As soon as you graduate college, you embark on a new stage in your life and get a chance to prove yourself. For most, however, outstanding balance in student loans is a kind of liability they have to endure for the rest of their lives if not handled properly.
Financial experts believe that student loans lead people to make poor financial decisions. The long list of student debt should be scrapped because it misleads millions of people into what they are really supposed to be paying.
The New Contribution Statement
This new paperwork sends a long list of numbers to newly graduates. Most of them do not understand what they are supposed to pay based on the file they receive. Financial specialists believe that a monthly billing amount should be given instead.
This suggestion will help graduates understand how repayment works and how they can adjust their current living situation based on what they need to settle. This way will help the students see the worth of their education.
The new system flashes a negative impression to the graduates as it focuses on debt and interest added.
Analysts believe that the system should focus on what they should repay.
Looking at the negative side of loans can leave anyone scarred for life.
Request For Redesign of Paperwork
The design of the detailed statement of account is to show the students a clean value of their loan. However, the design is wrongly presented because it creates an impression that the graduates are the ones greatly contributing to the government in this ‘scheme’.
Furthermore, it also creates fear among others to attain higher education because it will leave them with a debt greater than riches. While the current loan statement is issued annually, the government is looking at improving the repayment system. They want to provide easier access to repayment information with the students and graduates.