While still on the outside of us, wisdom often looks terrible, and wears strange forms, wrapped in the changing conditions of a struggling World. Many people believe that inadequate financial support, lack of discipline, violence, drug use, declining test scores and poor academic achievement are major dilemmas facing American youth. However, one of the few things economic experts will almost unanimously agree on is that student loans are a tremendous hindrance for several college students. There is not more than $1.2 Trillion in student loan debt, which is 6.8 percent of the nation’s total debt, and more than 40 Million (12.6 percent of citizens) now have student loan debts totally an average of $33,000.00. Because of the price gouging of many colleges, student loan debt climbed by 84 percent, since 2007. This is a problem because many students are taking on a difficult that can and will impact the rest of their lives.

Wisdom and beauty do not always go together. Most students are bright eyed and bushy tailed and only believe in succeeding, they are willing to give their all and sacrifice precious memories and times and resources to attend college. These students know that college is expensive, many of them are adults, and their parents will not pay for college. So these students work, seek financial assistance and loans. And many students fall in the trap of student loans. Basically, you have limits, and can make out thousands of dollars, each year, to pay for college, and you do not have to pay the money back, until you graduate or stop going to college. The only way out of student loan debt is death, disability, or pay off, you cannot file bankruptcy. To many students, this sounds acceptable because they have been taught to sacrifice. Our wisdom is eternal, but like if short, make the best of it while it lasts.

However, many young adults do not stop to think about the consequences of student loan debts, and how life may not turn out the way they expect it to, and a few of them, for various reasons, may have to postpone college and they are responsible for paying that student loan money back, as soon as they exit school. The the alarming trend is that 7 percent of students received some sort of federal aid, and 41 percent of all undergrads had taken student loans, which is an increase from 35 percent, from 2009. Now, what these students are not told is that all that student loan debt you are racking up, even if it is in deferment, will hurt your credit scores because of your debt to income ratio (DTI). DTI tells lenders if you will be able to make your payments or not. No more than 40 percent of your income should go to paying debt because that is the highest ratio you can have and still qualify for a mortgage.

The average starting salary is $45,000.00 a year. So these former students are finding out, even when they can afford $500.00 a month to pay down their student loans that they are not qualifying for auto loans or home mortgages. And if you have $33,000.00 to $100,000.00 in student loan debt, it could take you until retirement to pay that off, so student loan debt will be a burden, on your pay, and hurt you financially. Therefore, if you are going to college, consider taking classes at a community college first, then transferring to a University, to reduce cost. Also, avoid student loans, unless you absolutely have to. And reply on common sense, if someone tells you to take as much money as you want, up to a certain limit, and not worry about paying it back, until you start working, does that offer not sound too going to be true? There is no wisdom like frankness. Students are basically being used as credit cards (human capital). Wisdom teachers us not to buy at too dear a price for there is such thing as tyranny in judges.

Nature never intended man to be a tyrant. People with student loans debts have to earn about $9,000.00 more a year, than those without student loan debt, just to qualify for a home mortgage, and are required to make a 20 percent down payment, on the house, they want to buy, reported by American Express. However, stay on top of your student loan payments because that will help your credit history. Unlike a private lender, if you default on your loan, the government can go after you Social Security checks and other forms of federal payment. Meanwhile, for the year of 2013, the Department of Education made $41.3 Billion (which is about the same revenue huge companies like Apple and Exxon Mobil are making), on student loan debt. The Department of Education will also bring in $175 Billion, in profit, over the next decade, from interest made on student loan debts. True wisdom comes when the power paramount, the people, take care that they exercise not tyranny themselves.