Being a US student will require you a lot of investment and many times you won’t be able to afford to study without getting a loan. That’s why you should always consider getting a student loan as it can indeed help you relieve the financial pressure.
But what are the pros and cons of student loans?
Let’s find that out!
Student loan pros
Student loans are very helpful for most students mainly because they offer immediate financial aid and they can help you get past any financial trouble. There are many reasons why student loans are a great option, as you can see below:
- With a student loan, you will be able to afford any type of college, even if your parents might not have the money to pay for it.
- You can eliminate other financial obligations a lot faster. With their help, you can focus on repaying your college debt without having to worry about any other debts.
- If you do have a poor credit score, the student loans will allow you to improve it. Most of these loans are handed even to the students with a poor credit and if you use them properly you can indeed get away from poor credit situations.
- A student loan will help you get the education you want even if you have no income of your own. They can be repaid by your parents or tutor and you can still get the education you want without any restrictions.
- You can repay the loan on a monthly basis. You don’t have to worry about giving all that money back at once, basically, you have less pressure to deal with so you can focus on your studies.
Student loan cons
Obviously, acquiring a student loan does come with its own set of downsides. While you can get them fast, you do need to be very consistent with your payments otherwise you can easily get into financial trouble. Here are some of the student loan downsides:
- These loans will never go away even if you file for bankruptcy. Not only that but while you can defer loan you can’t just ignore them as you will end up reaching court and repay a much larger amount.
- The student loans come with a high-interest rate that only gets higher if you have a low credit score. Sure, they seem appealing at first but these high-interest rates can be a huge downside for many students.
- Once you get a student loan, you will have to repay it in the designated amount of time. If you don’t do that, this loan will keep you away from accomplishing financial milestones and goals. it can increase your mortgage rate; it will haunt even your retirement if you don’t get rid of it properly.
- While there is a student loan forgiveness program, not everyone qualifies. In fact, it can be really hard to qualify for that type of program which only manages to make everything a lot more difficult.
- These loans come with a high risk because even if you contract such a loan you can’t be certain that the education you get can be a very good one. That’s because some of the private educational institutions won’t offer you the ultimate value for your money.
If you do want to get a student loan, it’s a very good idea to put both the pros and cons in the balance.
This is a major financial commitment so you have to think about it as much as you can. Take your time, study all opportunities and the results can be very well worth it!