Are learner loans exploitative?

Are learner loans exploitative? That’s a great question. If you don’t have a response to this question after reading this, you should move on to the next blog. Perhaps there is a more suitable blog out there based on your current interests or needs. You could always search for one using our blog search function — just click the magnifying glass in the bottom right corner of this window. This query won’t matter for too long though as I’ll explain why later on in the post.

As the Minister for the Cabinet Office, Oliver Letwin is due to answer a brief Parliamentary question on the 14th October 2016. The topic is Are learner loans exploitative? This article goes thoroughly through this question, and if you’re looking to write an article on this topic then you should read this as it could give you some good ideas. When answering this question, I expect that he is going to mention that student loans are not exploitative and are there to help students. He will also say that they do not account for debts after university. However, the Question only mentions an exorbitant interest rate of 7% and the debt increasing by £1 million. This shouldn’t be a problem as he can just state things like “the interest rate is higher because…” and “The debt level increases as people move higher up in society so…” In conclusion, I think that he will say that student loans are not exploitative because there are many other benefits to getting one so it is best for all parties involved.

Student loans are a hot topic right now. On the one hand, you have the government of Canada providing funds to cover tuition costs, on the other hand having to pay that loan back after you graduate can be brutal. A recent report published by TD Bank says almost 50% of students say that they have cut back on non-essentials in order to save money while they are attending schools in India.

There are some concerns that have been raised about student loans and the way they are managed.

Tertiary education has become a necessity in today’s world, but it is becoming increasingly difficult to get into university, particularly in Australia. There are many reasons behind this. One is the federal government’s tightening of entry requirements and another is more Australian students wanting to attend university than there are spots available.

Tertiary education isn’t free, so how do you study and not go broke? If you want to work overseas you will need a visa, which requires a degree as part of the application process, so many students take out a loan to pay for their degree.

The Federal Opposition has proposed to remove HECS (Higher Education Contribution Scheme) debts from deceased estates. There is also concern from parents that their children might be unknowingly leaving themselves in debt for their entire lives with little chance of ever paying off those debts.**

No. Not usually. The interest rate is usually lower than on other types of credit, and the fees are also low. But there are some issues that can crop up. Let’s take a look at them.

Collections: A student loan is not the same thing as a credit card bill or even a medical bill — it’s a government-backed student loan. If you default on your loan, the government can take money out of your paycheck, garnish your wages and even offset your tax return to pay off what you owe.

Other lenders: A student loan company can sell your debt to an outside collection agency if you don’t pay back your loan. That debt will be sold multiple times, which means that every time someone buys it, they’ll tack on another fee.

Taxes: If you don’t pay off your student loans in full by the time you file taxes, the government will consider this debt to be income for that year and then hit you with extra tax payments.**

Defaulting: Student loan companies have provisions in their contracts for students who fall behind on payments, though some people have reported being harassed by collection agencies or losing their jobs because of missed student loans payments.

Conclusion

learner loans are exploitative. They take advantage of poorer people without furthering anybody’s education. They’re designed to do this because they’re a product of a micro-lending system created by banks that wants to make as much money as possible while putting in the least amount of work possible. If you can live more cheaply away from university, then you should—though if you cannot, then I sincerely hope that this article has been informative and helpful and that it is able to equip you with the knowledge necessary to make informed decisions regarding your future learning experiences.