Description: The article mainly covers the information about the federal program which is related to college ave student loan, we may find some details about its payment, losses, some benefits and the ways to tackle students’ debt crisis.
If you look at the federal program, we consider the federal program to be an access tool, when you’re going to school, it’s a huge amount of money available, as long as you fill out the FAFSA form, when you graduate, that product becomes a credit obligation.
It’s managing that transition from accessing the money which is a good thing, because it helps a lot of underprivileged people go to school to manage it as a consumer obligation, when you get out, you have student loans, we tell you exactly what the loan costs in terms of nominal cost to you over the life of the loan.
We show you your exact monthly payment and then we reinforce it every month with statements that you receive, while you’re in school to try and stem what over-borrowing, we’re trying to educate the student, educate stem over borrowing, think about it, you’re giving money to an eighteen-year-old child, it’s a large obligation, it will last a long time.
I don’t think the cost bought bothers them, but you have to do it with both eyes open, we try to discourage people from deferring the product, while they’re in school, as if they defer the product that creates the most cost in tuition and other expenses has that return-on-investment dropped for many students.
Most of us had student loans a long time ago, but it was a good investment for many of us and it paid off today, the complaint you hear is that people are loaded with loans because of that increasing cost, but are not making commensurate improvement in their income.
If you look at every one, borrowers and non borrowers, it’s about seventeen thousand and there’s a lot of misinformation, so the number of customers in default today is about 16 percent which sounds like a large number of banks that had sixteen percent of its mortgages, default would need a bailout.
Let’s keep this in context, the first one is that two-thirds of those have balances of less than $10,000, so if you want to deal with it, deal with those people who probably didn’t finish school, then, the other piece of it is what the federal program is designed for, it’s designed to give access to people who wouldn’t be able to get money to go to college.
It’s going to have higher losses, simply because you’re giving access to that person who’s smart, who’s a good student, but has no way of getting into school.