Who will be benefitting from Student Loans?
It was in the summer, June 2017 when student convocation was held in my campus, University of California, Santa Cruz. During the commencement, students were asked to stand up showing their student loans. The standing students were started from those who have twenty five thousand USD loans. Then it went lower and lower to only five thousand USD. The lower loans the more applause the students get. As an international student, I was surprised with the phenomenon of student loans in the US and moreover on how students are burdened by the debts. Each student has a debt burden for average more than twenty five thousand. Even though the average student debt in California is medium compared to national student debts, which average reach to thirty five thousand USD, the living cost in
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There would be a polemic when this policy is released. Who will be benefitting from student loans? In other words, who got rich from the student loans and makes money over this debt burden? Is it student, the university or the bank profiting from the debt? And who have the vested interest over this student loans? As I illustrate above that it is the bank that will obtain most of the profit from the student loans. In order to not be in the wrong path in preparing disaster for our future generation I offer several suggestions. First, I suggest that the State banks should take over the rules by providing the low interest rates so that students could still benefit from the low interest loans. Regarding with student loans, there should be a direct loans to the government and not to the private banks. In the future, to avoid the debt default and the high increase of national total student loans, the government should rule the IBR (Income based repayment), in which the borrowers can pay based on the job that they