Free Custom «Student Loans Affecting the Social Fabric» Essay Paper

Many graduates are at the crossroads if there is a reprieve in the economy that will help them to repay their students loans on time.

This has caused them to re-evaluate their lives, whether to delay their marriage or to have children. Most graduates work for longer hours and on more than one job in order just to break even. This is because of the high repayment figures, which consume 40%-60% of their salaries. Their social lives are affected, when they start putting off important family calendar events, such as vacations, in order to be with their loved ones.

According to the Federal Consumer Financial Protection Bureau (FCFPB) the student loans have sky rocketed to one trillion dollars last year, following a rise in the uptake of the loans; and for those, who took many, fell behind on their repayments. This can be attributed to the poor counselling when choosing or applying for the loan. Students usually fail to maximize government loans, which are accompanied by a fixed interest rate, before taking on private loans, which are accompanied with the high repayment interest rates and the implications that last for most of their lives, delaying investment on housing and other major things. Deferring of the loans by some students, who have not yet acquired jobs, is always costly, as the interest usually adds up; thus, one can pay double the principal amount borrowed.

 

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Therefore, it is obvious that the large deductions from salaries of graduates are causing misery rather than what seemed to be a good investment. The sky rocketing interests leave employed graduates with no other choice, but to shelve other important social elements of their lives, such as family life and having children.