More students have debt on student loans than on credit cards, the Wall Street Journal reported this week — $829.8 billion. And since the government has been doing most of the lending, the majority of that money is owed directly to Uncle Sam.
The good news about federal loans is that the interest rates are lower. The bad news is that student loans are not included in bankruptcy — if you need to default, the government will garnish your wages first, then your tax refunds, and so on.
The WSJ report also noted that college tuition is increasing during an economic recession, forcing more people into lending. Meanwhile, an increasing number of non-profit colleges are failing the U.S. Education Department’s “financial responsibility test”.
At times, we do not not need to borrow student private loans as very much as college permits. Please note that it’s ideal to borrow student education loans the minimum quantity possible so that we can lessen student loan debt later. This was a pretty good post. Thanks :)