HappyLifestyleJournal
Parents have always tried to prepare for the inevitable time when their children have to attend college. It is both a proud and scary moment for parents because attending college is a great accomplishment in their eyes and also means bigger expenses that the family might not be able to afford. So the most natural solution that they can think of is taking out student loans. Ideally, student loans are made to make higher education available for everyone. But there are always two sides to every story.
Lasts for a Long Time
When you take out student loans, everything sounds attainable. But beware, they can last for many years. There are people who have already become parents but are still paying off their student loans.
They Cost a Lot
Sometimes, when taking out a student loan, you only look at the goal, which is to be able to graduate from college. However, if you are going to factor in the cost of tuition and other necessary expenses for the duration of your higher education plus the interest accrual of the loan, it really is very expensive.
You Must Pay
Student loans are a kind of commitment you cannot get out of unless you pay for it in full. Regardless if you graduate or not, you still must pay for the loan. This causes a lot of problems especially if your work does not really pay a lot. Filing for bankruptcy will not even save you from paying your student loans.
Credit Score Consideration
If you have no problems with paying off your student loan, that’s good. But student loans have a way of ruining your credit if you don’t manage them wisely. If your student loan goes on default, it will affect your credit rating and will stay on the report. This can affect other future or pending loan applications.
Interest Accrual
As all loans go, interest starts to get added as soon as you get the loan. This means that even if you are not required to pay for the loan during the in-school period, interest is already piling up.
Additional Expense
Imagine if you are already working and have just recently started a family. Instead of being able to concentrate on building your personal and family savings account, student loan payments will always be present in your monthly expenses, which are on top of house payments, utilities, car payments and everyday household expenses.
Conclusion:
As you know, student loans can make your student life easier or make you want to forget the moment when you took them out. Taking out student loans is a big responsibility that you must prepare yourself for. Are you in for the long haul? If you’re not sure, it might be better if you consider other options like grants and scholarships first. These can save you a lot of worries about future payments and at the same time will offer you the chance to study for a college degree at minimum expense.
