$tudent Loans - The Truth
In today's world, the cost of higher education is constantly rising. As universities continue to spend more money on utilities, resources, and faculty, costs disperse throughout the institutions' finances and end up on the students' tuition bills.
Student loans enable many people to attend college who otherwise would not be able to receive an education. Even in the modern economy, it is possible to pay off student loans in a reasonable amount of time with a good, stable job with a high salary. However, getting to that point takes so long that the debt collectors show up long before any well-compensating job offers do.
However, even with a meager salary, is is quite possible to pay off a loan over time (albeit a longer one than would be required with proper compensation). Or at least it would be was it not for interest rates.
Due to the ridiculously high interest rates (often as much as 16%) on student loans for colleges, students often default on their loans. The Department of Education’s budget documents project that 25.3 percent of undergraduate Stafford loans (measured by dollars, not numbers of loans) issued next year will default at some point during the borrower’s repayment term.
Before the problems with the exorbitant rates of education can be solved, something must be done about the ridiculously high interest rates on student loans. In an area where it takes so much time to get to a level of even basic stability, the massive monetary annexes on student loans are the true flaws of the system.
If we want to solve this problem and avoid being driven mercilessly into crippling debt, we have to do something about it. Don't apply to for-profit schools. Contact your senators and ask them to protect private loan borrowers. Sign this petition to create legislation to implement measures for forgiving student loans: http://pac.petitions.moveon.org/sign/support-the-s...
And last of all, borrow responsibly.