Students may get loans for their schooling and enjoy the benefits they provide to ensure their studies are completed as scheduled. Nevertheless, there are down sides to this arrangement that they may find unpalatable in the long run.
Getting such loans are ordinarily easy and students most times don't even care to go into details as to what is involved in the repayment. They later observe that their understanding of the whole holder is not exactly what it is. Some observe they had rushed into getting the loan without first getting a clear picture of the terms of repayment. They undoubtedly have to meet the terms as ignorance is not an excuse under the law.
Students' Loan - The Downside Of It
One of the downsides is that definite factors are carefully before one could way it. The income level of the parents of the student seeking the loan may be considered. Past financial records may also be considered. Whereby these are not good enough, it may work on the man seeking the assistance.
In addition, the reimbursement burden is much: the borrower is made to pay up to half of his monthly take home income thereby development his ready at the end of each month very small. This invariably affects his purchasing power.
One other problem the borrower encounters is lack of notice for him should he be befallen by a natural disaster or when he becomes disabled. He is made to pay back his loan irrespective of what has happened to him. The debt cannot be expensed off in the bankruptcy process as obtains with reputation card balances and mortgages.
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