People say credit
cards are scams. However, Going to college or university is the biggest scam in
the United States. Higher education is an
integral part of everyone’s dream. We all led to believe that it is going to
lead us to a better future. But instead, it leads to a future of pain and
misery.
Today, more
and more college or university students increasingly must finance their higher
education through student loans. Sadly, the number of students who are already
or will have to deal with debt collection on their student loans isn’t
insignificant.
While
federal loan debt may stay crucial to students in recent years, one of the most
troubling segments of student lending is the private student loan sector. These
loans often carry high and variable interest rates. Therefore, many students
end up paying much more than what has been lent. Often, private lenders do not
offer the generous payment options or the lower rates federal lenders do. Also,
student debt cannot be discharged in bankruptcy regardless of the lending body.
It remains as long unless it is completely paid off, especially so as the U.S
government has taken increasingly aggressive measures to get borrowers to pay
up their debts.
Many factors have contributed to the
dramatic increase in student debts including the global economic recessions.
The recent economic downturn led to significant cuts in state higher education
funding that led to a rise in tuition fees. Indeed, because of the overwhelming
debts, many graduates are not being able to wait for higher paying jobs and are
forced to take lower paying jobs in order to stop the payments and interests
from ballooning.
Despite of
these issues, higher education remains critical for millions of students and
their families. In fact, the impact often extends beyond the students,
burdening their families for decades.
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