Student Loans Are Fundamental Principles

1. What types of student loans?

Student loans are credit agreements, which consist of exceptional students, in order to finance their studies for them. They can give anything else a group of individuals, and that another type of investment or consumption. student loan is a tool to increase investment in higher education.

2. The services of the investment in higher education?

Benefits of investing in higher education at both individual students and society. Students can benefit from the investments of one kind may be more high-performance single, more high-level profits in the future and calculates the risk of unemployment. social investment in higher education to win, because the upgrade of human resources in all. A modern economy is not a value decision, as this aspect is limited in terms of economic growth and investment activity in its entirety. Since the formation of a high level of labor force the economy to more opportunities for innovation and economic development effectively.

3. Why the state should participate in the development of the student?

Education Funding - a field that is where government intervention is justified. In addition, investment in higher education are beneficial to the economy, the main reason is composed of many potential students can not cover the costs of higher education due to personal funds or plant families. The markets are unable to provide students with capital through loans, because the bottles can not estimate the level of future benefits for students and, therefore, for them a level of credit risk is high . If the distribution of funding sources will be made on an exceptional basis through market mechanisms, then it is possible to expect that students will only receive the support of wealthy families, because it can give as providing ???????? ?? ?.

4. Why student loans better than other instruments of education funding?

Student loans only one of the possible instruments that can be used to finance education for students. "Loans for Education" or "ready to education" have the same value as "student loans" and may appoint other instruments, for example, grants, national or underbacks are tax exempt, paid for education. All are rented on the ground at a time and defects. Avoid lying down for the granting of the survey, and therefore easier to manage for themselves. But students, get grants, you can begin to consider as an additional source of profit, does not depend on success in school. Distribution of internal underbacks not create difficulties, but it is not a guarantee that students receive the money is. In the case of tax exemption determined using an indirect way and take advantage of this assistance depends on the level of benefit the family. Families with low earnings is paid by taxes low, thus a potential benefit of tax deductions is very insignificant.

5. general description of programs for students

Student loan programs differ in the characteristics of these signs:

1. Who can submit a request to participate in the program? The main criterion for selection of facilities can only be the entrance to the school students or in combination with the family's social position or results obtained from high school or college. Loans can be awarded to students in early studies, the first year or later. There is also a question of whether students in all institutions of higher education (universities and colleges) can be given to applications received student loans or educational institutions (e.g. private universities) or disabled excluded from the program.

2. What you should use the money? Facilities provided under the credit program should be used to pay for education or for the payment of residence in the teaching period.

3. The conditions for granting loans? Credit programs differentiate the maximum amounts of loans, interest rates and the applicability of the various tables of the loan period.

4. Is there a program to encourage the achievement of higher rates of study? multiple stimuli (e.g., decreasing the amount of ransom or lowering interest rates) can be anticipated by the system, so that the students were interested in achieving greater results.

5. What institutions do not participate in the implementation of the program? Financial resources may be given directly to people through assistance vase vases (Forebrains) separate institutions or central government or regional level. It 'also possible to separate the money from schools and universities, which have been independently make a decision in relation to their distribution among students. Depending on the status of the establishment, the program can be private, state, or mixed (involving government and private facilities).

6. The program is set up so as to avoid losses? The program may be a deficit each year, then Sourcing will be needed from the state or the program can be developed so that it will be stable. This means that the deficit does not occur, and after offering costs of state primary negligible or absent.

7. Who should undertake a credit risk? A pot of private credit (or pots of aid) or?????????????? Budgets can bear.

But because the possibility of education they receive, except that representatives of a small group of wealthy elite, but also large groups of students, the system provides financial assistance for which funding has been created in many countries, at least in part, because of State services.

A program, including the use of these three instruments is the basis for expensive treatment of the disease, requiring the final charge of facilities and does not return the loans facilities. Student best instruments mentioned above, because???????? ? Direct contract between the student and the organization, which provides financial assistance. In this case, a student in the future will have to repay a loan should have a strong motivation for studies of effectiveness and success. A student taking a decision on taking credit only if he or she believes that in the future ????????? Seems useful. At the same time, the use of this instrument promises efficient use of limited facilities in the state. Investment condition of the facilities is done correctly and efficiently.