The Benefits Of Student Loans

Student loans were created in order to help students pay for their tuition, housing and books. These loans are not like most; the interest rates are much lower than other loans and the student is not responsible for making payments until they are out of school. This is an attractive method for students to delay their payments while they are enrolled in college. After all, most Americans would agree that obtaining a college degree is a crucial and required step in order to live a successful and prosperous life. While student loans may seem like a tempting option to repaying your tuition and other schooling expenses, you may want to proceed with caution. The United States currently has about 40 million Americans with at least one outstanding

Roughly 17% of these borrowers are either behind on their payments or have defaulted on their loans. Unfortunately, these loans are preventing graduates from being able to purchase their first home, start a family, and even save for

Parents used to always take the burden of their children’s loans, whereas that is not so much the case nowadays. Rates were similar to what they are today, but the cost of tuition and living expenses have significantly increased over the years and it is not even close to what it used to be. College costs have increased 1,120 percent over the past 30 years. Student loans were introduced back in the 1950’s. Students that were studying only towards specific degrees such as engineering were accepted. Requirements changed in the 1960’s when the Higher Education Act of 1965 was enacted. The purpose of this act was to promote higher education to become more fair and equal to students who wanted to further their secondary education. This meant that students did not have to study just engineering in order to be accepted at a university. College has always been viewed as a higher level of education that most wealthy families were able to send their children away to. Middle-class families could also send their children away but it would essentially become more of a financial hardship for