Monday, 6 May 2019

6 Reason Everyone Hates Student Loans

6 Reason Everyone Hates Student Loans

It's no surprise that everyone hates student loan except banks. I mean there's such a strong dislike for student loans that even the people that don't have student loans hate student loans but it might not be for the reason that you think. In this article, I want to go over why student loans suck for everyone and why you need to know.

First, let's talk about the people who have student loans. These people don't like student loans because they have to pay the student loans back.

Let me dive a little bit deeper, you are a 17-year-old high school senior and everybody around you is talking how you have to go to college so you can get a good job and become successful

But what people don't tell you is the cost of getting that degree. You're told to go to the best school you can get into even if it's super expensive because it's an investment it'll pay off in the long run but what people don't tell you is depending on where you go 

It might take you a lifetime or more to pay off your investment.

Read: How To Budget And Get Out Of Debt! The Simple Way

1. The Problem With Student Loans

The cost of getting an education has been skyrocketing because school have been increasing the price of tuition like crazy 

Then the cost of giving a student loan has been going up because the interest rate has gone up a lot in the last couple year, so the price of your loan is becoming more and more expensive

The cost of living, the cost of your house, your car, your food, your healthcare has been going up

Your wages that you get after going to all the school haven't been able to keep up with the rising costs

I'm no fortune-teller but you don't have to be a rocket scientist to know that this isn't a good combination, I mean this is why people hate this student loan so much because your education didn't come with a disclaimer of what you're getting yourself into

You are a 17-year-old who might be signing yourself up for a lifetime of payments unless you had some sort of financial education in your life which is why I stress financial education so much on our blog

2. People Hate Student.

90% of money problems have nothing to do with how much money you make. It's what you do with the money you make and if you're never taught how to use your money you don't know what to do with it which is why the majority of people are living paycheck to paycheck

If you can't pay off your loans that's bad news for you

Read: How To Quickly Pay Off Your Debt With Little Income

But there's something that you need to know about student loans,

3. Student Loans Are Special - You Can’t File Bankruptcy on Them 

If let's say you need the money and you went to your friend Nancy, and then you borrow $10,000 and then you took all over the $10,000 and gambled it on the roulette table and lost it, your friends Nancy isn't going to be very happy 

Nancy can take you to court and try to force you to pay but if you really don't have the money you can declare bankruptcy and Nancy will lose that money that she lent you

  • That's how almost every loan works except for student loans. If you go to an expensive school and you get a worthless degree and you get a low-paying job and you can't pay back student loans, well, you can't declare bankruptcy on your student loans

  • You want to know why it's because the government says so and now if you're wondering why can you declare bankruptcy on all of these private loans but you can't declare bankruptcy on student loans, It's because the government is the one that's giving these student loans and so they make special rules

4. If You Can't Make Payment on Student Loans, What Happen Then?

  • If you can't make your student loan payments someone have to pick up the tab. Over 1 million people default on their student loans every single year and 40% of students are expected to be in default by 2023, so who has to pick up the tab, it's not the banks, it's You.

When somebody defaults on their student loans all taxpayers have to pay the price even if you don't any student loans because the government doesn't have any money to issue student loans, they get this money through taxes with tax dollars or they have to borrow the money from somewhere else and then you have to pay that back with taxes plus interest.

  • That's why the student loans game is a game that you're designed to lose, the schools are guaranteed to be paid and the banks are not allowed to lose.

5. Pay Off Your Student Loans If Possible

If you have student loans pay them off as fast as possible, student loans are expensive the fastest you pay them off the less interest you have to pay and the faster you will be able to live your life much easier without student loans

Read: How to Quickly Pay Off Your Student Loans

6. Let Others Student Know About The Cost Of Student Loans

If you are going to college or if you have kids or friends that are about to start college, teach them. We all have our own opinions on college, you have your own, I have mine, but we need to all understand is that you want to minimize the amount of students loans you take out to go to college

You need to understand the cost of your education before you go and drown yourself in debt

I hope you learn something from this article, now you know how student loans work

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