Tag Archives: Student Loan Crisis
There is always a lot of talk about how students are so far in debt with loans. Many people talk about certain numbers and references that show that there’s are millions of people who are in debt with financial loans. However, most of the students who in fact graduate from college, are able to repay their loans. It may not be easy as they would like, but it is possible. Now, this is not saying that students are not having any problems. This is just saying that student loan debt is lower than credit card debt and auto loan debt.
With the economy rising, so is debt. But it is everywhere. Not just targeted towards student loans. On average, there are more than one quarter of all students with loans who are currently behind in their payments. That is not much. It does hinder the close future after college. The more money you borrow for your student loans, the longer it will take to repay. When you graduate from College, your dreams are to purchase a home or buy a new car. But when you are repaying your student loans then you will not be able to purchase these items immediately.
In the year 2007, there was a total level of $600 billion of student debt with loans. What people do not realize is that more people are going back to school. Since the economy is constantly changing, more people are enrolling in school to better their education. This would give them a better chance to become employed if they had more education. This has always been an issue with the economy these days. Nothing is guaranteed. But you will have an advantage over the other person who is not educated.
When people talk about a student loan “crisis”, they are extremely exaggerating. This day in age has it harder than the past years. In 2010, there were 22 million graduate and undergraduates students that we enrolled. About two years ago, there were only 19 million students. With more people enrolling, of course there will be more debt. However, with the cost of tuition rising, more people are borrowing more money to pay there funds. Currently today, there are only 10 percent of borrowers that have more than $45,000 in student loans.
We are not saying that there isn’t a lot of debt in this world create by student loans. What we are saying is that the debt many people are claiming is ruining lives is very exaggerated. You are the only person who can run your own life. If you want to go to school, then pay for it. But don’t get upset later when you do not have any money. All because you borrowed $30,000 in private student loans. Be concious of what you are getting. Borrow only the amount that you are needing. If you are offered more, then decline. That is where many people run into issues. Is just because you are offered more money does not mean that you are required to take it. This will also help prevent the amount of debt you will be in. Be smart.