As the cost of education in the U.S. continues to rise, the vast majority of students cannot attend post-secondary institutions without securing some kind of student loan. While student loans can be a welcome help to students who are focused and pursuing their career goals, the way in which these loans are structured in this day and age can be something that sets up college graduates for a life-long struggle of debt and debt repayment. Julie Queler is someone who has seen this need, and thankfully, she has labored intensively to try to alleviate the stress caused by neverending student loans and resulting rising interest.
According to the latest statistics, the average college student graduates owing nearly forty thousand dollars in student loan debt. Sadly, that means that students are attempting to begin their careers drowning in debt that they cannot hope to begin to pay until getting a high-paying job. It is sad to think that young people entering the workforce owe more in debt than the cost of a new car in some cases. And since interest begins to accrue shortly after that student graduates, there may be no redemption from this debt crisis.
In truth, the only solution is student loan reform. While we acknowledge that the high cost of p0st-secondary education is rapidly increasing each year and possibly no student can graduate without some kind of student loan aid, the time for reformation is upon us.
First of all, the entire financial aid process is murky and confusing at best. Even after applying for financial aid and receiving the college award letters, it can be confusing for students and parents to attempt to decipher exactly what exactly they have been awarded. Between grants and loans–both subsidized and unsubsidized–the award letters tend to disguise the true cost of repayment that most students will face.
Because most of this student loan funding is coming from the government as opposed to financial institutions, the government is not required to hold to the same standards as a bank. It is perfectly acceptable for the government to award loans to individuals who ultimately may not be able to repay said loan. Disclosures that are required to be provided to people applying for bank loans aren’t even given to students until they have already agreed to accept the loan. These students have no idea what will be expected in terms of repayment, and once they accept the loan, they are committed to years and years of dealing with debt.
It would be far better if the government was required to disclose all of these items so that parents and students can decide whether a government loan or a private loan is better for them to accept. All options should be open to students, but the entire student loan process seems to assume that the only viable option for post-secondary education finance is from the government.
It is good to note that the current U.S. administration and legislative bodies are aware of this crisis, and they have potential solutions to fix this situation. It would appear that there may be considerations on the table such as demystifying the entire process, requiring accurate disclosures, and even penalizing institutions that provide substandard repayment rates. It is our sincere hope that this much-needed reform will become a high priority for the government.
