Banks do not offer any person whose income is low and no
credit history, any loans or financial assistance. But of course, there is a
type of loan that is available in the developing countries, which are provided
to individuals who meet the criteria of accuracy. It is primarily designed to
encourage entrepreneurship and help those who do not even have a warranty to
cover loans. The name of this financial product is "micro-credit".
Although it could be argued that student loans are a specialized loan in no way
be compared with microcredit.
Students are not tangible assets (houses, stocks, bonds,
investments, 401K), but they are almost as administrative safeguards. For the
starting of a race, led to the belief that they have difficulty to repaying
their loans. Microcredit is reserved for those who are established in support
of poverty. However, you can use microfinance to help the student debt
consolidation?
Imagine for a moment that when students graduate and enter
the adjustment criteria are entitled to microcredit. This would help to
consolidate student loan debt effectively consolidate their existing debt on
the books of a micro-credit contracts. It can be essentially a corporate rate
in a "course" call benign change as microcredit.
Microcredit is supported by the United Nations as a means to
eradicate poverty and promote economic growth in developing countries. We cannot
deny the possibility of success of microcredit in the world and good in the
years to come. In fact, the same field of microfinance was Nobel laureate who
Younse. With this performance profile, then this concept may indicate that some
students say is that those who need financial incentives to all aspiring
entrepreneurs. Encourage low-income families and families achieve their goals
of economic independence and freedom.
The biggest obstacle you may encounter find institutions
willing to participate in the reform of student loans, with so much money
generated by the process each year. It would be another problem, and considered
by the Government. In theory, however, is an inspired choice for change on the
issue of student debt.
Thank you for taking the time to read my article!
