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 federal government has realized that of all the loans that have to be protected and given certain priority, student loans rank very high. After all, cutting the education loans budget would be akin to you cutting your children's education just to save a few pennies. It is a terrible move with devastating knock on effects for the general population in the future. The education level of the general public will decrease substantially making the country less competitive and may even cause a greater recession than the one that we are already in.
Participants in other industries might not be so lucky as students when it comes to their fortunes during this recession. Construction companies, mortgage providers or even other loan portals will find that the recession is quite bad for them. Construction companies will have next to no access to funds as banks will most probably turn down their application the same way that any company dealing with loans of mortgages will also be shut down. You will see small mortgage providers going out of business and many construction projects put on hold.
Although those with existing student loans private or otherwise have very little to worry about those that are starting their college years and looking for student loans may find things trickier. The first thing most would notice is that private student loan rates have increased slightly compared to pre-recession periods. For those who are servicing their loans it might be harder for them too because jobs are harder to come-by and some may even have the bad fortune of being laid-off. If however you are in school, there is nothing to worry about.
A brief study into the group of people that are affected most by the recession saw current students rank very lowly. This means that life basically goes on for them quite normally. The group that is most affected by the recession are the elderly, retired and seniors. Their health and wellbeing wouldn't be affected but the fact is that most of them bought multiple houses during the real estate boom time and their investments would most probably have halved in value since. This means that they have taken the biggest hit financially.
In the long-run students might even stand to benefit from the knock-on affects of the recession. The first thing that students might notice is that the rental for their homes might have gone down. This is because of the underlying price of the homes have deteriorated over the recession and some landlords base their rental price on the price of their houses and that the general rental price for properties have also deteriorated city wide. Most of us will also see that the prices of general goods and services might also decrease slightly. Again for students, this is a good thing as their student loan will provide a stable source of funds.
We actually see the life of students getting a bit easier in the recession. This is of course assuming that the student is already using his/her student loan and isn't finishing their studies anytime soon. Current students on student loans are exposed to very little of the downsides of the recession but are able set up to receive the upside of the recession quite readily. They should only worry about the recession when they are finishing their studies and looking for a job.
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