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Dealings with debt arise (part 4)

January 14, 2007

According to the economist in this report, probably the best resolution to the student aid problem and heavy credit card debt problem is pretty cut and dry. The report clearly states in no uncertain terms that the US government needs to endow enough money into financial aid so that college students receiving grants and loans do not need to work when attending college.

Think of it this way, if all college students were capable of working full time and attending school full time – no one would have overwhelming debt issues are high credit card debt.
Even though many students interviewed in the new report are attending school and working many hours as well each week, are planning on moving back home after they graduate to work full time in order to pay off their loans and most of their credit card debt – not all can. In fact, some students plan on getting an extra part time job on top of their new career job just to pay off debt created by higher education, credit card debt – so they can avoid debt consolidation loans.

According to the report, another clear way to improve the existing flawed school debt system of financial assistance is to put into operation income reliant repayable loans.  

Under this idea, graduating college students pay back their student loans based on their post graduation career income. Meaning, college graduates that enter into higher paying careers pay back their college loans faster while those graduates that will earn less money in their career field pay it back slower. But is this the best idea as far as low income students are concerned – read on…

According to the statistics of this new report, college students and their unions strongly opposed the above method however. The main complaint was the program in effect keeps low income post college workers bestrided with credit card debt and other loan debt from higher education and it provides graduating students an added enticement to choose well-paid careers in the corporate area over lower paying jobs like social work and teaching that provide more social good for the entire community and world for that matter. After all, money seem to talk – but debt is talking louder.
Additionally the report ‘s economist believe in favoring a completely new developed student assistance by changing to a voucher system that would see government aid for college educations run through students, instead of being run through the colleges themselves.

What’s more the report states that on a more practical level, many college student aid offices are saying that they believe the best idea is to allow students to compare the total costs of education and living at different universities before they even apply to them. The report even says that 4 different schools are creating such provisions through the Internet. So, when a student is interested in that school, they can compare several different aspects of financing, affordability and possible debt issues if they should attend there.

This way, a student can compare and calculate way ahead of time the amount of money they will need to attend and live on while in school at that particular campus.

According to the report, students can compare the cost to attend a certain college’s med school as opposed to its law school, school of education and more.

Here at this debt free site, we welcome any reports that are actively trying to better the world when it comes to debt, debt reduction, debt reduction, and any other debt free topic for that matter.

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