The Debt And Interest Of Student Loans - 1164 Words

The amount of student loans that one accumulates throughout post-secondary education can become a heavy burden. In addition, the study conducted by Scheresberg, Lusardi, and Yakoboski (2014) show that a surprising amount of students are not aware of the financial burden that they have acquired until they are deep in debt and interest. They summarize that: Overall, there is a notable mismatch among college-educated Millennials between their perceived and demonstrated levels of financial literacy, with the form exceeding the latter. They also have less financial knowledge than might be expected given their educational attainment. On the other hand, given that only 29 percent have received financial education through school or work, perhaps low financial literacy is to be expected. This indicates a need for increased financial education, as improved financial literacy would mean more informed financial decision making. (p. 18) Most often, students sign up for loans without fully understanding the interest rates that come with them. At the end of their post-secondary education, students come to fully understand what financial burden they have to pay off and they find themselves stuck with high interest rates. The summation made by Scheresberg, Lusardi, and Yakoboski (2014) of Generation Y is that â€Å"many college-educated Millennials have low financial literacy levels; many are not aware of their low financial literacy; many have not received any formal financialShow MoreRelatedStudent Debt Crisis1380 Words   |  6 Pages A student loan is designed to help students pay for university tuition, books, and living expenses. It may differ from other types of loans in that the interest rate may be substantially lower and the repayment schedule may be deferred while the student is still in education. It also differs in many countries in the strict laws regulating renegotiating and bankruptcy. There are two types of student loan that can be applied which are federal student loan and private student loan. BasicallyRead MoreCollege Graduates Suffering From Excessive Financial Burden As A Result Of Student Loan Debt1657 Words   |  7 Pagesâ€Å"Over the past decade, the total volume of outstanding student loan debt has tripled and is now over $1 trillion† (Jaquette and Hillman). This alarming trend illustrates the immediate need to address the issue of college graduates suffering from excessive financial burden as a result of student loan debt. According to Ozan Jaquette, Ph.D., assistant professor of higher education in the Department of Educational Policy and Practice, and Nick Hillman, Ph.D., assistant professor of Educational LeadershipRead MoreLoan Debt And Voting For A Presidential Candidate1396 Words   |  6 Pagesrecommendation, and many students require loans to pay for their tuition. These loans may appear beneficial at first glance; they permit student s to attend class without working an occupation, concentrate on their schoolwork and possess a relatively low-interest rate which regularly does not take effect until after the student graduates. However, students often overlook the fact that they need to repay the loans in a timely manner. The future is difficult to predict if students will be in a superiorRead MoreDebt Is Every American s Favorite Word1294 Words   |  6 PagesDebt is every American’s favorite word. In America, the population has accumulated $19.4 trillion in national debt, thus why it is the nation’s favorite word. The debt has been collecting significant value throughout the years between various school loans, credit card debt and much more ways to create debt. The average American family owes over $100,000 dollars to the government. Debt is typically created by the different loans needed in order to live in a highly developed country like America. EveryRead MoreStudent Loan Debt Is Not Worth Goin g Into1335 Words   |  6 Pagesdecade student loan debt has risen substantially and is now one of the largest form of personal debt in America, totaling about one trillion dollars, with 71 percent of students who earn a bachelors degree graduating with debt, with the average amount of debt being $29,400. This topic has become a very important issue, with some people saying that student loans could be the next bubble and could do what the real estate bubble did to the U.S economy in 2007 and 2009. If student loans are becomingRead MoreStudent Loan Debt : The American Dream Perceived By Many1294 Words   |  6 PagesStudent Loan Debt The American dream perceived by many is to obtain a college degree to have a successful life. However, many people cannot afford to go to college and are left no choice but to get a student loan. Student loans are intended to help students pay for a higher education, but is it worth the risk of being in debt? The dictatorial definition of debt in the Merriam Webster’s dictionary as a state of being under obligation to pay or repay someone or something in return for something receivedRead MorePay Off Your Student Loan Faster1531 Words   |  7 Pagesoff your student loan faster and you will be able to start saving to buy a house, you will be able to start your wealth building efforts, and you will be able to start a family earlier. Your student loans are like a mortgage without the house, especially when you consider that many people’s student loans would easily cover the purchase of an apartment or house. Pay off your student loan faster, and you will be able to get on with your life a little sooner. H3 How To Pay Your Student Loan Faster Read MoreDebt Is A Duty Or Obligation Pay Money Or Render Service Under An Express Or Implied Agreement?1248 Words   |  5 Pagesin 2013 had a student loan debt with an average of $28,400 per borrower† (________________________). Debt is a duty or obligation to pay money or render service under an express or implied agreement. So when one takes out a student loan one has made an agreement with the lender to borrow money for a certain amount of time. Every semester the cost continues to rise for college students across the country. Instead of considering only tuition when applying for school, prospective students should researchRead MoreWhy Is Not Student Loan Forgiveness?1161 Words   |  5 PagesStudent loan forgiveness remains such a vital topic to many individuals because the exorbitant costs of post-secondary education require a majority of students to take on debt in order to simply improve themselves and advance intellectually. Th ousands of students are graduating college every year, each with several thousands of dollars in debt. This area is important to research because it will provide insight into the futures of all college students immersed in the deep debt that appears to consistentlyRead MoreRefinancing Your Student Loans972 Words   |  4 PagesRefinancing your student loans means that a private lender is essentially buying your Federal student loans, paying them off, and creating a new loan that it will lend to you on new, original terms. The new terms of your refinanced loan will be based off your credit reports, credit score, and other requirements. The new private loan terms include, among other things, a new interest rate and potentially a new term (the length of time over which you have to repay your loan). For example, you could