Students loan debt earning potential and student loan payback

In the same manner with other debts, student’s loans may be considered as defaulted when the holder of the loan fails to respond to the payments on the agreed time. At this point, the responsibility of the loan is turned to a Student Loan Guarantor or a collection agency. Summary From the first source, I learned that in the United States of America, the initiative that was established to offer financial support to students through loans was at first sounding great and awesome since the students’ challenges showed to have got a long-lasting remedy. Despite the good intention of the plan, it has landed the entire the entire United States economy into Trillion-Dollar problem. It has instilled the worry and concern of the economy experts since students graduate with at least $27000 every year in college level with the least prospects of the same students to venture in activities that may earn them good income to pay back the loans.

For instance, a student with a Master’s Degree tends to earn more after graduating from college that the one with Bachelor’s degree or diploma. The earning potential of students goes even higher when the level of education increases further. According to Lochner, those holding bachelor’s degrees earn about $2. 27 million over their lifetime while those who pursue higher degrees earn up to 3. 65 million over the same period of time (407). Students’ loans have a grace period of six months, which means that the students are supposed to start paying their loans immediately when this period is over. The grace period is meant to provide a chance for the students to find a job and begin earning an income before the building up of other bills.