| What would you do if your preferred method of caffeine indulgence was no longer available? How would you get your morning fix or stay up late to cram for a test? An announcement that Starbucks plans to serve only decaf lattés might just bring half of our nation to a halt.
After all, we need our caffeine. We rely on the stuff to get us through.
For many people, it's the same way with student loans. Without them, how can a young adult go to college, earn a degree, and make a decent living?
Imagine the shock resulting from a recent announcement by JP Morgan Chase—America's largest bank—that the company will stop issuing student loans altogether. Thasunda Duckett, the CEO for auto and student loans at Chase, explained it this way: "We just don't see this as a market that we can significantly grow."
In other words, there isn't enough money to be made in student loans.
What does this tell us? The lenders who are still in the game are there to make money. They aren't there to help you fulfill your lifelong dream of earning a college degree. They'll stay in the game as long as they can squeeze every penny possible out of you. But because of recent changes in the law, making a profit on student loans is becoming harder and harder for banks to do, which leaves the federal government to take up the slack.
Oh, and the government? They're not any nicer than the banks. They won't make sure you understand the full weight of what you're borrowing. They won't check to see if you can actually make the payments they'll require when you graduate. But they will get their money. One way or another, they'll get their money.
You can't file for bankruptcy on a student loan—and if you go long enough without making payments, the government can take the money you owe right out of your paycheck.
Harsh as it sounds, students loans have never been about helping you get ahead as a student. They're just another money-making machine. And with countless students unable to keep up with payments after graduation, the impact they'll have on our generation is bound to get worse.
So what's a good student like you to do?
Avoid student loans completely. Go to a school you can afford. Period. Research local colleges and universities, tour campuses, look into scholarships, and consider your major. Be smart and include wise adults in the process. But before you sign on the dotted line, do the math. Go to a school you can afford.
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