Sunday, August 1, 2010

The Debt of International students in US and their contribution to the U.S. economy

US students are provided with financial aid. This includes scholarships, grants and higher education loans. Higher education loans must be paid back. With change in the federal policy limit of the maximum amount which can be borrowed changes. The winter edition of Journal of "Student Financial Aid" suggested that debt payment should be within eight percentage of the total monthly income after graduation. Some financial advisors suggests that this should be made flexible. A rock stone eight percentage rule should not exist.

The foreign students in U.S. have a great influence upon the economy of U.S. Their net contribution is about fourteen billion dollars to the U.S. economy. These international students buys the American products and it has become their fifth largest service which U.S. exports, overlapping the medical services. According to a report the number of students have increased by 3 percent over the last two years. The funding of these students comes from various sources like that of the funding organisations of their home country. Moreover about one third of these students got the funding from the U.S. sources like as the institutions they are studying. The economic contributions of these students are in the form of tution fees, living expenses, stationary goods etc. These students also need to take loan to suuport their education. The number of bachelors degree students are more so these students take more loans. The statistics show that as the level of the academics goes up the average amount of debt rises. For bachelors degree sixty percent students take loans and the average of it amounts to around fifteen thousand dollars and this data is on the basis of community college. Beside it for the private colleges it was found that seventy percent students take student loan which is averaging at around seventeen thousand dollars. For in the case of post graduate students it is about fifty percent students who have taken loan of an average amount of twenty six thousand dollars.

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