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Emerging Student Loans

What if someone asks you to sign for a student loan? Who will finance the loan? Probably you parents or grandparents. Just assume you want to take admission in the college of your choice and you know your family has all the wealth to support the college fee, excluding all the loans and grants. What if you come across a merit award of $10,000 being offered by this college? Won’t you count it as a bonus and avail it? A cake with topping tastes more delicious than a plain cake. Similarly, you would definitely seek interest in availing the scholarship being offered.  Happy enough, now you can pressure your mom and dad to buy you some other stuff you want because you are helping them save a lot of money that would have been invested into your studies otherwise.

Unfortunately, financial aid which is deemed as the lifeline of poor students is not being utilized to its core purpose. It is being used to attract the students from well-off families. Same is the case with the public offering schools, which are taking the support of money to lure most of the well qualified and intelligent students. Thesemerit-based scholarships are used as a ladder of win in a competition rather than a help anymore. By enrolling highly qualified students, they can increase their standards as their average test scores naturallyincrease, which as a consequence assist them to gain popularity. One conclusion is pretty prominent from this situation that state schools are demonstrating a ruthless attitude towards the poor, needy children who actually need the need-based scholarship. No wonder, it would be difficult for them to cope up while facing increasing cost of tuition and decreasing affordability.

When you cosign for a loan make sure that you are responsible for it as well. If the borrower is not able to pay, then you have to pay for it.  If the borrower gets late to pay for the loan, then your credit gets stolen. This might create a bad credit history of yours, and you might not be able to attain the other loans because business usually doesn’t want to operate with individuals who already have a lot of debt. There are also some cases in which the lender will try to collect the cash from the cosigner even if the borrower is not able to pay. Now a day’s undergraduates and graduate students together are able to borrow around $15 billion in new private loans each year. Nearly $105 billion outstanding private student loans make up only 10 % of 1.5 trillion in total student loan debt; the rest is made up of federal student loans.

Out of state students have benefited from so many universities in U.S because of the increase in merit aid. Sources reveal that from 1998 to 2012 there was barely a change in the states’ provision ofneed-based scholarship whereas support for high-incomestudents rose above 500 percent. Sources also tell that the support for the non-needy student is also increasing rapidly at private colleges. A report suggests that packages of aid have heavily relied on federal education loans, but anenormous question arising here is that if the scholarships are kept for theneed-basedstudents then will the universities, colleges and state schools be able to survive in the competition? Will their popularity decline?  Will their quality academic drop?

My perception regarding this issue is that an asset should be utilized for its core purpose rather than using it for some other purposes which are immodest and unethical. A university can’t necessarily just increase its reputation by enrolling just brain gifted students. It should have enough capability to obtain all types of students and maintaining their academic status to such a level that their name automatically becomes renowned

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