Student loans have a distinct advantage: if less money, you go to school and student loans you need to advance your career to allow degree. But a student loan risks, some obvious, some less obvious to come up with.
a degree, that is now having to pay.
A good rate of success in making sure that this is to do your homework before completion.
Find scholarships for online students,
Schools (colleges and universities and for everything in between years for full-time students for tuition and fees to $ 51,000 may charge anywhere from $ 1,400, which shows that our price index compare!) They vary very much in charge tuition.
These funds housing, food, transportation, and other costs do not include the note.
Consequently, if student debt could be a problem for you, it’s safest to choose a school that has low tuition costs and allows you to live in an area where the cost of living is low.
Less obvious risks also come with taking a student loan. There’s an old proverb that says “the debtor is slave to the lender.” Debt can turn you into a slave to the banks that provide your student loan. Many students who take out educational loans are young and have never had any major debt. Taking a student loan changes all that, removing a sizable chunk from your paycheck each month once you have to start paying off the loan.
The average student loan, across all ages in the United States, is now (in 2014) about $25,000 and that number is rising. The average student loan for American students who graduated in 2013 is over $35,000 (ref). That’s not quite a home mortgage, but it’s a sizable debt nonetheless.
Another less obvious risk that you face in taking out a student loan goes by the fancy sounding word “non-dischargeable.” Let’s say you are overwhelmed by debt. One way out of it is to declare personal bankruptcy, which cancels your debts. But a non-dischargeable debt is one that you can never get rid of, not by declaring bankruptcy, not by doing anything except paying it off or dropping dead (literally).
The fine print on student loans commits you to paying off the loan regardless of the hardships you may face in life. Student loans are non-dischargeable. You cannot get rid of these debts. They will follow you for the rest of your life until you pay them off.
It’s worth stepping back and asking why student loans have become such a big issue and problem for students. Believe it or not, back in the 1960s, it was not uncommon for students to work over the summer and earn enough to cover a substantial portion of their school expenses during the year.
PLAY VIDEO
All that changed with the Higher Education Act of 1965 (reauthorized many times since). By allowing students to take out big loans, schools were incentivized to raise their tuitions (after all, students could now pay for the increase). This led to a vicious circle, in which schools kept raising their prices and the government kept raising the amount of money it would loan to students.
This is why inflation in the cost of higher education runs at twice the rate of inflation for ordinary consumer products. The following diagram illustrates this point:
No comments:
Post a Comment