The Controversy of Government Subsidized Student Loans Research Paper

The Controversy of Government Subsidized Student Loans - Research Paper Example Besides, students must fill the application of the loans in order to determine the persons who are in need if the loan and to what amount should the loan be of benefit to them. The following article, therefore, outlines the loans that the students receive and the benefits of the loans towards the students and the state. The essay also covers the controversy that arises as a result of the loans. The controversy is because the role of the loans does not materialize since most of the students are not capable of servicing their debts. There is the need of the lenders to find other ways to make sure that the whole perspective of supporting the higher learning education is successful. The reference list is a provision at the completion of the document. The instance is in a manner to authenticate the propositions therein. Student’s loans refer to aids that are in forms of funds that are given to students to be of assistance in paying their taxes, to buy books and to help in their living. The loans are very different from other loans since they have very low interest rates. The loans exist because most students do not have the capability of taking care of the tuition fees once they enroll in a higher learning institution. However, t5he students are repayable once a student completes his or her studies. If a student does not repay, there is mostly a cost to penalize the act in an instance of discouraging the same from happening. The main argument that arises is that not all students are capable of repaying the loans since not all the students tend to acquire job opportunities. Therefore, some of the penalties that the lender of the student loans imposes may not be enough reason to do against defaulters (Houck, 2008). From another perspective, the loans that the government lends to students tend to be a huge portion of the national budget. Besides, the education system is a continuous process that becomes a yearly expense.