Over the years, education has become too much costly. This is mostly seen in the matters of Higher education. Without taking loans, higher education seems impossible. The High University expenses along with books and other study materials, tuition and other relative expenses has made higher education out of the reach of most ordinary students. But over the last few years, due to recession the students are going on defaulted loans, since they are failing to get any satisfactory job. Though some low pay jobs may be available but these students are really feeling helpless, since they will not be able to service their loans with that money.
These highly qualified students will not be able to do these low wage jobs. They are really in a dilemma in order to get rid of the student loan going on default. Though there is some flexibility in the payment options of certain Federal student loans, but the private student loans have much less flexibility in their payment option. Since recession is the main problem and it is taking its toll on the repayment process or the servicing of the student loan. Other undue effects are coming on the way on the career of the students.
Though the Federal Educational Agencies are offering nearly record number of grace periods, in order to service or the repayment of the loans. But, recession is really making the whole matter worse. In spite of years of education, they are finding any good employment opportunities to sustain themselves. The extended period of the recession is taking its toll on the servicing of the defaulted loans. This is also affecting the overall environment and the economy at large, with people hesitating to take a student loan. But education is very much necessary to fuel the future engine of growth.
With the globalization of the world economy, the total system is getting affected. Like it is situation, if someone catches cold, the other one will get flu. Dependency has increased very much in the world economy. But, the problems in the large economy are really making matters worse. It is affecting almost every sector vulnerable, with the job market getting completely saturated. This is making the Defaulted loans a common factor in the life of a student. A new student dreaming of graduating from one of his favorite business school is hesitating to proceed, since he can study only with the help of a student loan.