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Billions in debt: What student loan companies don't tell you

Student Loan Rates Double After Congress Fails To Agree On Legislation
Student Loan Rates Double After Congress Fails To Agree On Legislation

Got education debt? So did sixty-six percent of all 2007 to 2008 graduate's with a bachelors degree in the US according to American Student Assistance (ASA). This study also reports that ten percent of the bachelor recipients with debt had borrowed at least forty-thousand dollars.

The significant presence of student loan companies on the web shows that this high rate of student debt has no inclination of declining. Such companies typically offer 'generous' loans that cover tuition, books, housing and more. With such easy access to almost instant education cash, it is little wonder that ASA states that there is between nine-hundred to one trillion dollars of student debt in the United States as a whole.

However, the student loan organizations do not tell the prospective borrower that many with debt have missed payments. ASA notes that "...about 5.4 million borrowers, have at least one past due student loan account."

The common rebuttal is, of course, that earning a college degree provides a higher income which will make the student loans worth it. While this point could be debated, it is only plausible for those students who actually graduate and go on to land a well-paying job.

"Nearly 30 percent of college students who took out loans dropped out of school, up from fewer than a quarter of students a decade ago," according to ASA. Once again, this statistic is another one that loan companies do not mention. Why would they advertise that a third of all students who take a loan drop out of college but still have debt biting at their heels?

In short, always look before diving into a too-good-to-be-true student loan. It isn't too good to be true. Closer to reality, the mountain of student debt looming over this nation is too nightmarish to be real. But it is real. A more nightmarish thought to consider is what will happen as student debt continues to rise.

A question that all honest and thoughtful college students must ask is, "Is a degree really worth the debt?" The next time an ad appears on the computer screen announcing the glories of comprehensive student loans, remember what it doesn't say.

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