Pros And Cons Of Student Loans

1021 Words5 Pages
Student loan have been skyrocketing since 2006, and it keeps increasing each year. To make matter worse between 2010 and 2013 student loans rose rapidly, from being 830 billions of dollars to 1 trillions which is not so far from the national debt. In a few years to come student loans might even surpass the national debt. Furthermore the government intends to increase the student loan interest rate from 3.76 percent to 4.45 percent starting this July 1. According to CNBC an undergraduate who borrowed 25,000 dollars with this academic year interest rate of 3.76 percent would pay a 5,032 dollars interest over 10 years, however a student who borrows the same amount for the next academic year which is 2017-2018 with the interest of 4.45 percent would have to pay more than 1,000 dollars in interest. As of right now the student debt is almost 1.5 trillions of dollars and there might not be an end to it increase if something is not done. Because student will not pay their entire loan in 10 years as planned, their interest money rises as well adding thousands of dollars to their debt, because it mostly takes student 21 years to pay off their debt.
In addition to it, students grows to become parents while still paying their loans and their future children get on the same boat as their parents and become bound to their debt, chained to it so tightly that they can not escape it making their life miserable, not being able to go to vacation with their families because they got so many
Get Access