Category: Education / Financial
Level: National
This article concerns policies that affect individuals and
families.
This article discusses the problems Americans face when
trying to pay down the principle of their student loans.
My views:
In today’s news of the absurd, we find that one must send
written instructions to the institutions that carry your student loan if you
want to your payment to apply to a higher interest loan or if you want a
larger-than-required payment to be applied to the current billing cycle instead
of next month’s payment (which ensures that additional interest will accrue). I
think it is ridiculous and a clear example of financial institutions making as
much money as possible off of student loans. This practice penalizes people for
actively trying to pay down their debt as much as possible. It is wrong.
There needs to be more oversight over financial
institutions. Their policies and practices should be clear and straight-forward
and not be designed in order to make as much money as possible off of debt.
Financial institutions are already well-compensated for the loan services they
provide and should stop nickel and diming their customers in order to squeeze
as much money as possible out of them.
Improving oversight, imposing more restrictions, and demanded
that consumers be treated fairly will help Americans with their debt and financial
well-being. In the meantime, it is a lesson to us all that we need to be diligent
and eagle-eyed when dealing with financial institutions. Even though I believe
that regulation and policy would even out the financial playing field, we must
all take it upon ourselves to review our debts carefully and to pay attention
to every communication received and payment made.
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