08-24-2022, 08:30 AM
The current college loan program has made attending college more expensive. Large Loans are easy to get and as long as students can get them, costs will continue to rise. Just like with medical care,home ownership, shoot, even with new cars these days, we focus too much on how to pay not how to control the actual price of the product.
The cost of college for many years has far outpaced the rate of inflation in part, because students had easy access to loans. Universities, gloss over the realities of the actual costs of these loans when talking about them to students and parent because they only care about getting their money. So many families have gotten in too deep because they didn’t understand the real cost of the loans or the real world salary implications of their major. There are far too many stories about people who have spent decades paying back the principle of their loans only to still owe decades of payments due to compounding interest.
I have no problems with a $10,000 loan forgiveness of federally backed loans. But there needs to be proposals to fix the overall program at the same time, or we will be right back where we began. Loan amounts, interest rates, payment structures, student’s earning potentials, student progress towards graduation, universities cost control measures, etc.
The cost of college for many years has far outpaced the rate of inflation in part, because students had easy access to loans. Universities, gloss over the realities of the actual costs of these loans when talking about them to students and parent because they only care about getting their money. So many families have gotten in too deep because they didn’t understand the real cost of the loans or the real world salary implications of their major. There are far too many stories about people who have spent decades paying back the principle of their loans only to still owe decades of payments due to compounding interest.
I have no problems with a $10,000 loan forgiveness of federally backed loans. But there needs to be proposals to fix the overall program at the same time, or we will be right back where we began. Loan amounts, interest rates, payment structures, student’s earning potentials, student progress towards graduation, universities cost control measures, etc.
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