According to an article posted on the online Wall Street Journal on 3rd March, 2014 said that most American citizens are going for loans supposed to be offered to students. The reason as to this is that these loans are repayable at a very low interest, thus being very convenient to students. The article adds more information that most people taking these loans do it for the cash; to help them in other stuff rather than helping them study. Most of them are in low paying jobs that cannot afford a normal loan. The article describes the reason for the fast expansion in student debts. The increased desire and emphasis on schooling and soft jobs recovery are some of the factors behind the growth. This enhances more borrowing from respective authorities so as to support the students through their education. The government does not perform thorough checks on background information of the people seeking for these loans.
There are several impacts of these loans, both positive and negative. The student loans may be beneficial to those students in need of it and are focused to attain a degree. It is enough for their tuition and covers all costs of the textbooks needed. It may also help on some up-keep expenses of the students Student Financial Aid Services Inc (par. 1). However, the students who are not focused on their school-work may be tempted to apply for the loan and use it for their pleasure instead of education. Personal businesses, parties, transportation and rent are examples of non-education expenses that they may indulge.
References
Leonard, Barry. Your Federal Student Loans: Learn the Basics and Manage Your Loan. Chicago: DIANE Publishing, 2011.
United States. Internal Revenue Service. Your Federal Income Tax for Individuals. Massachusets: United States, 2007.
