SAN FRANCISCO, Feb. 15, 2018 /PRNewswire/ -- Why are student loans such a big problem? Why are loan balances skyrocketing? Brandon Frere, entrepreneur and businessman in the student loan industry, suggests that if we can figure that out, we can solve the problem. However, as past headlines have shown, experts and lawmakers have not been able to agree on the cause of the student debt problem in order to come up with an agreeable solution.
"Lawmakers are trying to come up with solutions to a $1.4 trillion problem, but they can't agree on the cause," said Frere. "It leaves us wondering how effective any potential solution may be and whether it will address the cause or just symptoms of the problem."
In his blog at BrandonFrere.com, Frere outlines the key facts as he sees them: "1. College is expensive, and it has gotten more expensive at a faster rate than it should have in the past two decades; 2. Higher education is necessary for social mobility; 3. Student loans are usually necessary to pay for tuition and the other costs associated with college." He then suggests that the right question to ask might be "Why is tuition rising?"
A possible answer to that question may be that student loans, themselves, are causing tuition to increase. Or rather, the ease at which students can take out loans is affecting tuition costs. Colleges' spending habits have recently been in the spotlight: they have been spending millions on new buildings and amenities unrelated to academics — spending that many critics deem frivolous. However, Frere suggests that the two theories are linked. "Because colleges need to fund the buildings, and student loans are so easy for students to get, they simply charge the students more in tuition."
Frere's own student loan experience is similar to those he hears about from young people today: "When I went to college, I needed student loans, and even back then it was super easy to get them." This common story of taking out loans far too easily and then having trouble paying them back later are clear symptoms of the problem.
"Thankfully," continues Frere, "today there are a host of repayment plans that make it easier to stay in the black on your student loans." Frere worked hard to pay off his loans and felt he battled with his servicer every step of the way. Like so many others, he hopes future college graduates will not struggle so much to pay down their loans. "I'm holding out hope that lawmakers find an effective solution. Until then, the federal repayment plans that are available today will have to be a good enough workaround."
Brandon Frere is an entrepreneur and businessman who lives in Sonoma County, California. He created his website, www.BrandonFrere.com, as a means to communicate many of the lessons and information he has learned in business and personal endeavors, specifically in the federal student loan landscape.
During his own student loan repayment, Mr. Frere found out how difficult it can be to work with federally contracted student loan servicers. His efforts were eventually successful: he paid off his loans and gained an insider's look into the repayment process. His knowledge of the confusing landscape of student loan repayment became a vital theme in his future endeavors, and he now uses those experiences to help guide others through the process of applying for available federal repayment and forgiveness programs.
To find out more about Brandon Frere, visit his website. To reach out, fill out the contact form on the Contact page.
SOURCE Brandon Frere