September 27, 2019
It’s one of the million-dollar questions that hasn’t been answered in the past.
Who should be blamed? The government or the students?
How comes student loans have accumulated to $1.6 trillion? What has happened?
In a report released by the Federal Reserve, it was found that up to 54 percent of youths who passed through college education at some point must have applied for this merchant funding – student loans.
“Repayment of this debt can be challenging,” the Federation stated. “In 2018, 2 in 10 of those who still owe money are behind on their payments — little changed from the prior year. Individuals who did not complete their degree or who attended a for-profit institution are more likely to struggle with repayment than those who completed a degree from a public or private not-for-profit institution, even including those who took on a relatively large amount of debt.”
It has been found out that most people joining college finance their education using student loans. Twenty-four percent of them have applied for student loans using their credit cards while 7 percent have used a home equity line of credit to do the same, according to the Federation.
While some critics claim …