College proves too expensive for many young Americans by Corina Ciubotaru

In today's society, a college diploma may very well mean the difference between a life in poverty and a secure future. But as university fees increase at a massive rate, more and more students need to borrow money to pay for their education, which could spell disaster once again for America's economy. Just as too many mortgages led to the collapse of the housing market, student loans are involved in the securities market and are becoming harder to pay every year. As loans get higher, former students have to find better-paying jobs that would enable them to give the loan back and also cover monthly expenses for bills and food. And according to a new law, lenders won't be given as much federal money anymore, so they won't be able to keep borrowers' discounts high; it's the government's way of reducing tuitions. Also the Pell Grant for low-income families has increased its amount, but from the lending companies' point of view, the area that will suffer the biggest cuts will contain the federal consolidation loans, which bring the smallest revenues. Federal consolidation loans allow the borrower to combine all his loans into one large sum, thereby paying them all at once. In the last 10 years, tuitions in public colleges have increased by 79 percent, while in private schools they went up by 65 percent, while total student loans issued increased from $4 billion to $17 billion in the last six years. And if the situation continues and eventually backfires, there will be far less kids attending college in the United States.

related story: http://news.yahoo.com/s/ap/student_loans_the_spiral;_ylt=AkcmdMQ.ipwqLtsMRn5Bpfms0NUE

by Corina Ciubotaru for PocketNews (http://pocketnews.tv)

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