Opposing Viewpoint: FAFSA Vs. Private Sector Companies?
Opposing Viewpoint: FAFSA vs Private Sector Companies
Some groups that are involved in issues regarding about the amount of college tuition and financial funds given include FAFSA, and private sector companies. During the time when students are submitting applications for financial aid, groups like FAFSA is favored, since every student’s main objective is able to receive the most amount of money from this organization. On the contrary, private sector companies that loan out money at a high-interest rate would not be as favored since most students are not willing to pay high-interest rates and be in huge debt after finishing college. Furthermore, groups of upcoming college students would not be as favored since there is a lot of students across …show more content…
Since students cannot afford to attend college, students would need to rely on a public sector known as FAFSA or private sectors to loan or grant money. All groups whether public or private sectors are financially stable and have the ability to offer financial funds to students. FAFSA is backed mainly by the government along with public schools and private sectors. In addition, FAFSA has a guaranteed source of revenue, making them really financially stable and worry free when it comes to money. Not only FAFSA has a fixed source of revenue, most of the time FAFSA do not require students to pay back upon completion of the college degree. On the contrary, the private sector has money to offer, but only cater to incoming students that are willing to accept the student loan at a high-interest rate. The private sector loaning agencies rely on interest rates, which means they are equally sustainable as FAFSA in the long run. While this may be true, “There's currently no way to get rid of federal student debt other than paying off the loans. When borrowers stop making payments, the loan just sits there, accumulating fees and interest. After a borrower defaults, if she still does nothing, the government can sue, call in a debt collection agency, take a cut of her wages, or start taking money out of her tax refunds or monthly benefits like Social Security.” (Quinton) This means that students borrowing from private sectors are going to experience a difficult time repaying the loan especially with debts accumulation and at the same time missing out
Some groups that are involved in issues regarding about the amount of college tuition and financial funds given include FAFSA, and private sector companies. During the time when students are submitting applications for financial aid, groups like FAFSA is favored, since every student’s main objective is able to receive the most amount of money from this organization. On the contrary, private sector companies that loan out money at a high-interest rate would not be as favored since most students are not willing to pay high-interest rates and be in huge debt after finishing college. Furthermore, groups of upcoming college students would not be as favored since there is a lot of students across …show more content…
Since students cannot afford to attend college, students would need to rely on a public sector known as FAFSA or private sectors to loan or grant money. All groups whether public or private sectors are financially stable and have the ability to offer financial funds to students. FAFSA is backed mainly by the government along with public schools and private sectors. In addition, FAFSA has a guaranteed source of revenue, making them really financially stable and worry free when it comes to money. Not only FAFSA has a fixed source of revenue, most of the time FAFSA do not require students to pay back upon completion of the college degree. On the contrary, the private sector has money to offer, but only cater to incoming students that are willing to accept the student loan at a high-interest rate. The private sector loaning agencies rely on interest rates, which means they are equally sustainable as FAFSA in the long run. While this may be true, “There's currently no way to get rid of federal student debt other than paying off the loans. When borrowers stop making payments, the loan just sits there, accumulating fees and interest. After a borrower defaults, if she still does nothing, the government can sue, call in a debt collection agency, take a cut of her wages, or start taking money out of her tax refunds or monthly benefits like Social Security.” (Quinton) This means that students borrowing from private sectors are going to experience a difficult time repaying the loan especially with debts accumulation and at the same time missing out