As a Result, Students Don’t Pay Their Loans
The accounts payable system in the world of education, especially education in Indonesian universities is not common. Even though there have been many countries in Europe and America that have implemented this kind of payment system for education for a long time.
On the one hand, the education fee debt system is quite effective. The government gave permission to financial institutions to lend some funds to people who wanted to continue their education in college.
So that everyone has the opportunity to study even though they don’t have enough money. In terms of the quality of human resources, this certainly benefits the country. Because almost all residents have a high educational background.
But on the other hand, college debt can also burden many students who have completed their education with a pile of debt to be paid once they get a job. This of course results in the performance of employees who still have debt.
They will try to find various opportunities that can help pay off college debts, and some even are desperate to embezzle corporate funds and corruption so that the debt-stricken financial conditions can improve.
Tuition fees are indeed two different sides of a coin. There are losses and advantages in it. But as citizens of Indonesia we should be grateful because our country does not enforce this system in the world of education.
The irony is that many residents have difficulty accessing college levels due to limited costs. Although this system is not so common in our country, it does not mean that there are no Indonesians who owe education fees.
Education Debt in Indonesia
It is common knowledge that the price of gold will go down every time after Eid or enter the new school year. This is because many people are flocking to sell their gold to pay for school fees.
That is for people who invest their wealth in the form of jewelry. But what about those who don’t? Although not common, many Indonesians owe to pay for their children’s education costs.
There are those who pay in installments directly to institutions where children go to school, some also borrow from several financial institutions such as banks, cooperatives and pawnshops. Not only parents, even students who want to continue their studies to a higher level are also many who owe.
The desire to continue to a higher level makes many people think that debt is one of the best solutions. But it should be, this desire is also accompanied by the ability to pay off debts before graduating from college. In fact, many people underestimate this debt and assume that the debt of education costs is not important.
What Happens if Debt Education Costs Are Not Paid?
Has the above question crossed our minds? A statistical data from the media in the United States shows that around 13% of students there do not consider that the money used to finance their education is debt that must be repaid immediately.
That’s in America, then what about Indonesia? Although there has never been a special study or survey on this matter, it can be estimated that there are more than 13% of students and parents who consider the debt of education costs not something that must be repaid.
If this assumption becomes a culture, both self and the state will experience an unstable economic situation. Therefore, paying education debt should be the first priority when we already have enough funds to pay off everything.
In order for us to be more vigilant, here are some negative consequences that arise if we do not immediately pay off the debt of education costs. Among them:
# 1 Increase in Interest and Fines
Normally, when we have passed the repayment period we will get a warning letter to pay off our debts immediately. If you ignore this, the borrower will usually give you around 28-30 days to pay off all obligations that are ignored
After 28-30 days, you will receive a second warning letter. In this warning letter, usually the amount of fees that must be paid together with the nominal interest and penalties that must also be paid is attached. If the second warning letter is also ignored, you will usually be visited by the borrower to confirm payment ability.
It is common knowledge that the more often we postpone the payment process, the nominal fine and interest that must be paid also increases. Debt that initially feels light can be two or even three times heavier to pay off than before.
# 2 Withdrawals or Auctions for Guaranteed Items
According to government regulations, the borrower must at least issue three warning letters before finally deciding to withdraw or auction the collateral. If this happens, the choice of the insurer is only two.
Pay off all debts or give up collateral and auction items. Even though it looks cruel, as a party who owes, we should be aware of every risk we will face if we dare to ignore the debt.
If possible, try to ask for a little leeway by paying a portion of the debt or interest before asking for time to pay off all dependents. Usually the bank will provide concessions if we have a healthy financial track record .
Solutions for Avoiding Debt Stacking
So that debt is not too piling up. The only way is to discipline all installments on time. Try to live more simply in accordance with our financial conditions. Avoid borrowing money in incompetent institutions such as finance that does not have official permission or abusive cooperatives.
Make sure you borrow from a professional financial institution with reasonable interest and agreements. Normally, financial institutions will set interest at around 0.9 to 2.5% per month. If it exceeds that, make sure again whether the relevant financial institution has an official permit.