Education is an essential part of society today. Many students pursue such important concepts for a better future. However, there are various obstacles that could destroy the dreams of many talented researchers. Students fear the consequences of getting a good but very expensive college degree. Therefore, the last few years have seemed difficult and fraught with choices for many people. Additionally, the system as a whole continued to deteriorate on an exponential scale, leading many brilliant people to give up and start working hard without receiving a decent education. Education costs added to interest rates are deadly poison for many wallets and bank accounts. Thus, the problem can be broken down into several phases and relevant consequences. The origins of the problem, economic stability, the level of equity as well as the future of the problem are all questions that must be addressed on a large scale. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an Original EssayThe immense issue of huge interest rates on tuition fees is a very critical and important topic, which seems to be around twenty-five years old. of age. The suffering student population was caught between greedy corporations and an obstinate government. “The change was enacted in 1993, when the U.S. Department of Education hoped its new direct loans would replace a large portion of guaranteed loans. This did not happen because of Congress’s resistance to letting the government become a direct lender.” (Community College Week). Thus, politicians refused to grant public loans, which potentially gave greater freedom to banks. Private organizations were therefore able to set unreal rates on student loans. Finally, a lot of selfishness was demonstrated by the political body which described the negative impacts on the indebtedness of the learning population. Aside from the government's limited role in this matter, the hidden desires of lenders to take advantage of certain parties cannot be overlooked. The goal of the private sector is to make profits and oppose any laws prohibiting such actions. “By 1998, however, it had become clear that direct lending was not going to replace the guaranteed loan program. And bankers feared that the impending change in the interest rate formula would reduce their profits on student loans so significantly that they would have to leave the program. (Burd). Subsequently, when the government decided to contribute to education expenses, the greed of lenders began to panic. Without the profits gained from tuition interest rates, companies would experience negative profit development. Additionally, lobbying attempts were underway to make government laws benefit the private sector. Thus, completely avoiding any moral or ethical standards and beliefs. Ultimately, the government began to actively participate in providing loans and lowered interest rates significantly, but the problem persists as rates are still incredibly high. The origins of the problem are necessary to understand the problem, but the effects that would appear if the problem were solved are also important. Reducing student loan interest rates will increase the country's economic growth and provide more purchasing opportunities for consumers. A lower interest rate leads to more money and less debt. “A heavy debt affectspeople's spending choices, leading many households, for example, to postpone or reduce major purchases, such as a car or a house. » (Problems and controversies). Thus, lowering the tuition interest rate will promote a reduction in debt for an average household, which could potentially lead to more money and purchases on a larger scale. Larger and better transactions in an economy will result in a dense and quality lifestyle. Moreover, the burden of the loan and the huge interest rates limit the rationality of people which allows them to make intelligent and comfortable monetary decisions. Although such reasoning illustrates the benefits of low interest rates, there is other evidence for the implementation of such action. The total amount of student loans scares everyone, but many people refuse to consider interest rates: "Total outstanding student debt in the United States is $1.2 trillion, that's the second highest level of consumer debt behind mortgages. (Berman). As a result, many people who look at statistics make terrible short-term decisions. The economy will stop growing if, all of a sudden, a number of potential professionals end up abandoning the idea of ​​pursuing higher education. Knowing people will combine the idea of ​​a huge loan and the interest rate and get an incredible and horrible result. Additionally, the greater the debt, the higher the interest rates, leading to a closed circle of depression and economic instability. Lowering interest rates on student loans will improve economic growth, but the level of social equity will also improve. The level of fairness between the population and the lending organization will skyrocket if interest rates on student loans decrease. Variable rates refer to the idea that a change in interest rates is possible: "The difference is simple: the rate on a variable rate loan can change over the life of a loan, whereas A fixed rate will stay the same unless you refinance. it." (Setalvad). Subsequently, banks and other organizations use various tricks and loops to force the borrower to adopt the variable interest rate. Thus granting the power to manipulate the rate in a very dishonest manner. By Subsequently, the consequences seem very heinous, due to the idea that many students are being used for profit. Honesty in interest rates is essential, but the private sector must also be taken into account. Private loans are competitive with public loans, and depend heavily on the level of interest rates. “Private student loan volume fell by half in 2008-09, according to the College Board's Student Aid Trends. students 2009. " (Financial Aid). Thus, private loans have become unpopular due to the fact that loan conditions have become unrealistic. When private companies have the freedom to manipulate the level of interest rates on loans, the entire scale of fairness shifts significantly in favor of private lenders. Everyone should benefit from every transaction, but when one party becomes greedy, the entire structure collapses. Fairness is important in the student loan interest rate equation, but payment duration is also essential. Besides the consequences of distinguishing the problem, there is a future in which the problem will need to be solved. The near future of the student loan interest rate crisis seems to be full of changes and positive influences. Many new laws are proposed to address or alleviate the problem..