College Debt Continues to Rise in 2017
When we are tackling the issues of the college debt crisis, we are only talking about the rapid increase in terms of outstanding debt. However, this does not really tell us about the effect of the debt to college students who need to take a loan to support their college education. The numbers are increasing since the government failed to take the increasing cost of the college education into account. The burden of shouldering the cost of college education has mostly shifted to the families. Though there has been an increase in the revenue in terms of the income tax on the graduated students, the government is not sharing the cost of college education.
The Negative Impact of the College Debt Crisis in the Student’s Life
Students who have incurred a massive college debt are 10% more probable to experience delay in major life milestones such as getting married, having their children, buying residential property and opening a new business venture. It is also possible that their college debt can affect their employment and career plan. Some of them choose to take a job that is outside their expertise which is also known as underemployment. There are also individuals who will need to take more than a single job and those who are forced to take jobs that they do not desire to settle their debt.
In addition, the circumstances have been made worse by the loan providers. According to the study, most borrowers tend to pay more than they owe since the loan providers are cheating on them. They are giving the borrowers the wrong information, and they are processing the payments in the wrong way. This prevents them from enrolling in a more reasonable plan. Most loan providers will also neglect to take the proper action when they receive a complaint.
Fortunately, there are effective things that can be done in order to minimize the impact of the increase in numbers on the student debt crisis. Exercising restrain in terms of spending is one of the first steps that the authority can implement. They need to raise the awareness of the students in terms of spending. Educational institutions and the federal government should be able to track the amount of their graduating students with a massive college debt. This data can be used in improving the counseling in student loan.
In addition, the college students should also be given the fundamental tools that will limit their borrowing. For instance, the financial aid managers should be allowed to minimize the loan limit contingent upon the academic major and their enrollment status. Students that are enrolled as part-time should not be allowed to borrow the same amount as the full-time students. Furthermore, they should also assist the student in understanding their loan. This will allow them to minimize the impact of the college debt crisis.