High Course Fees Make Student Loans Meaningless!Debt Management | September 30, 2009 at 6:38 am
Are you just out of high school and all enthusiastic about taking the plunge into college education? Congratulations! You must be very enthusiastic about Uncle Obama coming in with a $ 6 billion student loan package for funding your higher studies. Well, I don’t want to dampen your enthusiasm, but let me tell you that though the Federal money aid is well intentioned to help you out with your academics, it might prove to be a costly affair for you.
These days, professional education comes with skyrocketed prices and you might be spending most of your initial earnings on repaying the loans. According to a Mint Student loans infographic, in collaboration with College Scholarships.org, this year, a college fresher is expected to pay $148,454 including your public and private tuition fee, boarding and loading and freshman’s fee. A law degree is going to put you in a student debt of $ 92, 937 and a medico degree will burden you with $127, 272. Are you ready to pay up all this with your salary later? All these charges are higher than the college charges of last year.
38 % of college graduates who avail the present student loans will take about 10 years to repay their loans! Now, that’s quite a bit of your earnings isn’t it and quite a bit of your earnings put aside? You could have used that for making your finances grow in these economically hard times. About 44 % of you are expected to postpone buying a house and about 28 % of you will delay giving birth to children- little bundles of joy that are the essence of any delightful family.
This Federal Overhaul of money as student loans is the best in 3 decades and is well intentioned by the government to make college education accessible to more students. Especially after the recession, parents might be in a bad state to sponsor their children’s education. This funding will give the students an opportunity to finance themselves independently. But the cons of this project are that, this loan system has resulted in the prices of courses soaring up beyond limits. What’s the point in making loans available when there is a steeper rise in prices? If students are really meant to benefit from these loans, the courses that they take up should be affordable.
This student loan with a corresponding increase in course fees looks like a way of extracting money from students in disguise. After your education, you’ve got to pay up when you get a job. No one knows how long it’ll take for the economy to recover and the financial condition of the country to be good again. When conditions are such, can we expect the present day college students to land up with high paying jobs that these courses seem to promise? After all this job slashing during the recession, there will be huge competition and in an economy that is healing itself you can’t expect thousands of vacancies to be created overnight because even the employers will be thinking of first building up their financial resources and not spending too much on human resources. According to the AFL-CIO Young Workers Report and blog and Prime Targeting the young have been so very adversely affected by the recession that even 30 year olds are finding it difficult to finance independent livelihood.
If the Federal government wants that students should be really benefited from its loan overhaul it should slash the course fees first, otherwise the entire effort will prove to be a futile one.