with debt accumulation. Next, taking out loans can be tricky. Student loans tend to have reasonable interest rates, but any amount of interest is still going to add up over time. The less the loan principal, the less the amount of total interest owed and the less I will have to pay over time.
Another thing I learned this week is the difference between simple and compound interest. Sometimes we have no control over the type of loan we receive, but it helps to be armed with this understanding in those situations where there is a choice between different loan… Continue Reading...
It is a new phenomenon that has developed as a result of the federal government backstopping all student loans (Avery, Turner). Whenever the federal government gets involved in anything in the free market, prices go up (Wolfram). That is the reason health care is so expensive today: the federal government subsidizes treatments, which means producers have no problem raising the prices as they know taxpayers are going to pay for it via Uncle Sam. Since Uncle Sam also started guaranteeing student loans, colleges have no problem offering them to student and raising the prices while they are at it. The job market is complicit because companies only… Continue Reading...
adults lack the skills needed to succeed at higher levels of education and they also lack the funds. Though student loans are available, they can be seen as very daunting especially if the young adult makes the mistake of getting a degree in a field that is currently not hiring. All that money spent on a degree ends up being a loss. Young people’s chances of breaking out of the system of socioeconomic inequality are virtually nil as a result of these injustices.
In conclusion, poverty is a problem that causes young people to have few opportunities. They grow up in communities where their schools lack funds to pay… Continue Reading...