Global financial crisis dropped by in 2008. Victims from predatory lending were a lot here and there. Undergraduates, reportedly, were one of the victims most severely hit among 2008 recession moaners. This year, 2011, is considered to be somewhat getting out of the recession. However, the result shows that the number of the college student loaners is increasing.
Undergraduate loaners were about five percent but have increased to 14 per cent just in 3 years from 2004 to 2007. In 2008 it has reached as much as 18 per cent. What makes these fellows more pitiful is their unawareness of how to use more effective system, said the report. The tuition fee for higher education is the most outspoken motive that sh made them a bunch of credit delinquents.
“I have to a part time job but the project that I am doing is so intense that I cannot make spare time to work,” said a student in Art Center College in California. As the bill is not affordable for him, he cannot pay back, so the bill is growing to be 1,700 dollars per month. Students’ requests for easier ways to the payment have been accepted. According to the federal loan plan, students whose income remains low are allowed to delay paying loans. The cutline is below 16,145 dollars.
Students who have gone through private loans came up with an idea about sending financial advisors to high schools. In order to stop the circulation of this main factor of 2008 economic recession students need to be informed, an advocate of students said. Prior knowledge before they head to bigger schools, colleges would be helpful in not getting lost. “My phone keeps ringing from the bank but I still remain unemployed,” said a female student.
It is hard to stop make private loaners from financing. It is one of the factors that the global financial crisis is continuing. “Predatory lending is a very important social issue. It is time to look for an alternative to predatory lending, for example, coming up with a rule for the protection of college students,” said a student.
Paying fees for college is definitely challenging these days. To take safer route for loaning money is to use federal loans. According to a recent study on Project on Student Debt, students in 31 states pay their bills via risks. Experts say loaning from federal government is the best choice they can have. Because of its fixed interest and consumer protection it is a perfect match for college undergraduates.
http://www.cnn.com/2009/LIVING/personal/08/27/student.loans/index.html?iref=allsearch
http://www.good.is/post/community-college-students-need-federal-loans-too/
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