If you are heading to college or university, you may be weighing up your options regarding student loans. We all know that getting your degree can be expensive. The good news is that student loans are available to everybody. But some people are hesitant to take on this responsibility. Let’s take a look at whether student loans are really worth it.
The Pros
The obvious advantage of taking a student loan is that it can make education more affordable. For a lot of people, the growing costs associated with college and university is impossible to afford. Student loans mean that you can pay your tuition fees without having several jobs at the same time. Simply, education for many would be unattainable without them.
Student loans also mean you can choose your dream school. If you have had several offers, you will start to look at the price of each college. You may be forced to choose the most affordable option. But a student loan means you can take money out of the equation and choose the school you really want. This can lead to better job opportunities and future prospects.
The good news is that student loans can be used for anything. This means that you can use the money for tuition fees, as well as living expenses. You can afford to move into a dorm room for the whole college experience, as well as cover living costs. You can also use your loan to pay for books and study aids.
A lot of people are worried about getting into a lot of debt with student loans. But the benefit of taking one now is that you can start to build credit. Young people often do not have a lot of credit and this means they can struggle for loans in the future. Getting one now can really help since some companies let you start without credit.
The Cons
There are some disadvantages of a student loan that you should be aware of before making your decision. For example, some people may feel uncomfortable about acquiring a lot of debt early on in their life. There are some people that can find having debt stressful. Indeed, student loans can be expensive.
Another aspect to consider is if you default and miss payments on a student loan, it can hurt your credit score. The last thing you want is to damage your credit score when you are young. It can take years to repair the damage and by this time, you may be trying to buy a house or secure a business loan for your new venture.
The Verdict
Overall, the advantages of a student loan outweigh the negative aspects. Of course, loans can be expensive but it can also give you the kickstart you need in your life to have a good career. The most important thing is that you are financially responsible and you can handle taking on a student loan while you are studying for your degree.
