7A- Testing The Hypothesis

·       The who: College students and those offering student loans and the interest rates on student loan.

·       The what: The interest rates on student loans.

·       The why: These interest rates can put many college graduates in a financial “hole” as they begin their professional career. This disadvantage may take many years to finish paying.

·       Are there others who have this need?

• In fall of 2019, an estimated 19.9 million Americans will attend college and pay college tuition. Around 70% of American students end up exercising their ability to take out loans for college. The average college student will walk away with about $30,000 of debt. Some 45 million Americans owe an estimated 1.6 trillion in student loan debt.

·       What are the boundaries of the need?

• Only college students who apply and agree to these loans can have student loan debts, but the threat of these student loans may prevent those debating going to college from ever going. It can also put young professionals in a financial hole upon graduation.

·       test the boundaries of the 'why' -- for the people who have the need you have identified, what are the range of whys that they offer? Does the "why" you have identified hold for everyone?

• With a desire such as lowering the student loan interest rates, I would have a hard time finding too many students who would oppose this idea. On the other hand, banks that provide students with loans to pay their college tuition, or independent loan companies such as SoFi, would be opposed to this idea. This would directly affect their bottom line.

1.    Zach is an in-state student from Florida. Zach is directly affected by student loans. Zach is currently an advertising major who has solidified a sales job for this upcoming fall. Zach has taken out loans in order to complete his degree and not worry as much about having to pay his tuition with the money he receives from his part time job. Zach agrees that lowering the interest rate would allow him to accrue more money in a savings account, setting him up better in the future. He also claims that “if interest rates on student loans were lower, I think more people would take the chance on going to college and more college graduates would be more open to pursuing their masters” if these loans didn’t put them at a disadvantage upon graduation.

2.    Erik is an out of state student at the University of Florida. Fortunately, Erik is not in student debt. Erik agrees that student loan interest rates are high, although, does directly credit capitalism for this. He mentioned that interest rates on just about everything makes sense but believes that if college students should be relieved of these interest rates if the student remains constant with their payments upon graduating. Erik agrees that interest rates prevent many students from attending college, especially out of state schools with increased tuition.

3.    Austin is an out of state student who is not directly affected by student loans or the interest rates that come along with these loans. Austin has been fortunate enough to receive his tuition from his grandparents, who set aside this money when he was born. Austin expresses that he is incredibly lucky, but as a finance major he agrees that these student loans can place professionals in a financial hole. Austin claims “student loans can push the process of building a strong financial foundation back years.” This can prevent students from buying a house/car/etc due to their constant student loan payments.

4.    Adam is an in-state student who is directly affected by student loan debt and the increased interest rates on these loans. Adam is on a pre-med track and plans to attend medical school next fall. Adam mentions that in order to complete medical school, he is prepared to take about $200,000 in student loans. Upon completing these payments, Adam can owe about $250,000. Adam says that this is something he is prepared for, he mentions that student loans are a “gamble on yourself.” Adam said during the interview, “student loans are important for people who cannot afford to pay for tuition at the current time. There are plenty of people who will be successful enough to pay for their student loans and much more. It’s about having the confidence in yourself to succeed after school.”

5.    Justin is an in-state student who has been affected by student loans. Justin doesn’t agree with anything to do with student loans, but he mentions that without them he couldn’t be a Florida Gator. He agrees that for some, student loans are necessary, but he claims that the payments should not begin to accrue until your first full time job paycheck. Justin is a finance student who plans to work in New York City after school, an expensive city. These student loans toppled with the many expenses that come with living in New York City can put Justin in a financial hole that can be difficult to get out of. Justin agrees that interest rates should be lower and more affordable for the average college student/young professional to pay off in a timely manner.