’ role to fund higher education?

THE FEDERAL STUDENT AID An office of the U.S. Department of Education Types of aid: Grants and scholarships Most scholarships are merit based. This means that they are awarded to students with certain qualities, such as proven academic or athletic ability. Most grants are need based. This means that they are usually awarded based on your or your family’s financial situation. Example: The Federal Pell Grants = usually awarded only to undergraduate students who display exceptional financial need and have not earned a bachelor's, graduate, or professional degree.  Federal loans Why are they controversial? Federal Work-Study Jobs The program encourages community service work and work related to the student’s course of study. Tax Benefits