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National Deficit and Debt: How it will affect...
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Essay by:Chelsea Rey Cooper
Fort Lewis College
As a sophomore at Fort Lewis College, I have to wonder how the National Deficit and Debt will affect me not only currently, as a student, but also in the future, as a prospective home buyer. As a student I am concerned about student loans and the interest rate that is placed on these loans as well as the availability of grants and scholarships
With the new stimulus package, applying for financial aid would be easier as well as the amount of money received from grants will be greater. Student loans would also be controlled by the government and de-privatized. Currently the APR interest rate ranges from about 4% to nearly as much as 15%. Considering that tuition cost alone currently is around $5,000 per year for Fort Lewis College alone, to take out a loan to cover these expenses could eventually end up costing from $5,200 to $5,750 to pay back for every year of college attended. Now adding in room and board and the total that needs to be repaid is somewhere around $13,000 a year. With the new stimulus package, the Stafford Loan interest rates would decrease from 6% to 3.4% by 2012. The interest rate would then increase to 6.8% in 2013. Using these rates, the amount to be repaid would decrease from about $12,300 per year of college attended to $12,000 per year of college attended. The cost would then jump back to around $12,400 to be repaid for every year of college attended. Granted that a college education will help me attain a hirer paying job to be able to pay back these expenses; that high paying job is not a sure thing in these economic times.
The ever surmounting national debt has placed the job market in a very questionable area right now. As national debt increases, the ability and willingness of companies to hire a new graduate like me is questionable. Since I not have the specific on the job training needed for that specific job, the companies that are hiring are more likely to hire someone with more experience, that does not need to have time (money) wasted on them to train, and are more willing to take a pay cut.
Currently, I am fortunate enough that the scholarships and grants that I have received have covered my tuition costs. Since I am still living at home, although I still pay rent and buy food, my room and board costs are not as great as they could be. When the scholarship and grant money runs out, however, I will be forces to take out these loans which I will have to pay back eventually.
»A new report finds the main problem in getting the public to deal with our fiscal problems isn't opposition to tax increases or spending cuts -- it's their lack of trust in the government to spend their money wisely.