How Student Loans Can Be Confusing

1581 Words Apr 27th, 2015 7 Pages
Student loans can be confusing. Being a senior just getting out of high school and listening to terms such as, “loan consolidation,” “subsidized loans,” etc. can be a little intimidating at first; it could also be intimidating for people that is returning to school after a long period of time. Either if it’s to take classes online or attending to the nearest college, asking for a huge amount of money to be lend to you to further your education is not something that is done in an everyday basis, and it is not something that can always benefit you.
There are many different types of loans: Private loans, Federal loans, PLUS loans, etc. All of these loans are offered to students that need money to cover their college expenses without having to worry about it while being in school. Federal loans are the most used/popular because they carry a six-month grace period, which means they don’t have to pay anything after six-month after graduating or leaving school. Although this six-month grace period is supposed to give people time to make a plan that could help them repay back, the total student debt is estimated to be around $1 trillion (the average individual owes about $24,000.) and “according to the department of Education, nearly half of students who default on their loans attended a for-profit college” (Meszaros, 2014).
For-profit schools are educational institutions that are corporations and often have shareholders. They operate as a business, and the product they sell is…
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