Why The Government Might Consider to Give Student Loan Forgiveness
There are some times in our lives when life gets too hard for us. Some of us cannot escape getting the most basic of an education without debt. Most of the people if they cannot get bursary or scholarships tend to get loans so as to finance their studies in their quest for knowledge. Because it is not usually a guarantee that after you do your studies, you will get a job that will help you pay back the loan together with the interest you end up paying more because the loan accrues over the years. As it is usually the idea of the government to give loans to the people who want to further their studies they should also ensure that they have come up with ways to give them employment or rather to employ them to empower them in such a way that they can repay their loan with minimal constraints. Therefore in this article we will discuss some of the reasons why it would be important for the government to give student loan relief.
It motivates them to keep working hard. We should be aware that there is a big difference between having a loan discharged and having a loan forgiven. Forgiveness of a loan means that you should have actually paid the loan but you are freed from the duty of paying it especially because you are working on areas with harsh conditions. When you are freed from the duties of paying a loan it gives you confidence even when you are doing your work as you are no longer working to pay a loan.
As much as it sounds contradicting giving students loan relief encourages them to pay their loan more. If the policy of giving loan relief is on the basis of how consistently somebody plays back their loan or on the installments agreed then it motivates the students to pay their loan even more to ensure that they benefit from the loan relief. The government benefits from the repayment of loan from the students as there are minimal deferred payments as well as bad debts. This repayment of loans enables the government to sponsor other students by giving them loans especially when they want to further their studies.
It is important for students who are interested in acquiring student loans to ensure that they are conversant with how they can get student loan relief and all the rules governing student loans in their country. This works to ensure that they do not get into trouble especially when they do not repay their loan on time. The government should also take up the responsibility of ensuring that they educate the public on how student loans operate and their repayment processes.