Student loan delinquencies are rising in the United States (and so are debt rates) and we should ask ourselves: are we really surprised by all this?

Everyone knows what a student (or college) loan is: it’s very simple, it’s just “another loan” that is actually designed to help college students pay their tuition, living expenses, books, and things for the style. The difference with other types of loans is that (i) the interest rate is significantly lower than a “standard loan” (the one you might get to buy a car, for example) and (ii) the repayment schedule is deferred for the entire duration of education. Acceptance of a student loan, of any type, must be done with the utmost care, and the student must know the basic facts and total numbers of the US: – The current outstanding student loan debt in the United States amounts to to more than $830 billion; – Almost 14.5 million are university students who enroll in the university; – Each college student in a higher education country (but this is just an average figure) nearly $11,000 to attend college education.

The numbers above are impressive and we may wonder how the US can keep up with this huge deficit of higher education loans that seems to be widening… Anyway, sure a student loan has some advantages, as shown He said, in particular, the 2 The main advantages of a student loan over conventional loans are: 1) Lower interest rates; 2) Easier payment terms.

You may have a private student loan or a federal student loan. For a federal student loan, the Federal Direct Student Loan Program, also called the Federal Direct Loan Program or FLDP, offers low-interest loans to students (and parents) to help pay the cost of a post-graduation college education. high school. The lender, in this case, is the United States Department of Education and not a bank or a financial institution, such as SallieMae for example (and in this case we would be talking about a private loan). For the sake of clarity, also consider that until recently there was the Federal Family Education Loan Program, or FFEL, the second largest of the US higher education loan programs initiated by the Higher Education Act. of 1965 and funded through a public/private partnership. Following the passage of the Health Care and Education Reconciliation Act of 2010 on March 26, 2010, the FFEL Program was eliminated and no further loans were allowed under the program after June 30, 2010. In other words, following the passage of the Health Education Reconciliation Act of 2010, the Federal Direct Loan Program is the only government-backed loan program in the United States.

In this article titled “Dark Overlords of Student Loan Debt,” Vox Day (a blogger) shows that the perks of a college loan (and the value of a college education) can be a bargain:

…the value of a college education has not only declined significantly […] it has also been stabbed by the construction of a methodical system of financial looting…

We invite you to read the entire article and find out for yourself if that is the case and/or you are affected by the dark lordsPrayed Gods depending on your point of view, student loan debt and whether in fact these programs are a scheme… What’s important to note is that college has indeed always been considered a worthwhile investment, but that’s right because we’re Speaking of “investment,” a college student (and their parents) should stop for a moment and think about the ROI of college.

Perhaps the value of college has declined over the years, perhaps that value is no longer a “great” value as it had been for the older generation, perhaps the ROI of a college education could increase substantially if, instead of considering private education, consider a public education?

There is certainly no one answer or one answer that works for everyone, regardless of your unique situation, your life goals, and most importantly, your financial situation and whether your student loan is private, federal, or a combination. private and federal. student loan.