-
Harvard University
Harvard University established the first student loan program. Also, known as the Harvard Loan Program (Fuller, 2014, p. 46). -
The United States Department of Education
The United States Department of Education is formed to improve the education system, but does not yet have a student loan program (U.S. Office of Education, 2017). -
State of New York creates Financial Aid program
New York and Indiana establish financial aid programs and scholarships to assist underprivileged students (Financial Aid, 2017). -
State Of Indiana financial aid program
New York and Indiana establish financial aid programs and scholarships to assist underprivileged students (Financial Aid, 2017). -
The GI Bill
The GI Bill was designed to help World War II veterans. Stipends covered college tuition and living expenses (Fuller, 2014, p. 50). -
National Defense Education Act
Federal student loan offered under the National Defense Education Act. The act directed to help students in the military in support of national defense from financial need (Fuller, 2014). -
The Higher Education Act
President Lyndon B. Johnson signed into law, The Higher Education Act is established to provide “Educational Opportunity Grants” to colleges enrolling students with significant financial need. The Guaranteed Student Loan Program, also known as the Federal Family Education Loan Program or FFELP, allows banks and private institutions to provide government-subsidized and guaranteed loans to students (Student Loan Programs, 2017). -
The National Association of Financial Aid Administrators
The National Association of Financial Aid Administrators is created to monitor financial aid throughout the nation (Brooks, 2015). -
Pell Grant
The Basic Educational Opportunity Grant, now called the Pell Grant, is named after Democratic U.S. Senator Claiborne Pell of Rhode Island. It was created to help deprived students attend college. Sallie Mae established as a Government-Sponsored Enterprise (Brooks, 2015). -
The Higher Education Amendment Act
The Higher Education Amendments of 1992 created FAFSA, the Direct Lending program, and unsubsidized Stafford loans (Pell Grant, 2017). -
The Student Loan Reform Act
The Student Loan Reform Act officially implements the Direct Lending program, by President Bill Clinton. Under this program, the government directly lends to borrowers, as opposed to through a private institution (Student Loans Program, 2017). -
Tuition fee Increase
Average college tuition fee spiked to 5.67% (Mitchell, 2015). -
Direct Lending Declined
Direct lending declined because Congress and the Department of Education used their political power for favors and money from private lenders which exploited student choice (Student Loans Program, 2017). -
The Higher Education Reconciliation Act
President George W. Bush signed, The Higher Education Reconciliation Act reduces loan fees from 4% to 1% and allows graduate students to take out PLUS Loans (Smith, 2017). -
Credit Market Issues
Credit market problems cause many private lenders to back out of Federal Family Education Loan Program (FFELP) as they cannot provide loans to students (Student Loans Program, 2017). -
Federal Family Education Loan Program rejected
Legislation proposed under the Obama administration eliminates the Federal Family Education Loan Program (FFELP) and requires all new federal loans to be Direct Loans. Private lenders begin offering private student loans to students independently from the government (Fuller, 2014, p. 60). -
Student Loan Debt Increase
Total amount of student loan debt passed $1 trillion (Fuller, 2014, p. 60). -
44 Million Borrowers
Americans currently owe over $1.4 trillion in student loan debt, spread out among about 44 million borrowers (U.S. Student Loan Debt Statistics, 2017). -
Future of Student Loan Debt and Increase
Interest rates will depend on new federal loans. Undergraduates will pay 4.45 %, an increase from 2017 rate at 3.76 %. Graduates will pay 6%, an increase of 5.31% from 2017 (Mercado, 2017). -
References Cont'd
Brooks, S. (2015, August). The First Twenty Years: A History of the National Association of Student Financial Aid Administrators [Scholarly project]. In NASFAA History. Retrieved September 16, 2017, from https://www.nasfaa.org/uploads/documents/NASFAA_History_1966-85.pdf Smith, J. J. (n.d.). Oklahoma College Assistance Program. Retrieved September 16, 2017, from http://ocap.org/Partners/Legislation/HERA.shtml -
References Cont'd
Fuller, M. B. (2014). A History of Financial Aid to Students. Journal of Student Financial Aid, 44(1), article 4, 1-29. Retrieved September 16, 2017, from http://publications.nasfaa.org/cgi/viewcontent.cgi?article=1078&context=jsfa Mitchell, T. (2015, July 29). Chart See 20 Years of Tuition Growth at National Universities. September 16, 2017, from https://www.usnews.com/education/best-colleges/paying-for-college/articles/2015/07/29/chart-see-20-years-of-tuition-growth-at-national-universities -
References Cont'd
U.S. Student Loan Debt Statistics for 2017. (n.d.). Retrieved September 16, 2017, from https://studentloanhero.com/student-loan-debt-statistics/ Mercado, D. (2017, May 11). Federal student loan rates to jump starting July 1. Retrieved September 16, 2017, from https://www.cnbc.com/2017/05/11/federal-student-loan-rates-to-jump-starting-july-1.html -
References
Pell Grant. (2017, September 07). Retrieved September 16, 2017, from https://en.wikipedia.org/wiki/Pell_Grant U.S. Office of Education. (2017, August 26). Retrieved September 16, 2017, from https://en.wikipedia.org/wiki/U.S._Office_of_Education Student Loan Programs - History. (n.d.). Retrieved September 16, 2017, from http://www.edcentral.org/edcyclopedia/federal-student-loan-programs-history/ -
Conclusion
Most people may ask if college is for everyone. In conclusion of researching the facts and applying past knowledge, I am now not sure; however, I know that it should be made available and affordable for anyone and everyone who desires it.
