Education is a critical part of society today. Many students pursue such important concepts for a better future. However, there are several obstacles that potentially destroy the dreams of many talented scholars. Students fear the consequences of getting a good but very expensive degree. Therefore, the last few years have seemed difficult and burdensome for many people. Furthermore, the entire system continued to deteriorate on an exponential scale, leading many bright people to give up and take up hard work without a decent education. Education costs added to interest rates are deadly poison to many wallets and bank accounts. Therefore, the issue can be divided into many relevant stages and consequences. The source of the problem, the economic stability, the level of equity, and the future of the problem are all issues that should be addressed seriously. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay The immense issue of huge interest rates on tuition is a very critical and important topic, which seems to last about twenty-five years of age. The long-suffering student population was stuck between greedy corporate enterprises and a stubborn government. “The change was implemented in 1993, when the U.S. Department of Education expected that its new direct loans would replace many of the guaranteed loans. This did not happen because of congressional resistance to letting the government become a direct lender.” (Community College Week). Therefore, politicians refused to make public loans, which potentially gave banks more freedom. Therefore, private organizations have been able to set unreal rates on student loans. Finally, great selfishness was demonstrated by the political body that described the negative impacts on the debt of the student population. In addition to the limited role of the government in the matter, the hidden desires of the creditor to take advantage of some parties cannot be overlooked. The private sector's goal is to profit and oppose any law that prohibits such action. “By 1998, however, it was clear that direct lending would not replace the secured 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 be forced to abandon the program.” (Burd). Subsequently, when the government decided to contribute to education expenses, the greed of the financiers began to panic. Without the profits from tuition interest rates, businesses would see a negative shift in their earnings. Additionally, lobbying efforts were occurring to make government laws benefit the private sector. Therefore, completely avoiding any moral or ethical standards and beliefs. Eventually, the government started to take an active part in lending and reduced interest rates significantly, but the issue persists, as rates are still insanely 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 interest rates on student loans will increase the nation's economic growth and provide more purchasing opportunities for consumers. A lower interest rate leads to more money and less debt. “Heavy debt influences people's spending choices, leading manyfamilies, for example, to postpone or reduce large purchases such as cars or houses". (Problems and controversies). Therefore, the decline in the interest rate on tuition will encourage debt reduction in an average family, which will potentially lead to more money and large-scale purchases. Bigger and better transactions in an economy will result in a quality-filled lifestyle. Furthermore, the heaviness of the loan plus the huge interest rates limit people's rationality in making smart and comfortable monetary decisions. While this reasoning describes the benefits of low interest rates, there is other evidence that demonstrates the implementation of this action. The total amount of student loans scares every individual, but many people refuse to take interest rates into account: “The total outstanding student loan debt in the United States is $1.2 trillion, which is the second highest level of consumer debt behind only mortgages." (Berman). Therefore, many people viewing statistics make terrible short-term decisions. The economy will stop growing if suddenly a certain number of potential professionals end up abandoning the idea of ​​higher education. Knowing people will combine the idea of ​​a huge loan plus the interest rate and get an incredible and horrible result. Furthermore, the greater the debt, the higher the interest rates, leading to a closed cycle of depression and economic instability. Lowering interest rates on student loans will improve economic growth, but it will also improve social equity. The level of equity between people and the credit organization will skyrocket if interest rates on student loans decrease. Variable rates refer to the idea that you can change interest rates: "The difference is simple: the rate on a variable interest rate loan can change over the life of the loan, while a fixed rate will stay the same at unless you refinance it." (Setalvad). Subsequently, banks and other organizations use various tricks to force the borrower to adopt the variable interest rate. Thus granting the power to manipulate the rate in a very dishonest way. Subsequently, the consequences appear very dire, due to the idea that many students are being used for profit. Honesty with interest rates is key, but the private sector also needs to be addressed. Private loans are competitive with public ones, based heavily on the level of interest rates. “The volume of private student loans fell by half in 2008-2009, according to College Board Trends in Student Aid 2009.” (FinAid). Therefore, private loans have become unpopular because loan terms are become unrealistic.When private companies gain the freedom to manipulate the level of interest rates on loans, the entire scale of fairness shifts dramatically in favor of private lenders. All people should benefit from every transaction, but when a party becomes greedy the entire structure collapses. The equity aspect is important in the interest rates of the student loan equation, but the length of the payment term is also essential. Along with the consequences of the problem distinction, there is a future in which the problem needs to be addressed. The near future of the student loan interest rate crisis appears to be full of changes and positive influences. Many new laws are being proposed to resolve or alleviate the issue,” Representative Karen Bass (CA-D) introduced the Student Loan Fairness Act to establish a new “10-10” standard for loan repayment,.