Getting a place in a university or college can be one of the greatest experiences one can expect in their life. One of the typical problems that involve higher education, however, can be the money students need to finance their study. While you can legally take out a student loan and stop being worried about helping yourself through tertiary education, there’s a lot more to take into careful consideration before you decide to count on a student loan.
Like some of my friends, I took out a student loan to finance my educational costs for the first year at university. During the time, I wasn’t bothered with tuition fee and certain other costs. The loans can be really big, and you may love that while you’re still in university. However, these will add up to a massive amount of money awaiting after your graduation. It’s just good that I didn’t rely on student loans for my last three years.
You’ve just graduated and have a lot of ambitions either in your career or in further study. However, your debt may leave your ambitions unfulfilled as you have to face debt repayments. This debt burden can also prevent you from setting up your own emergency savings account or preparing ahead for your retirement.
In some cases when students cannot graduate, they still have to pay the loans and there aren’t any priorities, whether it is payment extended or a lower interest rate, for them. This can be a hardship, especially for those whose incomes do not live up to the amount of monthly loan repayments.
What’s also worth noticing is that student loans are no interest-free credits which will just never vaporize away. Interest is charge on the amount of money you borrowed. The interest rates can be very high and depend on the amount you got. This can be a burden on not only the newly-graduated but even also on those who have already worked for a long time.
There are certain reasons why student loans should be treated as a last resort to finance your university or college education. It is much advisable for you to have specific plans for your student life which may help prevent a huge amount of debt after you graduate.
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