Wednesday, April 24, 2019

Loans for students should be capped

Loans for students are arguably the primary source of funding for the majority of tertiary scholars in much of the civilized world. So ubiquitous are student loans that even those who manage to secure funding through scholarships and bursaries use the option of student loans to supplement their additional scholastic expenditure. But their ubiquity also points to the ever present danger of uncontrollable financial debt for students who are yet to work and pay off those student loans.

It’s a fact, tertiary education around the world is becoming increasingly unaffordable, and as a result the student loan business is thriving. Indeed, student loans provide an invaluable service to students who would otherwise not be able to realize their goal of graduating from an institution of higher learning, yet with student loans so readily available the possibility of students accumulating a mountain of debt is very real. Not only is it a possibility but a reality as many students who secure their first job after graduating find themselves unable to make a living as a result of the financially crippling loan repayment demands. And while repayment plans can be designed to suit individual circumstances, the debt must still be repaid ultimately.

Loans for students may not necessarily equate to impending financial ruin but certainly, those who have to repay the debt are by no means no less financially burdened. The most appropriate measure to such a situation would be to cap student loans to no more than the applicant’s earning potential based on their field of study can allow. Ensuring students still get loans but can live comfortably after securing their first job knowing they don’t have to part with a bulk of their earnings just to pay off student loans.

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