Is It Reasonable To Issue Educational Loan To Get US Higher Education?

Is It Reasonable To Issue Educational Loan To Get US Higher EducationA natural response to the issue of student loans or payday loans Nashville TN was the mandatory part of educational loans, the task of which was to motivate more schoolchildren to make the decision to get a higher education.

Unfortunately, this measure helped only temporarily, as the increase in the cost of training and related costs could no longer be stopped and educational loans turned into a trap.

The US Congress raised the limit on the maximum amount that a student could issue to cover educational expenses several times, and this led students to a vicious circle: the more money they were ready to take out (and often did not even know how and when they could pay it back), the higher the universities raised tuition fees. In this scheme, only the debt hole grew.

By 1997, studies showed that many graduates were postponing marriage, having children, and buying a home until they were ready to repay most of their education loans to the government.

In 2007, George Washington University became the first US university to raise tuition fees to $50,000 per year. And here you need to understand that this figure does not include the many additional costs that each student faces: accommodation, meals, study materials, insurance that may be covered by loans taking through a referral service – Looking at these numbers, the following will not seem surprising to you: at that time, 96% of students relied on educational loans to get the most basic (and affordable) 2-year higher education, but after 15 years of payments, more than 40% were unable to repay a loan.

If we are looking for even more frightening numbers, by the beginning of the last decade, the cost of studying at US universities has increased by 439% in almost 30 years, while the level of salaries has lagged far behind – it has risen by only 147%. Alongside these figures is the fact that since 1998 the number of students who cannot afford to study without an educational loan has tripled.

Why does the cost of training continue to rise?

At the heart of the problem there is a decline in government funding for universities and colleges, which has pushed universities to raise their own tuition fees. The main cost item for most of them is the cost of conducting lessons and everything that is included in this concept: decent highly qualified teachers, classroom equipment, teaching materials and even the cost of “visiting hours” for teachers, which give students the opportunity to ask questions face to face.

If we want to know what the expenses of a standard state university with a 4-year bachelor’s system consist of, then we will see there: 27% go to salaries and bonuses for the teaching staff, another 21% – a large category of expenses for the admission committee, library maintenance, administrative arrangements, etc. The most curious category is only 3%, which belong to the category of financial aid to students (discounts on tuition, one-time grants and other ways to reduce the cost of tuition).

So how much will the education cost?

All these statistics and historical implications explain how the US education system got to the point that students now see, but what is the reality for international students?

The cost of a year of study starts at $5,000 and goes up to $50,000 – a wide range of options. According to statistics, on average, a student pays the university about $132,860 during his studies.

Tuition fees differ not only for international students and Americans, there are also differences between residents of different states in the United States: if you want to change the state, be prepared to pay more for tuition.

The cost of living also varies greatly, from $500 per month for a small studio in the central US states to $3,500 per month in major cities on both coasts. Many students prefer to stay in student hostels, where the cost of the year starts at $5,304, and this amount already includes all expenses. Typically, student residences mean 2 or 3 people live in the same room and often use a shared shower and bathroom.

What else makes sense to take into account when calculating?

Textbooks for a year will cost an average of $1,170, a transport card – about $50-60 per month, food per person per week rarely cost more than $70, but everything is very individual here. It is also important to remember that if you live in a student residence, you will be able to purchase a fixed meal plan that will help reduce costs.

Category: General Information

Tags: finance, payday loans, student loan, students, USA