Learn To Craft Essays On The Situations When One Should Default On Student Loans With This Example

Imagining a family whose income is $100,000 per year with a burden of repaying student loans, I think it will make perfect sense if the payer defaults. The priorities in a family set up should be listed in an order of necessity and importance, and before one gets to repaying loans, he has to sort expenses like rent and food as well as clothing. Other necessities in this list will include budgeting for gas fuel and other facilitation costs. If the income is not enough to cover for these expenses, then it is perfectly okay for the loanee to default on the student debt, because paying up the loan would put a lot of pressure on his ability to meet basic needs.
For families that make less than $125,000 in a year, the burden of student loans limits their access to credit, further complicating their livelihoods because they cannot afford to save enough money to start businesses or pay their student loans. If the repayment model were to be forcefully reinforced, such families would need to go on social support to ensure all their basic needs are met. On the other hand, in the national budget, the federal government spends billions of dollars in military assignments. A revision of the budget should be done to reallocate some of the funds to education and college education, and help in reducing the burden of student loans.
While it would be perfect for financially incapacitated students to seek out for loans, it is also suitable for them to consider joining community colleges that offer cheaper tuition. However, going by the number of people who depend on loans to finance their college education, it is evident that the number of slots in community colleges cannot accommodate the high numbers of students coming from financially pressed families and poor backgrounds. Therefore, a college education should be made affordable in all universities and colleges to increase access to quality education and career opportunities. Failure to revise the tuition fees will add to the problems of unpaid loans because all people who go through the university do not get lucky enough to get a permanent job.
Without a stable job it becomes impossible for beneficiaries of the student loans to forecast their incomes, and that unpredictability reduces the capability of servicing loans. When someone is faced with the uncertainty of income flows, he saves his money for the bad day with the most basic needs in mind. Therefore, one cannot pay the loan without knowing where he will sleep or what he will eat in the event that he loses his job. The gaps between temporary contracts can be financially depleting, and prior preparation is needed to meet that eventuality.
As discussed above, the high cost of college education requires most of the students to take loans to finance their studies. However, when it gets to the level where the beneficiaries of student loans cannot afford to live decently while servicing the loans, they should consider defaulting. When a graduate does not get a stable job, they have the option of defaulting or postponing the repayment of the loans until a moment when they will be in a capacity to repay without hurting their financial status.