Student Loans in economic crisis 2009

At this time, our world is facing with the economic recession which significant decline in economic activities. Specially in U.S, economic recession is approximately known as 2 successive quarters of falling the GDP. A recession in one country maybe caused by another county or other countries with which their trades.

To avoid the bad affections of economic crisis, we need to have a financial stability with careful plan. In this time, the life of students are also affected much. For a normal day of students, the late night pizzas are $5,200. Books for class are $7,000. Tuition and fees are %120,00. And the moving back into their parents are Priceless. And in U.S the student loans of graduate increase is 64% (Federal student loans) and with credit card is 41%, PLUS is 12% and the Private loan is 6%.

And in this case the debt of graduates who have loan is unmanageable. Their student loans exceeds 8% of their pre-tax yearly income. Debt manageability is an bigger problem for U.S government oan for American students who expected annual post-graduation income is below the national average.

As you know most of students obtain their first credit card in college. They can get at their first semester and the graduation over half multiple cards. There are many reason are heavy solicitation and credit card access with the increasing of living and school expense, and they are lack of financial literacy...

With many problem with the crisis, students need to work more but study less to repay their debt and they are not likely to have best grades at class. From this problem, the quality of students also decrease and it hurts their ability to secure well-paying job upon graduation and have the problem in the future job. Additionally, students with a bad credit after graduation find a brutal inability to purchase a home at reasonable interest rate in the future.

To control these problems, all of institutions need to have the responsibilities with their students:

• Encouraging academic advising organizations to offer professional development oppurtunities on the topic.
• They need to aware of available services and direct students.
• They also have to warn about the availability of biased and false information from internet with their students.
• Colleges must be limit on credit card and other debts for student through the debt related solicitation.
• Giving the comprehensive financial counseling, service, programs for students