The financial condition of the country is not at all hopeful for the fresh graduates. Jobs are becoming rarer by the day and often graduates are getting under employed. As a result the student loans are remaining unpaid. When you miss a single loan payment the loan becomes defaulted. The consequences of defaulted loans are severe and almost everyone knows about them. Therefore, you have to take the measures when there is still time.
The best time to take any step is before the disaster strikes. So, make sure that you do not have to take a huge loan for your graduation. One way could be to work part time while you study and manage a portion of your educational costs with the pay. But many are not able to manage classes and their work hours together. Therefore, this is not an option that many would like to consider. Another option is to enroll in a community college. Community college allows you to study any course you want but a cost that is far cheaper than the course fee of the four-year institutions.
These colleges have been around for a long time. During the 1970s these colleges were known as Junior colleges and even today some of the institutions use this name. They are publicly funded two-year institutions that offer diplomas, lower level tertiary education, and associate degrees. Many of the students transfer to the universities for higher education. The name has evolved from the fact that these colleges are mainly preferred by the students from the community where the colleges are situated.
There are a number of myths surrounding these colleges. While some consider it not as high profile as the top notch colleges, others think that the students face a lot of difficulty in transferring to the four-year colleges. Again another group feels that not many successful people graduated from the community colleges, as the courses are not as acceptable as the courses offered by the top colleges.
While some of the above myths have a little basis, most of them have none. But they have and still do influence the decision of the students who are planning for their higher education.
Community colleges have, in the recent times, been promoted by the federal government as a plausible means of keeping the loan amount to a feasible level. This not only decreases the pressure on the student but also on the government as the loan amount will be little.
Once the students graduate they will have a number of responsibilities on their shoulders. If they are unable to pay off the loans, then the liabilities of defaulted student loans will be added on top of them. The consequences of a defaulted student loan can be life-altering. Not only is your credit score hit, but your professional licenses, if any, might be taken away by the state. Ever since the recent changes in the debt rehabilitation laws, the student loans cannot be gotten rid of with the help of bankruptcy filing.
Author bio
The author, Jonathan, has a deep interest in financial issues that are plaguing the young graduates today. So, he tries to lend them a helping hand through his articles on various financial issues. Here, he talks about how the community colleges might be a way of getting rid of the liabilities of defaulted student loans.
