The Student Loan program is a double edged sword. On the one hand students can get easy access to money for their collage expenses. On the other hand they often do not read the fine print which makes it possible for their school loan debts to really pile up. It is not an easy choice for young people going to school cost are high and it is really hard to work your way through as we did in my day. In some ways this easy money has made it possible for more people to get a collage education and then an economic education afterwards.
Some people are crying out for debt relief for former students who now can not afford to buy a new home or car because of a student loan they can not get out of even in bankruptcy court. The government loan guarantee to the loan company is that the loan will be paid off by the student. Because students can delay repayment many do but do not understand that the interest accrues and compounds every day. If I make a loan I will pay it off as a matter of personal pride.
The Student Loan program has been good for the universities and has allowed them to raise the price of education. We need to rethink the Student Loan program and perhaps our educational system. Should the state pay for our education from K through BA/BS? Should we go back to only those who can afford a collage education are able to attend?
What do you think?