Are You Prepared to Obtain a Student Loan in The Hope of Leading a Better Life?
Many of us have received information from our childhood that getting into college is the only method to achieve success in life. Many people, however, find it difficult to get a college education because of the several downsides which are attached. Unfortunately, we seem to gloss over the matter because we have been convinced that a college education is a requirement which cannot be overlooked.
Attending college can be a great time for students but it can also be a burden for others. It can be difficult for an 18-year-old to decide whether he or she should be getting a college education or not. The age of the individual convinces them to educate themselves without proper thought which shouldn’t be a concern if the education was available for free. However many are required to make the biggest investment of their life in the form of student loans.
We are not suggesting that students should be skipping college education. It is essential for students to understand that an education loan should not be considered as a requirement but as an investment. There must also weigh the rewards of the education loan against the costs and the risks. Most importantly they must bear in mind they should make every attempt possible to reduce their debt.
What Should Students Consider When Obtaining A Student Loan?
53% of Students Graduate from College Within Six Years
Older people describe quality education as limited to four years which was the norm in the days gone past. They were earlier known as 4-year degrees. However, apart from a selected few the others either drop out of college or fail to complete their college location even after six years. Most of the students attending private colleges do not complete their education before six years. Therefore, the plan for quality education has a set of risks associated.
Costs of College Education Are Rising Faster Than Inflation
The costs of college education are constantly rising and people may wonder whether inflation is contributing to this phenomenon. However, education costs have been increasing even when inflation had stabilized and therefore, the prices of education are rising up for students, especially for those coming from low-income families.
Student Debt Is Reaching Alarming Proportions
Student Debt In the United States is at its highest point. Presently, student debt stands at a frightening $1.31 trillion and the loans outstanding have doubled over the last seven years. The increase is higher than any other household debt. 44 million individuals are saddled with an average debt of $37,000. The debt is leaving many individuals to start their careers with a negative balance in their accounts.
Textbook Costs Are Rising Faster Than the Cost of Tuition
The costs associated with a qualitative education does not only include the cost of the tuition but students must also consider the cost of housing, travel, and textbooks. Inflation is, unfortunately, affecting these costs which students will be unable to avoid. $1200 is the figure recommended by the College Board for students as the budget for textbooks but the costs of textbooks have risen by 73% after 2006 which indicates that the rise was four times higher than inflation.
Is it worth going through the troubles mentioned just to get a college education? Would it not be better for students to consider joining a community college where the costs are generally cheaper and can get them through their first two years of pre-requisite education?
Students can simply begin working and make an attempt to get an apprenticeship of some type or to learn the trade of plumbing or welding or even enlist in the military. As things currently stand, students must consider whether they really benefit by getting a college education or will be better off skipping college education altogether. They should also consider the fact that 40% of student loan borrowers are not returning the money they borrowed and the outstanding amount which is due is in the region of $200 billion.
Paying off debt can be a difficult task for most of the students and the government does not hesitate to initiate actions for the recovery of the outstanding dues. Under the circumstances, students that are enthusiastic about attending college, must try to understand whether they are prepared to prolong their misery after obtaining student loans in the hope of leading a better life in the future.
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