Report: Government to Make $50 Billion from Student Loans
Written by Your 5News Team
Last updated on June 17, 2013 @ 6:58PM
Created on June 17, 2013 @ 5:14PM
It's becoming more important than ever to continue your education past high school, but quite often, that degree you earn comes with a lot of debt.
A new report from the Congressional Budget Office found the federal government is projected to make almost $50 billion off of student loans, and now some young people are wondering why so much of the burden is put on the students themselves.
"I think people's education is such an important and pertinent thing these days, and just to be making money off of kids trying to get an education is probably not the best thing," said Abby Saenz, a student at WVWC.
If Congress doesn't stop rates from nearly doubling on some loans, their profits could be another $21 billion. That means students could be in more trouble with their debt.
Because of this, officials said it's important for students to look elsewhere for money to pay for school.
"Looking from scholarships from any businesses, community service groups. Any outside money that they can bring in is money that they either don't have to borrow or pay for themselves. So, it's critical that they look for those opportunities," said Amy King, director of financial aid at Alderson-Broaddus.
Even with help from outside sources like scholarships and grants, some students are still worried about how they're going to pay off their debt.
"I'll be about $20,000 in debt when I get out, which was a really big factor when I was choosing schools. Seeing how much financial aid I could get, scholarships I was awarded by the government, so it was definitely something that was contributing to my decision when I was coming to college," said Saenz.
So, before you pick a college or university to go to, make sure you know all the facts before piling up debt that you'll have to pay off down the road.
"With any financial piece in their life, they need to know what their options are, and plan for what they're going to do," said King.
Officials also said to look for work study programs, and educate yourself on all of your options before you choose a school.
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