Student debt is money owed as a loan to meet the student education expenses. The educational services are becoming expensive day by day. The students take debt to pay high admission fees, exam fees, and other expenses.
Student debt is a kind of loan that is generally paid back after the course completion. Some educational institutes provide the facility of allowing the debt to finish their training programs and apprenticeship. The total amount taken as a loan has a lower interest rate as compared to other debts.
However, the RTE(Right to Education) has helped in eradicating the high cost. It aims at allowing lower fees and scholarship options to reserved class and merit holders.
For higher studies, the amount of debt increases at a humongous rate. It involves the cost of books, training, faculties, professional team teaching, expenses of accommodations, etc. Digital learning options have lowered the accommodations and other charges.
There is a general perception that high debt is paid back easily by the high income after the course completion. But the rate of inflation and the situation of employment raises a big question in the minds of parents and students for such huge student debts.
The top education institutes offer more opportunities to recover the student debt amount by providing scholarships and better job opportunities.