The Danger of Student Loans
In the United States, college students who received a student loan owed an average of $26,000. Because of this dire situation, students must avoid receiving any type of student loan to avoid a debt that cannot be paid. A student must know the definition of Economics, Finance and Money. What is Economics? It is the process of how to make a living. What is finance? It is the process of how to manage your money.
What is money? It is a proxy of man’s ability to reason, create and produce. If a student knows these three then there is no way they can be tricked into getting a student loan. Student Loans were made to provide financial aid to any student who wished to graduate college. All they had to do was to pay off the loan. After inflation adjustments, students now are borrowing twice the amount of money a decade ago.
As of 2013 the Student Loan debt sky rocked to 1 Trillion Dollars adding to the country’s national debt. Now how do we pay that off? Many people believe that it’s okay to get a student loan as long as they pay it off later. That’s good to think about. “So I’ll just get a loan and pay it off after I graduate college. Then I’ll get a good job, make lots of money and pay it off in time.” Good plan? A recent survey showed that 53% of college graduates are unemployed.
Also 37.8% of college graduates worked in jobs that didn’t require a college degree and received minimum wage. Some students are fortunate enough to be able to pay their debt. As for the rest of us peasants we must work (if we can find a job) to hopefully one day pay off our loan. More than 15% of people over 50 are still paying off their student loans. President Obama fully paid his student loan at the age of 43.
Many students are unaware that they are taking a college degree that is worthless. There are no more jobs available in the U.S. Many high schools in the nation have discontinued offering economics classes and many students entering college and receiving loans don’t know what long term situation they’re getting into. Unfortunately some students know the consequences but need financial aid to get through college.
The solution to avoiding student loans is to save enough prior to college to help pay off college debts. Also students should strive to get scholarships to help pay their way through college. Or, if interested students can join the military. There is nothing good about student loans. Our country is on a highway to poverty and there is no sidewalk out of it. So you have to be cautious, educated and conservative.
Work hard, save money and avoid getting a student loan.