Financing For Loan And Debt Crisis - 1269 Words

In America today, the total consumer debt was $11.52 trillion, and of that, student loans account for $1.08 trillion and that number is growing larger and larger every year (Hiltonsmith, Robert). A large portion of the population undoubtedly feels the burden of these statistics. Seven out of every ten college seniors has reported having to take out one or multiple student loans so that they can to afford to go to college (Hiltonsmith, Robert). The results of this outstanding amount of debt does not just affect the United States negatively for the obvious reasons such as lower credit scores and perpetual expenditures towards lenders. This loan and debt crisis has also led to an even larger disparity between the lower class and the upper†¦show more content†¦Germany recently revoked the policy of college tuition in all providences nationwide, and with free tuition, more and more students every year can attend college (O Shaughnessy, Lynn). Germany is not the only country to ap ply this policy towards education either; Spain, France, Italy, Malta, Sweden and several others all offer tree tuition for public universities (Noak, Rick). For that reason, the solution to some of the aspects of the student loan debt crisis should be adapted from policies currently in effect in these European countries. Improving upon the models that countries such as Germany have implemented will better prepare the United States to create a successful tactic to tackle one of the country’s biggest dilemmas. There are a few complications that will have to be addressed. One of the methods used to fund the tuition of the citizens of these countries is through tax money (O Shaughnessy, Lynn). However, in order for the United States to afford to do this, the taxes will most likely have to be raised. Another problem that has arisen in some of these countries is under funding, there simply is not enough money to fund the school comfortably and to pay for tuition at the same time. These hurdles and others are what makes this problem so significant and pervasive, but unless it is addressed somewhere, no matter how small the solution, it will never be fixed. Robert Hiltonsmith, a policyShow MoreRelatedHyman Minsky : A Relatively Unknown Economist1178 Words   |  5 Pageshousing crisis and the stock market crash of the 2000s are actually the events that have lead Minsky to become a much more familiar name. Also, Janet Yellen who is the head of the Federal Reserve System even stated that Minsky’s work has become a â€Å"must read†. Minsky’s hypothesis begins with an expanding economy, for this argument, firms will then borrow in order to buy and develop more capital. Minsky believed that a firm could get financing from three different sources; hedge financing, speculativeRead MoreDeveloping Countries During The Cold War Under Corrupt Regimes Essay1624 Words   |  7 Pagesdollars in loans, many of which had been accumulated during the Cold War under corrupt regimes. Years later, these debts became a serious barrier to poverty reduction and economic development in many poor countries. Governments began taking on new loans to repay old ones and many countries ended up spending more each year to service debt payments than they did on health and education combined. Wealthy countries and international financial institutions have taken action to relieve debt burdens inRead MoreCase 12-51629 Words   |  7 Pagessmaller in monetary size; 25 million is max deal. * Healthcare, financial services, financing equipment, venture capital deals, fleet services, equity financing. * Equipment Financing: Loans, Leasing, Sale Leasebacks, Equipment Management and Remarketing * Vendor Financing: solutions to enhance manufactures management position. * Franchise Financing: Financing new locations, acquisitions, reimaging, debt restructuring, refinancing. Franchise restaurants, chain restaurants and limited serviceRead MoreThe Financial Crisis Of 2008 Hit The American Economy1539 Words   |  7 Pages The financial crisis of 2008 hit the American economy and the world economy as well. It cost tens of millions of people their savings, jobs, and their homes. For decades the American financial system was stable and safe, but it changed. 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These former homeowners that are reentering the housing market after losing their homes during the housi ng market financial crisis are now part of a wave of â€Å"boomerang buyers.† According to Real Estate experts, boomerang buyers who are returning to the market were at least 10 percent of all United States home purchases during 2014. More important, this trend is expected toRead MoreIncome Share Agreements ( Isa )1169 Words   |  5 PagesWith student loan debt becoming increasingly worse year after year, new and potentially better avenues for students to finance a college education are emerging onto the market. In particular, income-share agreements (ISA) have appeared on the scene for a few years now, but not have attempted to modernize the way students pay for college. The big take away from ISA’s is the shift of financial risk from the student to the investor, unlike the traditional government or private loans. A student promises