A Crisis waiting in the Wings with Defaulted Student Loans
The increasing cost of education is really making life difficult on the part of the students. From getting admission to buying of books and other reference study materials, great amount of money is involved in it. This is leading the students to go for a loan. After graduation, due to lack of sufficient employment opportunities, a complicated situation is arriving and that is the defaulting on student loans and becoming defaulted student loans. This is happening, generally in the case of private student loans, because federal loans get an extended time period and that is 3/6 months or more at a stretch.
In order to complete a scheduled educational program, it becomes very much necessary on the part of the students to seek some external financial assistance. This external assistance is known as student loan and it can be taken from either the public or the private financial sector. Due to the increase in the overall cost of study and other related matters, the student loan is becoming increasingly felt necessary. The students can approach any type of institution and proceed according to their set guidelines to seek financial assistance. Though the Federal student assistance programs are mostly favored, because of their extended or grace period of loan repayment.
But increasing costs are really not moving matters and the case of defaulted student loan has almost crossed the $ 1 trillion. This is really becoming a concern on the whole and really making things difficult for the economy as well as the individual students. But this is not the end of all and there is hardly any solution in sight. The complete system needs to be overhauled with private student loan consolidation, should be at the centre of attraction. Repaying private student loans with high interest rate and hardly any extended period along with penalty is making life difficult.
There are very few students, who could deal with the criteria of applying for the Federal Educational Assistance program, since there are many rules and regulations. This makes them almost certain to go for the private student loans. But getting the loan and repaying it is almost two different things. This makes them Defaulted student loans. But it is also a matter of fact that without going for any kind of student financial assistance or student loan it will be almost impossible on the part of the students to complete their education and proceed for a good employment opportunity.
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