Student loans people
We are living in extremely competitive world. It is a well-known fact that education is utmost important today to make our presence continued in the society, to tackle all the problems and also lead a happy contented life Education is very much essential not just for self sustainability, but also to achieve maturity. With time, the approach of people towards life has altered to a great extent. Present generation people desire to lead an independent life at very young age. With the competition in the society in increasing to very high rate, learn and earn is their motto of life. This means that right at the time of obtaining education, students tend to be financially independent or expect multi degree freedom in their life to thus add flexibility to their life, as they need not be dependent on their parents for their personal expenses.
Students tend to go for part time job after college hours just to earn money & ensure pocket full of monthly jingle and thus be financially free from all family constraints. Everybody expects highly sophisticated and luxurious kind of lifestyle. In order to achieve it one must have a high paying job. The root for realization of all such big dreams in the young minds is better education. As per Darwin's theory of " Survival of fittest", it is a well-accepted truth that only qualified people tend to have good career. Students who are interested in studies, focused in life strive to accomplish their studies taking loan and enter the competitive world. This not only adds up to their financial independence, but also makes them realize their responsibility at a very young age.
It is a big misconception in today's world that student loans is basically a remedy for the financial problems of those students who will to pursue higher education, as they do not want to be a burden on their parents financially. Though it is true, it is high time that we realize that student loans are becoming popular among students hailing from that category of financially stable families yet, will to pursue their education aboard by their own efforts. It is a psychological fact that, students who opt for educational loan at a young age tend to become more sincere towards studies and responsible. Students commonly take loan from banks, private institutions or government organizations, where they find the terms & conditions matching to their requirements. Those who want to continue their education abroad tend to go ask the assistance of foreign bank or even the university in which they are planning to pursue their studies. They may even take credit from local or native bank for their foreign education. Today's scientific research and market survey shows that more and more students are opting for credit in order to pursue higher education in universities abroad.
Any financial institution - private or governmental, sets certain basic terms & conditions, and the students opting for the loan need to comply with the same. The loan amount is sanctioned only after realization of the compliance of student with the pre-set terms. First of all, the sponsoring institution expects some basic security for the money they lend. However, the loan application is processed if they are confident that the student has the potential to repay the borrowed sum.
For a good credibility, the student must oblige to all the rules and regulation of the financial institution. He should be willing to pay the set interest rate. The period of the loan term for which the rate of interest is calculated starts from the day the student receives his loan & prolongs till such a time he makes the first term of repayment. Also, student must be in touch with the bank and should keep informing them about his academic performance. Generally, banks tend to offer loans readily to those students who posses excellent academic record, else it is denied on the grounds of bad credibility. Also, the repayment of loan begins only after the student begins to earn after getting a job. But few students tend to work part time along with their studies and hence start to repay the borrowed sum in case they find themselves self-sufficient. Though many financial institutions show their consent for early repayment of loan not all banks prefer the same, as they are more concerned about the rate of interest during the long period of completion of education.
This practice has its own pros n cons. The plus points are students who take loan will get good exposure. They will tend to become responsible. They become socially active. They take up their studies more seriously & tend to perform well. A certain study on psychology of such students reveals that students opting for loans are more active and study suitably as they will have the urge to get high paying job and repay the loan. Students will be financially independent; they will get to know the significance of money. But the drawbacks include high rate of interest. In case the student fails to get a good job he will be in bad credit, which will make his life very complex and challenging. At times, students often fall into depression in such cases & feel low emotionally. Though people are educated, society is losing the moral values. Educational institutions are not truly bothered in providing good education and student's career. Providing education has also emerged as moneymaking business.
They are more interested in making money and expanding their institutions rather than being concerned about providing quality education to the future citizens of a country. Though sad to quote, it is a fact that even banks are concerned only about the profits that they reap and hence set high interest rates even on student loans. Though the facilities is viable to all, the maximum use of such schemes tend to be a success only when it reaches the grass root levels of a nation with such terms & conditions that even a child hailing from a small village finds it easy to opt for a loan. Else, the existing problems may not find a complete solution ever in this society.
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