BecomingWhoYouWantToBe

The current recession that we are experiencing is one of the worst in our recorded history. If it wasn’t for the federal government pumping in bucket loads of cold hard cash to prop things up, we would have crashed our economy with unthinkable consequences.

With so many media organizations lambasting us with this information it isn’t unexpected that people start to worry. Amongst the group of people who don’t know what to think about their future are students who are funding their education with either government or private student loans. In short, if you are currently a student then the recession really doesn’t pose any danger to you.

The logic of good government dictates that student loans should be the last thing that they should cut back on is access to funds for education. In the matter of protecting your own government it makes sense to allow people a good education. Cutting back on education funding in the form of students loans, private or otherwise would be similarly expressed as taking your children out of school just to pay for your credit card bills. It isn’t a smart move by any measure. The results of cutting education loans would be a population that is generally lower educated, less competitive and will result in severe problems for the country in the future.

If you look at other industries, students actually have it much easier compared to the rest. Companies or participants in the construction and finance industries have it the worst this recession. So much so that if you are in these industries it is almost guaranteed that you won’t get any funds from banks or anywhere. Sources of funds for these industries have all but dried up. This is why you see so many construction projects that are put on hold and also many small finance aggregators shutting down

Students who are using government or private student loans that are currently studying full-time really don’t have much to worry about in light of the recession. The rates for their student loans are inelastic and won’t really change much. Government student loans are guaranteed to maintain their rates. Issues might become a bit more complicated for students who have part-time jobs as the job market is very fragile at the moment. Jobs are harder to get and harder to hold on too.

Recently a research paper was released and it detailed the different groups of people that were affected by the recession. Student who were actively studying were amongst the least affected individuals. Those that were most severely affected were the elderly and seniors. This is mainly because of how they invested their money in the finance and real estate markets which took a severe dive this recession.

In the long-run students might actually benefit from this recession. The first thing that they will notice is that their rents won’t go up any longer. This is because the price of their rented property probably plunged big-time. Some have even taken it up with their landlords to get a discount on the rent because the rent everywhere else has gone down. If this recession is a long one then it is expected that prices of goods and services will also take a plunge. Again this will be great for students as they can buy more with the money.

Overall we actually think students have it much easier when it comes weathering out the recession. Their students loans, private or government is pretty much set and is very unlikely to increase, their homes would probably be cheaper to rent and the price of goods and services may go down. Students should just worry about their studies and think about the problem of the recession when they start looking for a job.

A look at the Student Loans industry and how it is fairing under the weight of the current recession.