Credit Card Scam

One reason more and more college students are find themselves in debt could be contributed to the credit card industry. A recent article by CQ researcher found that between 1980 and 2005, Americans' annual credit card purchases jumped 25-fold — from $69 billion to $1.8 trillion and even worse credit card companies seem to be targeting college students, with many students receiving hundreds of credit card offers in just one year. Credit companies unfairly target student because of the expense of college life and many students who but into these companies schemes end up in debt. Many university officials and congressmen have begun investigating these companies and placed restrictions on how credit cards can be marketed t public universities. With financing from the Ford Foundation, U.S. PIRG has begun a national campaign urging schools to adopt some common-sense principles that would help shield students from credit card marketers and financial ruin. Hopefully with a better education on the damages of credit cards and more protection from greedy companies students will be able to make wise decisions regarding credit cards and focus on more important and manageable issues such as paying off student loans.

Thoery Post

As I mentioned in my last blog student loans are becoming more common and are in high demand due to higher rates of unemployment and debt within families, a result of the recent financial crisis. Not only are low-income families affected by the economy failure, middle class families are also finding it harder and harder to put their children through college.The federal government is doing its best to supply loans to families in need but with both tuition costs and the federal deficit at an all-time high, this is more easily said than done. Although the government has been able to provide some loans to most families in need, they rarely cover the entire cost of tuition and many students must find other means of paying their tuition in full. Both Obama and McCain seem to agree that student loans are an important aspect in allowing students to receive a higher education as well as that reform is needed on the no child left behind act in K-12 schools.

Before I discuss lower level education more thoroughly I want to recall one of my older blog posts dealing with loans versus merit-based scholarships. The federal government right now offers a majority of its aid in the form of loans because it fairer for low-income and minority students who normally don't have the grades to earn scholarships. The capability of minority and low-income students to earn good grades is a result of both the schools they attend and their family background. One way the government is trying to improve education and school quality is through the controversial no child left behind act. While this act, originally designed to bring all students at every American school to proficiency in reading and math by 2014, has helped students show improvement, many people, particularly teachers believe it places way to much emphasis on standardized tests and sets near impossible standards. For example in California students are required to increase 11% in proficiency each year until 100% is reached and many states have more rigorous testing than others . In order to improve this act, Congress should lower the requirements it sets but continue to place emphasis on highly-qualified educators and improvement in schools. If there was another way to determine the effectiveness of the act besides testing I believe the act would help improve schools much more efficiently because teachers would not have to base their curriculum according to tests.

How badly is the economy affecting college students?

According to a recent article in the New York Times the recent financial crisis is affecting students ability to pay for college. Federal loans account for 3/4 of student borrowing and the government assured to keep money flowing by buying those loans even with fewer companies in business but often times these loans are not enough to cover the entire tuition. With an increased rate of unemployment and the threat of recession gripping the country, many more families are expecting to need student loans this year. The number of applications for federal aid so far this year has risen to 13.5 million, up nearly 10 percent from 12.3 million from last year. One way that students and parents are paying the extra cost of tuition is by purchasing PLUS loans, which are the same as Stafford loans but are signed in the parents name. However many students do not qualify for PLUS loans and must resort to borrowing from relatives or private lenders who are becoming hard to recieve due to the financial crisis. Although colleges have taken many measures to make tuition more affordable, such as converting loans to grants and allowing tuition cuts to families making certain amounts, the financial crisis has placed a bump in the road and outweighed the amount of help colleges can provide. Hopefully the next elected president can help get our economy back on track so that not only student loans, but stock markets, government funding, and everything else affected by the failure of the economy can get back to normal and work more efficiently.

Recommended Blogs

With the 2008 election occurring next month things are really heating up in politics. In my opinion some of the most important issues in todays society are the economy, the energy crisis, and the always controversial debate over taxes. Below are three blogs that I have found to be extremely helpful in keeping up with the fast-paced and ever changing world of politics, especially in the issues described above.

Renewable Energy:The New Oil?
With the depletion of nonrenewable resources such fossil fuels and natural gas, the growing price of gas and oil, and increased global warming, America is in serious need of some new energy resources. This blog by Tommy discusses the danger of Americas large consumption of nonrenewable resources and offers many different renewable techniques such as geothermal energy, biofuels, solar energy and hydropower that can be improved and mastered to help make our energy use more efficient. Through his blog, readers learn not only learn the views and solutions offered by McCain and Obama but are also well informed of the effects of fuel consumption in US and the rest of the world. Tommy keeps his blog up to date and has the latest information on the election and energy world.

Apparently Money Doesn't Grow on Tree's
2008 has introduced a lot of new problems into the economy. The mortgage bubble that has been building up for the past few years has finally been recognized and created a major financial crisis. Huge companies are crumbling, banks are declaring bankruptcy, and the stock market is crashing. All of these factors have created the need for a bail plan, which is just one of the issues discussed in Britney's blog. It also provides details on candidates plans for boosting the economy back up and discusses whether the US government places enough regulation on its capitalist economy. Britney includes many interesting video clips and images and updates her blog regularly to help readers stay in touch with the financial issues of America and the latest plans to bailout the economy.

The Issue On Taxes
No matter who gets elected in this years election, one thing is for sure...the amount Americans pay in taxes will see drastic change. Whether this change will be good or bad and who is affected most will be determined according to who is elected president. If Obama is elected president then lower and middle class Americans earning less than 250,000 a year will be very greatful to see tax breaks while those earning more will not be as happy to see an increase in taxes. If McCain is elected, Americans earning over 250,000 will be appreciative of tax breaks while those earning less will have a heavier burden to pay. This and other issues relating to taxes and the economy are analyzed and discussed in this blog by IGetNosSleep. The views of the candidates are expressed in extreme detail while possible consequences of their plans to the economy and government services are presented. This blog really helps readers to develop an educated opinion of whose tax policy will best benefit the economy and who to support and vote for in the 08 election.