Forum: In recession, people can't afford student loans
The government must intervene now to prevent more young people from defaulting on their student loans. With high unemployment, few job opportunities and rising tuition rates, people cannot afford to pay for their education. Educational opportunity was supposed to be a way up and a way out for millions of poor and working-class Americans.
But their education has become an albatross around their neck, as they are saddled with thousands upon thousands of dollars in debt.
According to new figures recently released by the Department of Education, 12 percent of borrowers who began repaying their federal student loans in fiscal year 2007 already have defaulted - an increase from 9.2 percent the previous year.
Because limits on federal student loan borrowing did not keep up with the rising costs of college over the years - and the limits were only recently increased by Congress - private lending has skyrocketed.
In the 2007-08 school year, students borrowed $19 billion in private loans, a sixfold increase over a decade earlier, according to the College Board.
During that time, the lucrative student loan market more than doubled, from $41 billion to $85 billion. Over the past decade, private loans jumped from 7 percent of all student loans to 23 percent. These private loans often have exorbitant and variable interest rates, highly punitive late fees and charges, and are based on the borrower's credit rating rather than his or her need.
The unregulated private loan industry, much like the unscrupulous and predatory subprime mortgage market, exploits borrowers with an expensive, deceptive and unfair product.
In a 2008 study, the Boston-based National Consumer Center concluded that some private student loans are so expensive, they are destined to fail.
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Student Loan Repayment- Free Significant Guidepost For Students
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Working out your student loan
At the time of writing, the British Government has a student loan calculator that is designed to help you establish how much of a student loan you can expect to receive. Usually, at this time of year, young people who are approaching their A2 exams are reading up on student money advice to be found online and looking up various other student money tips.
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College Student Loan Information Site Has Good News for Future Borrowers
StudentLoanCenter.biz, a Web site offering helpful information and advice about student loan debt and borrowing, is informing their visitors about encouraging news from Congress
Is Consolidate Private Student Loans less your Burden?
He completed his degree and is half way to achieving his dream of earning a master's or more, but to continue offering to go in higher education diploma to take a few Consolidate Private Student Loans. These types of loans are for the specific purpose of students, who go to a higher education degree or doctorate in a teacher, but these loans are generally more expensive to repay student loans, then traditional view that they are lending unsecured.
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New health bill changes student loan procedures
WASHINGTON - Finalizing two major pieces of his agenda, President Obama on Tuesday sealed his health care overhaul and made the government the primary lender to students by cutting banks out of the process.
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