Can Student Loans Be Beneficial to Students?
Over past the past decades a college education has become increasing more expensive and there is no shortage of students enrolling in college. Today enrolling in college and graduating with a degree is nearly impossible to do without taking out a loan, because most students would not be able to afford tuition without them. While there are benefits to students loans, but the good does not exactly outweigh all the consequences.
CESI a non-profit credit counseling organization explained in their article some benefits with federal student loans. One benefit is Interest rate deduction that allows students to have a maximum of $2,500 or the amount of interest they paid removed from their taxes annually. Most students are unaware that this benefit exists but even more will be disappointed to find out that it will only benefit those students who work and go to school. When taking out loans student tend not want to all in the information concerning the loan so they are left out of the loop of how much money they are actually going to owe after graduation. The most popular loan taken out by students is the Parent Plus loan, because no student can take out a loan to their name since they have no source of income. Thus students leave their parents to deal with anything that regards their loans
There are other benefits that are correlated with federal student loans. The Atlantic has found three more benefits for students. One benefit they mention is that without the government providing loans for students, banks and loan companies will be the ones in charge of loaning money. Banks will not treat students any different from normal clients, if students are unable to make payments there will not be granted an extension they will expected to pay just like everybody else regardless of financial status. It will also make it harder for lower income students to qualify for a loan as banks will not give money to people who will struggle to pay them back leaving only those financially well off able to afford higher education. The government provides the easiest way for students to receive loans in order for them to be able to afford their education regardless of their financial background or any other factor that will prohibit them.
In conclusion I disagree with CESI because although they list benefits of student loans they do not list any of the consequences. The benefits that are mentioned will on be beneficial for students who will complete their degree, the second they choose to leave school they will have to start paying back their debt. They also fail to mention that it will be the students who will have to payback their loans after graduation and their six month grace period not their parents. Both CESI and The Atlantic have it wrong with the information that they are providing. The benefits of student loans are of course listed but they do not mention any of consequences that come with the loans that need to mentioned every student.(510)