By: Sarah Horner
College students seem to enjoy a relatively stress free lifestyle, however there are some things that continue to haunt students even after their finals are over; they are student loans.
The truth of the matter is, most lenders want and expect students to default on their loans so they end up making more money. On top of extraordinary interest, they can charge usurious penalties and fees when a borrower defaults. Furthermore, the college student is the perfect victim, not only are they borrowing sometimes upwards of $100,000 their ability to repay these loans is extremely risky.
Student loans are a very tricky business, the laws and regulations are very harsh and many students do not understand the repercussions. Some things to know when taking out student loans is that, first, they are the only loans for which bankruptcy protection is prohibited. Furthermore they can only be consolidated once, so basically you are stuck with your original terms.
Many students facing the enormous threat of student loans have gone so far as to flee the country and even suicide to try and escape them. A college education is one of the best investments you can make, however if you graduate without a job and with a pile of debt, it can take you decades to get out from under it.
References:
http://www.boston.com/ae/books/articles/2009/03/12/the_case_against_student_loan_lenders/
There are several types of loans that are available further you should credit carefully and reason about your options before taking out a loan. However, if this is the only method you have for baldachin the cost of your tuition it will be money well spent once you’ve managed to repay the debt. http://alexisamerica.com
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