Student Loans Consolidation for lower interest rates may be one of the big upcoming talking points, as the US student loan debt for unpaid loans has reached a historic $1 trillion USD. In an America where businesses and near foreclosed home owners are being bailed out for the sake of the economy, many lawmakers may soon look to relieve debting former students as a way to rejuvinate America’s future homebuyers, workforce and creditors.
Student loans may be the biggest catch-22 in the academic life for many Americans. With economic times weighing heavy on the wallets of middle class homes, student loans provide a way for college-aged students to attain higher education at accredited colleges and universities.
The downside to loans is, of course, the massive accrual of debt at a young age. Many students fail to realize that many student loans accrue interest and are due shortly after completion of undergraduate or gradudate studies. Fighting with new-found independence that yields a monthly rental/mortgage, car payments, groceries, romancing a future spouse, hanging out with friends, health costs and every other thing adults do, along with substantive monthly payments for the last four or eight years of education, leaves many students distraught.
These problems have been magnified by the fact that good jobs are becoming more scarce. Outside the power industries of healthcare and IT positions, America’s employment environment is extremely competetive and favoring of seasoned workers transitioning between layoffs and applying for jobs that would usually be taken by freshly trained but grossly inexperienced college graduates.
This is leaving many graduates trying to live an adult life and slagging on their massive college debt.
While many may try to act uppity like this situation is rare, the fact that over $1 trillion dollars of student loans debt now exists should be a red flag. The loans debt is now being viewed by many in Washington, DC, as a hindrance to the national economy, as it’s effecting the buying power and credit rates of America’s future breadwinners. What can the government do to provide incentive and ability for students to successfully pay off their student loans at reasonable rates, without owing money for the good majority of their lives.
Like we’ve seen in the past from both the Bush and Obama administration, a responsible write-off may be a solution. By offering students a chance to consolidate any existing student loans at reduced payments, with great interest rates and a substantive amount written-off as a sunk cost, more money may actually be gained than having students struggling and ignoring debt as has been the case for the last 20 years.