Free Essay Online on Expository Essay Structure

Business Studies Essay on Low-Cost Loans Entice Students More for the Cash than a Degree: A Response

Low-Cost Loans Entice Students More for the Cash than a Degree: A Response

In this article, Josh Mitchell points out that some Americans who find themselves in weaker job placements are opting for federal student aid to enable them receive low cost loans instead of obtaining education that will enhance their job prospects. This situation is impacted by various factors. For example, the soft job recovery and the emphasis on education have driven scores of people towards seeking higher education. However, obtaining a low rate student loan, which covers tuition, textbooks and living expenses, has presented an easier way for people to acquire bank loans. In fact, a good number are motivated to obtain these loans to cover their living expenses. A survey on the debts of students and costs in educational institutions in Minnesota revealed that an estimated quarter to three quarters of students loans are used for purposes that are not related to education. The government has in the past argued that a section of student loans should be set aside for living expenses, in order to enable them to dedicate more time for studies. On the other hand, federal laws prohibit the denial of student loans. However, calls have been made by educational groups to set the limits for student loans for some student categories.

This article has pointed out some of the essential economic and social flaws that may in future hinder economic growth if not addressed on due course. Today, people who find it hard to secure a job, and struggling with bank loans or simply experiencing financial constrai8nts are signing up for part time and online courses with the main aim of obtaining student loans. However, this does not help in solving their tribulations. In fact, it only worsens their conditions since they will still have to repay the loans at long last. If many people will be pushed to obtain these basic goods through student loans, the nation might face a bad debt crisis owing to the fact that job recovery has been quite slow (Fernholz 1). Besides, if a significant number of Americans will be debt ridden, the investments and spending levels of the country will be quite low. Issuing loans to everyone simply because they have enrolled for degree is a precursor to an economic decline, akin to the 2008 financial crisis (Hedger 1).

Although the article has clearly revealed the loophole in the federal student loan system, it appears to have forgotten that these loans are assisting so many people in pursuing their ambitions. According to statistics, about a third of college students study full time. For such students, loans are sought in order to get a degree. On the other hand, it is estimated that more than 50% of college students either work part time or full time (Johnson 1). There is a potential that a majority of the students have a genuine motivation to enhance their job prospects by attaining a degree. Thus, suggesting that students are only motivated for the cash may not be entirely true. In the long term, a degree enhances the chances of the individual to get a better job placement. Therefore, while it is not right to give all people student loans, it is wrong to deny those that urgently need them.

It is my belief that the federal government should come up with some forms of background checks for the evaluation of loan applicants. This would help in the identification of those people who direly need the money to pay for their expenses or service their loans. These people can therefore, be denied or given an alternative way of financing their education.


Works Cited

Fernholz, Tim. “Why delinquent student loans are the fuse on America’s next debt bomb.” Quartz, 1 March 2013. Web. 11 Mar. 2014. <>

Hedger, Patrick. “Student Loans Are the New Housing Bubble.” The Blaze, 10 March 2013. Web. 11 Mar. 2014. <>

Johnson, Jenna. “Today’s typical college students often juggle work, children and bills with coursework.” The Washington Post, 14 September 2013. Web. 11 Mar. 2014. <>

Mitchell, Josh. “Low-Cost Loans Entice Students More for the Cash than a Degree.” The Wall Street Journal, 3 March 2014. Web. 11 Mar. 2014. <>

Posted by:


Related articles

list of articles



  • Sample Essay on SWOT Analysis of The Home Depot January 20, 2016
    SWOT Analysis of The Home Depot SWOT analysis of The Home Depot is among the best tools used by the home improvement retailer to gauge its ability to stay afloat and profitable in the market. Although it is considered the largest home improvement retail chain in the world with an estimated revenue base on more […]


Latest News From Blog

Check out Our Blog's assignment samples and tips on how to Write Assigments
Essay sample on the Effects of Cold War on Soviet Union..

Effects of Cold War on Soviet Union The Soviet Union was one of the main participants in the Cold War. It was engaged in the war with the USA and - See more

Essay sample on Effects of Cold War on Asia

Effects of Cold War on Asia Tensions of the Cold War began shifting from Europe to Asia in 1949 when Mao Zeodong proclaimed the birth of the ...Read More

Sample Essay on United Kingdom Healthcare System

United Kingdom Healthcare System United Kingdom healthcare system, also known as the National Health Service was established...Read More

Back to Top