Having No Credit History?

For many, student loans are the only way to finance one’s education. Paying out of pocket simply isn’t a reality for most, so they rely on state and national government to provide them the funds to attend school, buy textbooks, and even pay for room and board. Sign on the dotted line, and suddenly a subsidized or unsubsidized loan shows up as a credit on your student account. Any overage is paid to you by check to cover

By time they finish school they have a high credit debt ratio and the repayment of student loans. Hopeful thoughts with having forgiving of students loans will affect the population more to receive higher education. Of course, you will have some students that will lack in school. Free higher education should have stiff regulations on attending school... The proposal will help those who have already acquired education with completion of degrees and for those that may not have completed but have a good GPA. Everybody have different situations and may not be able to complete schooling when they start. We all have obstacles in life and decide that school may have to put on hold for a while. On another note money maybe an issue to pay for schooling. A complete student loan act will probably prompt those that didn’t complete to return back to

Bad credit reports can affect ones’ life in several negative ways. With a bad credit report and a low credit score, it is harder to receive a credit card, an automobile loan, a mortgage, or possibly a job. It is important that one is always aware of the credit decisions made. Paying bills late, maxing out credit cards, and filling out too many credit applications in a brief period will also have a negative impact on the credit report. To keep a good credit report, one should pay bills on time and apply for credit sparingly. Last, but certainly not least, one should check their credit report annually! A free credit report is available from each of the three credit reporting agencies each year. This is something one should take advantage of since it will help them judge whether they are managing their credit wisely. It is imperative that one keeps a good credit score. If not, one could miss out on many opportunities. For example, one may find an opening for their dream job that they are qualified for, but the negative credit report causes them to not get the job. Do not let this happen! Maintain a good credit report and opportunities like this will not pass by!

Credit Rating of the Borrower and Debt Defaults. One of the main reasons that scholars have put forward in discouraging students from taking college loans is based on how their credit rating will be affected should they fail to pay. Default risk has been

Although there are cons to this. One of them being that some students won’t spend their money wisely. Meaning they’ll spend it on shoes and drugs. They’ll just spend it on dumb things that they don’t need. They won't know how to finance their money and no one is going to be there to help and guide them.

Fact: Not necessarily. Many students qualify for some level of funding, and unlike student loans, financial aid usually doesn’t need to be paid back (there are some exceptions to this—for example, if you fail a class). It doesn’t cost anything to just apply and see what you’re eligible for. Even if you don’t receive enough financial aid to avoid student loans completely, every little bit helps, and that’s less you’ll need to borrow.

Many students are uneducated about student loans. When I say uneducated I mean that they have no idea what type of loan is best for them, how much they need to borrow, or where to get the loan. There are many resources out there about student loans, but there are not any requirements to review them before taking out a loan. Students are not required to have any knowledge about how the loans work. Students need to have the correct knowledge when applying for a loan, otherwise they may end up with too much debt or the wrong type of loan. A student should not start off their life outside of college in unnecessary debt.

If you decide to take out a loan, make sure you understand who is making the loan and the terms and conditions of the loan. Student loans can come from the federal government or from private sources such as a bank or financial institution. Loans made by the federal government, called federal student loans, usually offer borrowers lower

While the students are paying back the loan, it doesn’t grow with interest and you don’t even have to start paying for their loan until the students get a job that pays $40,000 annually. This idea is used by many countries, such as Sweden. Additionally, this would help students not worry about their debt until they get a decent paying job, allowing them to focus on graduating and getting a degree. As a result, students wouldn’t get ruined with debt for getting the essential education they

Loans with interest increase rapidly and can affect one 's credit score. Credit scores determine if an individual is eligible to buy a home, take out a car loan and obtain credit cards. Paying student loans on time demonstrate to future lenders that you can be trusted to handle money responsibly. For example, my first semester of college, I took out a student loan with Nelnet of 5,700 dollars. Unfortunately, unforeseen hardships came abroad that caused me to lose my job and drop out of school. Within a year and a half, my loan went from 5,500 to 7,700 dollars. If I had paid attention to my grace period and correctly read the loan’s terms of agreements, I probably could have paid what I could afford towards my student loan. Instead, I chose to ignore my student loan and allowed it to accumulate with interest digging myself in a realm of debt.

Often times people hear many negative things about student loans but there are a few positive things about them. A student loan allows someone to attend college and further their education which gives them benefits that they will be able to use later in life. The main benefit and reason individuals go to college is to reach the goal of a higher education, greater employment opportunities and solid earnings and student loans make that possible (Venable 2). It could also be a positive thing depending on the amount a person borrows and terms they agree to pay it back. Having student loans that are possible to make regular payments on is an opportunity to increase a person’s credit score allowing better financial opportunities, for example, being able to acquire a car loan, business loan, or mortgage (Venable 2). Debt that is manageable is good debt and as long as the

Student loans, seems like a good idea. Dave Ramsey points out several good and reasonable reasons to stay away from student loans. Grants, scholarships, and saved cash are all great ways to save money. When thinking about student loans you have to be thinking long term, and definitely not short term. Student loans will leave you in large amounts of debt that you will eventually have to payback out of your own paycheck! Grants are a form of federal or state financial aid that doesn’t need to be repaid; usually given to students who demonstrate financial need. Scholarships are a form of financial aid that does not need to be repaid; usually awarded on academic, athletic, or other achievements. Finally, there’s your hard earned money that you have saved up

Student loans can be considered good debt because the money you’re borrowing to attend school is your ticket to earning a degree and getting hired at a well-paying job. That debt should pay itself off over time with a lucrative career in place(Loan Hero). In this theory college doesn't always mean success College is a tool to lead to towards a career. As of last month, 8.1 percent of Americans aged 20 to 24 years old remain unemployed — a bad sign for undergraduate and graduate degree holders unable to find work and pay down their debt.(Loan Hero).Most or a good amount of employers are looking for experience to go in with this schooling which sometimes can be confusing if no one will hire you how can you gain experience.Over all the theory is college debt will be payed off with the rewarding career you might attend but nothing is certain not even with higher

The most obvious, surfaced problem with student debt is the massive quantity of debt. The new milestone of the United States student debt is 1.2 trillion dollars which the US is still continuing to cross. From 2008 to 2012 debt have increased 6% each year. An even closer look, individually students have an average of 29,400 dollars per borrower. This data is staggering and completely unbelievable. These students are defaulting on their debt and threatening their ability to access their future credit. There are many things that could be done to improve the government-run student-lending process that is there to help out every misled student trying to find higher education at colleges that will fit them well.

According to this exert from the Wall Street Journal, “More than 40% of Americans who borrowed from the government’s main student-loan program aren’t making payments or are behind on more than $200 billion owed, raising worries that millions of them may never repay.”. The government is losing billions of dollars on students who will default down the road. Unlike the mortgage crisis in 2008 there is no house to be foreclosed on, the only risk for these students who default on these loans is bad credit, and