The debt trap through student loans for the lower class: burdens, uncertainties and social hurdles

The course is considered a way to better life prospects, especially for young people from economically weak households. But for many, the dream becomes a financial risk because the state support options such as BAföG are only accessible to a small proportion of the students. Especially for the lower class, the student loan often remains the only option to studyfinance, since families can usually only offer little support and the cost of living is constantly increasing. This forces those affected to take up high credit volumes and to deal with long-term repayment obligations at an early stage.

Variable interest rates and high credit burden

The KfW student loan is a typical example of the debt trap: due to variable interest rates, the repayment amounts often rise surprisingly and uncontrollably due to a changed market situation. After the end of the low interest rate phase, many former students were confronted with suddenly high interest rates. Especially households with a low budget experience existentialnecessary, since the loan repayment becomes a barely acceptable burden and the debt level continues to grow.

The real danger of dropping out and dependency

Combined with inflation and the further increasing costs of living and living, this situation causes some students to drop out of their studies because the financial burden seems insurmountable. Lack of upper limits and changeable interest rates make long-term planning almost impossible. The result is a significant risk of over-indebtedness, especially for young peopleprecarious circumstances.

Career entry with burdens and little perspective

Many graduates are already starting their professional lives with open loans, which limits their economic flexibility and social advancement. Those who come from the lower class often have no access to well-connected career networks, are disadvantaged on the labor market and will not find an appropriate permanent position after graduation. Instead of being in the learned professionWork, many end up in low-paid part-time or mini-jobs, which means that the debt repayment continues to be delayed and financial dependency remains.

The cycle of debt and social dependency

The combination of high debt and precarious employment leads to long-lasting dependence on social benefits. Social advancement is blocked and young academics often cannot reach their full potential. In this spiral, many permanently lose confidence in the education system and the prospect of a self-determined life. The burden is mainlyThe hardest that loses faith in the social value of education early on due to the financial risks.

Educational promises without security

Student loans provide short-term access to higher education, but long-term risks and social hurdles are significant. Without comprehensive reforms and targeted support, higher education remains a risky risk for the lower class, which brings more financial uncertainty than social advancement. Education policy and society are required to improve the structureschange so that debt-free education and social mobility can be reached for everyone and that nobody remains permanently in the shadow of the debt trap because of their origin.