An accomplished automotive sales and management executive, Abdul B. Seedat draws upon three decades of experience working at several car dealerships. Abdul B. Seedat serves as finance director at Steven Ford in Jersey City, New Jersey. He also has extensive experience in various finance areas such as corporate finance, investment management, and consumer debt.
A type of consumer debt, student loans are made by public or private entities to help pay school-related expenses of a student who will pay back the loan with interest in the future. Since they are consumer debts, the interest rates charged on school loans are much higher when compared to other debts, such as mortgage loans. Also, because education is an intangible asset and does not increase in value over time, a student loan debtor cannot reimburse the loan directly from profits or an appreciation of assets.
Often, people take out loans during the early stages of their lives for accommodation and education. Later, the degree obtained through the loan puts them in a position to get a satisfactory job with a relatively high income. With the income, they can pay off their debt. Student loans give more people the chance of qualifying for better-paying jobs in the future, which improves the lives of individuals and also creates an upward trajectory for the economy.