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
Student Private Loans - Consider Staying Away By: Elisheva Wiriaatmadja - Student private loans may be one of the first options that students tend to opt into besides the federal loan. Unfortunately many of the students applying for a student loan are just too immature and inexperience to even come to the thought of compar...
The Future of the Euro Rates in the Hands of the European Central Bank By: Elisheva Wiriaatmadja - The future of the EURO seems to be getting brighter. In a glance it looks like the European Central Bank has done a good job in increasing the value of its currency. Early this May, the Euro exchange rate was $1.49 against the US dollar. It almost ...
How Do We Choose The Best Life Insurance Policy? By: Evan Povich - When you try to compare life insurance quotes it can take a bit of time but it is well worth it as you'll be paying this rate month in and month out for years to come. If you find a great rate it can save you hundreds of dollars over many, many years...
The Pros and Cons of Payday Loans By: Elisheva Wiriaatmadja - Grabbing a cash advance is the easy way to ease the burden on you and your family. These payday loans are easy to get, and many people love how much it helps them relieve the stress of making it through the next month. Often, you will fill out a simp...
Term Life vs Whole life insurance: Suze Orman's Stance By: Evan Povich - Suze Orman has the lowdown when it comes to Term Life vs Whole Life Insurance. Do you watch the Suze Orman Show? If so, you might have an idea of Suze's stance on Term Life vs Whole life insurance. Being a licensed life insurance agent herself in all...
Paying off Private Student Loans with Home Equity By: Elisheva Wiriaatmadja - One of my readers of my private studen loans blog made a comment under an article regarding student loan forgiveness. She expressed her confusion why there are no student loan forgiveness programs for private student loans. The problem with private s...
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