The Benefits of Direct Federal Student Loans

by Dallas Toy
(Knoxville, TN)

Creating direct federal student loans eliminates the middle man, and eliminates the greed from that middle man.

The whole purpose of education is to allow the individual to better themselves, but some student loans out there can leave students' lives in shambles. They create a system where the student will essentially be an indentured servant until they retire.

Interest rates, monthly payments and resource allocation makes paying student loans off difficult. Most students are not even really filled in when it comes to taking out these high dollar loans. You fill out the paper, you take the loan, end of story. Four years later after you graduate, now you learn that the paper you signed was essentially giving away part of your paycheck for the next thirty years.

The Direct Federal Student Loans program has the ability to make things easier. It would allow students to know their options better. It would allow them to better weigh those options as well. The information would be well documented and discussed before signing any papers. The myriads of loan companies would not be able to undermine the process anymore.

Aside from the paperwork, and the loan type, students would be able to have more choice for education. It would allow people to get into different colleges, instead of having to accept going to a community college.

As the the government is the sole provider and sets up rules for others to follow, the process can be easily monitored to make sure that there is no abuse in the system. This is important because some individuals will be paying on these loans for the next thirty years of their life. This can be due to high interest rates, multiple loan holders, and a myriad of other reasons. Education should not be a cause for lining anyone's pockets except the one receiving the education.