What did you know about your student loans before you took one out for college? Did you have an idea of the amount and how you’d pay it back?
Student loans to help you pay for college may seem simple. Unfortunately, appearances can be deceiving. Numerous types of federal student loans and repayment plan options and lots of private loans exist. Repayment options and forgiveness of some loan balances are not widely or well understood.
An article posted on yahoo finance by Sheila Blair entitled, Former U.S. official on student loans: Borrowers need clarity before payment pause ends stages that Two years ago this month, former President Donald Trump announced that he was suspending federal student loan payments for 60 days as one of many economic relief programs launched in response to the COVID 19 pandemic. He later extended this “payment pause” until January 2021, which was extended again by President Biden to January 2022, and then again through May 1 of this year.
In announcing the extension to May 1, the president and his administration strongly communicated that payment obligations would resume and that borrowers needed to prepare. Then last Friday, the president’s chief of staff, Ron Klain, suggested the pause might again be extended, pending a decision on whether some portion of student debt should be cancelled altogether.
Reported by Jeff gitlen for lend edu, l Just about everyone has heard about student loans. They are constantly mentioned in the news—often with much scrutiny and, more often than not, in a negative light. While it would be nice to attend college for free or without having to take on debt, the truth is that student loans are often necessary for those looking to obtain a higher education—especially considering the rate at which the average college tuition continues to increase.
How education is funded and how students pay for it has changed significantly since the inception of the first American colleges. Postsecondary education was once free or very inexpensive The student loan system that now saddles most students with significant debt is only 62 years old.
The concept of lending students money to finance their education is in fact an ancient one dating back as far as 1240. Though students at medieval universities were typically supported by their wealthy families and patrons, somewhat informal systems of loans were established for students who might need them.
Students of today’s generation are facing financial struggles that were completely foreign to past generations. On top of the already difficult student loan debt challenges, students of today also have to deal with the increased costs of housing. To even just have the initial down payment for a home is a major struggle for many millennials after all of their hefty costs of studying.
Figures have found that since the 1980s, the cost of an undergraduate degree has increased by a shocking 213% at public schools, and 129% at private schools.
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