Student loans are recommended by various, if not all, students attending college. Loans are borrowed money from banks or government to help pay for high level education. They are beneficial but also degrading. There are many different types of loans, like federal and private loans. Federal loans are also known as Stafford loans, they are more common, and private loans are usually provided by banks or government. The allowances given are useful in some ways because they help the borrowers grow credit; especially student loans that come with benefits such as fixed interest rates. These allowances have become a great deal between society today, as they gradually affect government, the average undergraduate, and society as a whole in both positive and negative ways. These factors are becoming affected by the credits and it is deteriorating society as one. As frightening as it is, a great extent of people are able to obtain a loan. One of the easier loans to get is the Stafford loan, “any full-time college student, regardless of family income, can take out a Stafford loan,” (Block). These loans are more beneficial to students because they have fixed interest rates; furthermore, fixed rates assist students because the interest …show more content…
Although these credits have standards, they have been accounted for use much higher than federal loans. Many borrowers are reeled into these loans because of repayment deals that they don’t realize are in Stafford loans too. “Private student loans, are more expensive. Interest rates are variable, so there’s no limit on how high they can go” (1). With a variable rate it is very risky, especially in today’s economy. The rate can soar or drop within years. Private loans are risky, yet they seem to be very convenient. Due to their convenience, many people take them out and are now creating economic issues amongst