The Student Loan Disaster

Paper Summary:

This paper examines private lending practices of institutions that provide private funding for college expenses to students. The paper explores the impact of these loans on college students' standard of living, home ownership, income to debt ratios and other factors associated with repaying high-price student loans. The paper also provides a literature review that indicates that a solution for the rise of student loan private lender default rate should be addressed proactively so as to avoid a crisis in the student loan lender industry as has been witnessed in the mortgage industry recently. Rrecommendations for further research conclude the paper.

Outline:
Statement of the Problem
Purpose of the Study
Importance of the Study
Methodology
Literature Review
Summary and Conclusion
Recommendations for Research

From the Paper:

"For-profit student loan lenders are being compared to mortgage industry lenders in terms of the impacts that lending practices have had on the U.S. population. The reason for this is because these lenders have students locked into financing on student loans that will see large increases in payment amounts due to subprime lending tactics in the student loan industry. Students who accepted these loans in order to go to college will graduate and face seeking employment in an economy that appears to be in a major recession and likely to head into a depression in the near future. Impacts on these students include delaying homeownership due to some much of their income being spoken for by monthly student loan debt payments."

Sample of Sources Used:

• 55 Colleges Under Investigation for Unethical Student Loan Practices (2007) Education Portal. 2 Nov. 2007. Online available at: http://education-portal.com/articles/55_Colleges_Under_Investigation_for_Unethical_Student_Loan_Practices.html
• Facts About Student Loans (2007) Education Portal 14 Sept 2007 Online available at: http://education-portal.com/articles/Facts_About_Student_Loans.html
• Gordon, Marcy (2008) Student Loans Sow Seeds of Economic Ills. 13 Mar 2008 USA Today. Economy. Online available at: http://www.usatoday.com/money/economy/2007-09-30-studentloans_N.htm
• Hughes, Art (2008) Private College Loans May Spell Trouble for Students. Minnesota Public Radio. 5 Mar 2008. Online available at: http://minnesota.publicradio.org/display/web/2008/03/05/loantroubles/
• Student Loan Lenders Creating a New Credit Bubble (2007) Education Portal 4 Oct 2007. Online available at: http://education-portal.com/articles/Student_Loan_Lenders_Creating_a_New_Credit_Bubble.html

More papers on The Student Loan Disaster:

• Term Paper # 104694 : "The Student Loan Industry and Discrimination"
• Case Study # 114457 : "Texas Guaranteed Student Loan Corporation"
• Research Paper # 112253 : "Student Loan Impacts On New College Graduates"

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