Student Loan Crisis
One of the major requirements for succeeding in any career is to obtain a degree and have experience in the field of study. With the cost of college constantly increasing by 1,120 percent in the past 30 years, so many people seek financial assistance from the government such as loans. “Student loans have been accumulating since the late 1980’s drawing near an astounding 1.2 trillion dollars as of May 2013”( CFPB, Par. 1). For students the deals are appealing because it gives a sufficient amount of time to pay back the loan. With student loans it provides an educational opportunity for students who cannot afford to pay out of pocket. The obligation of having to pay back the loans itself has an effect on the students themselves, …show more content…
Little do they know, student loans do very little damage sometimes just taking down a few numbers, which isn’t huge damage. “35% of FICO scores are impacted by the ability to make payments on time”.( Washington Post, par.5 ) Taking out a student loan can actually benefit credit wise and school wise. Being able to attend school without worrying about paying out of pocket and build credit.
The downfall of borrowing money from the government is not paying back what you borrowed leaving the debt collectors to follow and harass until they get their money back. Debt collectors can contact whenever by phone, letter, and email to collect the debt as long as they are following the rules. The rules of debt collectors are, they can seize and automatically take out the consumer’s social security benefits, Supplemental security income, veteran’s benefits and many other federal benefits one is receiving. Not paying back student loans has a great effect after graduation.
There are many pros and cons to receiving student loans, but in today’s generation more students are dropping out of college because the cons seem to outweigh the pros. Although students can benefit from loans by focusing on achieving academic success rather than worrying about financial woes. Paying the money back may cause more detriment to the students life if they end up not being able
One of the major requirements for succeeding in any career is to obtain a degree and have experience in the field of study. With the cost of college constantly increasing by 1,120 percent in the past 30 years, so many people seek financial assistance from the government such as loans. “Student loans have been accumulating since the late 1980’s drawing near an astounding 1.2 trillion dollars as of May 2013”( CFPB, Par. 1). For students the deals are appealing because it gives a sufficient amount of time to pay back the loan. With student loans it provides an educational opportunity for students who cannot afford to pay out of pocket. The obligation of having to pay back the loans itself has an effect on the students themselves, …show more content…
Little do they know, student loans do very little damage sometimes just taking down a few numbers, which isn’t huge damage. “35% of FICO scores are impacted by the ability to make payments on time”.( Washington Post, par.5 ) Taking out a student loan can actually benefit credit wise and school wise. Being able to attend school without worrying about paying out of pocket and build credit.
The downfall of borrowing money from the government is not paying back what you borrowed leaving the debt collectors to follow and harass until they get their money back. Debt collectors can contact whenever by phone, letter, and email to collect the debt as long as they are following the rules. The rules of debt collectors are, they can seize and automatically take out the consumer’s social security benefits, Supplemental security income, veteran’s benefits and many other federal benefits one is receiving. Not paying back student loans has a great effect after graduation.
There are many pros and cons to receiving student loans, but in today’s generation more students are dropping out of college because the cons seem to outweigh the pros. Although students can benefit from loans by focusing on achieving academic success rather than worrying about financial woes. Paying the money back may cause more detriment to the students life if they end up not being able