Student Loan Vs. Private Loan

While this is often true, it can create problems when a student does not have the money to pay for a quality education. The cost of college has risen an estimated 250-500% over the last 30 years while consumer price index has only increased by 115 percent during the same time frame (White, 2015; Eskow, 2014). The amount of student loan debt is increasing, along with the cost of college. The income of many young people today cannot keep up with the rising costs of college education and housing. Part of the problem with student loan debt begins when students choose to attend a college that exceeds their financial resources and rely on federal student loans as well as private student loans to make up the difference. Eskow found that even public colleges and universities are becoming difficult to pay for without taking out student loans often averaging $30,000 for tuition, room, and board (2014). Since many people do not have enough money to cover college education expenses, they rely on student loans, both federal and private, to fill the gap. Financial advisor Ramsey stated that often the loans students take out pay “for an off-campus standard of living, and no debt was needed to get the degree” (2013). “The Project on Student Debt reported in 2013 over ⅔ graduating seniors were leaving school with student loans” averaging approximately $28,400 (White, 2015). Taking on almost $30,000 in debt before even starting a career can have a significant impact. It can force people to get a job just to pay off the student loans, not based on what they got an education for prepared for or what they studied. This also can cause a setback in future plans, having to delay many adult milestones due to lack of

The main problems with student debt are the high monthly payments, high interest, short grace period, and repayment programs that does not apply to everyone. Majority of students can’t pay back loans they have borrowed because they aren’t given enough time to pay them off. Students have at least six months to pay off their debt before they get an increase in interest. Over 75% percent of students have to get loans to pay for their first year of college and more (Quadlin). Debt is something we all have to deal with even parents suffer from them as well.

You do not need to take out a student loan to graduate and attend college. Not for any reason at all. One main reason, debt builds faster than you can blink. It creates interest, and once you graduate you will be working for the next 10 years just to pay it off. The second is you will feel trapped, and you really will be. Once you take out a student loan it builds. For many reasons you will feel like it is okay to continue to take more money out. And you will be building interest every day. You will have 6 months from the time you graduate to start paying them back. What are the chances you’ll find a job in your degree? Or that you will even be making above minimum wage. So Amanda thinks taking a loan is okay, she graduates with $18,000 dollars in debt. She will be working for the next 10 years not spending a dime just to pay it back. Then was college really worth it? You have an okay paying job you figure you can catch up to your student debt and start paying it off quickly creating not much interest. Soon you find it hard not having any money for food or bills or a car. Then you fall behind in your payments. You become depressed and stressed out. Always feeling down like you will never live your life again being able to just go get some ice cream with your friends. It can tear you apart along with your friendships, relationships, ect. Most of all yourself, you start to feel worthless. Some think it is a great idea to take out a loan. They wind up getting a great job or have their parents help pay back the debt. They

A problem with student loan debt is that students gain more debt because they are not able to pay off the student loans within the given time which also causes them to put certain life decisions on hold. According to Sophie Quinton debt is a problem for the recent college graduates because “There’s currently no way to get rid of federal student debt other than paying off the loans. while some borrowers are paying off their debts just fine, overall they are adding debt faster than they are shedding it”(Quinton). According to Jamaal Abdul-Alim stated that a “survey - titled Student Loan Debt: Who’s Paying the Price?- revealed a number of troubling statistics about the practical ways that student loans are impacting college graduates in their everyday lives. For instance the survey found that: 49

Going to college may get students an education, but may cause their parents or legal guardians to lose everything they have worked for in the process. While trying to stay up to date with their student loans, they may fall behind on all their other bills. You may even lose your home because “you cannot make your mortgage payments for fear of missing a student loan payment or two” (Beauchamp and Cooper 539). They apply so much pressure on how it is important to pay off your loans that “you struggle to make your car

Financial support has played an important role for college students, especially for university students, whose family could not support their education after they have graduated from high school. Due to this situation, students have to go through a lot of problems with their tuition fees to be able to continue with their education. They always need a large amount of money besides paying for the tuition but also for living, and students have to go through a lot of problems with their tuition fees in order to be able to finish their career on time and earn a better living in the future. Some students will choose to go to work part time while at school, so they can pay for their fees and their own expense, such as gas, foods, and clothing. On the other hand, most of students will choose to take out loans from somewhere else, such as the bank or federal loans. This way, students who choose to take out a loan could focus on their education without worrying about how to pay for their fees. It is very important for students to acknowledges and be aware of the different types of student loans, and all the requirements before students decide to obtain a loan. Because of the raise in tuition leads to the existence of the student loan debt is a burden that is a financial impact on lifestyle changes, such as postpone couples to get married, to have children, to buy a house and to save for retirement.

In order to first understand why there is such a problem with student loans, understanding what they are

Students are taken advantage of with student loans. Most students cannot afford to go to college and turn to student loans. Usually this is a combination of the students, parents, and financial aids ideas and problem solving in order to afford the schooling at the university or college of choice. The student is the one who signs the agreement that they will pay off the loan. Most students do not read the booklet that you have to read before signing, and most also do not read the small print. Both of these pieces of literature include the interest rates that constitute the bill that the student will have to pay in the future. Students do not read these because they are just so excited to be able to go to college and not have to worry about paying all of it during their schooling.

Student Loan is designed to help students pay for University tuition, books, and living expenses. Student Loan Debt money owed on a loan taken out to pay for educational expenses. Rapidly rising college tuition costs have made student debt the only option to pay for college for many students. I think this is very important because it raises awareness for all college students and post college students looking to use their degrees that they have earned. We have a problem in this country of student loan debt. It is keeping students from being able to live out their dreams and holding many students back after college.

In the U.S. students are encouraged to earn a college degree, but the cost of an education turns many away. “Driven by the allure of a decent salary with a college degree, Americans borrowed to go to school. Outstanding student debt doubled from 2005 to 2010, and by 2012 total student debt in the U.S. economy surpassed $1 trillion” (Mian, Sufi 167). There are plenty of opportunities to obtain funds for college, including one of the most common, student loans. A student loan is defined as “a common way to fund education, specifically college and graduate school, and they provide educational opportunities that you otherwise may not be able to afford” (Barr). Student debt is at an all-time high in America. Over half of all lower income

Without student loans, a great deal of students would not have the opportunity to obtain a higher educational degree. Student loans give the possibility to low-income families to be admitted into college without the doubt of not being able to pay. Lastly, some argue that “the upside of student debt is that … it may be possible to earn significantly more or to pursue a more personally fulfilling career, making the debt financially or emotionally worthwhile”(Fontinelle). This argument comes from if one wants to enjoy their job, they need to get the correct amount of education in their field of desire, no matter the debt. Conclusively, there are plenty of upsides to loan debt, but in all, the increased debt of student loans should be subsidized to lessen this

As Young teenagers become adults and start College, one issue that doesn’t seem as a big deal at the moment for many students are student loans. Young college students who don’t have the money, don’t have enough scholarship money, or family who doesn’t have the money to pay, will apply for student loans each year. They amount the student receives can vary depending on the college and what the student has achieved academically. Though interest rates are low with subsidized being 4.29% and unsubsidized being 5.84% ("Federal Student Aid" Interest rates and Fees), student loans still have a huge effect on college students once they graduate. One college graduate’s story helps explain the struggles for most students:

Many students are uneducated about student loans. When I say uneducated I mean that they have no idea what type of loan is best for them, how much they need to borrow, or where to get the loan. There are many resources out there about student loans, but there are not any requirements to review them before taking out a loan. Students are not required to have any knowledge about how the loans work. Students need to have the correct knowledge when applying for a loan, otherwise they may end up with too much debt or the wrong type of loan. A student should not start off their life outside of college in unnecessary debt.

Financial support has played an important role for college students, especially for university students, whose family could not support their education after they have graduated from high school. Due to this situation, students have to go through a lot of problems with their tuition fees to be able to continue with their education. They always need a large amount of money besides paying for the tuition but also for living, and students have to go through a lot of problems with their tuition fees in order to be able to finish their career on time and earn a better living in the future. Some students will choose to go to work part time while at school, so they can pay for their fees and their own expense, such as gas, foods, and clothing. On the other hand, most of students will choose to take out loans from somewhere else, such as the bank or federal loans. This way, students who choose to take out a loan could focus on their education without worrying about how to pay for their fees. It is very important for students to acknowledges and be aware of the different types of student loans, and all the requirements before students decide to obtain a loan. Because of the raise in tuition leads to the existence of the student loan debt is a burden that is a financial impact on lifestyle changes, such as postpone couples to get married, to have children, to buy a house and to save for retirement.

Student have debts one way or the other by continuing their education after high school and the student are pressure by their parents or at the counselor’s office in high school to get a degree. The only way is by college they say, but some student can’t afford it up front and need financial aid to help out. Here is when the student get in trouble by signing the application before they read the terms and conduction what they just sign. Some student think they will find a good job and not worry, because they know they can afford paying the loan back. Lot of employers are looking for experience to quantify for that job. When they have a degree after they finish school and seek for a job and find out they are over quantify or under quantify for that job and there is no way to pay for the student loan at a minimum job or no job at all and seeking for a solution help for the student loan. Some seek a default on the loan and don’t want that in your history records there is a better solution and it a student loan forgiveness. The solution to the problem with student loan debt is to be educated about which loans are best out there. Choice the best one for your situation. Student don’t have to get in debt, because there is other ways to pay for college, like going part-time to college and have a full time job. Some company will pay for you college. Be wise before you sign the loan document and read the terms and conditions.