article directory


Home | Top Editorials | Popular Content | Article Directory | Help/Faq's | Submit Articles | Account Login
Editorial Search







:: Main Articles :: Finance / Investing



Loans for College Students are Now Bigger than Credit Card Loans
Finance / Investing Author: Elisheva Wiriaatmadja
Loans for College Students are Now Bigger than Credit Card Loans
The Federal Reserve just released a report this month which states that the total amount of private loans for students have reached more than the total amount of credit card debt in the United States. The report shows that Americans owe $826.5 billion mostly on credit card debt and $829.78 billion on student loan debt. According to the Federal Reserve, this is the first time ever that the Americans owe less money on their credit card debt, outpaced by their student loan debt.

The publisher of websites that searches for student loans and government grants for education such as Finaid.org and Fastweb.org, Mark Kantrowitz, the economic downfall is one of the reasons for student loans to continue rising. According to his Math, the total outstanding federal student loans of Americans has reached $605.6 billion and the total outstanding balance of all private student loans is $167.8 billion. Despite the increase of student loan lenders to 23 companies last month, most student debt of Americans are still owed to federal student loan lenders.

Despite the constant denial by the government that the recession is not over, this recession is exactly the reason, along with the inflation that has started to kick in, that college tuition now is skyrocketing. The default on student loans has now reached 20 percent because of the economic recesion. Unfortunately students are not well informed that whatever debt they are acquiring now in their 20's will be an albatross around their neck as soon as they get into their 30's and 40's. In fact, even now, you can easily find parents, whose children are almost in college, still paying towards their student debt.

If you are currently considering to go back to school to further your education, stop yourself and ask why you would want to bound yourself to the most toxic debt known on earth. You may think that investing in education would give you a better chance to finding a job or a better job than you already have today. But the recession we are in is going to last much longer than the education that you are going to pursue on a debt. As soon as you graduate, there is a big chance the unemployment situation is going to be much the same if not worse. Taking out a student loan now will soon dry off your savings or probably even your retirement fund as you will have to repay all the debt. A better option for you might be to allocate all your time, energy and money in creating alternatives to help you earn money from other sources besides having a job. Anything but committing the heavy burden of any private loans for students around your neck is better.
Total Views: 655 | Approx word count : 462 | 09/02/2010





MarketersDomination Related Articles
Futures Trading: Beginners Tips By: Barb - I write about day trading rules and emotions a lot and maybe because this is the one question or area my students and those interested in my classes seem to inquire the most about. Can I actually make money trading? I do well on a demo account, but w...
Low APR Credit Cards Can Save You Financially By: Melanie Simpson - Do you have credit card debt and are trapped in a constant battle to make small payments on a huge card balance?  Understand that you are not by yourself and that this happens to a lot of people everywhere. More than half of US Citizens car...
When New, Younger Drivers Shop They Can Really Save By: Evan Povich - Have a new driver in the family and looking for the best auto insurance to cover him or her? Teen auto insurance is not cheap so some research is important to find the auto insurance best rates. Young Driver Car Insurance Receivin...
Student Loan Forgiveness with Public Service By: Elisheva Wiriaatmadja - If you just graduated college and are now facing the fact of a huge student loan burden that you need to pay off, you might consider the Public Service Loan Forgiveness program. This program was created by the College Cost Reduction and Access Act an...
The Right Life Insurance That Fits Your Family By: Evan Povich - @import url(php.css); Searching for the right life insurance online for your loved ones? For the protection of your family members that depend on you, life insurance is one of the most vital financial tools. The reasons for having life ins...
The Fair Debt Collection Act know your rights By: Michael Thomas - A lot of people who find themselves experiencing debt issues are being bullied into paying money to their creditors. The Fair Debt Collection Act is designed to help end this treatment of individuals who owe money. The Fair Debt Collection Act set up...
Home | Top Editorials | Popular Content | Article Directory | Support | Terms | Privacy | Account Login

Article Marketing | Article Directory | Article Spinning | Content Syndication | Article Distribution

© 2017, All Rights Reserved.
All other copyrights belong to their respective owners. Internet Marketing Forum