During my journey of acquiring more advanced education, I have encountered the issue that many of my friends deal with – the student loan. The reason behind this so-called ‘government extra financial aid’ becoming such a controversial topic on the table is that it is compared to a double-sided knife that may subsequently harm those who are involved in the handling of it.
An August report by the Federal Reserve showed that the number of seniors over 60 years of age who still owe school fees tripled from 700,000 in 2005 to about 2 million. From 2005 to now, the college debt of the elderly (due to borrowing or paying for children) has increased more than six-fold from 8 billion to 43 billion USD. Some owe their debts to the decision to go to school when they are older, and some cannot find jobs so they can pay off their debts before they retire. Moreover, this is only part of the total debt that has exceeded more than $ 1,300 billion since 2013 of US students – higher than credit debt. The number of college debt in the United States has quadrupled between 2001 and 2013.
While the number of elderly people accounts for only a small part of the number of people who borrow money for schooling, the impact of these debt increases is burdensome, especially for older people’. People with debt will probably have their social security reduced, leaving them below the poverty line’ said Senator Bill Nelson, chairman of the Senate Senate Committee on Seniors. In a hearing last week. Within five years, fines and interest rates inflated the amount of money now to $ 200,000. Private creditors do not want to ignore the debt.
Besides, debts are increasingly threatening the group about to reach retirement age. Speaking to the New York Times, Lori A. Trawinksi, director at AARP’s Public Policy Institute, said that by 2010, about 11% of families near the retirement age had educational debt with an average debt of $ 28,000. The rising debt burden threatens the financial status of the group of Americans who are about to retire – because rising debt threatens their ability to save for retirement or to accumulate wealth, which could cause them to delay retirement.
Generally speaking, the after-effect of the student loan prevents graduates from achieving their goal in the earliest time. If any of them delays the transaction any longer, the only consequence that can happen to them is that they won’t be out of debt any sooner because the interest rates keep adding up infinitely. As a result, we should take into consideration a number of factors before getting a loan from the government.
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