Loans
What do you think the reason is that so many students default on there loans?
I think not being to find a good paying job, but also not being responsible enough.
I believe students have the misconception that if they move from school to school. The loans that they accure will not follow them throughout thier educational journey. I see it more and more where they do not even know how much they have outstanding.
I believe that some students do not understand the severity of not paying their loans back and therefore become in default.
I personally feel it is they way they are brought up. I have recently met with students that don't even feel that it is important to file their taxes. This was something I was taught at a very young age. Many students are brought up that they are intitled to free money and they don't know that loans do not fall in this catagory. In many cases it is all about educating and changing the way they think.
I think a lot of times people are just not educated on the importance of student loan repayment. I also think that people are afraid to ask for help and instead of calling to see what options are out there, they just ignore the calls.
Unfortunately, I have recently encountered students that have been confused by the repayment process. The student was under the impression they were to only make one payment on their student loan, so they ignored notices from other loan holding sources.
Students need to be perfectly clear on exactly what to do, so it doesn't hinder them in the future.
I believe that part of the reason is always going to be the economy, but part of it may be unrealistic expations that are provided to the students by the institution. Yet another reason to be open and honest before a student enrolls.
My first thought was, "students today do not have any money sense" and are unable to budget for their student loans.
Teachers often mention the inability of their student's ability to prepare their own finances as the scariest part of the college experience. (Whether its before, during or after college.)
Budgeting for life and loans should be required High School level classes.
Although this is true with many schools (they actually allow this to happen). The school that I am with manage this much better with the students interest in mind. This should be a high priority with all schools.
They are not counseled correctly on how and when to take care of their loans after graduation,nor are they given information on who to contact if they need asistance.
It seems to me that some students accept more loan money than they actually need. Unfortunately they are not thinking of the consequences of this. Mainly that they will have to repay these loans. Once they graduate they are not always able to find a job that pays a sufficient amount of money. There is a limit to how long a private loan for example can be differed.
At our campus we do a great job of educating our graduates on option and keeping up with student loans.
Another factor is that the student was never that interested in putting in the hard work that it will take to graduate and then he/she drops out and is right back in the same place they were before they enrolled in school but now strapped with debt. Unfortunately, I think that sometimes people want something for nothing. This is why our job as reps is so important - we are responsible for facilitating the means to an education but only if the student is willing and able.
I agree. Most students who default on their student loans where not aware of their options.
The job market is at a all time high. It comes to a matter of taking care of your family or paying your loans. Although I do believe some students just don't care too or they just give up.
It is difficult for recent graduates to find work post graduation. In addition, many entry-level positions do not pay an extremely high salary. With this being the case, unless students want to live at home with their parents until they are 40 years old, playing back loans with high interest rates is tough. However, with the proper information provided to the student this problem can be eased.
Students are not informed regarding repayment and they need to be committed to repayment prior to enrollment
Average income of certain job fields has dropped as well, when a large in-flux of graduates enter a field that was in need when they enrolled. Often times a job field can ebb and flow in terms of "need" and this can be based on a miriad of factors that may change of the duration of a students program.
There are probaly many reasons default on their student loans. But it is our responsibility to educate these students as much as possible. We need to make sure that they are aware of the consequences of not paying the loans back, as well as, all of the different payment options after graduation.
