Providing student loans to people who are looking to educate themselves makes total sense. Common sense would tell us that we should be giving out loans to people at very low rates so that in the future, they can be paid back without putting the loanee at risk. Unfortunately, that is not the case.
When talking to most young adults applying for graduate schools, I hear that if they don’t get into the top school, they aren’t going because the cost is so high that without the top degree in hand, they are concerned that they won’t land the job afterward that will allow them to pay off their loans. This is mostly for lawyers and MBA students but how about artists, engineers, architects?
I was talking to someone who just got into graduate school. He got into all of the top schools in his field. His field is an important one and everyone who wants to better their education and brain should be able to do so at the right cost. Sure there are grants but none of them cover the entire cost. He got the biggest grants but still has to come out of pocket a significant amount of cash. I wondered if he should take out a loan instead of putting up the cash but he told me the student loans that he was looking had interest rates of 8%.
8%? The fact that lenders take advantage of people who are in need of a loan to get their education, undergrad, and graduate, is absolutely disgusting. As I have learned from my experience with FEMA, our Government is a business that tends to take advantage of its own. The Government should have a program that gives loans to students, is ridiculously low-interest rates, perhaps 90% under average. Data shows that an educated person has a better impact on the economy and quite frankly their life but when leaving school life for work life, nobody should be wrought in debt to make yourself an educated person.
8%! I just can’t get past it. This is a crisis in the waiting line. At one point, people will default on all of these loans and that isn’t good for anybody.