As rates rise, dreams shatter
I know this isn’t a good time to talk about life after college but as the interest rates are set to jump again, this is the perfect time to highlight the plight of the students. You are spending a big part of your youth pursuing higher education, taking ever-costlier loans to pay for this high-quality education. And THEN, you join the ranks of the educated poor who are trying hard to repay their student loans and make ends meet.
As interest rates are hiked yet again, this is one story that will be repeated time and again unless some action is taken. Today, many people in their 30s and 40s are forced to watch their budget minutely, juggle bill payments and live from one month to the next. They just don’t have enough money to save up for that retirement that they richly deserve, and many of them go without what we would consider basic necessities today: dishwasher, cell phones, cable TV, new cars… the list is endless.
And here is the worst bit: Experts don’t see the situation getting any better in the near future. According to statistics, around 40 percent of students are graduating with ‘unmanageable’ debt loads. In lay terms, this means that their salaries will not be enough to help them pay back the loans.
Of course, a college degree many give a student a higher earning potential, but a costly education has its downsides as well. Burdened by student loans, many graduates are staying away from socially critical jobs like teaching and social work and are looking for well-paying jobs that will help them repay their loans in real time.
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