Nowadays, anyone who wants to study at a university but is unable to pay for their studies can easily and quickly receive a study loan in order to obtain this higher education, but why are these credits so easy to give? Often, at least 10,000 Euros will be needed for a child to study in a Bachelor’s program, with a credit that is likely to cost at least 10 years a month, paying around 100 Euros per month, a huge amount for a young person just graduating from university . That is why I would also like to find out why these loans are so easy to get and they are generally provided without any collateral and even despite the higher education program and the average income of students after graduation. Mostly, four main categories can be distinguished, which are then responsible for easy study loan terms and the fact that it is so easy to obtain these loans.
Profit of creditors
First of all, looking at these study loans, we can see that the main institutions that earn are directly the banks and non-bank creditors who then issue these loans. That is why creditors also want as many young people as possible to take these study credits, which will then be repaid in addition to paying interest. GPL rates for study loans are usually 4% to 7%, which means that the bank receives this type of return each year, and looking at other percentages of income shows that banks are getting a very good offer. And even better, these loans to the banks are because they can’t be deleted in any way, even with the bankruptcy of a private individual, like other types of credit. Therefore, the bank has almost a 100% chance that it will recover its money and therefore these loans are issued as much as possible.
Profits of universities
The next winner, of course, are the universities themselves, which require enormous tuition fees to be able to get out of these children, and because a large proportion of parents cannot afford to pay such large amounts, new students have to take out loans. Higher education institutions earn very well, given that each student receives at least 1,000 Euros each semester, if 100 students are enrolled in the university, this school will be able to receive at least 100,000 Euros each half year and certainly a large part of this money will be financed directly by credit. Considering that there are more than 100 students enrolled in major universities, this is a very good business, and because both the bank and the bank are both interested in earning money, this credit is a very good business because the winners and all! (except students, of course)
The naivety of students and their parents
Of course, you can look at the problem directly from the profit side, but turning it upside down shows that the students themselves are guilty of it, and definitely their parents, because both of them have not yet realized that most universities do not make any sense and this diploma has no value! Maybe in earlier times, when there were fewer professions in the world, one could create unified programs and teach all the students the same thing, but in today’s era of technology, where every corner is getting new and new professions, this model no longer works, and these bachelor degrees are useless papers. Looking at the employer, he is looking for people who are willing to learn, develop and invest in the development of their skills, so he is not interested in what a person has studied at a university or what his / her profession is. Perhaps in some big industries like medicine or engineering, it is necessary to learn hundreds of people in a single program, but I doubt it will be productive for a long time, as these industries are also gradually being changed through technology and in the coming years people will no longer have to do simple things. but people who think and solve problems.
Apama education system
And finally, we come to the point where our educational system is basically wrong and children should not teach everyone to be the same, but let them do what they like. But each of us is different and each of us should only do what we like, not trying to learn in the university professions that could only earn to survive. Educational system with us In Latvia children from the very earliest age are taught to listen to teachers not to think their own solutions to their problems and if the child has figured out the answer to a task in a different way, as it is written in the educational book, then the teacher is likely to think he has written off because hardly the teacher has tried to solve these problems in several ways not only in one. If we wanted to put this whole system of higher education in order, then it should definitely start with primary education and change everything that has been done in other centuries. We need to start thinking about the current problems and how to tackle them rather than trying to solve them with prehistoric systems, and even more so to make young people fall into huge debts, as is happening now!